Andrew Wilkie (Denison, Independent) Share this | Link to this | Hansard source

In Tasmania, at the state election early next month, we will finally have the opportunity to get poker machines out of hotels and clubs. It has been wonderful to see politicians, experts and community groups make the strong case for such a reform, but regrettably we have also seen the poker machine industry consistently mislead the community about the issue. That's why I'll now address five of the lies that are currently being spread by the poker machine cheer squad.

The first is about jobs. The poker machine industry makes much of the claim that removing machines from hotels and clubs will cost jobs. Indeed, Federal Group, the current monopoly licensee of every poker machine in Tasmania, claims that 2,000 jobs will be lost, while the hospitality industry reckons as many as 5,000 jobs are on the line. This simply isn't true, because the most recent social and economic impact study of gambling in Tasmania, commissioned by the Tasmanian government, found there are only 317 full-time equivalent jobs linked to poker machines in hotels and clubs. Other government research shows that the level of employment in hotels and clubs actually fell following the introduction of poker machines in Tasmania. What's more, we know that $1 million spent on gambling creates just 3.2 jobs whereas the same $1 million spent on the sale of liquor and other beverages creates 8.3 jobs, and if it's spent on food and meals, it creates 20 jobs.

The second lie is the way the industry has characterised poker machine venues. We have already seen a dishonest campaign called Love Your Local, the aim being to make these venues seem like small, mum-and-dad enterprises that would be devastated by having their poker machines removed. The truth is that there is nothing lovable about these locals, because they are actually big business. Of the worst 20 venues for poker machine losses in Tasmania, which I revealed last week, 10 are owned by Federal Group, including Glenorchy's Elwick Hotel, which rakes in $4.5 million a year from these machines. This is almost $150,000 per machine, over three times the state average. Federal Group is a company that is making millions from poker machines in Tasmania. In fact, by one estimate, from author and historian Dr James Boyce, 70 cents out of every dollar lost to poker machines in Tasmania goes straight to the Sydney based Federal Group. Moreover, another three of the top 20 poker machine loss venues in Tasmania are owned by the Australian Leisure and Hospitality Group, which is owned by Woolworths. Make no mistake: poker machines in Tasmania are big business and not some cheery local publican.

The third lie is the claim that if people can't use poker machines then they'll migrate to online or other forms of gambling. Again, this isn't borne out by the facts. In Norway, for example, when poker machines were banned in 2007, there was no subsequent increase in other forms of gambling, including online gambling. To quote Gary Banks, former chair of the Productivity Commission:

Poker machine players tend to be poker machine players and are not all that likely to suddenly become internet based gambling players or punters on the horse races.

The reality is that poker machines have uniquely addictive features, so there is simply no truth to the claim that poker machine addicts will just move online or to other forms of gambling.

The fourth lie is about the importance of tax revenue. The Tasmanian government collects about $50 million from poker machines annually. That's less than one per cent of the state budget. In any case, the evidence shows that the cost to the community of problem gambling is much more than this. Indeed, the costs associated with problem gambling, which include bankruptcy, crime, suicide and ill health, are conservatively estimated to be up to $144 million a year. The fact is that poker machines don't make Tasmania money; they cost Tasmania money.

Finally, the poker machine industry is misleading Tasmanians about the scale of the problem. The fact is problem gambling rates in Tasmania are going up, but the poker machine industry and the government have been fudging the numbers to say that there has been a decrease. They also ignore that 40 per cent of the money lost on poker machines is lost by gambling addicts and the fact that for every gambling addict an estimated seven other people are affected. The poker machine industry in Tasmania is a pariah. Eighty per cent of Tasmanians support reform. It is simply unconscionable that the Tasmanian Liberal Party government continues to side with the industry and not the community. (Time expired)