A Complicated Relationship

Australians have a reputation for being keen gamblers, and the statistics back this up. We hold the unfortunate title of having the highest per capita gambling losses in the world, exceeding $25 billion annually. This addiction to gambling has significant social and health consequences.

One factor contributing to this issue is the dominance of poker machines, or "pokies" as they are known colloquially. Australia is home to the global leader in pokie design and production, Aristocrat. Despite this, our legislation and oversight in this area seem lacking. Governments across all levels appear hesitant to regulate the industry effectively, even as online gambling platforms aggressively target households with increasingly sophisticated technologies.

The reason for this inaction likely lies in the substantial revenue gambling generates. Governments, sporting bodies, and media companies all benefit financially from this industry, creating a powerful alliance that resists meaningful change. This explains why blatant illegal activities by major casino operators like Crown and Star have been ignored, despite evidence of money laundering and connections to organized crime.

While some restrictions on gambling advertising are expected soon, they will likely fall short of the complete ban many advocate for. The symbiotic relationship between media and gambling makes this a sensitive issue, as evidenced by News Corp's involvement with The Code, a sports website with gambling odds integration.

The state of New South Wales exemplifies the challenges of regulating gambling. Clubs with poker machines fiercely oppose any restrictions, and the government recently backpedaled on a commitment to cashless gaming, opting for a trial instead. This highlights the immense power of the gambling industry and its ability to influence policy.

The rise of online gambling, powered by artificial intelligence, presents even greater challenges. These platforms can identify and exploit vulnerable individuals with alarming precision, leading to increased losses and societal harm. The integration of gambling with sports further complicates the issue, as broadcasters rely heavily on revenue from betting operators.

Despite the immense profits generated by online gambling, some operators have reported declining profits, raising concerns about their business practices. Sportsbet, for example, saw its local profits nearly halve despite winning billions from Australian punters. This raises questions about tax optimization strategies and the true impact of online gambling on the Australian economy.

In conclusion, Australia's relationship with gambling is complex and deeply problematic. The industry's influence, combined with technological advancements, creates a perfect storm for increased losses and social harm. Addressing this issue requires a comprehensive approach that prioritizes public health and well-being over short-term financial gains.