Pubs in NSW Profiting from Gambling Revenue
A growing number of pubs in New South Wales are increasing their share of gambling profits, with poker machines becoming more concentrated in these venues. Large hotel groups are shaping their business models around gaming, resulting in pubs pocketing 45% of the total gaming revenue in the state, despite owning only a quarter of the poker machines. Registered clubs still own the majority of machines.
The Crossroads Hotel in Casula, which was at the centre of a COVID outbreak in 2020, recorded the second-highest gambling revenue in the third quarter of 2023.Credit: Brook Mitchell
Trends and Concerns
Recent data from NSW Liquor and Gaming reveals that pubs have seen a significant increase in revenue from gambling over the past five years. The proportion of gamblers’ losses in pubs rose from 40% in 2019 to 43.36% in the first three quarters of 2023. Wesley Mission, an organization focused on gambling reform, highlights that a small group of pubs exploit legislative loopholes to extend their trading hours and maximize profits. This trend has contributed to a growing public health crisis related to gambling harm.
Impact on Communities
Gaming rooms in pubs are generally required to shut down between 4am and 10am, but some operators can apply for reduced hours if they demonstrate hardship. Wesley Mission CEO Stu Cameron argues that the pursuit of poker machine profit by a small number of hotel operators has led to increased levels of gambling harm and negatively impacted public health. He calls for greater accountability and emphasizes that these business models resemble mini casinos rather than local pubs.
Regional Disparities and Exploitation
Industry observers note that pubs located in wealthier parts of Sydney have an advantage over clubs, which are predominantly situated in outer suburbs and regions. Pubs tend to have higher utilization rates for poker machines and attract more customers. Some hoteliers are consolidating their poker machines at venues with longer trading hours, further concentrating gambling revenue. This concentration of machines in pubs also creates an allure of choice for gamblers.
Controversies and Regulatory Actions
Several hotel groups have faced scrutiny and regulatory actions due to their gambling practices. Some have attempted to extend trading hours or build additional venues to increase their gambling machine entitlements. Others have been sanctioned for allowing customers to withdraw cash on credit or creating giant gaming floors by connecting neighboring gaming rooms. There have also been reports of staff incentivized to maximize gambling revenue and disregard harm minimization measures.
Conclusion
The increasing concentration of poker machines in pubs and the rising proportion of gambling revenue they generate raise concerns about the impact on communities and public health. The exploitative practices of a small number of hotel operators highlight the need for stronger regulations and accountability. It is crucial to address the growing levels of gambling harm and work towards a more responsible and sustainable gambling industry.
About the Author
“The Morning Edition” is a website dedicated to providing informative and engaging content for game enthusiasts. Our goal is to keep you updated on the latest news, analysis, and insights related to the gaming industry. Stay tuned for more exciting articles!
George Barham, an accomplished journalist and avid gambling enthusiast, serves as the esteemed Editor-in-Chief at fly-to-australia.com, Australia’s leading source for comprehensive gambling news and insights. With an unwavering passion for both the written word and the ever-evolving world of betting and gaming, George brings a wealth of knowledge and expertise to the helm of our editorial team.
