Residents of Victoria have spent a record amount of money on local poker machines since the Government lifted the restrictions associated with the coronavirus pandemic. According to a recent report, Victorians lost AU$251 million in December 2021, which constituted the highest monthly loss in the state since the beginning of the records.
As mentioned above, the newly-registered monthly losses on so-called pokies surpassed the previous record of AU$250 million set in December 2008, as one of the consequences of the first wave of stimulus payments given by the Australian Federal Government as a response to the global financial crisis.
A couple of days ago, the Victorian Gambling and Casino Control Commission (VGCCC) released a report regarding the losses generated by local gamblers on poker machines, which are a type of electronic gaming machines (EGMs). According to the data provided by the regulator, Victorian residents lost another AU$224 million on local pokies in January 2022.
Furthermore, the VGCCC also revealed that the largest losses on pokies were concentrated mostly in areas that are considered as most disadvantaged under the index of relative socioeconomic disadvantage (IRSD) provided by the Australian Bureau of Statistics. The aforementioned index calculates a region’s disadvantage based on various factors, such as employment and income levels, access to education and services.
People Most Disadvantaged Areas in Victoria Account for the Highest Losses on Pokies
The highest losses in the state were registered in Brimbank, which is considered the second-most disadvantaged local government area (LGA) in Melbourne and the third-most disadvantaged LGA in the state. Local residents lost AU$42 million on poker machines in Brimbank in the period from November 2021 to January 2022, with the losses amounting to AU$15 million in December 2021 alone.
According to reports, the average household income for local residents was AU$487 weekly for an individual and AU$1,263 weekly for an entire household, which is significantly lower than the state weekly average incomes of AU$644 for an individual and AU$1,419 for a household, respectively.
Furthermore, Brimbank has been the region that suffered the most significant negative impact of the Covid-19 Omicron wave in the state of Victoria, reporting the largest number and rate of deaths since December 2021.
Reports also showed that only 5 of the overall 79 LGAs in Victoria that offer poker machines – Brimbank, Casey, Greater Dandenong, Hume and Whittlesea – accounted for over 25% of the losses on pokies around the state over the past three months. The 5 local government areas are currently some of the most disadvantaged ones in the entire state, with Greater Dandenong being the second-most disadvantaged region in the state overall.
Furthermore, estimates say that about 40% of losses on poker machines are generated by high-risk gamblers, which means that revenue levels for the poker machine licence holders are measuring the levels of gambling-related harm.
Here are the losses generated by the 5 LGAs between November 2021 and January 2022:
- Brimbank – AU$42 million
- Casey – AU$37.9 million
- Greater Dandenong – AU$34.7 million
- Hume – AU$34.8 million
- Whittlesea – AU$33.7 million
The state of Victoria has been hosting poker machines since 1991, with the number of electronic gaming machines increasing in the decades after. Monthly pokie losses of local residents, however, have started exceeding AU$200 million frequently after 2004. As Casino Guardian previously reported, Victorian residents lost AU$2.7 billion on poker machines in total in the 2019 calendar year.
- Author
Daniel Williams
