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The New South Wales Treasury has predicted that slot machine revenue will hit a new high within the next decade to hit $9 billion per year. And, with that, comes a big boost to the NSW Treasury in the form of gaming machine taxes. However, not everyone is happy with these numbers.
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The Sydney Morning Herald found some interesting information in new NSW Treasury documents this week. Poker machine revenue for NSW is due to hit $9 billion annually by the year 2029. This will be an increase of $2.5 billion. Meaning people will spend $85 billion on slot machines in the next 10 years. It also means the NSW Treasury will take $2.5 billion of that in gaming machine taxes.
These extraordinary numbers have caused concern among the general public, in government circles, and with organizations like the Alliance for Gambling Reform.
AGR spokesperson Kate Da Costa, told the Sydney Morning Herald, “NSW is not normal. Losses through poker machines in clubs and hotels are now running at $17.7 million every day. Star Casino adds at least another $920,000 a day to that figure. These are losses, not turnover figures – a huge sum of money which is a proxy for untold misery and harm.”
It should be noted that the most recent Treasury numbers are in line with those released just one year ago. Those numbers estimated that poker machine profits would reach $7 billion by 2021. This would be a 12% increase over four years.Regulation Not Enough?
There are laws in place to limit the number of poker machines – all slot machines, also known as pokies – throughout New South Wales. But even so, gambling losses to machines have increased significantly of late, more so in pubs rather than clubs.
Estimates show that pub pokies losses are expected to increase by 50% from the 2018-2019 numbers to those expected in 2028-29, while club losses are only expected to increase by 30%.
According to the laws on the books of the New South Wales government, the Gaming Machines Regulation 2010 was updated on March 2019. The original 2010 law limited machines in clubs and hotels to 99,000 and 1,500 in casinos. This limits the total number of machines in NSW to 10,500. But, the latest Gaming Machines Amendment Act 2018 put a cap on pokies in areas identified as ones with concerning levels of problem gambling.
The result was that approximately 20% of NSW was prohibited from obtaining new pokies. And fines were increased to keep establishments from skirting the law and paying the fines as a cost of business.
An overview of the latest predictions for NSW poker machine revenue, however, shows that the law may have underestimated the popularity of the machines and their prevalence.Concerns Abound
Independent MP Justin Field was the first to express his concern after analyzing the Treasury numbers. “The explosion in poker machine profits forecasted for the clubs and pubs, in spite of government reform, is another example of politicians turning a blind eye to the impacts of gambling on communities,” he said. “The Labor Opposition remains deathly silent on this important social issue.”
Field pointed out that the increases match a rising level of political contributions from the Australian Hotels Association. It also comes from other lobbying groups like Clubs NSW. For example, the AHA gave more than $416K in 2018 political donations. This is compared to little more than $89K in 2017. Donations have gone to the NSW and federal Labor and Coalition parties.
Referring also to the recent Crown gambling investigation, Field noted that it shows “the capture of major parties by the gambling industry and their complete and historical failure to regulate gambling in the public interest.”NSW Increases at Odds with Responsible Gambling Efforts
The NSW Office of Responsible Gambling has been in the news quite often of late. It processes funds for various initiatives and programs dedicated to reducing gambling harm. Grand casino hinckley poker room. It also provides more resources for anyone with gambling concerns.
The Responsible Gambling Fund takes a portion of casino games licensing fees, through the Gaming Machine Act, and via the Treasury. It has led to significant funding for the overall responsible gambling strategic plan for 2018-2021.
Rivers casino new years eve buffet. Millions are being invested in research, education and awareness, support services, partnerships, and technology and innovation.
Most recently, the Office of Responsible Gambling commissioned and received a report from Flinders University. This will help determine future objectives and fill in the gaps where programs aren’t working as well as predicted. Further research will identify more areas where funding would be helpful.NRL star Nathan Hindmarsh talks about his poker machine addiction..Nsw Poker Machine Supply Inc
NRL star Nathan Hindmarsh talks about his poker machine addiction
Pokie profits in NSW are more than a quarter of a billion dollars for the top 25 pubs, but the community is asking at what cost? Picture: News CorpSource:News Limited
TALK about hitting the jackpot.
NSW’s top 25 pokie pubs, all based in the greater Sydney region, raked in nearly a quarter of a billion dollars in profit in the past financial year, it has been revealed.
Liquor and Gaming NSW published the list of the state’s top 25 earners, with the El Cortez Hotel in Fairfield sitting in top place.
But there are warnings that the “mega profits” have come at significant community cost.
Thirteen of the 25 hotels are in the Fairfield and Canterbury/Bankstown region.
Fairfield, the city’s most disadvantaged area, demanded a freeze on new machines in clubs and pubs in at-risk communities in a submission to the state government.
The 25 hotels made a total of $253 million in poker machine profit during 2016/17, according to NSW Greens MP Justin Field.
The NSW government anticipates raising more than $100 million in tax from the top 25 hotels, Fairfax Media reports.
Mr Field says the hotels’ “mega profits” cause immeasurable harm to families and communities.
“Pokies are highly addictive products,” he said in a statement on Tuesday.
“(There are) powerful lobby groups pushing in their favour and covering up their true impacts.” The Greens MP is urging the state government to protect the vulnerable and wants the government to consider $1 bet limits along with an acceleration in the overall reduction in the number of poker machines in NSW.
Fairfield City Mayor Frank Carbone in July called on the NSW government to stop investing in poker machines in his community.
Poker machine, gaming, gambling. Generic Picture: SuppliedSource:Supplied
Today, he again urged the NSW government to protect vulnerable members of his community.
Mr Carbone said while Fairfield is home to 2.6 per cent of NSW’s population it houses four per cent of the state’s poker machines and contributes nine per cent of tax revenue from pokies.
All this while suffering from unemployment rates double the state’s average, the mayor said.
“We urge the state government to correct the imbalance of tax revenue received from Fairfield City and to invest it back into the local community through the creation of jobs and infrastructure.”
ADDICTIVE PROFITS
NSW has half of Australia’s gaming machines and 10 per cent of the total worldwide, with about 95,000 machines across the state.
Players can feed in as much as $7000 into just one machine.
About $8.27 billion was gambled on pokies in Fairfield alone, and $80 billion played across NSW in 2015-16.
That’s around 55 per cent of the national total gambled on poker machines, which was $135.7 billion in 2014-15.
About 85 per cent of what punters gamble is paid out in winnings, but that still leaves a not insignificant $6 billion in revenue for clubs and venues in NSW alone.
State governments claim around 25 per cent tax on the machines’ earnings.
In Western Australia, pokies are restricted to casinos only.
In July, the Victorian Government froze the number of pokies in that state until 2042 as part of a suite of reforms.
Australia has the highest gambling losses per capita worldwide, dwarfing casino hub Singapore. An analysis by The Economist early this year revealed Australians lost more per person than any other nation in 2016 — a massive $1292, averaged out across the population, not just gamblers ($11.6 billion in total).
The reason? Pokies. Losses from the gaming machines found in pubs and clubs across the nation were bigger than the total per capita gambling losses of nearly every other country — largely because of Australia’s permissive bet limit rules, which allow punters to lose up to $1498 an hour.
REFORM CONSIDERED
NSW Racing Minister Paul Toole, who oversees Liquor and Gaming NSW, said the government is considering reforms to the scheme which examines the impact of gaming on communities and strategies to address negative impacts. “The government will be considering all the evidence during this process, not just numbers cherrypicked by the Greens,” he told AAP.
Meanwhile, new federal welfare measures announced on Tuesday — which are designed to stop job seekers spending taxpayer dollars on drugs — are to be trialled in neighbouring Canterbury-Bankstown.
They could lead to less money being pumped into the pokies, the federal government argues.Poker Machine Joc
Anyone who tests positive for certain illicit drugs will have 80 per cent of their dole payment quarantined in a cashless welfare card.
“We hope (the final 20 per cent) is still used for the intent of which welfare was provided — rather than used at the pokies,” Social Services Minister Christian Porter told reporters
Mr Porter said a similar cashless welfare card trial at Ceduna in South Australia led to a dramatic reduction in the local club’s poker machine revenue.
SYDNEY’S TOP FIVE POKIE PUBS
1 — El Cortez Hotel, Canley Heights
2 — Railway Hotel, Lidcombe
3 — Markets Hotel, Flemington
4 — Eastwood Hotel, EastwoodNsw Poker Machine Supply & Services
5 — Cross Roads Hotel, Casula
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