The authorities of the Australian state of Victoria introduced legislative changes allowing for the increase of the cash payouts gamblers can collect from slot machines, or “pokies”, as they are commonly known in the Land Down Under. The changes in the state’s gambling legislation came into effect today and make it possible for Victoria gamblers to pocket twice as much in instant cash winnings.
The previous cap on pokie cash payouts stood at A$1,000 but has now jumped to A$2,000. Payouts that exceed the sum of A$2,000 are to be carried out via online banking transfers or cheques in cases when the winnings cannot be accessed within a period of 24 hours.
For the past ten years, pokie players’ winnings that exceeded the amount of $1,000 were paid out by cheque. These limits were introduced by former Minister of Gaming Daniel Andrews who insisted this approach would reduce the risks of gamblers pouring what they have won back into the slot machines.
The cap increase passed parliament on November 30, 2017, and is part of a reforms suite which includes several other amendments of great consequence. The term of slot machines’ licenses was extended from 10 to 20 years. Meanwhile, the Andrews administration decided to freeze the number of pokies, with gambling venues allowed to operate no more than 105 machines each. The current batch of licenses for pokies operation is to expire in 2022.
The Cap Increase Does Nothing to Minimise Gambling-Related Harm
According to industry insiders, the cap increase would have a positive impact on gambling businesses throughout the state as it would cause the profits of Victoria gambling venues to grow by more than 15%. Tim Costello, Director of the Alliance for Gambling Reform, spoke negatively about the newly enforced legislative amendments.
Costello went as far as to refer to the changes as “greedy” and considers them a convenient way for the state’s government to increase the taxes it collects from the slot machines profits. Pokies profits are expected to pour more than $1 billion in taxes into the government’s treasury over the following year.
Mr Costello proceeded to reproach the former Minister of Gaming and current Victoria Premier Daniel Andrews for his predatory approach and explained the cap increase does nothing to minimise the harms, associated with gambling. Mr Costello is concerned the higher cash payouts are likely to cause people who cannot control themselves to go back to the machines and reinvest everything they have won.
The government’s decision to raise the cap on cash payouts was also met with criticism on behalf of Marlene Kairouz, Minister of Gaming and Liquor Regulation. Kairouz explained that the state of Victoria is one of the of the most strictly regulated jurisdictions in the country, with daily limits on cash withdrawals across venues and restrictions on advertising gambling products in public places. She is of the opinion increasing the limits on the payouts would cause gamblers to avoid collecting their cheques.
Payout Increase Causes Concerns amid a Growing Gambling Problem
The increase in payout limits was met with disapproval amid the growing fears of gambling-related harm. Colleen Hartland, a member of the Greens party, was also outraged by the cap boost. Hartland believes the state’s government is clueless as to the destructive nature of slot machines and is not dealing with the growing gambling problem adequately.
In fact, Hartland has a point as the results of various surveys are disconcerting, to say the least. Players from the state of Victoria alone have gambled away over A$50,000 on pokies since the machines’ introduction in 2012. Some of the most affected municipalities in Victoria are the cities of Monash, Brimbank and Greater Dandenong where gamblers have collectively lost as much as A$7.07 billion.
The rising pokies addiction problem has caused anti-gambling campaigners, along with the Alliance for Gambling Reform, to advocate against the machines which in their words “produce addictions”. The campaigners appeal to the Victorian government to finally acknowledge the issue and introduce proper regulatory measures to minimise pokie-related harm. The constantly growing addiction to these machines has forced local authorities to propose the introduction of a nationwide self-exclusion register. The scheme is to be rolled out next year and will provide gambling addicts with the opportunity to willingly ban themselves from accessing online gambling websites.
- Author
Daniel Williams
