Cost of Gambling Addiction: around $4.7 billion annually

Gillard's gambling problem
Michael Mullins

Tara Moriarty, secretary of the NSW branch of the Liquor and Hospitality Union, has made perhaps the most useful contribution to the current debate on poker machine reform.

She distanced her union from clubs industry claims, insisting the union was 'certainly not buying into' the 'probably over-stated' campaign. But she stressed that 'it doesn't mean that the workers shouldn't have a seat at the table during this process to make sure that their jobs are protected'.

Her comments reflect an appreciation that care for problem gamblers needs to be balanced against care for workers whose jobs are threatened.

The Federal Government, on the other hand, is open to the accusation that it regards the jobs as expendable because its survival depends upon the successful passage through parliament of the mandatory pre-commitment legislation. Moreover the Prime Minister's ostensibly empathetic assertion that 'too many people would know a family torn apart by problem gambling' could be disingenuous.

Many people also know families torn apart by unemployment, and there is an onus on Julia Gillard to demonstrate that she is primarily motivated by an ethic of care for the wellbeing of her citizens, and not her own political survival. If this is the case, it follows that she will look after workers affected by the pre-commitment technology.

Assistance provided for workers to make the transition to alternative employment is not the same as the compensation packages that will be sought by the clubs industry and affected gambling entrepreneurs such as James Packer, whose business models rely on profiting from the misery of problem gamblers and their families. 40 per cent of the clubs' profits come from people addicted to poker machines. These profits should be regarded as ill-gotten, and therefore not deserving compensation.

That figure is quoted by Rev. Tim Costello, who chairs the Australian Churches Gambling Taskforce. He suggests that clubs dependent upon problem gambling revenue are 'operating [on] an unsustainable business model and should seek advice from Western Australia, where there are no poker machines outside the casino, yet communities and clubs thrive'.

There will be ambit claims for compensation if the ethic of care is obscured by the greed of the clubs and gambling entrepreneurs.

There are arguments that pre-commitment technology is a sign of the 'nanny state' at work and therefore a threat to civil liberties. Nanny state rhetoric is a ruse that gives licence to those who are greedy, or psychologically robust, to prey on the weak and vulnerable.

The so-called nanny state is actually a euphemism for a state that cares for its citizens. Certain powerful interests perceive that as a threat.


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Michael Mullins is editor of Eureka Street.


Poker machine reform debate needs cold facts not hot air: churches

ACGT Media Release

Rev Tim Costello, Chair of the Australian Churches Gambling Taskforce Chair said too many people have been caught by the poker machine lobby’s propaganda and it’s disappointing to see the Opposition supporting their campaign.

Rev Costello made the comments today following Clubs Australia’s rally in Sydney last night which was addressed by Leader of the Opposition, Tony Abbott and Member for Werriwa, Laurie Ferguson.

“The fact is that 40 per cent of clubs’ profits come from people addicted to poker machines.

“And because not all clubs profit equally, only those that rely on profits from problem gamblers will feel the pinch”, Rev Costello said.

“It’s these clubs that are operating an unsustainable business model and they should seek advice from Western Australia, where there are no poker machines outside the casino, yet communities and clubs thrive.

“Australians spend twelve billion dollars a year on pokies.

“Only 600,000 Australians play poker machines at least weekly, and of those 95,000 are poker machine addicts.

“This group of people loses on average up to $21,000 a year. Some lose a lot more. Another 95,000 are at risk of becoming problem gamblers. This second group loses on average up to $8,000 a year.

“So poker machines are a problem for around a third of regular players. It’s a very unsafe product for some.

“Church agencies help individuals, families, friends and colleagues deal with the impact of poker machine addiction. Problems include relationship breakdown, mental health problems, unemployment, debt, financial hardship, theft and other crime, social isolation and all too often, suicide.

“The social cost to the country is around $4.7 billion annually.

“Mandatory pre commitment will require all poker machine players to determine ahead of time how much they are prepared to lose in any sitting. This, as part of a range of measures, will help problem gamblers who are ready to help themselves and help protect a significant number of at risk players from becoming problem gamblers.

“It’s mandatory to wear a seatbelt, to wear a helmet on a bike. It’s illegal to serve alcohol to someone who is already drunk and there are limits on where people can smoke, to prevent the impact of passive smoking.

“This is not the nanny state in action. It’s good public policy that has lead to healthier communities. Australia’s churches call on all people of goodwill to support the reforms,” Rev Costello said.

Members of the Australian Churches Gambling Taskforce include the heads of Australian Christian Churches and the heads of their social services agencies nationally, united by a commitment to make poker machine gambling safer.