Nearly $20 billion lost on poker machines by South Australians since 1990s; $8 billion in tax, $12 billion to venues
Figures from the South Australian government consumer and business services department gave an overview, from the 1990s to the 2020s, of net gambling revenue (or the total amount lost by poker machine users) that went to the state government as tax and to the licensed venues (mostly hotels). Bottom left: South Australian players had been able to feed notes into the poker machines since 2019.
Images courtesy South Australian government consumer and business services department; ABC (Australian Broadcasting Corporation) News; Channel 9, Adelaide.
South Australians had lost almost $20 billion on poker machines since were fully legalised in 1994 and were losing at record levels in 2024. Of that nearly $20 billion, the state government gained $7.8 billion in taxes and venues (mostly hotels) collected $11.9 billion.
When South Australian Labor state government treasurer Frank Blevins led the legalising of poker machines in the 1990s, he estimated they would bring in revenue of around $30-40 million per year. In their first year, the state government reaped $292 million, up to $916 million per year 10 years later.
Bans on cigarette smoking in pokie venues pulled the revenue back to $844 million by 2008 and the global financial crisis years hit consumer spending and saw it fall to $742 million in 2011-12. The Covid pandemic restrictions of 2021-22 took that down to $511.5 million. But official figures from the state government consumer and business services department showed South Australians lost a record $956 million in 2023-24, up from $917.5 million the year before.
Poorer socio-economic areas consistently gave up most losses on poker machines with the Port Adelaide Enfield council area, with the most licensed venues with poker machines, again the highest for the Adelaide metropolitan area with $97 million in 2022-23, up $11 million from the previous year. The biggest rise in poker machines during that time was 78 in the Adelaide Hills area, with a fourfold rise in losses to $12 million.
Under South Australia’s Gaming Machines Act 1992, dfferent state government tax rates were imposed on net gambing revenue from gaming machines operated by a for-profit organisation (a hotel) or a non-profit association (club or community hotel). Net gambling revenue was the total bets made on poker machines in a venue less the total amount of all prizes won. There was a $75,000 tax-free threshold.
Ian Horne, a leader of Australian Hotel Association South Australia, the state’s prime poker machine interst group, pointed to the billions of direct tax – “like no other consumer product” – gained by the state government: “For every dollar of net gaming revenue, 40 cents goes direct to the state government and 9.5 cents goes in GST (goods and service tax) which ends up with the state government. It funds police, health, education and roads. When you look at the impact of pokies, you have to balance the negatives against the resulting employment and investment.”
From the other viewpoint, Mark Henley, manager of advocacy for Uniting Communities, said the economic and social cost of poker machines had been enormous: “The simple reality is that the level of gambling harm has increased dramatically since poker machines were introduced,” he said. Henley quoted economic analysis showing every $1 million in extra spending on poker machines creates only two new jobs. In the hospitality industry generally, that much extra turnover would be expected to create another 20 jobs. Henley agreed with others that poker machines had been a social disaster, particularly for women. “The relationship between female imprisonment and pokies is massive.”
