The Queensland Government has made some drastic moves in order to stop the decline in its gambling sector.
The Newman government, for example, has focused on changing gambling regulations concerning pokies and slot machines at clubs and pubs, despite the reported increase in September revenues. In a single venue, the number of pokies that can do business was increased to 300, and the former limit of $20 banknotes was lifted. Now, machines can receive $50 and $100 banknotes and operators can pay winnings in cash up to the amount of $5,000.
Another change in regulations was the removal of the limit in concentration of pokies at the Southern and Eastern parts of Queensland. Not only that, but entertainment facilities can now use ‘tito technology’ – ticket in, ticket out as another way of payment.
The gambling machine producer IGT reported that this technology leads to increased work-time of the gaming machines, and therefore bringing more profit. The effect of the changes in the gambling regulations of Queensland has been analyzed by Monash University experts, who are worried that the changes aim to simply increase revenue, but in that way the protections with minimization effect could be reduced in number.
The analysis was requested by the Anglican Church of Southern Queensland. It further states that the changes do not decrease the ‘regulatory burden’ but simply focus on freeing the gambling industry of any governmental control, which will probably lead to ‘increased gambling revenue’. But at what cost?
The cancellation of any regional limits for pokies concentration is distressing, the report says, as this will lead to transfer of many machines to poor regions, which are more profitable.
This will lead to higher gambling addiction in those ‘disadvantaged communities’, where the losses for gamblers are much higher and more devastating.
Currently, there are more than 43,000 poker machines available in Queensland’s entertainment facilities, 25% of the country’s overall.
August 2014 is reported to be the most profitable month in the history of Australia’s gambling industry when it comes to poker machines revenue. The income estimate is AU$200 million.
The Newman Government explained that one of the reasons for these new gambling regulations is to ease the gambling industry from the 2012 imposed higher taxes. The labor unions of Queensland’s hotels and clubs have since put pressure on the local authorities, with demands for less taxes or other regulations. And those requests have been heard. The government explains that now the 2012 increase in taxes is more or less neutralized.
However, the rest of the community raises its concerns, as the Productivity Commission reports that close to 40% of all income from pokies is from players who have gambling problems. The Queensland main attorney, Mr Bleijie, explained that he has not been given a copy of such a report and cannot make a comment yet.
