Profits surge despite fewer pokies in NSW

November 04, 2022 08:21 AM AEDT | By AAPNEWS
Image source: AAPNEWS

The average poker machine in NSW is making 25 per cent more than it did three years ago, with some machines raking in $8700 a week.

An analysis of half-yearly data shows pokies profits in pubs and clubs have jumped 20 per cent since early 2019.

That's despite the number of machines statewide falling five per cent to 91,420 by June 2022.

Most machines are in registered clubs, taking in an average of $1325 a week per machine, up from $1086 a week in 2019.

But the big bucks are made in hotels where the average machine's weekly profit exceeds $2800, figures published by the gaming regulator show.

The most lucrative machines are in the Strathfield council area, where the 117 pokies took a combined $26 million in the first half of 2022.

"This data shows gambling, and therefore gambling harms, is going through the roof," Greens MP and the party's gambling spokesperson Cate Faehrmann told AAP.

ClubsNSW has been contacted for comment. On social media, it says registered clubs were created and exist to give back to their local communities.

"Whether it's sponsoring the local footy team, helping school children plant new trees, donating money to children's hospitals or engaging people with disabilities, your local club is involved in more projects than you may realise," it said.

"Annually, registered clubs make a social contribution valued at $1.3 billion, and an economic contribution of $3.7 billion."

A recent NSW Crime Commission report revealed a significant amount of the $95 billion put into pokies every year was the proceeds of crime.

While few were using machines to launder money, many criminals were gambling away their crime profits.

That's still unlawful and some venues weren't doing enough to stop it from happening, the report found.

"(Pokies) constitute a money laundering risk because they primarily accept cash and because cash continues to be the primary method by which criminals obtain wealth from dealing in illicit commodities," the report said.

Despite his Nationals counterpart's reluctance, Premier Dominic Perrottet this week committed to implementing a cashless gaming card, albeit without setting a timeframe.

He said the cards would reduce crime as well as harm to problem gamblers.

Opposition Leader Chris Minns wouldn't make the same promise until he saw specifics, highlighting the potential that problem gamblers would be harmed by making everything digital.

Meanwhile, three independent MPs have pushed for a special commission of inquiry into the clubs and pubs industry.

Ms Faehrmann said the government knew gambling was increasing but was resistant to curbing gambling because it was reliant on gambling tax revenue over coming years. Tax revenue from pokies in pubs and clubs is estimated to exceed $2.4 billion in 2025/26.

"Claims that a cashless gambling card might cause more harm than good are classic industry spin," she said.

"Of course they can, and should, be designed to reduce gambling harms."

Tasmania will introduce a cashless gambling card by the end of 2024, with default spending limits of $100 per day, $500 per week and $5000 per year. Altering the default limits will be possible.


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