Poker machines cause and profit from problem gambling. These are unequivocal facts established by solid research and the Productivity Commission.
The Federal Government is looking at options to make poker machines safer. The proposed measures will give back choice to many people lost in the hypnotic 'zone' of the machines. They will require gamblers to nominate their loss level before they gamble.
The gaming industry is clearly threatened by these mandatory pre-commitment measures. Clubs Australia has embarked on a marginal seat campaign opposing them, and a new advertising campaign aimed at misleading the public will screen at NRL games for the remainder of the season.
Clubs Australia says it doesn't want one dollar from problem gamblers. This claim is disingenuous at best. The Productivity Commission concluded that 60 per cent of total losses from poker machines come from problem and at risk gamblers. This amounts to over $7 billion a year.
The Commission found that 30 per cent of regular poker machine users are problem and at risk gamblers. This is a conservative figure as it also found that gambling problems and spending are under-reported in surveys. For every problem gambler up to 10 other people are directly affected, and revenue is leached from local businesses and communities, usually in less affluent areas.
Importantly, the Commission established that poker machines are a dangerous product in need of greater regulation to make them safer for users. It recommended that poker machine gamblers use 'pre-commitment' measures, where gamblers decide in advance how much they are willing to lose.
A two-track system proposes pre-commitment measures for gamblers using high intensity (high spending) machines and no pre-commitment measures for lower intensity machines. Pre-commitment has been shown to work in trials in two Australian states, as long as it is compulsory.
Implementing these measures would be relatively cheap, especially as a proportion of poker machine profit. It would simply involve reprogramming the machines, which are, after all, computers. In fact the technology is already largely in place with industry loyalty cards. So what's all the fuss about?
Perhaps the real fear is that the measures will work. They will reduce revenue from problem gamblers and clubs will feel it in their hip pocket. This business model relies on