Gambling Losses in Australia to Fall Dramatically in 2020 due to COVID-19 Driven Industry Shutdown

Australians are known as the biggest gamblers, losing around $24 billion a year on poker machines – more than any other country in the world. Still, the majority of people are now overwhelmingly in favour of the complete industry shutdown driven by the COVID-19 crisis.

Since March 22, communities across the country have saved $800 million by not playing pokies – or an average of $38 million a day. Although it is still unclear when the ban on non-essential services and businesses would be lifted, gambling losses are expected to fall dramatically in 2020 from the $25 billion projections.

On Sunday, March 22, Australian Prime Minister Scott Morrison ordered all casinos and pokies clubs to close by noon on Monday as part of the response to the COVID-19 crisis. Since then, around 5,000 gambling venues have been shut down and the nation’s 194,000 poker machines have not been operational. It was estimated that gamblers are now saving $38 million a day from simply not betting on pokies.

Prime Minister Morrison warned that the social distancing measures, including the shut-down of various businesses, could last six months. During that time, pokie operators would probably lose $7.5 billion in revenue. Meanwhile, many people have suggested on social media that the pokies shut-down should continue for as long as possible, adding that this could be the perfect time to consider a ban or at least a restriction on political funding by the gambling lobby.

Data for the latest election in Tasmania showed that several corporations with gambling interests donated more than $500,000 to the Liberals, who eventually won. The Tasmanian Liberal Party expressed their support for the poker machines in the state, saying that they should stay for at least another 25 years. Meanwhile, the Tasmanian branch of the Labour Party proposed to remove all pokies by 2023. Logically, they did not receive donations from gambling-related companies and individuals.

Some analysts predict that gambling operators will be considering more donations to parties and state governments if they allow them to re-open earlier. Millions of pokies-associated dollars may start pouring into various funds, political campaigns, etc., especially after July 1. According to Australia’s current law regarding campaign finance disclosures, parties and governments are required to disclose the payments received in the 2020-21 financial year after February 1, 2022. This means that after July 1, they will be able to silently receive “donations” from the pokies lobby and move to early re-opening of casinos and pokies clubs.

Tabcorp Requests 6-Month Rent Holiday

Amidst the COVID-19 pandemic and an economic crisis that is expected to only intensify in the coming months, gambling giant Tabcorp has asked its commercial landlords a 6-month suspension of rent. According to leaked documents, obtained by The Saturday Paper, the gambling group explains that its business is experiencing significant disruption as a result of “unforeseen and extenuating circumstances” after the COVID-19 lockdown forced it to close its 4,500 venues.

The company asks its 374 commercial landlords to grant it a suspension of rent and outgoings from April 1 to September 30. According to the Starday Paper, Tabcorp could save $20 million if it manages to receive a 6-month relief from rent payments. Meanwhile, many experts warn that the pokies shutdown will force many gamblers in the country to seek online alternatives, although interactive poker machines are not currently allowed in the country.

Moreover, analysts believe that Tabcorp, which reported revenue of $2.91 billion at the end of 2019, would try to launch an online business during the crisis. This could be the most successful move for the company, which is now seeking to sell its pokies department. In February, Tabcorp chief executive David Attenborough said that changes are inevitable for the Gaming Services business, which saw a 43 per cent drop in earnings by December 2019.

  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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