Seemingly in defiance of social distancing restrictions and intermittent shut-downs of land-based gambling in Australia, the Racing and Wagering authority in Western Australia (RWWA) has reported a record $2.4 billion in revenue. The state-run entity has boosted its promotional activities and marketing budget by 22%, over the past year. This coincided with an overall 15% drop in problem-gambling support funding, much to the displeasure of some officials.
All this is occurring against the backdrop of a year when the average Australian punter’s average weekly spend climbed by 332% as compared to pre-COVID-19 levels. Lotterywest achieved $1 billion in sales for the first time ever and mobile gambling engagement levels have also increased significantly.
The RWWA’s decision to increase its promotional funding over the pandemic has drawn the ire of at least one MP and Melanie Every, the head of the Financial Counselors’ Association of Western Australia who criticized the decision to not increase support funding as well.
Every added that players with now-elevated weekly wagering spending would find it difficult to return to their pre-pandemic behaviour. She explained that while the number of punters has begun to decrease, active gamblers who choose to bet every week are at their highest level in history. Every dubbed this the “new normal” and emphasised that support services funding for problem-gamblers has been left by the wayside.
Every identified the low number of specialized counsellors in Western Australia and poor scheduling on the government’s behalf as possible reasons for the imbalance in the allocation of funds.
The Year That Was
Over the course of 2021, approximately 50% of the revenue reported by TAB in WA was generated by just over 300 retail outlets and turnover from mobile wagering increased by 40% despite a much lower 12% increase in mobile phone users over the period. The entity recorded a $264 million margin from wagering in 2020-21, breaking all previous records.
From the data, it appears that COVID inspired an increase in gambling activity at a national level and that of the money not being spent on travel and other services, a significant portion is being funnelled into wagering.
