Pokie profits hit $8 billion high as push for gaming reform gathers momentum

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Pokie profits hit $8 billion high as push for gaming reform gathers momentum

By Alexandra Smith and Nigel Gladstone

Independent Sydney MP Alex Greenwich says cashless gaming will be delivered under the new Labor government and possibly earlier than promised by the Coalition, as new data shows pubs and clubs last year raked in a record $8.1 billion in poker machine profits.

Gamblers in NSW clubs lost $4.6 billion on poker machines last year, $642 million more than the previous record pre-COVID high of 2018. Pubs also made record profits from gamblers, beating their previous high from 2019 by $841 million, bringing in $3.5 billion.

The latest six-monthly poker machine data, released by NSW Liquor and Gaming, also reveals that pubs in every Sydney council area except North Sydney and Mosman posted record annual net profits, while clubs in 27 out of 34 areas also made more than ever before. Club venues in Fairfield reaped both the most profits and the largest rises.

The extraordinary profits will further bolster the push for a major overhaul of gambling in NSW, which is the first order of business for several independent MPs in the new term of parliament.

Greenwich – as well as other key crossbenchers including Murray MP Helen Dalton, Lake Macquarie MP Greg Piper and Wagga Wagga MP Joe McGirr – have identified gambling reform as one of their top priorities after last year’s damning NSW Crime Commission report.

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The commission’s report found poker machines in clubs were being used to wash dirty cash from proceeds of crime and recommended the introduction of a cashless gaming card.

The former NSW Coalition government pledged to remove cash from the state’s 86,872 poker machines by December 31, 2028, while Labor committed to a trial of a cashless gaming card in 500 machines as well as reducing cash feed-in limits in new machines from $5000 to $500.

The crossbenchers, who were critical of Labor’s policy ahead of the election arguing it was too weak, immediately began discussions with the new government after its March 25 win, including with Premier Chris Minns and Minister for Gaming and Racing David Harris.

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Greenwich said early talks were positive, and he was confident a cashless gaming card would be rolled out across the state, possibly earlier than the promised 2028 timeline. The proposal is also a priority of the three Greens MPs.

“Labor’s policy has not ruled out cashless gambling, and we will work with them to see this happen in NSW, possibly earlier than what was proposed by the Coalition,” Greenwich said.

“We’ve already met with the premier to discuss this, and look forward to working closely with Minister Harris on a robust trial that delivers a mandate for this much-needed reform.”

Greenwich said the latest data further highlighted the need for significant gambling reform.

“These record poker machines profits have been achieved at the cost of relationship breakdowns, families losing life savings, and the proceeds of crime being funnelled through venues across NSW,” Greenwich said.

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The government was contacted for comment.

Dalton said she had been given a mandate by voters in her electorate to pursue cashless gaming, despite a concerted Clubs NSW campaign against her, during which life-size posters of the MP appeared in the foyers of many clubs.

The posters said: “Helen your attack on local clubs is wrong”, and her support for reform would “treat club patrons like criminals” and force the closure of venues.

In Dalton’s electorate, pubs in Griffith, Leeton, and Murrumbidgee LGAs recorded a $3 million rise in net profits compared to the same six-month period to December last year, up from $6.1 million to $9.2 million, the data shows.

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Clubs in the Griffith LGA also recorded a $2.2 million bump in net profits from $10 million to $12.3 million in the six months to November 2022.

“We are certainly wanting to move forward with the cashless card and I would like to ban advertising, setting the agenda for the federal government,” Dalton said.

“I think we are on a roll and the public has given me the mandate to keep going. In the electorate of Murray, people have said enough is enough. I am not against a punt, but I am against a rort.”

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