Advocates of poker machine reform are behind another push to reduce numbers to demonstrate they are doing something, rather than face the real issues.
A proposal is being put forward by Inner West Mayor Darcy Byrne to cut the number of electronic gaming machines (EGMs) in NSW by 50 per cent over the next decade. Other notions have been proposed by the boss of Unions NSW and by Labor upper house candidate Mark Morey. The proposals may be voted on at NSW Labor’s state conference in July.
Reverend Bill Crews is a Uniting Church minister who runs the Exodus Foundation for the disadvantaged. He considers himself a friend to NSW Premier Chris Minns, who he “really respects” and hosts alongside the PM every Christmas at his free Ashfield restaurant.
Crews is publicly backing the cut to EGM numbers, relaying anecdotes of poker machine players “afraid” to use the restrooms, reportedly convinced by the machines to think the next spin will win.
In 1997 then NSW Labor premier Bob Carr considered the arguments put forward by the Australian Hotels Association to allow poker machines into pubs, to allow them to compete with local clubs, which had EGMs since the mid-50s.
In perhaps one of the first instances of self-justification, when pubs were granted licences for the machines what was the NSW Registered Clubs Association claimed the change would threaten community projects.
The 2023 state election in NSW saw pokies reform front and centre, and as part of the winning agenda Minns committed to a trial of cashless gaming systems that was to be offered across hundreds of machines at multiple venues.
After disappointing results, with almost all venues dropping out and almost no players participating, the resultant report was widely panned and Minns refused to proceed with a statewide rollout.
The Premier has opined that Australia is in a situation where EGMs are commonplace in most communities and has downplayed the likelihood of significant reforms as the cost would be prohibitive, requiring “buckets of money to compensate” gaming venues as they “drive them out of business”.
Instead, practical measures aimed at actually helping people with gambling addiction issues have been undertaken, such as the reduction in the feed-in limit for new machines, an increase in the forfeiture rate, a ban on signage, and strict adherence to the daily 4am to 10am shut down period.
Stick to the facts
Anti-gaming interests employ a repetitive array of misconceptions and half-truths to perpetuate simplistic arguments calling for sweeping change, such as often stating Australia’s over representation in poker machines.
Mayor Darcy Byrne recently claimed NSW has more poker machines “than any jurisdiction on earth”.
In truth, NSW’s share of the world’s EGM populations has been in decline for decades. At nearly 88k it has very close to the same number as California, but pales against the US state of Nevada, with 148,644.* Some countries, such as Latvia, Spain, Mexico and Argentina do not even provide breakdown by jurisdiction.
Australia was estimated to have 185,763 machines installed in 2023, down 1,393 machines from 2022, amounting to 2.79 per cent of the world.
Further complicating an inaccurate like-for-like comparison is that not all gaming machines are the same, those found in Australia quite different to the US ‘slot’ machines or Japanese ‘pachinko’ machines, and that only Australia and New Zealand allow poker machines in venues such as pubs and clubs.
“The GTA and its members have also been working with State and Territory Governments, right across Australia, to implement gaming reforms that will provide stringent oversight, and the strongest possible safety net for gaming players,” Gaming Technologies Association CEO Jinesh Patel told PubTIC.
Blame the Lobbyists
If there isn’t an evidence-based argument to be made, the proliferation of poker machines is frequently blamed on the back corridor dealings of the ‘gambling lobby’, the implication being prioritising profits over social culpability.
It’s been said “many within Labor feel” Minns has been reluctant to do more due to influence from the “powerful clubs lobby”. Crews went further to liken the effect of industry as akin to that of America’s infamous National Rifle Association, saying they have become powerful and “ruthlessly exploit that influence”, which would seem to ignore the fact that clubs are not-for-profit.
Another article promoted a book by author Quentin Beresford, titled Hooked: Inside the Murky World of Australia’s Gambling Industry, which speaks of the “infiltration” of EGMs in NSW from the 1950s to today, as operators “saturate media with marketing and promotions”. This would appear to be a flawed premise, given the laws against advertising or promoting gaming rooms.
The book purports to tell of political parties, politicians and decision-makers “prioritis[ing] profits over public health” and jurisdictions “addicted to gambling taxes” adding to accusations of the “failure to prioritise community wellbeing”.
Demonstrating the incongruence, former Premier Bob Carr recently voiced his opinion that pubs and clubs should be subject to a super-profits tax on their immense earnings, suggesting it would be good public policy for governments to look at the “grossly excessive profits” in the sector.
Gaming machine revenue in NSW has grown consistently above inflation. In the past 27 years inflation has seen an average rise in costs of 113 per cent. Gaming takings in clubs has grown from $2.5 billion to $6.2 billion, a gain of 148 per cent, and pubs from $900 million to $5.4 billion, marking 500 per cent.
But beyond bolstering the argument governments are ‘addicted to the tax’ it doesn’t hold to base a taxation system solely on curtailing growth or success, as seen in the failure of a recent bill aiming to collect more tax from people with multi-million-dollar super balances.
The Federal government recently released its response to the 2023 bipartisan parliamentary report into gambling, known as the Murphy Report, which had included recommendations for a total ban on online gambling advertising and the establishment of a national online gambling regulator.
Instead, the response outlined there will be a partial ban on advertising appearing on television and radio, sports jerseys and at stadiums.
This similarly prompted rhetoric that government was “leery of taking on the gaming lobby” or creating any disruption to the gambling taxes “flowing into its coffers”. Also, that none of the NSW Crime Commission recommendations to combat organised crime and money laundering have been adopted.
The spectre of those thought responsible for maintaining the status quo is seemingly not limited to profiteering companies, incorporating crime figures, while apparently forgoing any plight of gambling addiction, which, like heroin and other illicit drugs, exists whether the machines are in pubs and clubs or not.
More pragmatically, regulations have trended toward measures that actually aid those with a problem. The GTA says industry is working with the NSW Government to implement progressive harm-minimisation measures, including several venue-specific and multi-venue trials of account-based gaming technologies.
“The GTA also acknowledges the right of players to exercise their personal agency, and freedom of choice, when deciding where, and on what, to spend their entertainment dollar,” furthers Patel.
“While gambling harm is a serious issue that the industry is working very hard to alleviate, the vast majority of players are not affected by gambling harm.”
*World Count of Gaming Machines Report 2023
