NSW pokies profits soaring in line with cost-of-living crisis

Anti-gambling advocates in New South Wales have linked the astronomical rise in gambling profits to the rising inflation causing people to see the pokies as their last resort for making money.

Based on data released by NSW Liquor and Gaming for the year 2022, pokies profits have risen $1.5 billion higher than pre-pandemic levels. This amounts to a 22% increase after a sharp descent following the enforced lockdowns due to COVID-19. 

Commenting on the data, Wesley Mission CEO Stuart Cameron lamented that the rise due to a false hope the pokies give people who are struggling financially.

“Any hope is an illusion,” Cameron said.

“The predatory pokies industry is positioned in every town and suburb to take advantage of people who may be vulnerable.”

Tom Nance, a researcher from the Centre for Western Sydney, suggested that punters now play more in the hopes of making money to live their daily life. 

“It doesn’t surprise me that in the context of rising cost of living, household wallets are emptying at a rapid rate, and due to those rising costs, we’re seeing more and more people try their luck,” he said.

Out of the total profits recorded, about 20% of it came from the Fairfield, Canterbury-Bankstown and Cumberland local government areas in Western Sydney. 

“More often than not, that’s in the most disadvantaged communities and hence Canterbury-Bankstown LGA, once again, leads the chart in terms of the greatest losses,” Cameron said concerning the data. 

Western Sydney combined had players losing $9.6 million at the pokies every day in the second half of 2022, with the state government raking in around $500 million in taxes as a result. NSW’s gaming industry is expected to generate around $2.1 billion in tax this year.

Anti-gambling advocates like Cameron believe punters are losing more because clubs and hotels are devising new ways of attracting and retaining customers.

“The programs are tiered so that the more money you lose, the more ‘benefits’ you derive from the program,” he noted. 

“[That] ensures not only does it attract users, but it keeps users at the machines longer and betting more.”

While anti-gambling advocates are fighting for reforms, especially in the form of cashless gaming cards, the newly elected Labor government has said it will not consider implementing that anytime soon. However, Premier Chris Minns is committed to a 12-month trial of cashless gaming cards to determine their efficacy and economic impact. 

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