New South Wales residents lost $4.3bn to poker machines in six months last year – $820m more than the total losses recorded in a similar period before the pandemic.
Data released this week by the gaming regulator found that while the state’s politicians were debating how to reform the sector in the last six months of 2022, punters were pouring billions into machines. The Liquor and Gaming NSW data covers machine profits in clubs from June to November 2022 and in pubs from July to December 2022.
More than 220 new machines were installed across venues in the six-month period, taking the state total to 86,872. Total gaming machine net profits jumped 11% to $4.26bn – 24% higher than the $3.44bn reached in the last six months of 2019.
Fairfield, in Sydney’s west, remains the local government area with the highest net profit for poker machines in clubs, raking in $225m over the six months. Canterbury-Bankstown followed close behind with $204m, ahead of Cumberland bringing in $133m.
The report found the 615 machines at the Mounties social club at Mount Prichard were the most profitable in the state, followed by 450 machines at Cabra-Vale ex-active servicemen’s club at Canley Vale. Both are located in Fairfield.
The figures reveal there had been a sharp rise in gaming profits since before the pandemic and a drastic uplift in gaming profits of 120% since the same time in 2021, when Sydney was in lockdown. Liquor and Gambling NSW attribute the rises in part to patrons heading back to pubs and clubs, as well as machines that were offline during the pandemic being switched back on.
Profits in pubs jumped by more than $400m over the period, while club profits rose $300m.
The state was on the verge of major gaming reform when Dominic Perrottet was voted out of power in March. He had joined forces with members of the crossbench, including the independent Sydney MP, Alex Greenwich, vowing to introduce cashless gambling systems to reduce problem gambling and criminal activity with the clubs.
The $344m plan would have seen legislation introduced to ensure a staged transition to universal cashless gaming between 2024 and 2028.
“It will save lives,” Perrottet said at the time. “It will protect jobs and ensure that our communities across NSW are stronger now and into the future.”
Labor took a softer policy to the election that was widely condemned by critics, who accused the party of failing to capitalise on what could have been a bipartisan effort to tackle the scourge.
The new government has vowed to set up an independent panel of experts to oversee an expanded 12-month trial of cashless gaming before committing to an expanded rollout.
Greenwich said the profits in the latest report laid bare the need for change.
“These super profits for clubs and pubs has come at a very cruel cost to families across NSW, and we also know has been fuelled by the proceeds of crime and money laundering,” he told Guardian Australia.
“It’s time to act and I’m committed to work with the new government to curb the scourge of gambling harm in NSW.”
The government has also pledged to reduce the feed-in limit for new machines to $500, ban external signage promoting gaming including “VIP lounge” signage and reduce the number of machines overall across the state.
The push for poker machine reform came off the back of a damning NSW crime commission report last year that found money was being laundered through machines across the state. The commission recommended a cashless system.
