As Australia grapples with an aging population in need of better support, a new report has revealed a startling reality: Australians are losing more money to gambling each year than the government spends on aged care. The findings reignite concerns over the impact of gambling addiction and policy inaction.
The report, conducted by Equity Economics, paints a grim picture of the gambling landscape in the country. Despite the ongoing cost-of-living crisis that has tightened the purse strings of many households, gambling expenditure has not only persisted but has risen at an alarming rate. It has reportedly outpaced the growth of spending on education, housing, and even inflation itself.
The numbers are staggering: Australians lose a whopping $31.5 billion to the gambling industry annually. To put this into perspective, the federal government spends $28.3 billion on aged care and $35.2 billion on the National Disability Insurance Scheme (NDIS). This comparison starkly illustrates the scale of gambling losses and raises concerns about the potential diversion of resources from critical social services.
The report goes on to challenge the notion that gambling expenditure would naturally decline during tough economic times. However, contrary to this expectation, gambling has continued to climb, rebounding swiftly after a temporary dip caused by COVID-19-related venue and event closures.
As stated in the report, this trend is particularly troubling for lower-income households, which are already stretched thin by the rising costs of essentials, leaving little room for unexpected expenses or discretionary spending.
Commissioned by the Alliance for Gambling Reform and Wesley Mission, both long-term advocates for stricter gambling regulations, the report calls for immediate action to address what it describes as a ‘hidden, unspoken black hole’ in household budgets.
The Alliance’s chief executive, Martin Thomas, emphasises that gambling is often overlooked as a significant factor impacting the cost of living for families. This is why he advocates for ‘gambling reforms, such as banning gambling advertising,’ which ‘represent a non-inflationary, low-cost suite of initiatives that would bring profound relief to families.’
Echoing these sentiments, Wesley Mission’s chief executive, Stu Cameron, criticises state and federal governments for their inaction on ‘spiralling gambling losses.’ He points to the daily impact on families and the strong public support for banning gambling advertising, urging political leaders to act ‘in accordance with community wishes’ rather than the interests of the gambling industry.
Moreover, experts like Monash University’s associate professor Charles Livingstone have noted that gambling losses often rise during financial hardship, as people in desperate situations may turn to gambling in the hope of winning big.
He added, ‘The more prevailing reason for this is people under stress are more likely to develop a gambling habit as it relieves their stress and that’s the same reason why there are so many poker machines in areas of disadvantage.’
The report concludes with a call for stronger government intervention, citing ‘gambling’s public health impact, addictive nature, and significant negative externalities.’ It argues that the current level of regulation and widespread accessibility of gambling opportunities necessitate a more robust response from policymakers.
In a recent development that underscores the report’s concerns, the New South Wales government has backtracked on its commitment to remove 9,500 poker machines from the state over the next five years—a pledge made before the state election.
This policy reversal, announced during a parliamentary hearing, came after advice from an independent panel on gambling reform, which included several groups with vested interests in the poker machine industry.
If you or someone you know is struggling with gambling, there are resources available to help. You can reach Gambling Help Online at 1800 858 858 and the National Debt Helpline at 1800 007 007 for support. It’s never too late to seek support and make a change.
We invite you to share your thoughts and experiences with gambling in the comments below. Have you noticed an increase in gambling among your peers? What measures do you think the government should take to address this issue? Your insights are valuable in navigating this complex and challenging topic.
Also read: National Seniors Australia presents policy recommendations, calls for change
As the government takes about 5% of the money spent in pokies gambling they are not going to do much to cut it back.
The venues also take about 5% of the money spent and if it is a club that money goes back into the community.
The 90% return rate means that the odds are permanently stacked against pokie gamblers who can not win in the long term.
Most gamblers do not seem to be able to understand that.