They were the first to let licensed clubs become addicted to revenue from pokies, then let hotels have them too. But eventually, the malady spread to other states. NSW has 14 pokies per 1000 adults, ahead of Queensland on 11.
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More sensible Victoria has just six machines per 1000 adults, but Western Australians manage to live normal, happy lives with just 0.7 per 1000. Poker machines were once called “one-armed bandits”. Now they’re just bandits. Although Australia has only about 0.3 per cent of the world’s population, it has 18 per cent of the world’s pokies. NSW accounts for about half of that.
As for online betting, its ubiquitous ads make it the most noticeable. It’s a safe bet it will grow to be a bigger problem than today. But so far, it’s of little interest to women, with young adult men by far the most susceptible.
Now, the vast majority of people who gamble do so in moderation, and do themselves no harm. But a small minority of pokie players and online betters become addicted. Grattan quotes data from debit card use showing that 5 per cent of gamblers account for 77 per cent of the spending.
That’s what makes pokies and betting so exploitative. Addiction can harm people’s financial security, health and broader wellbeing. Addicts can lose their jobs, smash their marriages, commit family violence, engage in fraud, be declared bankrupt and take their own lives.
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I’m unforgiving of business people and club members who want to benefit from gambling – and politicians who lack the courage to hold them back – while turning a blind eye to all the human suffering gambling causes.
Grattan wants the feds to ban all gambling advertising and inducements, while state governments reduce the number of pokies over time.
It wants the feds to establish a national, mandatory “pre-commitment system” for all online gambling. Each state should introduce a similar pre-commitment scheme for pokies.
Pre-commitment schemes were invented by behavioural economists to allow us, in our more sensible moments, to impose limits on our own behaviour when we’re acting in the heat of the moment.
Grattan wants such commitments to be compulsory for all people that start using clubs, pubs or online betting sites after the scheme starts. You choose the limits you want to set on your spending per day, per month and per year. You can lower those limits any time you wish, but can raise them only after a delay of at least a day. The scheme would also impose maximum limits of say, $100 a day, $500 a month and $5000 a year.
Most gamblers would be unaffected by this scheme, but for others it would stop them ruining their lives. The clubs and pubs and big online betting companies will tell us it would destroy the economy. Don’t believe them.
Ross Gittins is the economics editor.
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