A gambling agency owned by the Western Australian government targeted customers with promotions to maintain its “strong margins”, despite a federal inquiry calling for them to be banned without delay, due to community harm.
WA is the last state to still own a gambling agency, the WA Tab, which is managed on its behalf by Racing and Wagering Western Australia (RWWA). All gambling profits are returned the state’s racing industry, although taxes are still paid to the state government.
“Targeted generosities and customer management generated strong margins and increased return on investment of discretionary spend,” the RWWA’s latest annual report said in reference to gambling revenue.
Inducements, or “targeted generosities”, are promotions such as bonus bets or deposit matches that are designed to encourage people to gamble. These are often promoted to amateur gamblers, who are more likely to lose. Professional gamblers with a track record of success are often banned from accessing inducements.
Almost 18 months ago, a bipartisan federal inquiry led by the late Labor MP Peta Murphy called for inducements to be banned “without delay”.
“They increase losses by encouraging riskier bets and increased betting expenditure, and draw gamblers’ attention away from harm minimisation messages,” the federal inquiry said.
The federal independent MP for the WA seat of Curtin, Kate Chaney, who was a member of the federal inquiry, said the state-owned bookmaker had “an obligation to serve the public, not to boost its profits by exploiting vulnerable gamblers with addictive incentives”.
Chaney’s criticism was shared by WA Greens MP Brad Pettitt, who said the targeted use of inducements was inappropriate.
“Encouraging risky behaviour through targeted inducements and then boasting about the profits is neither responsible nor ethical behaviour from a state-owned company,” Pettitt said.
“Western Australians have been justifiably proud of the fact that our state does not have pokies outside of the casino. We should be equally outraged by a state-owned betting agency, funded by taxpayer dollars, doing this kind of targeted advertising that experts are calling for a national ban on.”
An RWWA spokesperson said the WA Tab had reduced the amount of inducements offered to gamblers and instead focused on “customers who value and utilise them, tailored to their specific betting preferences”.
“This is about improving efficiency, rather than increasing the volume of such offers,” the RWWA spokesperson said.
The annual report attributed WA Tab’s strong retail performance, in part, to its $13.8m spend on advertising. This included a campaign designed to “resonate with all punters regardless of their level of expertise or betting preferences”.
“We set out to create a narrative that not only captivates our existing audience but also attracts new customers,” the annual report said.
In a foreword to the annual report, RWWA’s chief executive, Ian Edwards, suggested any federal ban on advertising or inducements would reduce the amount of money people lose to gambling and the betting agency’s profitability.
“The federal government is currently reviewing policy around wagering advertising and has indicated further reviews of customer generosities, which are a core part of running all wagering businesses,” Edwards wrote.
“These policies could have severe ramifications for the racing industry across the country if they are implemented in the manner that the inquiry into online gambling proposed.”
Chaney said it was “shocking” to read complaints about “lost profit from proposed safeguards”.
“We need to prioritise the community, not profits – and that means putting the brakes on incentives and ensuring a responsible, harm-minimising approach to gambling.”
An RWWA spokesperson said it acknowledged its “moral and social responsibilities to promote and encourage responsible behaviour in the community and to our customers”.
“We recognise that there is a growing desire in the community to see less gambling advertising on channels that directly reach potentially vulnerable individuals,” the spokesperson said.
The WA government was contacted for comment.
