People struggling financially are resorting to gambling as "a last hope", gambling reform advocates say, as the latest data shows NSW pokie profits have soared $1.5 billion higher than pre-pandemic levels.
The data, released by Liquor and Gaming NSW, reflects the first full year of results unaffected by COVID-19 closures since 2019.
Pokie profits plunged 35 and 43 per cent in the first half of 2020 and the second half of 2021, respectively, coinciding with lockdowns.
They rebounded to $8.1 billion in 2022, 22 per cent higher than 2019.
Wesley Mission CEO Stuart Cameron said there was pent up demand once people emerged from lockdowns more than a year ago, but that could not apply to the second half of last year.
He said people struggling financially were drawn into gambling in the hope of winning to afford groceries and pay the rent.
"Any hope is an illusion," Mr Cameron said.
"The predatory pokies industry is positioned in every town and suburb to take advantage of people who may be vulnerable."
Tom Nance, a researcher from the Centre for Western Sydney, said people were resorting to gambling as a last hope.
"It doesn't surprise me that in the context of rising cost of living, household wallets are emptying at a rapid rate, and due to those rising costs, we're seeing more and more people try their luck," he said.
A spokesperson for Clubs NSW said that while annual NSW gaming revenue had increased compared to pre-pandemic levels, it should be noted that the rise fell short of the growth in NSW retail sales, which had increased by 22 per cent over the same period.
Clubs profits increased by 16 per cent from 2019 to 2022.
Three LGAs account for 20pc of club and hotel losses
Gambling reform advocates like Mr Nance prefer to characterise the billions of dollars in "profit" as "losses", to better reflect the impact on punters.
He said losses were higher in Western Sydney, with $9.6 million lost at pokies every day in the second half of 2022.
Losses were particularly high in the Fairfield, Canterbury-Bankstown and Cumberland local government areas.
Those LGAs alone accounted for 20 per cent of the NSW clubs and hotels profits in the second half of last year, profits which saw clubs and hotels pay nearly $500 million in taxes.
The record profits came from around 4,500 fewer poker machines than in 2019, when there were around 91,000 machines in NSW clubs and hotels.
These soaring profits led the NSW government to increase its estimate of tax revenue for 2022-23 by $423 million.
That takes the expected tax revenue from club and hotel gaming machines to $2.1 billion in 2023.
Tricks of the trade
Mr Cameron said poker machine operators spend a lot of time and energy on increasing the average amount earned by their machines, by locating them in places where they could drive profit.
"More often than not, that's in the most disadvantaged communities and hence, Canterbury-Bankstown LGA, once again, leads the chart in terms of the greatest losses," he said.
Mr Cameron said the poker machine manufacturers continue to perfect their product.
"[That] ensures not only does it attract users, but it keeps users at the machines longer and betting more," he said.
Mr Cameron said increased profits are being driven by loyalty programs, which incentivise playing for longer and spending more money.
"This can include free food and drinks and the opportunity to enter member-only competitions," he said.
"The programs are tiered so that the more money you lose, the more 'benefits' you derive from the program."
Cashless gaming card push
Alex Greenwich, independent MP for Sydney, said the latest gambling profit results were a mandate for cashless gambling.
"We need to take real action in New South Wales to make sure the trial for cashless gaming is as robust as possible," he said.
The Minns Labor government has committed to a 12-month trial of cashless gaming cards for 500 poker machines, beginning on July 1.
Premier Chris Minns said cashless gaming would not happen sooner under his government.
"I'm not committing to that. What I am committing to is a process where we can have an evidence-based response and approach to this complicated policy area," he said.
