In Australia, are pokies leading to a persistent gambling addiction problem in the outback?
In Australia, the consequences of its liberalized gambling industry are becoming apparent. Poker machines, also known as "pokies," have spread across the country, not only in casinos but also in pubs, shopping centers, sports clubs, and discos. The impact is particularly felt by the poorest citizens who tend to use them the most.
The annual revenue from Australia's gambling sector amounts to around AU$ 24 billion or around € 17 billion. However, this shouldn't be seen as a cause for celebration, as the industry's profits are coming from areas already plagued with suffering. Australia has a significant gambling addiction problem - each citizen loses an average of around €1,000 a year gambling, making the country the world leader in social gambling statistics.
The highest concentration of pokies is Australia, where there are now over 183,000. Players can even deposit up to AU$7,500 in one go, a feature usually reserved for gambling capitals like Monaco or Macau. The distribution of these money-consuming machines is an immense socio-political issue.
The problem isn't just slot machines; it's the high density of pokies. In 2017, the Australia Institute conducted a study comparing the national development of slot machine gambling internationally. Their findings were alarming, urging policymakers to rethink:
"Australia has a large number of poker machines and our decision to allow these devices in pubs and clubs makes us a global anomaly. Australia has only 0.3 percent of the world's population, but six percent of the gaming machines and 18 percent of the poker machines." - Bill Brown, co-author of the research
In terms of population density, the world's sixth-largest country has the most pokies, with many falling into socially disadvantaged areas. Some regions allow up to AU$7,500 to be deposited in one go, which is only possible in places like Monaco or Macau.
Gambling at the Cost of the Disadvantaged
About 21.5 million people live in Australia, and not everyone spends an average of €1,000 a year on these machines. However, many individuals lose up to €5,000 - €10,000 in a year. While this may not be the majority, it's the people who can least afford it. This often leads entire families into financial distress.
In an interview with the New York Times, Dr. Angela Rintoul from the Australian Gambling Research Center discussed the phenomenon, comparing two regions - rich vs. poor - in terms of pokie density and player behavior.
In the poorer region, Rintoul recorded twice as many pokies and losses three times as high. She also highlighted the casino-like tricks used by operators to lure customers, including the option to reserve a favorite pokie, the presence of models, and free drinks provided by the operators.
Local authorities benefit greatly from the financial drain of the affected individuals, with the gambling sector contributing 7.7% to Australia's total tax revenue. However, Pastor Tim Costello commented on the issue in the NYT saying, "The state is like Dracula running a blood bank."
Relaxed Regulations and Their Consequences
Most of the pokies are located in New South Wales. Historically, slot machine regulations in Australia were the responsibility of the individual federal states. Until the 1970s, slot machines were illegal everywhere, but New South Wales had a legal loophole that allowed them for a while.
In the 1980s, regulations relaxed, and slot machines were first allowed in casinos. Today, slots can be found almost anywhere except Western Australia, which still maintains the original ban.
Both the industry and the federal states have failed to curb the pokie epidemic. Regulations have been largely ignored, and the flood of machines shows no sign of slowing down. The problem: if this trend continues, what measures should states resort to? How strictly should they regulate? What lessons can European market regulators learn from Australia's experience regarding current liberalization proposals and attitudes toward slot machines and addiction prevention?
The case of Australia clearly demonstrates that without proper protective measures in place, the socially disadvantaged are more vulnerable to the allure of 'easy money.' The country, known for its natural diversity, desperately needs to abandon its obsession with pokies.
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Source: www.onlinecasinosdeutschland.com
