Media Release – Delay Switching on Poker Machines

June 23, 2020

Member for Nelson Meg Webb today called on the Gutwein Government to delay the switching on of poker machines on Friday.

“It would be irresponsible to proceed with the proposed reopening of the State’s poker machine rooms, in light of recent interstate experiences which saw a sharp spike in pokie losses when venues re-opened,” Ms Webb said.

“I am calling on Premier Peter Gutwein to do the responsible thing by Tasmanian families and local businesses and keep the state’s pokies switched off, as a matter of urgency.”

Ms Webb also said a deferral of the planned removal of restrictions on pokies venues is consistent with an evidence-based decision-making approach.

“This evidence-based approach is the one which the Premier has argued underpins the rationale for assessing other COVID-19 emergency related restrictions.

“Pokies were switched off on 23 March and since then Tasmanians saved over $42 million – that’s close to half a million dollars per day available for families to meet living costs. It’s also half a million dollars a day available to support local businesses currently struggling to stay afloat.”

Ms Webb said evidence from NSW – the first state to restart pokies earlier this month – shows that even with 40% of machines turned off to meet social distancing requirements, pokies losses have skyrocketed.

“The industry’s own data reveals the first seven days of June saw NSW hotels record a shocking 31.3% rise above June last year and 31.3% above March.*

“We can reasonably expect a similar result if pokies are switched back on here. It will be unreasonable to expect Tasmanians to bear the brunt of such a decision.

“Hospitality and other small local businesses, and many Tasmanian workers are relying upon government stimulus packages including JobSeeker and JobKeeper to survive.

“Tasmania needs every cent of these government stimulus packages to work overtime to drive our economic recovery and ensure the vulnerable do not fall between the cracks.

“We cannot afford these funds, plus newly accessible superannuation lump sums of up to $10,000, to be pirated by the pokies.”

Ms Webb said the 2008-09 Global Financial Crisis experience showed substantial spikes in pokies losses clearly associated with household stimulus funding being diverted.

“Given the GFC evidence, the question is whether Premier Gutwein will take an informed and evidence-based approach or follow NSW reckless precedent instead.

“We need to be very clear that the interests of the pokies industry are at odds with the interests of our local hospitality industry, which is teetering on the edge thanks to the COVID-19 pandemic.

“Every cent and dollar of government stimulus payments and hard-earned wages must be available to go through the tills of local Tasmanian businesses rather than down the gullets of pokies.”

Ms Webb said if the Premier turns on the pokies again, he needs to provide the independent economic and social impact analysis undertaken to determine how and why it is safe to allow pokies access to the limited funds necessary to put food on tables, heat in homes and cash into Tasmanian businesses.”

Ms Webb has this week written to key Cabinet members, including the Premier and Treasurer, Ministers for Health, Small Business Hospitality & Events, Human Services, and Mental Health and Wellbeing, urging them to:

  1. Delay the reopening of poker machine gaming areas until it can be demonstrated that it will not be detrimental to our social and economic recovery or present an increased risk to our community during COVID-19
  2. Immediately bring forward the next Social and Economic Impact Study of Gambling in Tasmania (SEIS). It is due this year and should be brought forward immediately and refocused to prioritise understanding of the COVID-19 circumstances and inform next steps, potentially through the PESRAC process.
  3. Develop initiatives to encourage and support pubs and clubs to transition their business to a poker machine-free model. This would be timely as businesses are having to review and rebuild and some venues may welcome the opportunity to be supported to exit from poker machines
  4. Invest additional funding to support new proactive programs reaching out to people and their families who are struggling with gambling and are not yet connected to services.
  5. Commit to legislating evidence-based, expert recommended harm minimisation measures, including slower spin speeds, lower maximum bet limits, lower maximum jackpots and shorter opening hours.

Ms Webb said the impact of poker machine venues upon Tasmanian families and businesses is a substantive public policy issue which falls outside the scope of both the parliamentary Subordinate Legislation Committee and specific Public Accounts Committee inquiry.

“This should have been examined by the proposed Joint House Select Committee Inquiry into the state’s COVID-19 response and recovery efforts.”

* See https://the-drop.com.au/nsw-restart-looks-positive-for-gaming/

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