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Pokies? Lotto? Sports betting? Which forms of problem gambling affect Australians the most?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/alex-russell-133860">Alex Russell</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a>; <a href="https://theconversation.com/profiles/matthew-browne-97705">Matthew Browne</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a>, and <a href="https://theconversation.com/profiles/matthew-rockloff-569">Matthew Rockloff</a>, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> Gambling, especially sports and race betting, is a hot political issue at the moment. This is largely due to the recommendations from a 2023 report from a nonpartisan federal government committee, chaired by the late Peta Murphy, called <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House/Social_Policy_and_Legal_Affairs/Onlinegamblingimpacts/Report">You Win Some, You Lose More</a>. This report <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House/Social_Policy_and_Legal_Affairs/Onlinegamblingimpacts/Report/List_of_recommendations">recommended</a> “the Australian government, with the cooperation of the states and territories, implement a comprehensive ban on all forms of advertising for online gambling”. This has led to lots of debate and controversy. Recently, Peter V’landys, head of the NRL and Racing NSW, <a href="https://www.smh.com.au/politics/federal/nanny-state-nrl-afl-storm-the-field-over-gambling-ads-20240920-p5kc2q.html">claimed</a> lotteries were more harmful than race and sports betting combined, citing independent statistics. Let’s explore the relative harm of different types of gambling and see if this claim holds up. <h2>Australians love a punt</h2> Gambling is widespread in Australia, with <a href="https://www.gamblingresearch.org.au/publications/second-national-study-interactive-gambling-australia-2019-20">more than half of adults</a> engaging in at least one form each year. According to the <a href="https://www.gamblingresearch.org.au/publications/second-national-study-interactive-gambling-australia-2019-20">latest national data</a>, lotteries are the most common type (40% of Australians buy a ticket annually), followed by race betting (17%), pokies (16%), scratchies (15.7%) and sports betting (9.6%). However, the popularity of a gambling form doesn’t necessarily reflect its harm. Different gambling activities have distinct characteristics. Two key factors mean that some gambling forms are more harmful than others: the speed of gambling and bet size. Pokies allow for frequent, small bets, with spins every three seconds. Race and sports betting can involve much larger sums and betting that is relatively fast, but still slower than pokie spins. Sports betting, in particular, is getting faster with in-play betting and <a href="https://pubmed.ncbi.nlm.nih.gov/30386964/">microbetting</a>. <figure><iframe src="https://www.youtube.com/embed/hI_XFOc4is0?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption>Poker machines, or ‘pokies’ are the biggest single source of gambling losses in Australia.</figcaption></figure> Lotteries, on the other hand, are much slower-paced. People typically spend a small amount on tickets and wait for a draw to find out if they’ve won. Although it’s possible to spend a lot on tickets, <a href="https://www.qgso.qld.gov.au/statistics/theme/society/gambling/australian-gambling-statistics">people tend not to</a>, unlike with faster gambling forms. The average spend on pokies among the 16% who play them is around $4,782 per year, compared to an average spend on lotteries of $377 per year. These are averages. Most won’t spend these amounts but some will spend far more, which raises the average amount. V’landys’ claim about lotteries being more harmful than race and sports betting was based on “independent statistics”. He said that of 100 people seeking help from a gambling hotline, 70 had issues with pokies, 15 with lotteries, eight with race betting, four with sports betting, and three with casinos. We were unable to verify these figures – if anyone has the data, we’d love to see the research to assess them. However, we do have publicly available data. <h2>What the data say</h2> The NSW GambleAware website’s <a href="https://www.gambleaware.nsw.gov.au/-/media/ghs-annual-activity-report-2020-21.ashx?rev=e070f9c8bdbf4031816a852f27246c54&hash=C5FC3AA23BE5F2EF69D551A5E2292BA9#:%7E:text=Of%20the%20clients%20receiving%20counselling,36.9%25%20of%20all%20female%20clients.">2020-21</a> report shows that of 2,886 people seeking help, 73.3% identified pokies as their primary form of gambling, while only 13 people (less than 1%) listed lotteries. Race betting accounted for 13.1%, and sports betting for 7.9%. These patterns were consistent with <a href="https://www.gambleaware.nsw.gov.au/about-us/corporate-documents">previous years</a>. People who experience problems also usually take part in more than one form of gambling, as the NSW report showed. When these secondary gambling activities were considered, sports betting was cited by 35.5%, race betting by 33.5%, pokies by 19.5%, and lotteries by 13.7%. <h2>What we discovered</h2> The best evidence on gambling problems and harm comes from large-scale prevalence studies, typically commissioned by governments and conducted by independent researchers. These studies offer high-quality insights into how each gambling form contributes to problems. While one prevalence study is great, our team recently combined data from seven national and state-based prevalence studies. This resulted in a very high-quality dataset that we can use to study this question. In <a href="https://akjournals.com/view/journals/2006/12/1/article-p182.xml">our analysis</a>, we used statistical techniques to show how strongly each gambling form is associated with problems. These techniques give us regression coefficients, which are just numbers that tell us how strong the association is. A higher number means a stronger association between that form and gambling problems. The most problematic form was pokies (coefficient = 0.147), followed by casino games (0.136), sports betting (0.068) and race betting (0.038). Lotteries, with a coefficient of 0.001, were the least problematic and were not statistically significant even in our large sample. As you might guess from such a low number, there’s very little relationship between lotteries and gambling problems. <h2>What about prevalence?</h2> Prevalence matters too – while pokies were most strongly associated with problems, the number of people participating in each gambling form is also important. Let’s consider an analogy – a car that gives out a lot of exhaust fumes. That car is harmful, but if virtually no one owns one, then it’s not going to account for much pollution. The same idea applies for gambling forms. If a gambling form is very harmful but very few people do it, it doesn’t account for many problems in the population. It works the other way, too – if there is a very clean type of car that many people drive, they also won’t add up to much pollution. Similarly, if we have gambling forms that have very little association with problems, it won’t add up to many problems in the population, even if lots of people take part. The regression coefficients tell us how problematic each gambling form is. Prevalance tells us how many people do it. When we combine these two bits of information, we can work out the degree of problems in the community that come from each form. When we did this, pokies were responsible for 52-57% of gambling problems in the community. Sports and race betting each contributed 9-11%, with a combined total of around 20%. Lotteries accounted for just 0.1-1% of problems. Even if we include scratchies as part of lotteries, this only adds another 2-5% of problems, still far below sports and race betting. <hr /> <iframe id="quxHH" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/quxHH/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>The real issue</h2> What’s the takeaway? Lotteries are widely played but are not typically associated with much harm. Sports and race betting, despite having fewer participants, are more harmful due to their faster pace and the potential for large, frequent bets. Lotteries involve slower betting and lower spending, making them much less risky. If we aim to reduce gambling harm in our community, the focus should be on pokies, which are widespread in pubs and clubs <a href="https://akjournals.com/view/journals/2006/12/3/article-p721.xml">outside WA</a>, casino games and race and sports betting. These forms have features that make them far more harmful than slower-paced gambling like lotteries.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/240665/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/alex-russell-133860">Alex Russell</a>, Principal Research Fellow, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a>; <a href="https://theconversation.com/profiles/matthew-browne-97705">Matthew Browne</a>, Senior Lecturer in Statistics, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a>, and <a href="https://theconversation.com/profiles/matthew-rockloff-569">Matthew Rockloff</a>, Head, Experimental Gambling Research Lab, <a href="https://theconversation.com/institutions/cquniversity-australia-2140">CQUniversity Australia</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/pokies-lotto-sports-betting-which-forms-of-problem-gambling-affect-australians-the-most-240665">original article</a>. </div>

Money & Banking

Woman heartlessly steals terminally-ill man's pokies win after he collapsed

Thomas Purtill, 80, had “decided to go up and throw a few dollars in the pokies" at his local pub in Caboolture, Brisbane. To his surprise, the pensioner won $300. As the terminally-ill pensioner was about to collect his winnings, he collapsed during a medical episode and dropped his ticket. “I remember landing on the floor,” Purtill, who only has six months to live, told 7News. “I think I fell over before I got the ticket into the machine (to cash it in).” CCTV footage from the pub showed the alleged thief looking concerned as she rushed to call pub staff. When she returned, Purtill can be seen pointing to something by the machine, and this was when she noticed the ticket he had dropped. The woman then moved over to the machine and allegedly pocketed the pensioner's winnings. While Purtill received medical attention, the alleged thief escaped and used another machine to withdraw the cash. Now, the CCTV footage has been released to help police identify the mystery woman, as they urge anyone with information to come forward. The pensioner spend two days in hospital after the incident on November 27, and has since been diagnosed with terminal cancer. “I don’t want to die,” he said. “But I’m going to.” He was told he has between three to six months to live, and has since returned for treatment. When Purtill was asked what he thought of the alleged thief's actions he said: “I can’t really say on TV. It wouldn’t be allowed.” “If you’re that desperate … If someone came up to me and said, ‘You’ve had a win, can I have $10 to buy a loaf of bread, a bottle of milk for the kids?’, I would have given it to them.” He then went on to call her "weak", and urged anyone who might know her to “give her up”. Staff members have offered to reimburse Purtill for his stolen winnings. Images: 7News

Legal

Not all beer and pokies: what Australians did with their super when COVID struck

<a href="https://theconversation.com/profiles/nathan-wang-ly-1380895">Nathan Wang-Ly</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ben-newell-46">Ben Newell</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> What happens when people withdraw their retirement savings early? We’ve just found out. During the first year of COVID Australians who faced a 20% decline in their working hours (or turnover for sole traders) or were made unemployed or were on benefits were permitted to take out up to <a href="https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-using-your-super/COVID-19-early-release-of-super-(closed-31-December-2020)/">A$10,000</a> of their super between April and June 2020, and a further $10,000 between July and December. Five million took up the offer. They withdrew <a href="https://www.apra.gov.au/covid-19-early-release-scheme-issue-36">$36 billion</a>. Most of those surveyed by the Institute of Family Studies said they used the money to cover <a href="https://aifs.gov.au/sites/default/files/publication-documents/2108_6_fias_superannuation_0.pdf">immediate expenses</a>. But definitions of “immediate” can vary. Real time transaction card data appeared to show early withdrawers boosted their spending by an average of <a href="https://www.illion.com.au/buy-now-pay-later-winner-of-stimulus/">$3,000</a> in the fortnight after they got the money. <a href="https://www.stptax.com/emergency-super-withdrawal-spent-on-pokies-beer-and-uber-eats/">One interpretation</a> said they spent the money on “beer, wine, pokies, and takeaway food, rather than mortgages, bills, car debts, and clothes”. In order to get a more complete picture, we obtained access to millions of anonymised transaction records of customers of Australia’s largest bank, the <a href="https://www.sciencedirect.com/science/article/pii/S0313592622001060?via%3Dihub#bfn3">Commonwealth Bank</a>. The data included 1.54 million deposits likely to have been money withdrawn through the scheme including 1.04 million we are fairly confident did. <h2>Who dipped into super?</h2> The data provided by the bank allows us to compare circumstances of withdrawers and non-withdrawers including their age, time with the bank, and banking behaviour before COVID. We find withdrawers tended to be younger and in poorer financial circumstances than non-withdrawers before the pandemic. Six in ten of the withdrawers were under the age of 35, a finding consistent with data reported by the <a href="https://www.abc.net.au/news/2020-05-25/coronavirus-early-access-superannuation-young-people/12282546">Australian Taxation Office</a>. Withdrawers tended to earn less than non-withdrawers, even non-withdrawers of the same age. Only 17% of withdrawers for whom we could identify an income earned more than $60,000 compared with 26% of non-withdrawers. And withdrawers had lower median bank balances ($618 versus $986). For those with credit cards and home loans, withdrawers were about twice as likely to be behind on repayments as non-withdrawers (9.7% versus 5.8% for credit cards, and 8.2% versus 3.4% for home loans). These characteristics suggest that, despite concerns of the scheme being exploited due to the application process <a href="https://www.abc.net.au/news/2020-09-03/-are-people-being-allowed-to-access-their-super-without-scrutiny/12618002">not requiring any documentation</a>, most of those using the scheme genuinely needed the money. <h2>Where did the money go?</h2> Compared to non-withdrawers, those who withdrew increased their spending (on both essential and discretionary items), paid back high-interest debts, boosted their savings, and became less likely to miss debt payments. Withdrawers spent an average of $331 more per month on debit cards in the three months after withdrawal, and $126 per month in the following three months. They spent an extra $117 per month on credit cards during the first three months, which shrank to an extra $13 per month in the following three months. The average withdrawer spent 7% more per month on groceries than the average age and income matched non-withdrawer, 12% more on utilities such as gas and electricity, 16% more on discretionary shopping, and 20% more on “entertainment,” a Commonwealth Bank category that includes gambling. <h2>Less debt, less falling behind</h2> In the three months that followed withdrawing, withdrawers also averaged $437 less credit card debt and $431 less personal loan debt than age and income matched non-withdrawers, differences that shrank to $301 and $351 in the following three months. They also became less likely to fall behind on credit card and personal loan payments, a difference that vanished after three months. Our interpretation is that the scheme achieved its intended purpose: it provided many Australians in need with a financial lifeline and helped buoy them during uncertain and turbulent times. <h2>Lessons learned</h2> At the same time, our <a href="https://www.sciencedirect.com/science/article/pii/S0313592622001060?via%3Dihub#bfn3">findings</a> identify areas of concern. The fact that most withdrawals were for the permitted maximum of $10,000 highlights the need to carefully consider the withdrawal limit. While these sums might simply reflect the true amount of money individuals needed to sustain themselves, it might be that many withdrawers were unsure of how much to <a href="https://cepar.edu.au/sites/default/files/Determinants%20of%20Early%20Access%20to%20Retirement%20Savings_Lessons%20from%20the%20COVID19%20Pandemic_BatemanDobrescuLiuNewellThorp_July21.pdf">withdraw</a> – not knowing how long the pandemic would continue. Another consideration is how to best support withdrawers after they have taken out the money. More than half were under the age of 35, and might find themselves with a good deal less super than they would have in retirement. The government has already introduced <a href="https://www.ato.gov.au/super/apra-regulated-funds/in-detail/apra-resources/re-contribution-of-covid-19-early-release-super-amounts/">tax concessions</a> for withdrawers who contribute funds back into their retirement savings accounts. Super funds might also be able to help, by sending targeted messages to those who have withdrawn.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/190911/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/nathan-wang-ly-1380895">Nathan Wang-Ly</a>, PhD Student, School of Psychology, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> and <a href="https://theconversation.com/profiles/ben-newell-46">Ben Newell</a>, Professor of Cognitive Psychology, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/not-all-beer-and-pokies-what-australians-did-with-their-super-when-covid-struck-190911">original article</a>.

Money & Banking

No Pokies, no problems: The bowling club that never looked back

Petersham Bowling Club was heading towards poverty, when the board’s decision to remove all of their pokies in 2007 changed their business for the better. Club president George Catsi said that the shift from pokies, a staple of many NSW bowling clubs, to live entertainment and other events has generated them more profit than the slots ever did, with a 700 per cent increase in turnover. “I came at it from a position of, this is a valuable space that’s here, the club owns the land. They could have developed it,” he told news.com.au. “So I suppose we came in on a platform of engagement, and we were feeling that the club wasn’t engaging with its community.” Over the last calendar week alone, the club has hosted trivia, life drawing, poetry, two music gigs, Pinot and Picasso, a community radio show, and Sunday bowls. “You’ve got to create a place that people go. This place is such a great vibe, and it’s got such interesting things going. People will fight for that,” Catsi said. “This is what clubs should be – they should be hubs. My problem with a lot of other clubs is that they forgot that.” Catsi said that they took over the bowling club because it was struggling, and recognised that the pokies weren’t “saving them” or a “guaranteed lifeline”, as they still needed to get people through to the club. He also said that clubs relying on the slot machines for income are “doomed” because they are not open to welcoming and accommodating to the wider communities. “Is it lazy income now? Yes, it is. Absolutely. Because it’s just embedded as part of your income stream, and you don’t want to let go of it,” Catsi said. “It’s also governments … they’re also addicted to the gambling money.” Pokies are going to be one of the major issues for the upcoming NSW election on March 25. Both parties have vowed to make considerable changes, but neither are going to remove the slots completely. Image: Getty

Money & Banking

Pubs and clubs – your friendly neighbourhood money-laundering service, thanks to 86,640 pokies

Billions of dollars in proceeds of crime are being funnelled through clubs and pubs in New South Wales, <a href="https://www.crimecommission.nsw.gov.au/final-islington-report.pdf" target="_blank" rel="noopener">according to</a> the NSW Crime Commission. Predictably, the industry is claiming it’s not an issue and solutions are too difficult. Laundering money through a local club or hotel involves loading cash into one of the state’s <a href="https://www.liquorandgaming.nsw.gov.au/resources/gaming-machine-data" target="_blank" rel="noopener">86,640 poker machines</a>, then cashing out and claiming the money as winnings. This is not a preferred method for most organised criminals, the crime commission says. Sophisticated criminals have other methods. But it is still a sizeable proportion of the estimated $20 billion in criminal proceeds laundered in NSW each year. In Queensland, you can put only $100 into a poker machine at one time. In Victoria the limit is $1,000. In NSW, newer machines allow $5,000, and older machines up to <a href="https://www.theguardian.com/australia-news/2022/jul/14/nsw-poker-machine-laws-may-increase-risk-of-money-laundering-says-commission" target="_blank" rel="noopener">$10,000</a>. For supposedly harmless suburban fun it’s hard to understand why such sums are allowed. The findings of the NSW Crime Commission’s <a href="https://www.crimecommission.nsw.gov.au/final-islington-report.pdf" target="_blank" rel="noopener">inquiry into money laundering via clubs and hotels</a> follow scandalous money-laundering revelations from casino inquiries in <a href="https://theconversation.com/not-suitable-where-to-now-for-james-packer-and-crowns-other-casinos-154938" target="_blank" rel="noopener">NSW</a>, <a href="https://theconversation.com/illegal-dishonest-unethical-and-exploitative-but-crown-resorts-keeps-its-melbourne-casino-licence-170625" target="_blank" rel="noopener">Victoria</a>, Western Australia and Queensland. Those inquiries found Crown Resorts and Star Entertainment allowed hundreds of millions of dollars to pass through their casinos, in contravention of anti-money-laundering regulations. Both companies were found not fit to hold their licences. Crown has been fined <a href="https://www.abc.net.au/news/2022-05-30/crown-casino-fined-80-million-dollars-china-union-pay/101111660" target="_blank" rel="noopener">$80 million</a> in Victoria. Star has been fined <a href="https://www.abc.net.au/news/2022-10-16/star-casino-set-to-be-fined-100-million/101541354" target="_blank" rel="noopener">$100 million</a> in NSW, and had its licence suspended. Both have been required to undergo extensive “renewal”. They have agreed to adopt cashless gaming to better protect against money laundering. It’s therefore unsurprising the NSW Crime Commission’s principal recommendation is to introduce a cashless system for all electronic gaming machines in NSW. Also unsurprising is that the industry is focused on why it shouldn’t. <h2>Cashless gambling recommended</h2> The NSW Crime Commission’s report recommends a cashless gambling system for pubs and clubs the same as for casinos – consistent with the identification requirements of Australia’s <a href="https://www.legislation.gov.au/Details/C2021C00243" target="_blank" rel="noopener">Anti-Money Laundering and Counter-Terrorism Financing Act</a>. Electronic gaming cards would record amounts loaded and withdrawn, times, turnover, and losses/wins. The maximum amount of cash able to be loaded on to a player’s account in a single day would be $1,000. Josh Landis, the chief executive of ClubsNSW (which represents most of the state’s 1,200 licensed clubs) <a href="https://www.abc.net.au/sydney/programs/breakfast/breakfast/14090002" target="_blank" rel="noopener">has said</a> that such technology has not been trialled, and was uncosted and unproven. But Crown Resorts and Star Entertainment are implementing such systems. Similar systems have been operating successfully in Norway <a href="https://nla.gov.au/nla.obj-571970219/view" target="_blank" rel="noopener">since 2009</a>, and in Sweden <a href="https://aifs.gov.au/resources/policy-and-practice-papers/pre-commitment-systems-electronic-gambling-machines" target="_blank" rel="noopener">since 2013</a>. Victoria has already implemented a card-based <a href="https://www.yourplay.com.au/" target="_blank" rel="noopener">precommitment system</a>, incorporating most necessary characteristics. Every poker machine in the state is linked to this system. Its flaw is that it is voluntary, allowing those who wish to clean dirty money, or avoid a limit, <a href="https://www.justice.vic.gov.au/safer-communities/gambling/evaluation-of-yourplay-final-report" target="_blank" rel="noopener">to simply opt out</a>. <h2>It’s not just about money laundering</h2> Money laundering isn’t the only reason to introduce cashless gaming systems. On any day in NSW, <a href="https://www.responsiblegambling.nsw.gov.au/__data/assets/pdf_file/0008/881279/NSW-Gambling-Survey-2019-report-FINAL-AMENDED-Mar-2020.pdf" target="_blank" rel="noopener">hundreds of thousands of people</a> are experiencing significant gambling harm, mostly using poker machines. Many hundreds of thousands more – <a href="https://www.tandfonline.com/doi/abs/10.1080/14459795.2017.1331252" target="_blank" rel="noopener">partners, children, employers</a> – are also harmed as a consequence. A pre-commitment system incorporating all the features of the NSW Crime Commission’s cashless model would stop money laundering and also help those struggling to control their gambling. For those who want to stop it would provide a truly effective gambling self-exclusion system. The Tasmanian government <a href="https://www.abc.net.au/news/2022-09-16/tasmania-pokies-gambling-limits-reform-explained/101446788" target="_blank" rel="noopener">has promised to implement</a> a statewide system by 2024. <h2>A matter of political commitment</h2> The real test here isn’t technology. It’s political will. NSW Premier Dominic Perrottet has expressed concern at the <a href="https://www.smh.com.au/politics/nsw/premier-says-pokies-taxing-on-the-misery-of-others-vows-to-do-better-20221002-p5bmjz.html" target="_blank" rel="noopener">exploitation of vulnerable people</a> via gambling. Opposition leader Chris Minns has <a href="https://www.theage.com.au/politics/nsw/coalition-labor-set-to-be-wedged-on-cashless-gaming-card-as-crossbench-pushes-for-reform-20221027-p5bteh.html" target="_blank" rel="noopener">said the crime commission’s report is concerning</a> but will not commit to a cashless card. ClubsNSW and the Australian Hotels Association are two of Australia’s most powerful lobby groups. According to an <a href="https://www.abc.net.au/news/2021-11-23/how-gambling-industrys-biggest-political-donors-influence-votes/100592068" target="_blank" rel="noopener">ABC investigation</a>, they have doled out about a third of $40 million in political donations disclosed by gambling-related organisations over the past two decades. Since 2010, ClubsNSW has signed <a href="https://www.smh.com.au/national/nsw/the-million-dollar-men-who-run-the-clubs-industry-20221011-p5bowp.html" target="_blank" rel="noopener">memorandums of understanding</a> with incoming governments to protect its members interests. In the first six months of 2022 (the <a href="https://nswgov.sharepoint.com/sites/GamingMachineReports/Shared%20Documents/Forms/AllItems.aspx" target="_blank" rel="noopener">most recent data</a> available), people in NSW lost $4 billion using pokies – $2.4 billion in clubs, $1.6 billion in pubs. This is 23% more than the same period in 2019, before pandemic restrictions. Yet according to the Australian Hotels Association, the industry is on “<a href="https://www.afr.com/chanticleer/why-a-pokie-crackdown-will-have-pub-owners-nervous-20221026-p5bt48" target="_blank" rel="noopener">on its knees</a>” and being told to introduce “an unproven, untested, un-costed and unnecessary cashless system”. In NSW, gambling operators are not permitted to donate to state political campaigns. But ClubsNSW (and its member clubs) can because they are “<a href="https://www.elections.nsw.gov.au/Funding-and-disclosure/Political-donations/Unlawful-political-donations/Prohibited-donors" target="_blank" rel="noopener">not for profit</a>”. If this continues, political parties will be open to the allegation that they, like clubs, are benefiting from the proceeds of crime. Pokie operators have billions of reasons to assert this is no big deal. Politicians should take a different view. This article originally appeared on <a href="https://theconversation.com/pubs-and-clubs-your-friendly-neighbourhood-money-laundering-service-thanks-to-86-640-pokies-193312" target="_blank" rel="noopener">The Conversation</a>. Image: Shutterstock

Legal

Police find millions laundered through pokies

NSW Police have identified more than $5.5 million in suspicious transactions over the last six weeks in their latest crackdown on money laundering through poker machines. Chief NSW gaming investigator David Byrne said his team of investigators have identified 140 pubs and clubs, as well as 130 individual gamblers, that have been associated with money laundering activity. “That’s only in the Sydney metro area, that’s not the entire NSW landscape,” he told The Sydney Morning Herald. The laundered cash comes from criminal proceedings and is made to look like legitimate earnings or winnings from gambling. “You’re talking about, at the worst level, child exploitation, human trafficking, firearms trafficking … terrorism funding - all of those can be packaged up in the same conversation as money laundering,” Mr Byrne said. Footage shared by The Sydney Morning Herald and 60 Minutes over the weekend revealed how a money-laundering syndicate used pokies at a Sydney pub to launder tens of thousands of dollars. <blockquote class="twitter-tweet"> It turns out size doesn’t matter for criminals running massive money laundering operations. Now, in a major investigation with <a href="https://twitter.com/hashtag/60Mins?src=hash&ref_src=twsrc%5Etfw">#60Mins</a>, <a href="https://twitter.com/theage?ref_src=twsrc%5Etfw">@TheAge</a> and <a href="https://twitter.com/smh?ref_src=twsrc%5Etfw">@SMH</a>, we turn our attention to neighbourhood pubs and clubs filled with money-making poker machines. <a href="https://t.co/4m0iVxuzKo">pic.twitter.com/4m0iVxuzKo</a> — 60 Minutes Australia (@60Mins) <a href="https://twitter.com/60Mins/status/1464893015697149959?ref_src=twsrc%5Etfw">November 28, 2021</a></blockquote> The newspaper, along with The Age, <a rel="noopener" href="https://www.smh.com.au/national/post-lockdown-blitz-finds-millions-laundered-through-poker-machines-20211129-p59d3i.html" target="_blank">reported</a> that the state gaming department had been unable to access pokies data from The Star casino, despite the establishment of a centralised monitoring system that collects poker machine data in 2017. The lack of access to The Star’s information was discovered earlier this year, after police asked the venue for information about the pokies habits of alleged drug trafficker Mende Trajkoski. It was later discovered that Mr Trajkoski had a $175 million poker machine turnover at The Star between 2007 and 2021. Mr Byrne said that states like Victoria likely face similar issues, and has urged the gambling industry and groups such as lobbyists ClubsNSW to take the issue seriously. “I don’t think that clubs, where good, family-orientated people across NSW go to have dinner, want [patrons] to be walking past organised criminals laundering cash,” he said. “I think, based on what we’re finding, they [pokies venues] need a wake-up call, definitely.” The allegations come as the Department of Liquor and Gambling has found additional video evidence of money laundering at clubs, with footage showing individuals picking up bags of cash in a carpark before gambling with it inside the club in a suspicious manner. NSW Premier Dominic Perrottet said he has sought advice over the “very concerning” allegations made by the newspaper and 60 Minutes. The publication also <a rel="noopener" href="https://www.smh.com.au/national/1-billion-and-counting-investigator-reveals-size-of-poker-machine-crime-20211125-p59c0e.html" target="_blank">reported</a> that Mr Perrottet’s office was privately threatened by figures in the gaming industry that would be targeted by his proposed reforms to counter money laundering. However, a statement from ClubsNSW downplayed concerns that the industry needed reforms or that laundered money was a significant issue. “The groups and the people who are suspicious in the casino environment are often identified in the registered club and pub space,” Mr Byrne said. He said the challenge “has always been finding the resources and time and budget to address” money laundering in a gaming environment. Image: Getty Images

Money & Banking

Woman's $940k theft from vet hospital to play pokies app

A woman has pleaded guilty to stealing $940,000 from her employer, after using the funds to fuel her addiction to an online gambling game that doesn’t pay out real money. Tasmanian woman Rachel Naomi Perri appeared before Hobart’s Supreme Court on Monday facing 25 charges of computer-related fraud and one count of fraud. Ms Perri, 49, stole the money over the three years she worked at the Tasmanian Veterinary Hospital as an account manager. The “anomalies” in bank transactions were only discovered after Ms Perri was made redundant. The full extent of her theft was uncovered after a full investigation. Crown prosecutor Simone Wilson told the court that Ms Perri made 475 fraudulent transactions over the course of three years and four months, with the final amount totalling $940,221. Ms Wilson told the court that Ms Perri was the only person managing the hospital’s bank accounts and transferred money from the accounts to a variety of credit cards, personal loans, and other bank accounts in her name. Police also discovered that Ms Perri had fraudulently taken out a $30,000 credit card in her husband’s name in 2015, racking up $24,000 in debt without her husband’s knowledge. When she was interviewed by police in 2019, Ms Perri “immediately said, ‘I’m guilty’.” The court heard that Ms Perri told police she had been playing a game called Heart of Vegas for the past four years, which is where all of the money had gone. “It is similar to playing pokies and you shop to purchase coins or credits,” Ms Wilson told the court. “[But the] credit purchased never turned into actual money. She couldn’t explain why she was playing that game when there was no return.” Heart of Vegas claims to feature “real Vegas slot machines just like the ones you know and love”. Its terms and conditions also state that players “may be required to pay a fee to obtain virtual items”, but that “virtual items may never be redeemed for ‘real world money’”. Ms Wilson read out Ms Perri’s interview with police to the court and said she was in her “own little world” while playing. “I got myself into so much trouble but decided I’d keep going until [I] got caught,” she <a rel="noopener" href="https://www.abc.net.au/news/2021-11-23/woman-pleads-guilty-to-stealing-940k-from-her-workplace/100639450" target="_blank">said</a> in the record of the interview. “I knew I couldn’t get away with it. I was waiting for a knock on the door from police.” Greg Barns, Ms Perri’s lawyer, told the court that the accused had a “lengthy history of gambling” that started when she turned 18 in Launceston. “She began to use poker machines and she won $26 from placing a dollar into a machine and, as she described it, it went from there,” he told the court. Mr Grant said his client had moved from Launceston to Hobart for a fresh start, but began gambling 2008-09. “She described spending consecutive hours on poker machines,” he said. “One session she spent 16 hours continuously playing on the machine.” When Ms Perri discovered Heart of Vegas, Mr Barns said she became so addicted that she would keep spending money just to “keep playing the game”. “She got so addicted that she’d play it first thing in the morning,” he told the court. “She would set it up at night so it played in auto.” Ms Perri was diagnosed as having a severe gambling disorder by forensic psychiatrist Dr Michael Jordan. “He considered that Perri’s gambling disorder was the most significant factor in her fraud activity,” Mr Barns told the court. “[Her gambling was mindless, with no hope of any financial gain.” Mr Barns told the court that Ms Perri voluntarily entered therapy and would need to continue once she was in prison. He said it was unlikely that his client would be able to pay back the veterinary services, after they instituted civil proceedings to recover the money. Ms Wilson said the accused’s behaviour was “planned” and “calculated”, and that she only stopped because she was made redundant. “The prospects of her recovering are slim to non-existent,” she told the court. Ms Perri has been remanded in custody until she is sentenced next month. Image: Getty Images

Legal

Woolworths' pokies business under growing scrutiny

Woolworths has found itself under growing pressure to back away from the controversial pokies industry, as a major shareholder warned that involvement in gambling may harm the supermarket giant’s reputation. Woolworths owns a majority stake in Australia's largest slot machine operator ALH Group, which has more than 12,000 pokies machines across the country. According to a <a href="https://www.smh.com.au/business/companies/pressure-grows-on-woolies-to-ditch-pokies-as-key-shareholder-joins-push-20190523-p51qf0.html">Fairfax Media</a> report, one of the grocery chain’s most influential shareholders, Perpetual Investments, has pushed the company to exit the pokies business. The investment firm reportedly told the Woolworths’ board that their support for poker machines is incompatible with the supermarket’s family-friendly values and may threaten the brand’s standing within the community. Woolworths owns a 75 per cent share in ALH and gained $259 million from the pubs and pokies company last year, which accounted for about 10 per cent of its pre-tax profit. This is not the first challenge against Woolworths’ relationship with slot machines. Last year, it was revealed that staff at poker machine venues owned by Woolworths offered extra free drinks to “<a href="https://www.abc.net.au/news/2018-08-06/woolworths-confirms-clubs-monitored-poker-machine-customers/10077940">high-value</a>” punters to boost profits, which goes against the company’s commitment to responsible gambling. In response to the report, staff at at least 22 venues were sacked and disciplined by ALH. In a 2017 annual general meeting, Woolworths chairman Gordon Cairns rejected the idea that divesting would help relieve Australia’s gambling problem, as ALH only accounts for 6 per cent of Australia’s poker machines. “A much more constructive way to solve the problem is if we show industry leadership by maintaining the most responsible program,” he said. Australia is the country with the most poker machines per person in the world, excluding gambling holiday destinations such as Macao and Monaco. In 2015, there was one slot machine for every 114 Australians. According to a 2017 study by the <a href="http://www.tai.org.au/sites/defualt/files/Pokies%20pub%20test%20FINAL.pdf">Australia Institute</a>, Australia owns 18 per cent of the world’s poker machines. “Australia’s large number of poker machines and our unusual decision to allow them in pubs and clubs make us a global anomaly,” said the report’s <a href="https://www.theguardian.com/australia-news/2017/dec/14/australia-gripped-by-poker-machine-addiction-report-says">co-author</a> Bill Browne. Gambling Helpline: 1800 858 858 Lifeline: 13 11 14

Retirement Income

Woolies staff rewarded for spying on pokie players

A <a href="https://www.smh.com.au/" target="_blank">Fairfax Media investigation</a> has revealed staff in pubs owned by Woolworths are being rewarded for spying on pokies players and sharing detailed, personal information to encourage them to stay longer and increase their gambling losses. The report cites data shared on a Google drive among the 400 pubs in Woolies’ network across the country, complied in a bid to increase the company’s gaming venue. Screenshots obtained by MP Andrew Wilkie and shared with Fairfax Media reveal how staff employed predatory tactics like rewarding players with gift vouchers when targets were reached, and compiling data on personal habits. One staff member notes after a shift: “Started slow, picked up after 9, coffees, drink shouts and toasties trying to keep them in, a lot of promo tickets going out.” Mr Wilkie told <a href="https://www.smh.com.au/" target="_blank">Fairfax Media</a>, “It used to be an unwritten thing, you’d talk to patrons in a genuine sense, but now those genuine interactions aren’t what they used to be. We’re actually writing it down so that we can get people to stay for as long as possible, to put as much money into the machines as possible. “You’d record that stuff so that any new gaming staff can easily get up to speed with our VIP customers, who we want to keep gambling for as long as possible, so you can easily strike up a conversation with them and build rapport really quickly. “You know the ins-and-outs of their life. You’re writing down what they do, when they sort of …what time they normally come in, the teams they barrack for and then you can go and have a conversation with them very, very easily because you’ve got that background information. “It’s the predatory tactics that's being deployed. It’s unethical and essentially you are looking over people’s shoulders, and documenting what people are doing and they don’t know that you are doing that. They think you are having a general chit-chat with them, but you are actually profiling it. “I’m not the only one that feels uncomfortable about it, a lot of my friends that work in the industry feel very uneasy about it, but they are told to do it by their bosses, so that’s what they do. You have to keep your job.” Woolies owns 12,000 poker machines across Australia through a majority share in ALH. ALH provided a <a href="https://www.smh.com.au/" target="_blank">statement to Fairfax Media</a>, saying it was concerned with the gaming practices revealed in the pubs highlighted in the investigation. "We have commenced an investigation to ascertain what occurred as we take our responsibilities in providing responsible service of gaming and alcohol most seriously," the spokesman said. What are your thoughts? Does Woolies have a case to answer for?

Retirement Life

Should pokies be banned?

Whenever it gets brought up at the dinner tables, pokies are always going to be one of the more contentious topics of debate. While some people can see the benefit of these gambling machines as revenue raisers important activities in the local community, others highlight the <a href="http://www.oversixty.com.au/finance/money-banking/2017/07/desperate-calls-for-pokie-ban-in-vulnerable-areas/" target="_blank">terrible impact they have on the lives of problem gamblers</a>. A little while ago we asked you, the Over60 community, to weigh in on the poker machine debate. We were impressed with the response, and decide to feature some of the more interesting discussion points in an article. To see them all, scroll through the gallery above. If you haven’t already weighed in, tell us what you think now. Do you think pokies have a place in the community? Or should there be a ban in place? This article is for general information only. You should seek formal financial advice on your specific circumstances.

Money & Banking

Desperate calls for pokie ban in vulnerable areas

Fairfield council has called on the NSW government to implement a ban on more poker machines being approved in clubs and pubs in the vulnerable area. The region, considered to be one of the most disadvantaged in Sydney, saw more than $8 billion gambled through pokies by residents during the 2015-16 period. The council says this has resulted in several incidents of gambling-related harm, and believes it is up to the state government regulator, the Independent Liquor and Gaming Authority, to cap the number of machines in communities. The council’s submission reads, “No public good can be achieved within communities with high levels of gambling, such as Fairfield, for any further development of the gaming industry or any additional increases in gaming revenue.” Alliance for Gambling Reform spokeswoman, Allison Keogh, says, “We don't push addictive cigarettes to get revenue, so both sides of NSW politics need to break their addiction to pokies revenue and escape the capture of the pokies industry with its dangerous products and influence-pedalling which results in state-sponsored citizen abuse." What are your thoughts? Do you believe poker machines have a place in local communities? Or are they doing far more harm than good?

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Police find millions laundered through pokies

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Woolworths' pokies business under growing scrutiny

Woolies staff rewarded for spying on pokie players

Should pokies be banned?

Desperate calls for pokie ban in vulnerable areas

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