Data reveals Territorians paying up to $381m a year on social impacts of problem gamblers

Territorians lose more than $360,000 a day on poker machines. Read how your taxpayer dollars are spent to treat problem gamblers.

Territory taxpayers are paying up to $381m a year on the affects of ‘at risk’ gambling, according to a new report.

These include the emotional and psychological impacts as well as the costs of gambling attributed to crime by excess spending on electronic gaming machines by problem gamblers.

It comes as Newscorp revealed that Territorians lose up to $360,000 a day on poker machines in NT clubs and hotels, with the highest saturation of slot machines found in low-income areas including Tennant Creek and Katherine.

Racing, Gambling and Licensing Minister Chansey Paech said the government commissioned a report each year to understand the social cost of gambling in the NT.

“I acknowledge community concerns about the impacts of problem gambling, particularly through gaming machines which are too readily accessible to vulnerable people,” Mr Paech said.

“In light of this, the Territory Government is currently considering a range of policy reforms towards minimising gambling-related harm.”

In September, the Department of Tourism, Trade and Industry released The Social Costs of Gambling Harms in the Northern Territory Report that was completed in 2021.

Chansey Paech said the Labor government is committed to reforming gambling legislation in the NT. Picture: (A)manda Parkinson

The research conducted by Menzies School of Health Research in 2018 identified harm arising from at-risk gamblers own gambling and the harm it caused others.

It also cumulatively values the cost to Territory taxpayers.

“Total quantifiable costs of gambling in the NT are estimated to be between $164.9m and $381.3m,” the report read.

“1.4 per cent of the population of the NT aged 18 and older were classified as problem gamblers.

“This is almost 2500 Northern Territorians whose gambling risk is severe enough to be classified as problem gambling. A further 3.6 per cent of the NT population were classified as moderate risk gamblers, and 9.4 per cent as low risk gamblers.”

Researchers concluded the problem was significantly higher in the NT than any other state or territory in Australia.

“The most significant costs from harms resulting from … gambling was the costs of gambling attributable (to) crime (financial and violent crime) followed by excess spending on electronic gaming machines by problem gamblers.”

Researchers also said the emotional and psychological impacts accounted for a “substantial” part of the costs but gambling was not considered as burdensome on the Territory economy as alcohol, which in 2019 was is estimated to cost up to $3bn a year.

Independent MLA Robyn Lambley said the government has repealed legislation that will harm communities in the Northern Territory. Picture: Che Chorley

Araluen MLA Robyn Lambley has advocated for extensive policy reform on poker machines across the Northern Territory.

In total the Territory has 2400 poker machines across clubs, hotels and two casinos.

Territory casinos account for 41 per cent of the total number, with 988 in both Alice and Darwin.

“Preying on the misery, disadvantage and addiction of Territorians in this way is unconscionable,” Ms Lambley said.

“We have just witnessed the NT government open the “rivers of grog” in over 400 remote communities, town camps and out stations, giving rise to pre-“intervention” levels of alcohol consumption and all the associated crime, ill health and misery.

“For a government at this juncture to even consider allowing more poker machines, proven to be the most addictive form of gambling in Australia, is entirely irresponsible.”

However, Mr Paech said the number of gaming machines across the NT ballooned in 2015 when the Country Liberal Party lifted the cap on poker machines.

“Numbers of gaming machines across the NT ballooned when, in 2015, the CLP removed the cap set by Labor. We reinstated the cap when we returned to government in 2016 and have since reduced it twice,” he said.

“We have recently introduced a moratorium on all new gaming machines in Alice Springs while we work to strengthen the application process to bring it into line with community expectations.”