In the Northern Territory, troubling new data is provoking a public health response to gambling. In doing so, they reveal a troubling connection between poker machine revenue and the wellbeing of their communities. During the 2024-25 financial year, pokies gamblers paid more than $51 million in tax revenue to the territory. This amount constituted the remarkable 44 percent of the total gambling tax revenue of nearby Northern Territory. Moreover, in this time period, this revenue was responsible for over 6 percent of the total revenue taxation the government collected.
The apparent net financial benefits of poker machines have been the source of a passionate back and forth over their cultural costs. Matt Stevens, a local gambling researcher, had a particularly chilling experience. As much as 80 percent of pokie profits come from people who have gambling addiction problems,” he explained. A recent survey conducted by the Northern Territory government of 2014 revealed a startling statistic—the Northern Territory’s level of problem gambling is double the national average. In fact, almost one out of every ten players is a problem or moderate risk.
The Burden of Gambling Addiction
Those numbers tell a jarring story about the gambling landscape in the US territory. Just this year, those 44,982 pokies players in the Northern Territory lost around $222 million on machines. Of those, a mere 4,324 problem gamblers contributed more than half of that spending at nearly $122 million. Indigenous Territorians shoulder a disproportionate burden in gambling losses. They gamble and lose at least three times as much as those who are not Indigenous (an average of $8,473 per year).
Dr. Stevens focused on the societal costs that stem from gambling addiction. He claimed the harms associated with gambling could be as high as $400 million annually to the Northern Territory. That figure is a breath of fresh air compared to the $115 million produced by gambling tax revenue in totality.
“People with problems with their gambling are contributing anywhere from 50 to 80 percent of the profits that the industry makes, so if you actually want to reduce harm, they’ve got to be prepared to reduce the revenue as well.” – Matt Stevens
Nicola Coalter, a psychologist and former head of the NT’s Mental Health unit, called gambling addiction “Australia’s invisible epidemic.” She noted that for every person directly impacted by gambling harm, they impact around 15 additional people. These people feel the impact of the “ripple effect.”
“It’s the mum who’s trying to make do and feed the kids and explain why they can’t go on that school trip; it’s the young apprentice who’s not getting smoko at morning tea because his pay’s already been spent.” – Nicola Coalter
The Controversy Surrounding Community Contributions
The debate over whether pokies clubs ruin more lives than they inspire joy is intensifying. No wonder then that some clubs include donations received from the general public in their community contribution totals. This practice makes us wonder how real these claims are.
Matt Stevens expressed skepticism about these contributions. He emphasized that attractions such as complimentary ice skating and WiFi for users and fancy remodels don’t qualify as true community benefits. These additions do not represent actual cash outlays for the clubs.
“It’s not really costing them any money, so I wouldn’t call that a community contribution, but it gets counted as an in-kind community contribution when they’re filling out their audits … so I think it’s very questionable.” – Matt Stevens
In the Northern Territory, the government imposes a 10 percent tax on poker machine losses that go to the Community Benefit Fund. The spokesperson for NT Hospitality Minister Marie-Clare Boothby claimed implementing this levy would threaten the viability of some clubs. They cautioned that it would severely reduce their operating surplus, notwithstanding that fixed costs would not change.
“A levy would remove a significant share of their operating surplus while fixed costs remain unchanged, making some clubs financially unviable.” – NT Hospitality Minister Marie-Clare Boothby’s spokesperson
Supporters claim that this levy is important for guaranteeing that pokies clubs pay their fair share. Proponents say the move will hurt mom-and-pop local businesses.
Future Implications and Considerations
The Northern Territory should be on the frontlines of addressing gambling addiction and its impact on society. Safety advocates have called on the federal government to adopt more robust regulations. Dr. Stevens stresses the need for checks and balances to hold the gambling industry accountable.
“Certainly the current model of clubs not paying that 10 percent is problematic and there should be some more checks and balances for sure.” – Matt Stevens
As this important conversation continues, communities need to think deeply about what authentic engagement looks like. They must discover the best methods to address the dangers of gambling addiction. Clubs in the Northern Territory, as with most Australian jurisdictions, are located next to communities. This close proximity creates a compelling connection between gaming facilities and their host communities.
“Our clubs are in our suburbs; they’re down the street from where we live.” – Nicola Coalter
