In a troubling milestone, losses from poker machines in South Australia have surpassed $1 billion for the first time during the 2024–25 financial year. This significant figure reflects an increase of nearly $53 million compared to the previous year. The surge in gambling activity has prompted concerns from experts who assert that the issue is “spiralling out of control,” exacerbated by ongoing cost of living pressures that lead some individuals to gamble more.
The state government collected over $453 million from gaming machines, while venues across South Australia shared in nearly $555 million in revenue. The losses were particularly pronounced in regional areas, with the Mount Gambier and Grant councils collectively losing $24 million and Whyalla reporting losses of $20.7 million during the financial year.
Rising Concerns Over Gambling Impact
The Alliance for Gambling Reform’s spokesperson, Martin Thomas, highlighted the alarming trend, noting that Australians lose approximately $32 billion annually to gambling. He pointed out that financial stress can impair decision-making, leading individuals to seek the escape of gambling in hopes of a windfall. “Research shows that when people are doing it tough, sometimes it impairs their decision making and the idea of a windfall game, a dopamine hit and escapism — all these factors play into it,” Thomas explained.
The social ramifications of gambling extend far beyond financial losses. Charles Livingstone, an associate professor at Monash University, emphasized that the real costs associated with gambling are often underestimated. He cited a study indicating that social costs from gambling in Victoria alone reached around $14 billion annually, significantly outweighing the amount wagered.
Calls for Regulatory Changes
In light of the escalating losses and their impact on communities, the Greens have urged the South Australian government to commit to phasing out poker machines by 2030. Robert Simms, a member of the Legislative Council for the Greens, described poker machines as a “scourge on our state,” linking their presence to increased rates of problem gambling, family violence, and other societal issues.
Simms criticized the government’s reliance on gambling revenue, calling it unethical to benefit financially from the struggles of vulnerable individuals. He advocated for the establishment of a transition fund to support pubs and clubs in finding alternative revenue streams, similar to initiatives proposed in other states.
While acknowledging the significant losses, Anna Moeller, chief executive of the Australian Hotels Association in South Australia, defended the role of gaming machines in supporting the viability of hotels. She noted that revenue from poker machines helps subsidize costs for food and other services, particularly during a time of heightened economic strain.
Moeller also highlighted that poker machines are subject to strict regulations, asserting that South Australia has some of the most robust gambling laws in the country. She cautioned against over-regulation, which could drive individuals to unregulated online gambling platforms.
In a statement, Andrea Michaels, Minister for Consumer and Business Affairs, affirmed the government’s commitment to reducing the number of poker machines in South Australia. She pointed to existing measures, such as mandated facial recognition and automated risk monitoring, designed to protect those who may be vulnerable to gambling harm.
The ongoing debate surrounding the future of poker machines in South Australia underscores the need for a balanced approach that addresses both the economic realities of local venues and the profound social implications of gambling addiction. As the state grapples with these challenges, the conversation over the role of gambling in society is likely to continue.
