Rex Jory: South Australia needs an independent inquiry into poker machines

SOUTH Australia needs an independent inquiry into the adverse impacts of poker machines, writes Rex Jory.

IT’S time we did something about poker machines. We accept poker machines as part of our culture without question, yet they swallow too much of South Australia’s discretionary spending dollar.

While people are being urged to splash out over Christmas, poker machines are draining $680 million in elective spending from the economy every year. That’s nearly $400 for every person in the state.

Take out the elderly and the children and this means adults are spending, on average, around $1000 a year on poker machines. In Adelaide it’s $1099 a year, Pt Augusta it’s $927, Whyalla $774 and Gawler $751. Christmas shopping has had a hair cut.

Think a moment. What could you buy for $1000 this Christmas? Let me say immediately, I was for some years on the Independent Gambling Authority which is the controlling body of gambling in SA. I have no moral objections to gambling or poker machines.

Let’s eavesdrop on a hearing of the independent Gambling Authority where a woman might be pleading for help to stop her husband from spending his wages on the pokies and leaving the household destitute. Listen to the man who admits he leaves home early every morning so he can gamble on the pokies before work. Listen to the woman who is beaten by her partner because she won’t hand over her few dollars she needs to feed the children.

Nick Xenophon entered State Parliament 20 years ago on a pledge to outlaw poker machines. In 2014 he called for a national royal commission into poker machines. Result? As good as nothing. But the redistribution of the discretionary spending dollar since poker machines were introduced 23 years ago has been huge. In that time nearly $15 billion has been poured down the slot of poker machines. Governments are addicted to them. Last year the states and territories pocketed more than $6 billion in gambling revenue.

Of course, poker machines have pumped billions of dollars into the economy in areas like upgrading of hotel facilities and increased employment. The State Government seizes close to 50 per cent of the pokies take, and charities have been big beneficiaries. Without poker machines SA would be a different state.

With a state election 15 weeks away it is an appropriate time to press for a major inquiry into the impact of poker machines in SA. Let me say again, I am not against poker machines. They are here to stay. I acknowledge they have been a major contributor to the state’s economy. But I am concerned at the amount of money spent on poker machines and the social hardship they cause.

How great are the benefits? How widespread is the social damage?

There are ways of curbing their damaging influence. Reduce the maximum spend, limit the playing hours, slow the machines, create breaks in play, restrict access to credit card facilities, place tougher restrictions on young gamblers, impose more stringent bans on problem gamblers or curtail the take home pay of problem gamblers.

Perhaps publicans should be responsible for problem gamblers. Oh, my mate Ian Horne from the Australian Hotels Association will tut tut, as he should.

Boffins in the State Treasury will scream because of lost revenue. Blind Freddie in a dark room can see that poker machines are draining too much disposable cash out of the State’s economy — $680 million a year. If the Government decided to take $680 million away from hospitals, the welfare budget or police there would be riots.

But a reduction of $680 million a year in discretionary spending is hurting retailers and industries like tourism.

Retain poker machines by all means, but limit their accessibility and capacity to entice people, often the most economically vulnerable, to spend recklessly. Even Ian Horne would agree with that. Currently we are blindly testing the depths of despair caused by poker machines with both feet. We’re in up to our neck.

Let’s have an inquiry to test it more carefully, one foot at a time. The results might be revealing.