Tasmanians have lost more than $1bn on poker machines since 2018 election, data reveals

More than $1.14bn has been lost on poker machines since the March 2018 state election, according to Tasmanian government data. Removing poker machines from pubs and clubs was a central issue in the 2018 election campaign.

The two casinos owned by Federal Group, the Wrest Point casino in Hobart and Country Club Tasmania near Launceston, accounted for more than $448m of the losses, according to data from the Liquor and Gaming Commission.

The casinos host 988 poker machines. The Vantage Hotel Group, a Federal Group subsidiary, is also licensed to operate 360 poker machines in its 12 hotels, but the losses are not publicly disclosed. Between the casinos and its pubs, the Federal Group has more than 40% of the poker machines in the state.

Outside the casinos, $687m was lost on machines in pubs and clubs. There are 91 venues across the state with just under 2,300 poker machines.

The municipality with the highest poker machine losses is Glenorchy in suburban Hobart, with the data revealing $125m lost since March 2018. The municipality has eight venues and 240 poker machines. Four of the hotels are owned by Federal Group and two by Endeavour Group.

The commission’s data indicates Launceston and Devonport had the next highest losses, accounting for more than $105m and $67m lost respectively.

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Research by Anglicare Tasmania’s Social Action and Research Centre (SARC) found that poker machines were concentrated in the state’s most disadvantaged communities. North-west and west coast municipalities have almost twice as many poker machines per 10,000 people as those in southern Tasmania.

The SARC coordinator, Mary Bennett, said the harm caused by losses of half a million dollars a day was “overwhelming”.

“We see a higher rate of psychological distress, depression and anxiety in people who gamble. There’s growing evidence that it can play a significant role in suicides,” she said.

“Another really serious impact is on relationships. We know that the health of our communities, now and in the future, really relies on strong relationships, particularly within the family household. Gambling is associated with domestic violence, which, of course, we’re seeing as a major problem in our community.”

One door shuts, another opens

Ahead of the 2018 election, gambling interests led by Federal Group and the Tasmanian Hospitality Association (THA) launched extensive advertising campaigns across radio, TV and print media opposing Labor and the Greens for their support for phasing poker machines out of pubs and clubs. At least $514,000 of gambling industry donations flowed into Liberal party coffers.

The Liberal party suffered a swing against it at the election, but secured a one-seat majority. A chastened Labor party abandoned its pokies policy in early 2019 and entered into a secret agreement with the THA, vowing to “work together on the development of potential viable harm minimisation” measures.

The victorious Gutwein government embraced a policy favoured by the gambling industry and introduced legislation in October 2021. It ended Federal Group’s ownership monopoly of poker machines in the state and amended the tax rates applying to operators. Community groups proposed a suite of harm minimisation measures, including slower spin speeds and reducing individual bet limits from $5 to $1. However, the passage of these measures required support from the Labor party.

Labor’s then finance spokesperson, Dean Winter, opposed these measures but proposed the introduction of facial recognition technology to identify people who voluntarily chose to be excluded from venues, a measure backed by Federal Group and the THA. The finance minister, Michael Ferguson, agreed to refer the proposal to the Liquor and Gaming Commission for investigation.

The commission found reliance on the facial recognition scheme would not be effective and instead proposed the introduction of a mandatory pre-commitment card, with a pre-set loss limit of $100 a day, $500 a month and an annual cap of $5,000. Ferguson agreed. The commission is aiming to introduce the new scheme by the end of 2025 and is seeking public comment until 18 October on the design and implementation of the scheme.

Bennett said the implementation of the mandatory pre-commitment card was an essential step in reducing the impact of poker machines on Tasmanian families and communities. “We need to join the dots. We need to make sure that if we’ve got concerns about domestic violence, if we’ve got concerns about the viability of our local businesses, that we don’t ignore the role that gambling plays in these issues. These are just some of the harms that will be reduced by a pre-commitment card,” she said.

• This article was republished with permission from the Tasmanian Inquirer