25 years of pokies: What it’s meant for South Australia

It’s 25 years since poker machines arrived in South Australia. They’ve had a huge impact on pubs, clubs, punters and the state budget — but the latest data shows some concerning trends.

• If you or someone you know needs help with pokies addiction, call the Gambling Helpline (1800 858 858) or Lifeline (13 11 14)

South Australians are losing more money for each poker machine than when they were at their peak, new data obtained by the Sunday Mail shows.

This week marks 25 years since pokies were introduced to SA and the emerging trend indicates the state has more problem gamblers, despite fewer machines and fewer people playing them.

Latest figures from the Attorney-General’s Department reveal about $11,000 more was lost for each poker machine in 2018-19, compared with when machine numbers ballooned 17 years ago. Just under 20 per cent of South Australians played the pokies at least once in 12 months, the latest Gambling Prevalence in SA report says, compared with almost a third in 2005.

The number of problem gamblers — 85 per cent of whom play pokies — has almost doubled in the past 14 years, the same report says.

Opponents say greater harm minimisation reform is needed and that the “confronting and appalling” data reveals a poker machine gambling “epidemic” hurting the state’s most vulnerable — the unemployed and disadvantaged.

Liquor and Gambling Commissioner Dini Soulio is reviewing gambling legislation and codes of practice, and agreed there was evidence South Australians playing poker machines were at higher risk of gambling harm today compared with two decades ago.

“While most people who gamble are able to do so safely, I often have people come to our office in tears because of problem gambling either for themselves or for family members,” Mr Soulio said.

He said the solution was continuing to engage with industry to ensure compliance and provide problem gamblers with fast and easy access to support services, including the barring order scheme.

The number of problem gamblers barred from gaming venues at July 19 was 725, compared with 591 at the same time last year, after the Commissioner’s Office provided same-day barrings.

Alliance for Gambling Reform spokesman Tim Costello said at the top of the State Government’s reform list should be enforcing a $1 maximum bet, for each spin, removing ATM and EFTPOS access in gaming venues, and banning political donations from the gaming industry.

“South Australians have spent more than $15 billion on the scourge that is poker machines since they were introduced — that is nothing worth celebrating,” he said.

Uniting Communities advocacy and communications manager Mark Henley said pokies continued to have the highest level of associated problem gambling, even after 25 years of attempted harm minimisation reform.

“The damage to individuals and families from pokies is massive, including suicide, breakdown of relationships, loss of housing and hungry children, not to mention increases in crime as people steal to feed their addiction,” he said.

SA Best MLC Connie Bonaros said the new figures were “confronting and appalling” and proof “SA is in the midst of a poker machine gambling epidemic”.

“They are yet another glaring indictment of the failure of our laws governing the use of poker machines and are a stark and grim reminder that simply reducing the number of poker machines is not the solution,” she said.

Australian Hotels Association SA general manager Ian Horne said gaming was an essential component of the economic wellbeing of the SA hotel industry, which employed 26,200 people.

“With approximately 50 per cent of all gaming revenue going in tax, no other gambling code pays anywhere near that contribution,” Mr Horne said.

He said fewer than 0.7 per cent of the state’s adult population had a gambling problem, and less money was being spent on poker machines because of the popularity of online gambling.

SkyCity Adelaide Casino general manager David Christian said: “The vast majority of our customers have a safe and enjoyable time playing the pokies, but we take our duty of care to them extremely seriously.”

The casino will add an extra 500 machines as part of its $330 million expansion plan, due for completion before the end of next year.

Two former pokies addicts share their stories

By Rebecca DiGirolamo

Andrew Robinson was so intoxicated by the euphoric buzz of poker machine gambling that he stole $3800 from his employer and pumped it into a machine for a three-hour rush that eventually landed him in jail.

The former accountant, from Adelaide’s southern suburbs, says he felt like he was under a cloud of psychosis that day two years ago.

“I actually can’t tell you what I was thinking at the time,” Andrew, 46, says. He says the drive to gamble was never about the money.

“It’s the adrenaline rush you want,” he says. “You want the euphoria of winning but not the cash — you want to hear the bells and whistles and see the win meter going up. You’re always chasing the rush of the win, not the win itself.”

Former problem gamblers Andrew Robinson and Shonica Guy say too many people suffer due to the addictive nature of poker machines. Picture: Tom Huntley

Andrew was convicted after pleading guilty in December last year and spent 10 days in Yatala Prison, followed by three weeks on home detention. In jail, he found pokie addiction among inmates was common.

Studies have shown problem gamblers are more likely to have committed a gambling-related illegal offence, including robbery, theft, fraud and assault. Andrew says his problem gambling emerged about 14 years ago, when he found it numbed his suffering from depression. He can’t say how much money he’s lost.

He has not gambled on the pokies since his theft on March 2017. He is studying a certificate in mental-health peer support work, receives counselling, is part of a support network and has been pushing for legislative change with long-time campaigner Shonica Guy.

“People are hurt and continue to suffer because of these machines — it’s just shocking that they are still here 25 years on, despite all of the pain they have caused and continue to cause,” Shonica says. “It needs to stop.”

Shonica, 43, says she was caught in the “trap of pokies for 14 years” soon after they were introduced in SA in 1994. She stopped gambling a decade ago and runs two support groups, Pokies Anonymous and Gambling Link SA.

Important revenue for pubs, but dangers for punters

By Paul Starick

A long-term decline in poker machine earnings at the expense of online gambling will force pubs and clubs to find other revenue sources such as accommodation and food, says Treasurer Rob Lucas.

Dismissing calls for pokie numbers to be slashed to curb problem gambling, Mr Lucas said allocating funds to help problem gamblers was a more effective measure.

Gambling tax revenue was revised down in last month’s State Budget, primarily because of lower-than-expected growth in poker machine revenue that is predicted to continue.

Mr Lucas said annual pokie tax revenue of $270 million already was “relatively insignificant” in a $22 billion Budget and this was predicted to decline in real terms, presenting a challenge for hotels and clubs.

“The reality is that they will have to cope with it … traditional forms such as hospitality, food and beverages will be a critical part of their offering,” he said “The market is deciding that more and more people are moving to online or interactive gambling.”

Mr Lucas said there was a very small number of problem gamblers, to whom the Government wanted to direct help, rather than impose a tighter limit on poker machine numbers.

“Some percentage of people will, sadly, crawl over cut glass to get to a gambling establishment,” he said.

Former high-profile state and federal Upper House member Nick Xenophon, whose 20-year parliamentary career was launched on a No Pokies platform, told the Sunday Mail their continued presence was his “biggest (political) frustration”.

“It wasn’t through lack of trying,” said Mr Xenophon, who now runs a northeastern Adelaide legal practice. “I just hope that one day the circle will turn. It’s now been overtaken by other forms of gambling — sports betting and that sort of thing — but the core damage is still done by poker machines.

“It’s been a malignant influence on our democracy. The power of individual poker machine barons can sway an election.”

Fellow anti-pokies campaigner and federal independent MP Andrew Wilkie has claimed the pokie lobby swayed Tasmania’s state election last year, after it was revealed gaming and hospitality interests contributed almost half the declared donations to the victorious Liberals. The party rejected his claim.

Mr Xenophon said he was no longer active politically and the task of combating pokies fell to his former SA Best party colleagues.

“While people are hurting it’s not over,” he said.

SA Best MLC Connie Bonaros will introduce a private member’s Bill after the winter recess that will include a raft of proposed reforms such as a gradual reduction of machines, a $500 maximum jackpot and reducing gaming room trading hours from 18 to 16 a day.

Income a lifeline for clubs

By Valerina Changarathil

Many of the state’s 55 community and regional clubs that have pokie machines would not be able to survive without the help of the income from gaming.

Parent organisation Clubs SA says at least half of these are in regional areas and have fewer than 20 machines.

“Every single cent of profit goes back into the community to help provide services which range from subsidised meals and community facilities through to sponsoring local organisations, supporting mental and physical health — even paying the water bill for the region’s oval and sports fields,” Clubs SA CEO Mike Penfold said.

“Thousands of people enjoy these clubs.

“In many areas, they are the heart of the local community, but without gaming machines to improve their revenue streams, many would have to fold.”

Para Hills Community Club general manager Cameron Taylor, third from left, with Para Hills Football Club’s Sarah Bourne, Simon Bramley and Scott Charlton. Picture: Tom Huntley

Of the 1200 registered clubs in SA, about 70 per cent are in financial distress.

Clubs SA says these are small to medium not-for-profit businesses, employing almost 20,000 people and helped by 39,000 volunteers.

Para Hills Community Club manager Cameron Taylor, who has managed the venue for 23 years, said it gave back $91,000 in cash and kind to community projects and clubs.

The club supports two local soccer clubs and a footy club and supports netball training as well.

“We see ourselves as playing a very important and supportive role in keeping the community social and healthy,” he said.

Mr Taylor said income from the club’s 40 pokie machines was a significant factor in the club’s contribution to the local community. Gaming machines in clubs represent about 9 per cent of the total gaming machine revenue in SA.