New data indicates that South Australians have set a 13-year record for pokie-playing in the wake of the lifting of COVID-19 restrictions where pubs were forced to temporarily close to help stave off the spread of the Coronavirus. Now that the barriers to gambling have fallen away, the punters are back in droves.

The average monthly expenditure on pokies has been $68.81 million since July which saw figures of $73.21 million, the highest total since August 2007. The figures dipped to $65.46 million in October.
Below is a full breakdown of 2020’s figures thus far, excluding numbers from the Adelaide Casino.

• January – $57.57 million
• February – $54.07 million
• March – $37.13 million
• April – COVID Shutdown
• May – COVID Shutdown
• June – $1.92 million
• July – $73.21 million
• August – $70.99 million
• September – $65.59 million
• October – $65.46 million

All reasonable projections would indicate that the figures will eventually revert to something closer to the expenditure seen at the beginning of the year. The abrupt upturn in spending has provided a much-needed revenue boost for pubs and clubs. Many of these were in some state of crisis because of the mandatory closures.

The dark side

Businesses are celebrating their rising profits, but, from a human perspective, there are more than a few reasons for concern where a dramatic increase in gambling spend occurs.

Ross Womersley, the Chief Executive of the South Australia Council of Social Services, voiced his specific reservations “From our perspective, it’s much worse than going back to normal, it has gone boonta. The withdrawal from poker machines for many people with real gambling issues was a godsend, because, for the first time in ages, they were in positions where they were not spending that money and they were able to have it available to pay for their life requirements.”

“We do know that there was some drift to other gambling activities, but the real concern for us is if people are putting even more back in that has to be a reflection of a real increase in potential harm.”

A dismissive rebuttal

The hospitality sector at large seems to see Womersley’s position on the impact of rising pokie numbers as bordering on being alarmist.

Ian Horne, the State Chief of the Australian Hotels Association retorted, saying, “People who like playing pokies did not play them for three months, so there’s a little bit of pent-up demand. But it is hard to see how it is sustainable because, as other things are opening up all the time, it will be on the wane.”
Horne emphasised that gambling in the state has been on a steady decline since 2006/07, with the scant possibility of revenues ever re-achieving the giddy heights of $792 million again. He added that, according to tax requirements, the SA government ends up collecting 40% of all gambling revenue.

Alternates abound

The increasing popularity of pokies has been accompanied by a broader general interest in other forms of gambling. May search data from Google demonstrates a four-fold increase in searches for “online poker” and “online casinos Australia” since the beginning of the pandemic.

March 22 is when online-gambling searches peaked, the very same day that the government-enforced lockdown forced clubs and gaming facilities across the country to close.

There is no data to suggest any correlation with the lockdown, but lotto ticket sales have also seen notable growth. A report by the Sunday Mail revealed that residents of South Australia spent $552 million on the lotto over the past financial year, a significant increase from $539 million in the previous year.

Problem gambling assistance in Australia The government of South Australia runs 28 different services to assist individuals with gambling problems. The methods of help include fully confidential therapy and counselling offered at no charge. The services are not only limited to gamblers themselves, the friends, and family of the afflicted can also seek help to deal with the adverse effects of being proximate to a problem gambler.

Human Services Minister Michelle Lensink said, “This year’s state budget committed $750,000 over two years to the Gambler’s Rehabilitation Fund, which funds programs and services for problem gamblers to offset a reduction in funding from the industry while gaming venues were closed due to COVID-19 health-related restrictions.”

The two primary resources for anyone seeking help are below.

• 24/7 Gambling Helpline – 1800 858 858
• Gambling Help Online website – www.gamblinghelponline.org.au

A new survey that tested the impact of the global pandemic on Australia’s gamblers has yielded some alarming results.

The Australian Gambling Research Center (AGRC) survey was designed to analyse the behaviour of Aussie gamblers during the COVID-19 pandemic, an event that has necessitated the closure of almost all land-based gambling venues and the postponement of major league sports play.

2019 gamblers were surveyed over the June-July 2020 period. Respondents were sourced via social media adverts, ‘e-news alerts’, and word of mouth. Approximately three quarters (73%) of respondents were male and 38 years old, on average.

Before COVID-19 restrictions came into place, horseracing was the preferred form of gambling for 57% of respondents in both periods. Sports betting came in second at 46% before and 45% during COVID-19. Lotteries were the third most preferred option,  with figures of 41% prior and 38% during.

Previous AGRC surveys paint a different picture, where lotteries were revealed to be the most popular form of gambling at 76.2% participation. Race betting was far from its current popularity with a 14.3% participation score, with sports betting sitting at 8.4%. The survey revealed the profound effect that the pandemic has had on Australian gambling behaviour and trends.

There was a minimal decline in gambling frequency when comparing pre-COVID and during-COVID figures in all categories, save one. The percentage of respondents who gamble 4 or more times per week increased from 23% to 32%.

It is important to consider that the ‘during-COVID’ period includes the renewal of Australian rugby and football play, with the English Premier League resuming over the same period. The game schedules were a lot busier than usual as leagues rushed to make up for lost time. This situation resulted in bettors abruptly having a much larger range of betting options available and government stimulus checks burning a hole in their pockets.

Gambling spending took a knock, with the median figure falling from AU$500 in the 30 days before COVID-19 restrictions to AU$460 during lockdown. The global figure fell notwithstanding the increase of spending from AU$687 to AU$1,075 in the 18-34 males category. Spending in the 18-34 female category increased from AU$200 to AU$260. In all other categories, both male and female, spending showed a downward drift, with female gamblers driving the trend.

Online gambling experienced an expected surge during the lockdown. 62% of respondents gambled online pre-COVID, with that figure increasing to 78% during. The percentage of respondents played pokies at a pub/club withered from 23.5% to 8.1% because of government-mandated closure of these venue types. Casinos also lost business, falling from 3.8% to 1%.

77% of respondents admitted to having at least one online betting account and approximately 30% opened a new account during COVID-19. The males aged 18-34 segment represented the bulk of new accounts registered, making up 79% of new account holders.

The AGRC regularly surveys large samples to compile its problem gambling statistics. This includes ‘at risk’ gamblers who may develop behavioural problems, even if the determined risk is at the low end of the spectrum.

Bearing this in mind, there is something quite alarming about the survey’s findings that a massive 79% of respondents are “at risk of, or already experiencing, some gambling-related harm in the previous 12 months.” This figure rises to 84% of male respondents and 90% in the 18-34 demographic.

If you’re a male who loves gambling and are under the age of 35, you fall into the highest risk category so you should take extra care to monitor your habit so you can keep enjoying your hobby responsibly and sustainably.​

Cashless pokies seem set to become a permanent feature in Sydney and the rest of New South Wales. While the initial proposal took those opposed to it by surprise, disapproval of the move has been galvanized and many disparate voices have now risen in unison.

Where the story began

The NSW pokie industry stands tallest among all the Australian states. Pokies in NSW take in over $6 billion per year, with more than 90,000 machines providing gamblers with their fix. The state ranks second in the world behind Nevada for its total number of pokies.

Victor Dominello, the official responsible for gambling under NSW Premier Gladys Berejiklian’s coalition government, recently tabled draft legislation intended to address problem gambling and create an easily adaptable model for other states.

Cashless pokies were not mentioned in the draft legislation which rather focused on facial recognition technology as a primary measure. The news that cashless pokies would form part of the proposal was only released a week later.

The cashless pokie challenge

Under the legislation, certain requirements would have to be met.

All pokies would convert to cashless technology. Whether this would be achieved by modifying or replacing existing pokies is not yet clear.

NSW residents would be compelled to obtain a card to play pokies. This would require them to register with the government and, provided they are not on the national gambling self-exclusion list, they will be eligible for a card that can be loaded with money at the owner’s discretion.

The NSW government would have access to information regarding which residents are pokie players, how much they’re spending and where they’re playing.

Sole supporter

Among the clamour of opposition, a single voice in support of the proposal has emerged. Most wouldn’t be surprised to learn that that voice belongs to Tim Costello, the long-standing advocate for the Alliance for Gambling Reform.

Mr. Costello stated, “It is immensely encouraging to have a minister responsible for gambling in NSW seeking significant reform to support people experiencing issues with gambling, and also speaking about the harms poker machines do in what is effectively the non-casino pokies capital of the world.”

A chorus of disapproval

The advantage of numbers is clearly on the side of those speaking out against the planned measure. Tania Mihailuk the Labour Party representative from Bankstown, fired off a tweet voicing her opposition, writing, “This isn’t about stopping gambling…nothing new to control online gambling????…this is about killing our local Clubs and more unnecessary red tape.”

Michael Daley, Maroubra’s Labour Party representative, expressed a similarly derisive view of Dominello’s proposal, but still admitted that problem gambling does need to be addressed. He expressed his concern at the “civil liberties aspect where the government is recording biometrics or tracking someone’s activities through a card.”

This issue seems to have bridged even the political divide, The NSW Shooters, Fishers and Farmers Party has also spoken out in unison with its labour-aligned counterparts. Party leader Robert Borsak said, “The economic impact on NRL and AFL sporting clubs, on community RSLs, bowling clubs, country pubs, and their community support activities will be devastating.”

Josh Landis, the head of Clubs NSW, expressed doubt at the viability of the proposal. He commented, “Gaming revenue has fallen 14% year-on-year as a result of the 10-week industry shutdown, while food and beverage takings are down 60% to 70%. I don’t think anyone would agree that the middle of a pandemic is the right time to introduce onerous new compliance requirements.”​

The Bank of Australia recently announced a ban on all credit card gambling transactions, leaving its gambling customers scrambling to secure alternative transaction methods.

The bank, which came about as a result of the merging of a mass of credit unions, recently updated its clients with the news that, as of December 1, 2020, it will block “all gambling and gambling transactions” made with their credit cards.

The Kew-based bank’s strategy also involves eliminating gambling from the sectors that it provides with loans. Other similarly excluded sectors are fossil fuels, tobacco, exporters of live animals, and arms manufacturers.

The bank revealed that its decision to reject “casinos, online gambling operators, or companies that derive income directly from poker machines or sports betting” has the support of 87% of its customers. It stated that while it respects its clients’ choices, its new policy is informed by the principle that as gambling operators are granted more funds from banks, “the more frequent and accessible they become.”

The bank theorises that removing this kind of financing from the hands of players could “limit the growth of these companies”, while simultaneously addressing problem gambling.

Following the trend

Bank Australia is only one of the numerous Australian financial institutions that have implemented banking restrictions on punters. Macquarie has notably prevented its customers from using its cards to purchase lottery tickets.

Commonwealth Bank, Bank of Melbourne and Westpac have opted to prohibit specific transactions from their clients rather than implementing a blanket ban.

The National Australian Bank (NAB) was the first to implement these types of measures. In December 2019 it gave customers the option to voluntarily block gambling transactions on their accounts via its iOS banking app.  This functionality was added to Android devices. In February 2020, and the institution reported in September that the feature had been utilised on over 50,000 credit and debit cards.

The ABA lends an ear

The Australian Banking Association (ABA) initiated public consultation in December 2020 to examine what role banks can play in reducing national problem gambling rates.  The findings of the ABA’s study are still under wraps, but strong, divergent public views are expected to emerge.

Large UK banks like Barclays, HSBC, Lloyds, Starling Bank, and Monzo have taken similar steps to cut back on the financing of gambling through cards.

Barclays revealed in September that it intended to stiffen gambling restrictions by implementing a ‘wait time’ of 72 hours to its gambling transaction block feature so that customers would have to endure a ‘cooling-off’ period where they can gather their senses and decide whether they really want to make a gambling transaction before the block is released.​

It’s no secret that Aussies love to gamble, but a recent figure may put Tasmanians at the top of the heap. After pokies were turned back on following a statewide shutdown, punters lost a record $18 million in August. That’s a 20% increase over the $15,476,406 lost in electronic gaming machines in August of 2019.

This news was not well received, especially after it was learned that Australians saved more than $3 billion while pokies were shut down. Independent candidate, Meg Webb, was notably upset, taking the state government to task for not properly assessing the social and economic impact of reopening gaming venues.

Webb stated, “The Premier was warned COVID-19 would increase pressure on Tasmanians with pokies addictions and any decisions to lift access restrictions required more than only public health considerations.”

A government spokesperson countered with the following, “Tasmania’s harm minimization framework is regarded as one of the leading in Australia and includes the Responsible Gambling Mandatory Code of Practice for Tasmania, which has been in place since 2012.”

Worst Case Scenario

There are plenty of stories that shine a negative light on the gambling industry, but a recent occurrence in Tasmania stands above the rest. It took place at the Elwick Hotel in Glenorchy and involved an intellectually disabled woman and a poker machine.

The woman put her “food money” into a pokie and became upset when it didn’t come back out. Luckily, she was only allowed $5 that day, otherwise, the outcome could’ve been worse.

Independent federal member Clark Andrew called the pokie industry “ruthless and predatory.” He added, “To learn that the industry would stoop so low sets a new low.”

Meanwhile, the local gaming industry offered a rather lackluster excuse. According to Daniel Hanna, “The commission’s Equal Opportunity Tasmania website specifically states it is illegal to discriminate against a person with disability in a hotel or pub.”

The Luckiest Family in Australia

COVID-19 has hit every corner of the globe, but one Sydney-based family is doing better than most. Some may point to them as prime examples of Aussie business savvy, while others may see them as greedy villains. Either way, the Farrell family is riding high.

They currently have a monopoly on poker machines in Tasmania. In fact, at least one calculation has them pocketing $0.70 of every dollar lost on pokies within the state.

They made $24.4 million in the year until the end of June. That’s up from $13.9 during the previous year.

In addition to gambling and hospitality venues across Tasmania, the Farrells own than 100 Arabian horses. Their value? Just under $1 million.

The family company, Mulawa Holdings, made $543 million in the previous year. During that same time, they paid almost $75 million in taxes and licensing fees.​

Tabcorp Holdings is an Australian gambling giant, valued at $7 billion. Despite its size, the business has taken a massive hit as a result of the COVID-19 pandemic, sparking an organizational shake-up.

Happier times

Tabcorp is involved in almost all the punting that happens in Australia. With over 25 years in the business, the company is the dominant force in Australia’s gambling entertainment industry.

The Lott is their flagship operation and includes the brands Golden Casket, Tatts, NSW Lotteries, and SA Lotteries. Their products sell from over 3700 outlets across the country. In 2018 alone, the company saw sales of over 472 million tickets.

A sharp decline

The company recently revealed that its gross profits for the year are projected at $990 and $1 billion, down from $1.124 billion in 2019. Net profits will likely be between $267 million to $273 million, a reduction of about 31% from 2019’s $396 million.

The reasons for the downturn, as listed by the company were the economic impact of government measures to curb the spread of COVID-19, uncertainty regarding the longevity of the pandemic, the suspension of various sports leagues, contraction of the retail sector and the shuttering of sports venues.

Tabcorp CEO David Attenborough said, “We are facing into a challenging and uncertain environment, and the current operating conditions and those expected into the future are relevant factors in assessing the value of the goodwill in those businesses at this time. We remain confident in the strength and resilience of Tabcorp’s diversified portfolio of assets and are pleased that integration is now substantially complete. We are focused on supporting our people and partners during these challenging times while ensuring Tabcorp emerges strongly post COVID-19.”

Changes at the top

Beyond its market misfortunes, Tabcorp is in the midst of a corporate shakeup. Chairwoman Paula Dwyer has announced her retirement from the board at the end of 2020 and CEO David Attenborough intends to retire from his role in early 2021.

Attenborough commented, “The combination with Tatts is now largely complete and, as such, now is the right time to start the process to appoint the next CEO who can work with the board and management team to take the company forward. Until then, I am totally committed to steering Tabcorp through the COVID-19 pandemic and ensuring that our businesses are best positioned for the future.”

Ms. Dwyer’s departure was expected, unlike Mr. Attenborough’s retirement announcement which surprised many. His stint as CEO spans almost a decade. The loss of two prominent leaders in such a short space of time has struck many as unusual.

Spooked investors

Speculation that there may have been more to the story turned out to be true as it was revealed that Dwyer and Attenborough were compelled to leave their respective roles due to displeased investors.

An alliance of powerful investors had co-penned a letter to the company’s board, expressing dissatisfaction with the top leadership and demanding that the positions be vacated and re-filled. The letter specified both Dwyer and Attenborough’s retirement as demands.

The letter’s signees included Mutual, Pendal Group, and Perpetual Limited. Between them, the last two organizations hold a combined value of $126 billion, so it makes sense that their voices would be heard.​