The New South Wales Labor government is funding its gambling reforms through a record surge in poker machine tax revenue, official figures reveal. The state collected over $2.5 billion from poker machine taxes in the last financial year, a 12% increase from the previous year, according to the NSW Treasury.
Revenue Surge Fuels Reform Agenda
The tax windfall has provided the government with significant financial resources to implement its gambling reform package, which includes mandatory cashless gaming cards, reduced operating hours for venues, and increased funding for addiction services. Treasurer Daniel Mookhey stated that the revenue is being reinvested into harm minimization measures. "This revenue is directly funding our reforms to reduce gambling harm," he said.
Criticism from Opposition and Advocacy Groups
However, the opposition and gambling advocacy groups have criticized the government for relying on pokies revenue to fund reforms. Shadow Treasurer Damien Tudehope argued that the government is "addicted to pokies revenue" and called for a more comprehensive approach to reducing gambling harm. "You can't claim to be tackling gambling addiction while pocketing billions from the same machines," he said.
Advocacy group Alliance for Gambling Reform also expressed concern, noting that the surging revenue indicates increased gambling activity. "More revenue means more people are losing money," said spokesperson Tim Costello. "The government must prioritize reducing the number of machines and limiting losses."
Details of the Reform Package
The reform package includes a mandatory cashless gaming card system, set to be rolled out in 2027, which will cap daily losses at $500. Venues will also be required to reduce poker machine operating hours from 20 to 16 hours per day. Additionally, the government has allocated $100 million for gambling addiction support services.
The government estimates that the reforms will reduce gambling losses by $1 billion annually. However, critics argue that the measures do not go far enough, calling for a reduction in the total number of poker machines, which currently stands at over 90,000 across the state.
Impact on Clubs and Pubs
The increased tax revenue has also sparked debate about the financial impact on clubs and pubs, which rely heavily on poker machine income. ClubsNSW, the peak body for registered clubs, warned that the reforms could force many venues to close. "This is a double whammy for clubs – higher taxes and reduced operating hours," said CEO Josh Landis. "Many clubs will struggle to survive."
The government has promised a $500 million support package for affected venues, including grants and low-interest loans to help them diversify their revenue streams. However, industry groups say this is insufficient.
