SA's pokie losses exceed $1bn for first time, $24m in Mount Gambier alone

More than $1 billion has been lost on poker machines in South Australia in the past year, with experts saying the issue is "spiralling out of control", as cost of living pressures encourage some people to gamble more.

Revenue from gaming machines in SA exceeded $1 billion for the first time over the 2024–25 financial year, up nearly $53 million from the previous 12 months.

Of that, over $453 million was collected by the state government, while venues shared in nearly $555 million over the past financial year.

Losses were particularly bad in regional areas; $24 million across the Mount Gambier and Grant councils and $20.7 million in Whyalla.

The Alliance for Gambling Reform says losses are "spiralling out of control" across the country. (ABC News: Danielle Bonica)

The Alliance for Gambling Reform's Martin Thomas said gambling losses were "spiralling out of control" across the country, with Australians losing about $32 billion annually to gambling.

"While that causes a huge amount of financial loss and harm, it's also causing terrible social harm across our community," he said.

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Mr Thomas said while it is "counterintuitive", studies had shown some people were more likely to gamble when under financial pressure.

"Research shows that when people are doing it tough, sometimes it impairs their decision making and the idea of a windfall game, a dopamine hit and escapism — all these factors play into it," he said.

"The impacts are in a cost of living crisis are hugely profound. People go without food, people quite often can't pay their rent and it has dire consequences for families."

Costs much more than losses

Monash University associate professor Charles Livingstone said while online betting was growing, representing "around 30 per cent" of wagering in Australia, pokies were "still the biggest game in town".

He said the social costs of gambling were likely far more significant than the amount people wager.

"The most recent study in Victoria estimated that the social costs from gambling [in Victoria] are around $14 billion a year, which is almost three times the amount that people gamble," he said.

"When you factor in all those costs, it doesn't look like such a good proposition and, of course, many of those costs are ultimately met by state governments."

Online gambling has grown to about 30 per cent of all wagering in Australia. ( ABC News: Jasmine Hines )

Across SA's south-east alone, $42 million were lost on poker machines in 2024–25.

"Regions certainly have challenges with gambling because pubs and clubs, particularly when it comes to poker machines, are quite often, a central social place and a meeting place for people," Mr Thomas said.

"Sporting clubs, likewise, really form the heartbeat of many regional communities.

"Unfortunately, that's where poker machines are, and we hear countless stories of people who perhaps are playing football, and they're quite young and they start playing poker machines just as part of that culture and it's a bit of fun.

"But for some people it becomes a real obsession and causes enormous financial losses."

Pokies a 'scourge on our state'

The Greens called on the SA government to commit to phasing out all pokies by 2030, calling them a "scourge on our state".

Greens MLC Robert Simms said poker machines had caused "massive social harm" since their introduction 30 years ago.

"There are established links between problem gambling, family violence and violent crime," Mr Simms said in a statement.

Robert Simms and the Greens are calling on the SA government to phase out poker machines. (ABC News: Che Chorley)

"It's completely unethical for the state government to continue to use poker machines to raise revenue when they have such a devastating impact on our community."

Mr Simms urged the SA treasurer to commit to phasing out poker machines over the next five years and to establish a transition fund to support pubs and clubs to find alternative revenue streams, as had been proposed in other states.

"The state government should urgently take up these measures before even more lives are destroyed," he said.

"Instead of raising revenue from the gambling losses of struggling South Australians, the state government should instead be funding our essential services by scrapping subsidies for fossil fuel companies and imposing a big bank levy."

Revenue important for venues

While the losses are significant, Australian Hotels Association SA chief executive Anna Moeller said the revenue from gaming machines could be "a very important part of helping to make hotels viable".

Anna Moeller says many hotels would not be viable without gaming machines. (ABC News: Imogen Hayne)

"They act as cross subsidisation, so it means that they can subsidise the cost of food, for example," she said.

"That's particularly important now where we've got a cost of living crisis so we're not having schnitzels that are costing $45.

"Did they not have the capability of incorporating gaming machines as part of their business model, there are many, many hotels that simply would not be viable."

Ms Moeller said poker machines could also be more easily regulated than other online forms of gambling.

"South Australia is … the pin-up state in terms of harm minimisation in that space and regulations," she said.

"Your danger is that if you over regulate too much, you push people onto those other underground platforms that we don't have optics over."

In a statement, Consumer and Business Affairs Minister Andrea Michaels said the government was "committed to reducing the number of poker machines in SA".

Andrea Michaels says SA's laws on poker machines are among the strictest in Australia. (ABC News: Lincoln Rothall)

"SA has some of the strictest laws in the country when it comes to poker machines, including mandated facial recognition and automated risk monitoring of each session of play," she said.

"It is certainly a significant amount of money and … we are focused on ensuring that there are protections in place and support available for those who may be struggling with gambling harm."

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