Stock image, for illustration only. Not related to the actual events.
Australia’s 196,000 poker machines account for more than half the nation’s gambling problems, a Senate inquiry heard this week, renewing calls for governments to restrict the devices that generate tens of thousands of dollars per machine annually.
The inquiry heard allegations this week of predatory practices by gambling businesses, including reported inducements of drugs and escorts used to target problem gamblers. Industry body Responsible Wagering Australia strenuously denied the allegations.
Academic research presented to the inquiry concluded that electronic gaming machines drive a disproportionate share of harm compared to other forms of gambling. The study found pokies accounted for more than half of gambling problems in the country, while bingo and lottery play showed no detectable risk.
The findings come despite federal restrictions introduced in April to protect vulnerable Australians from online gambling harm. Those measures included advertising restrictions, boosted enforcement against illegal gambling services, a strengthened self-exclusion register for casinos and poker machine rooms, and actions addressing harmful online lottery products.
But the measures do not address the 196,000 poker machines already operating in clubs and venues across the country, with the exception of Western Australia. The distribution is heavily concentrated: New South Wales hosts 95,012 machines, Queensland has 46,663, and Victoria operates 28,860.
Revenue and harm
Research estimates the average poker machine in clubs and hotels generates $56,000 a year, with some machines in Victorian venues making more than $200,000 each. The revenue quietly subsidises clubs that provide food and entertainment, creating a financial incentive that complicates regulation.
A comparative study of gambling habits in Western Australia and other states found gambling problems and harm are about one-third lower in WA, a difference researchers attributed to limited access to pokies. Unlike the rest of Australia, Western Australia restricts poker machines to casinos rather than allowing them in clubs and hotels.
The concentration of Australia’s poker machines rivals only Las Vegas, making the country an epicentre of machine gambling. Other countries typically restrict the devices to casinos or betting shops, but in most Australian states they’re pervasive in community venues.
It’s now widely accepted that some types of gambling are addictive. Documented cases of problem gambling include individuals who have gone bankrupt or taken their own lives, though not all gamblers are affected.
The inquiry’s findings suggest that if governments want to reduce harm caused by problem gambling, further limiting or reducing the number of poker machines would be a logical starting point, despite the revenue they generate for venues and state coffers.
Key questions answered
How many poker machines are there in Australia and where are most of them located?
There are 196,000 poker machines in Australia, with the majority in New South Wales (95,012), followed by Queensland (46,663) and Victoria (28,860). They operate in clubs and venues across the country, except in Western Australia.
How much money does the average poker machine generate each year?
The average poker machine in clubs and hotels generates $56,000 a year. Some machines in Victorian venues make more than $200,000 each.
Why does Western Australia have fewer gambling problems than other Australian states?
Gambling problems and harm are about one-third lower in Western Australia compared to other states. Researchers attribute this difference to limited access to pokies, which are restricted to casinos rather than being available in clubs and hotels.
What federal restrictions were introduced in April to address gambling harm?
The April restrictions included advertising limitations, boosted enforcement against illegal gambling services, a strengthened self-exclusion register for casinos and poker machine rooms, and actions addressing harmful online lottery products. However, these measures do not address the 196,000 poker machines already operating in clubs and venues.