Australia holds an unfortunate title in the global gambling landscape: it leads the world in per capita gambling losses. According to a new report by the Grattan Institute, A better bet: How Australia should prevent gambling harm, Australians lose an average of AU$1,635 (US$1,098.90) per adult annually to gambling—an alarming figure that far surpasses the gambling losses of the United States (AU$809) and New Zealand (AU$584). These staggering losses come predominantly from two sources: poker machines (pokies) and sports betting.
The Grattan Institute report calls for immediate and far-reaching action to address the issue of gambling harm in Australia. Its recommendations include a ban on gambling advertisements and inducements, reducing the number of poker machines across the states over time, and implementing a mandatory pre-commitment system for online gambling, with daily, monthly, and annual limits on losses for pokies.
Grattan Institute CEO Aruna Sathanapally summed up the urgency of the situation: “Australia has let the gambling industry run wild, and gamblers, their families and the broader community are paying the price. Gambling products are designed to be addictive and the consequences can be catastrophic: job loss, bankruptcy, relationship breakdown, family violence, even suicide. It’s time our politicians stood up to the powerful gambling lobby and reined the industry in.”
Record-High Losses: A Disturbing Trend
Australia’s per capita gambling losses are significantly higher than those in other countries. While AU$1,635 per adult might seem like just a number, it translates into billions of dollars of annual losses nationwide. In contrast, the US—often associated with big-money gambling in places like Las Vegas—sees average losses of only AU$809 per adult. Similarly, New Zealand, which has a comparable culture of gambling, records average losses of just AU$584 per adult.
These figures illustrate the deep entrenchment of gambling in Australian society. Gambling machines (commonly known as pokies) and sports betting are widely available, and many Australians see them as a form of entertainment, albeit a costly one. The pervasive nature of these gambling avenues means that their societal impact extends far beyond just the individual gambler.
Pokies and Sports Betting: The Main Culprits
The Grattan Institute report highlights that the lion’s share of these losses come from two types of gambling: pokies and sports betting. Pokies, found in pubs, clubs, and casinos across Australia, are responsible for most gambling harm. These machines are designed to be addictive, with bright lights, engaging sounds, and the illusion of frequent wins keeping players engaged far longer than they intend. Pokies are particularly problematic because they are so accessible, available in thousands of venues in every state and territory.
Sports betting has also become increasingly popular, especially with the rise of online betting platforms. The integration of sports betting advertisements into broadcasts of major sports events has normalized the practice, particularly among younger Australians. This growing trend poses a unique risk, as mobile apps make it easier than ever to gamble instantly and frequently, further fueling gambling-related harm.
Beyond Financial Losses: The Human Cost
While the financial losses are staggering, the social and personal consequences of gambling are often even more devastating. According to Grattan CEO Aruna Sathanapally, the impacts of gambling harm go far beyond the individual gambler. “The consequences can be catastrophic: job loss, bankruptcy, relationship breakdown, family violence, even suicide,” she says.
These issues affect not only the gamblers but also their families and communities. When an individual loses large sums of money to gambling, it can lead to strained family relationships, increased stress, and mental health issues such as depression and anxiety. In extreme cases, gambling addiction can result in domestic violence or even suicide, as people become overwhelmed by financial pressures and feelings of hopelessness.
The Broader Economic Impact
Gambling harm also has a significant economic impact on society. When individuals lose their savings to gambling, they are less able to contribute to the economy through spending on goods and services. Additionally, the cost of treating gambling addiction, supporting families affected by gambling harm, and addressing related social issues such as crime and domestic violence puts a further burden on public resources.
While gambling does generate revenue for state governments—primarily through taxes on pokies and other forms of gambling—there is growing recognition that the costs of gambling harm outweigh the financial benefits. The Grattan Institute report argues that governments must take a longer-term view, prioritizing the well-being of citizens over short-term revenue gains from gambling.
The Grattan Institute’s Recommendations: What Needs to Change?
To address the growing issue of gambling harm, the Grattan Institute has made a series of bold recommendations. These are aimed at reducing the accessibility of gambling, particularly for vulnerable individuals, and curbing the influence of the gambling industry in shaping public policy.
Ban All Gambling Advertisements and Inducements
A central recommendation of the report is to ban all forms of gambling advertising and inducements. This would include advertisements for sports betting that have become ubiquitous during live sports broadcasts, as well as promotions such as “free bets” that are designed to lure customers into gambling.
Advertising plays a crucial role in normalizing gambling, especially among younger audiences. By constantly exposing viewers to the idea that betting is a fun and exciting part of watching sports, these ads can encourage risky behaviors. A complete ban on gambling advertising would reduce the visibility of gambling and help to de-normalize the practice.
Reduce the Number of Pokies Across Australia
Another key recommendation is to gradually reduce the number of pokies in each state. The report suggests that state governments should aim to reduce the number of pokies over time, particularly in areas where they are concentrated in lower-income communities.
Pokies are among the most addictive forms of gambling, and they are disproportionately available in disadvantaged areas, where individuals are more vulnerable to gambling harm. Reducing the number of pokies would help to limit exposure and access to these machines, particularly for those at higher risk of developing gambling problems.
Introduce Mandatory Pre-Commitment for Online Gambling
The Grattan Institute also calls for the introduction of a mandatory pre-commitment system for online gambling. This system would require gamblers to set daily, monthly, and annual limits on their losses before they start betting. Such measures are designed to prevent individuals from losing more than they can afford and to encourage responsible gambling.
Mandatory pre-commitment systems have been shown to be effective in other jurisdictions. For example, in Norway, the introduction of a pre-commitment system for online gambling led to a significant reduction in gambling losses and problem gambling rates.
Mandatory Pre-Commitment for Pokies
In addition to online gambling, the report recommends the introduction of mandatory pre-commitment for pokies, with strict daily, monthly, and annual loss limits. Many gamblers lose track of time and money when playing pokies, and a mandatory pre-commitment system would force them to set limits before they begin playing.
This system could also help to identify individuals who are at risk of developing gambling problems, as those who regularly hit their loss limits could be flagged for intervention and offered support services.
The Political Challenge: Confronting the Gambling Lobby
One of the biggest obstacles to meaningful gambling reform in Australia is the political influence of the gambling industry. The industry has deep pockets and has historically been successful in lobbying state and federal governments to avoid or water down regulations.
However, there are growing calls for politicians to stand up to the gambling lobby and take decisive action to protect Australians from gambling harm. Grattan Institute CEO Aruna Sathanapally is clear on this point: “It’s time our politicians stood up to the powerful gambling lobby and reined the industry in.”
This is not an easy task, as the gambling industry is a major source of revenue for many state governments, and many clubs and pubs rely on pokies revenue to stay afloat. However, the Grattan Institute argues that the social and economic costs of gambling harm far outweigh the short-term benefits of gambling revenue.
The Growing Push for a Ban on Gambling Ads
The issue of gambling advertising has been a major point of contention in recent months. In August 2023, Australia’s Alliance for Gambling Reform sent an open letter to the federal government calling for a ban on gambling advertisements. The letter was signed by a number of prominent figures, including politicians, academics, and public health experts, and it reflects the growing public sentiment against the normalization of gambling in Australia.
There is a strong case for banning gambling ads, particularly given their impact on young people. Research shows that exposure to gambling advertisements can lead to increased gambling behavior, particularly among teenagers and young adults. A ban on gambling ads would help to reduce the normalization of gambling and protect vulnerable populations from harm.
The Grattan Institute’s report offers a clear and comprehensive roadmap for reducing gambling harm in Australia. The recommendations—banning gambling advertisements, reducing the number of pokies, and introducing mandatory pre-commitment systems—are bold but necessary steps toward addressing the growing problem of gambling harm.