Poker machine losses in SA rise during 2017-18, after more than a decade in steady decline

BETTING on poker machines has made an unexpected bounceback in SA, with the amount of money taken by the machines rising after more than a decade of dwindling fortunes.

PUNTING on pokies has made an unexpected bounce back in SA, as the amount of money taken by the machines rises after more than a decade of dwindling fortunes.

Latest figures from the Office of Consumer and Business Services show that SA gamblers poured $682 million into the machines during the past financial year, up from $680 million in 2016-17.

It comes after years of plummeting spending on the pokies, and therefore state tax revenue recouped from them, as the industry blames a hidden shift to less-regulated online betting. Total losses on SA poker machines peaked at $793 million in 2007, and the Australian Hotels Association says the real amount of money flowing to the bottom lines of pubs and clubs is down a third when inflation is considered.

Despite the rebound in poker machine spending this year, the State Budget still looks likely to be short-changed by about $8 million when compared with tax estimates made 12 months ago.

Independent MP John Darley said the figures showed more still had to be done to stamp out problem gambling, including removing EFTPOS machines from gaming areas.

His push has been backed by fellow Upper House crossbenchers, but opposed by the State Government.

AHA SA general manager Ian Horne said poker machine spending over the next few years was likely to flatline.

“The online (spending) is of course unknown because every person with a tablet or a mobile phone can get it,” he said. “State Governments can’t measure it and that means they get zero tax out of it.”

Mr Horne said the hotels sector generally was battling with large increases in costs including energy and wages, while revenue was steady.

When in government, SA Labor backed a new “betting operations tax” which came into force last year and was expected to inject about $30 million annually to the Budget.

It was designed to tackle the rise of online gambling and apply on horse, harness and greyhound racing, and other sports such as AFL and soccer.

However, it is unable to reach online operations being run from outside Australia.

Treasurer Rob Lucas said significant changes in a Budget update released before the election had already cut the estimated tax revenue from gambling taxes to be realised over the next four years.