Pokies revenue at 13-year low as gamblers head online, meaning less cash for pubs — and the State Government
EXCLUSIVE: Poker machine spending in SA has hit its lowest level since 2003, amid warnings that punters are moving to online games. It means less money for pubs — and taxpayers.
POKER machine spending in SA has hit its lowest level since 2003, amid warnings that punters are moving to online games where there is less oversight and less money returned to taxpayers.
The hotels industry is warning that jobs are at risk as poker machine revenue falls at the same time as economic uncertainty squeezes consumers’ hospitality spending.
Figures published by the Consumer and Business Services department shows punters lost $719 million to poker machines in 2015-16, down from a peak of $793 million in 2006-7.
While the decline has been welcomed by anti-gambling campaigners, they warn it is being offset by an explosion in online and mobile gambling, which are not as highly taxed or regulated.
Australian Hotels Association SA general manager Ian Horne said a combination of economic uncertainty in the state, online betting and government regulation had hit pubs’ bottom lines.
When inflation was factored in, there had been a huge real decline in pokie revenue and pub owners were being forced to make tough decisions including cutting working hours, he said.
“The reality is that it’s a total package. At the end of the day, you make a profit or loss based on the total income of a premises being more than the costs,” Mr Horne said.
“When one revenue source has been in such significant decline, and there is no capacity to increase prices because competition is intense in food and liquor, people simply have to tighten their belts.
“That’s curtailing new employment, reducing hours of availability and new shutting times.
“These are some of the toughest trading times that we’ve seen for approaching a decade.”
The State Government relies on poker machine taxes for almost $300 million each year, but is seeing its share also stagnate as total spending goes down.
SA Treasurer Tom Koutsantonis has announced a national-first online wagering tax that applies to registered Australia companies, and called for the Federal Government to take tough action against dodgy offshore operators.
Uniting Communities manager advocacy and communications Mark Henley said poker machines remained the biggest source of problem gambling, but online was a fast-emerging risk.
“We need to learn from 20 years of pokies pain about the risks and the problems that we are confronting with online gambling,” he said.
“We need to be much faster, and much more strident in putting in place measures to reduce the already considerable harm coming from online.”
Mr Koutsantonis said regulation had to move quickly to catch up with technology.
“It’s our health workers and community organisations who clean up the mess, so it’s only fair that taxes on the profits of betting companies help pay for the cost,” he said.
“These companies should be taxed where the social harm from gambling is done, not in whichever jurisdiction the company is headquartered.”
Poker machine total spending in SA
2015-16: $719m
2014-15: $726m
2013-14: $731m
2012-13: $731m
2011-12: $743m
2010-11: $745m
2009-10: $729m
2008-9: $751m
2007-8: $758m
2006-7: $793m
2005-6: $751m
2004-5: $749m
2003-4: $724m
2002-3: $699m
Source: State Office of Business and Consumer Affairs