Archive for November, 2022

Peter Coates was born in Stoke-on-Trent in 1938. The son of a miner, and the youngest of 14 children, his mother died when he was two. He left school to work in a branch of the chain restaurant Wimpy’s and, using the knowledge he acquired, set up a small business catering to football clubs. Nothing fancy: scran in polystyrene clamshells served through hatches. But it kicked off his career as an entrepreneur and he went on to establish a chain of bricks-and-mortar betting shops called Provincial Racing.

Provincial Racing’s virtual offspring, Bet365 started life in 2000, out of a portable building in a car park. Coates’s daughter, Denise, then 22, took the reins. Though her big idea to move betting online coincided with the dotcom bubble bursting, her foresight – including developing in-house software and in-play options – paid off big time. Today, Bet365 has an annual revenue of £2.8bn. It has 80 million customers worldwide, and operates in 200 countries, 17 languages, and 29 currencies.

Denise, who is the company’s co-CEO and majority stakeholder, paid herself £469m in salary and dividends in 2020 – or £53,500 per hour. Last year, she employed Foster and Partners – better known for building airports, opera houses, the Millennium Bridge and the reconstruction of Wembley stadium – to design a £90m glass-fronted house with artificial lake and sunken tennis courts on 52 acres of land.

The company is, for the most part, still based in Stoke (though there are also headquarters in the tax havens Gibraltar and Malta, common for betting outfits). Denise’s brother, John, acts as co-CEO. And Peter, the patriarch, is now joint chairman of his beloved local football club, Stoke City (who play in the Bet365 Stadium).

Former Stoke-on-Trent MP Tristram Hunt once said that the Potteries area took “immense pride” in the Coates family. Denise is the country’s biggest taxpayer. You might say that Bet365 represents a fantastic British success story. Except, of course, that its success requires other people to fail. Gains that are dependent on other people’s losses. Ninety-million pound houses built in part on evictions.

Beyond this not inconsequential quibble with the entire raison d’etre of bookmakers, Bet365 has been involved in multiple controversies. A 2014 investigation by the Guardian found that it was changing its domain names to sidestep Chinese regulators, leading to the arrest of some customers. In 2016, the company was fined $2.7m in Australia after a judge ruled its marketing misleading.

Bet365 is not an outlier. BetVictor, which operates in 150 countries and has its headquarters in Gibraltar, was fined £2m in February after the UK Gambling Commission found it failed when it came to “equitability, social responsibility and anti-money laundering measures”.

Genesis Global, owner of multiple casino sites, was earlier this year fined £3.8m, also for breaches of social responsibility and money-laundering checks. In one example, a customer was allowed to deposit £1.3m before any “source of fund” checks were carried out.

In March, another online casino, 888, was fined £9.4m by the commission for, among other things, setting a £1,300 per month deposit limit for an NHS employee whose known monthly income was £1,400.

In 2020, Betway was fined a record £11.6m, partly for allowing millions of stolen money to wash through the business. In September the company was fined more than £400,000 for advertising on webpages aimed at children.

These companies all cater to the staggering appetite for gambling in the UK. One of the largest gambling markets in the world, it generated a profit, before tax and operating deductions, of £12.7bn in the 2020-2021 financial year. A March 2022 survey of 15,000 people (by the UKGC) found that a massive 43% of respondents had gambled in some form in the past four weeks.


The future of the gambling industry is, depending on which side of the net margins you fall, bleak or booming. The Coates family certainly has much to be optimistic about. In the UK, a white paper with a view to reforming gambling laws – the culmination of a two-year review – was this summer delayed for the fourth time. Pro-reform Conservative MP Iain Duncan Smith expressed disappointment, and Labour’s Carolyn Hughes, chair of a cross-party parliamentary group examining gambling harm, was clear that this further delay would “cost lives”.

Gambling is the number one industry offering gifts and hospitality to parliamentarians. In 2021, MPs accepted £225,000 in wages and gifts from gambling companies. One of the first sports to return to action during the pandemic was horse racing – a passion of then-health secretary Matt Hancock, and the recipient of thousands of pounds in donations from wealthy racehorse owners and trainers and whose constituency contains the Newmarket course.

Bet365’s Peter Coates is one of the largest donors to the Labour party, giving hundreds of thousands of pounds. In the mid-00s, he and other industry leaders made hefty donations in the wake of New Labour’s sweeping and disastrous deregulation of gambling – something a number of party grandees, including Harriet Harman, have since admitted was a mistake. Which it was, but is also a bit like Mercutio describing his fatal wound as a scratch.

Globally, bookmakers continue to win. In the US, the supreme court in 2018 overturned a federal ban on sports betting that had been in place since 1992. Since the ban was overturned, Americans have bet $125bn on matches. Bet365 continues its expansion into Latin America; Albania has legalised sports betting this year; the Netherlands, which legalised online gambling in 2021, now reports that punters spend €81m per month.

League One club Bolton Wanderers has responded to fan pressure and cut ties with all gambling firms

There is, however, increasing pushback from grassroots sports fans. This autumn, a fan-led group walked the breadth of the country to lobby clubs to cut ties with gambling companies. More than 20,000 Everton fans signed a petition objecting to their club signing a £10m shirt sponsorship deal with Stake.com, and Bournemouth supporters followed suit (neither was successful). While half of clubs in the Premier League are sponsored by betting companies, a third of fans are less likely to buy replica shirts if they carry their logos. League One club Bolton Wanderers has responded to fan pressure and cut ties with all gambling firms.

In recent years, the UK has seen some progress in gambling regulation. Former sports minister Tracey Crouch worked tirelessly to bring in legislation to limit the maximum stakes permitted on FOBTs, despite being fought all the way by the Department for Culture, Media and Sport. She even, according to the archbishop of Canterbury, had God on her side. But the extremely slow progress – and an increasingly libertarian Conservative government – do not inspire confidence.

Sometimes, I wonder whether Denise Coates lies awake at night, in her glass-walled bedroom, and feels guilty. Or whether she thinks her chosen line of business is as ethical as any other in the leisure or entertainment sector; that it isn’t her fault that some individuals have no self-restraint.

Millions of people, after all, enjoy a harmless night out at a casino, or pick up a lottery ticket with their groceries. But just 5% of customers are responsible for 70% of betting companies’ revenue, and they are very much not the ones in colourful hats waving their winning tickets at Ascot on a day out with their friends. They are me, desperate and deluded, entirely numb to the outside world, watching their entire life fall apart.

by Hannah Jane Parkinson

Sun 20 Nov 2022 19.00 AEDT

https://www.theguardian.com/society/2022/nov/20/gambling-addiction-tennis-bet365-online-betting-hannah-jane-parkinson

The UK gambling industry is worth billions, with 5% of customers responsible for 70% of that revenue. That includes me – after my addiction spiralled in the pandemic

It’s the middle of a third set tiebreak on Wimbledon’s Centre Court, and 15,000 tennis fans are clapping to their own beat, whipping up anticipation for a crucial line call. Hawk-Eye, the automated line system the tournament uses, the tennis equivalent of a Roman emperor’s thumb – able to overrule the traditional lines people with their ostentatious crouching – flashes on to the big screen. The clapping reaches a climax: Jannik Sinner, a wiry, 21-year-old Italian with a somewhat incongruous blaze of red, curly hair has hit a backhand long by a few centimetres of the All England Club grass. A few minutes later, he loses the tiebreak – and I lose £800.

In the preceding two years, I have lost much, much more betting on tennis. I have lost £40,000. I didn’t see it coming, the gambling addiction. Even now, I wince a bit at the word “addiction”, though that is plainly what it is.

“I really wish there had been a warning that gambling was addictive,” I joked to a friend, though neither of us was laughing – at that point I was genuinely worried about paying rent and bills. I had lost all of my savings. I’d “spent” an entire book advance.

Along with many people, I still imagined gambling as the preserve of bored middle-aged men in rundown high-street shops; Ladbrokes and William Hills nestled among kebab joints and pawn shops. Stubby pencils, receipts littering floors, rising voices as dogs with prominent ribs raced around a track on a TV screen. Often, that’s not the way it is any more. Nowadays you can bankrupt yourself via an app on a mobile phone, or a never-closed browser tab.

How did it start? I ask myself that a lot. Usually when I’m looking at my bank balance – which I now try not to, like the squeamish studiously ignoring the nurse drawing blood. Until a couple of years ago, I had never so much as put 50p on the Grand National. I’d never bought a lottery ticket; entered a raffle; set foot in a casino. I didn’t understand odds. Gambling held zero appeal.

Then, a few things happened. The first was the pandemic. It is probably not surprising that more than a third of problem gamblers relapsed during the pandemic. Housebound, there was nothing to do. Those who were lucky enough to keep their jobs had more disposable income, and a lack of commuting meant increased free time. Those who did not keep their jobs turned to a possible avenue to raise cash quickly.

But perhaps there were two key triggers for me. First, even before the pandemic, I had been depressed for a seemingly endless, anhedonic time (I have diagnoses of bipolar disorder and ADHD).

The depression meant that I had retreated from personal interaction and spent the majority of my days alone, usually in bed. Finding it difficult to do the things I usually would. Hard to focus. Mostly unable to work, read. I had no motivation, and was frequently suicidal. Online withdrawal accompanied real life withdrawal. I stopped using Twitter, when previously I had been an avid user.

If bookmakers were to conceive the perfect sport, it would be tennis. At almost any moment, there is a match somewhere

It turns out tech companies do not like it when one takes an extended break, because when I started to feel a little progress with my mental health and returned, the algorithm had buried me, which was the second trigger. I was no longer getting the hits of dopamine I was used to from engagement, talking to friends and colleagues and feeling in touch with the world.

The reward system in my brain wasn’t firing. Some smokers quit and take up knitting to keep their hands busy – I replaced scrolling Twitter notifications for checking live match scores. I replaced actual triumphs in life, big or small – being nominated for awards, or writing a piece I was proud of, or just enjoying drinks with friends on a beautiful evening – with the hit of winning.

My entire existence revolved around it.


If bookmakers were to conceive the perfect sport, it would be tennis. At almost any given moment, there is a tennis match happening. Most players take a single month off at Christmas, and that’s it. Come January, it’s the beginning of the hard-court season, and things never let up from there. There are multiple tours for men and women. For men, the highest-level tour is the main ATP tour, followed by Challenger and ITF Futures tournaments. Women compete on the WTA tour, and below that, the 125 and 125K series and ITF (International Tennis Federation) events. But in the end I was even betting on completely obscure college players.

There are never-ending markets. You can bet outright on who will win matches, or whole tournaments. But you can also bet on whether Player A will win their first service game. You can bet on what the score of that first service game will be. You can even bet, during the game, on who will win the next point. Have I bet on who will win the next point? Of course I have. You will never win £500 quicker; you will never lose £500 quicker.

I went from being someone who enjoyed and played tennis in school, but who, as an adult, barely followed the sport, to becoming obsessed. I watched every single tournament. I knew that certain tournaments use different balls for men and women. I knew which female players – mostly the flatter hitters – hate this. I knew that John Isner, who stands at almost 7ft tall, and has hit 13,947 aces in his career, will nearly always end up playing a tiebreak, because his serve is so hard to break. (Yes, you can bet on whether a match will include a tiebreak.)

I knew the personalities and characteristics of the umpires, the ones most likely to piss off the mercurial Aussie Nick Kyrgios (most of them, but especially Carlos Bernardes). That the gangly Greek, Stefanos Tsitsipas, who resembles a daddy long legs when squatting low and wide in preparation to receive a serve, has a propensity to take bathroom breaks. I learned which players are most likely to choke on the big points, and which are, conversely, particularly “clutch”.

The unique aspect of betting on sports is that you are handing agency over your finances to strangers. To weather, even. It is an extraordinarily stupid thing to do.

I was, perhaps, relying on a teenager making his tour debut, who may have been carrying an injury I didn’t know about, to not be destitute at the end of the month. Was I going all in on a talented female player who, unbeknown to me, would not be at her best because she argued with her boyfriend the night before and came on her period that morning?

Rafa Nadal, 14-time Roland Garros champion, prefers to play in the daytime on clay. The court is quicker; the ball bounces higher; the humidity is lower. But what if it rained, and his match was rescheduled to the evening session?

I’d wager (obviously) that much of the abuse sports stars suffer online is because, someone, somewhere, has bet on them doing something they haven’t ended up doing. The mind of an addict becomes unreasonable, irrational.

Because all gamblers have a feeling. They will win all of their money back this time. At first you have to win £1,000 back. Then you have to win back £5,000. And on and on it goes, like a 20-stroke rally which ends each time with the ball slamming into the net.

Anyone can fall into problem gambling, but people with existing mental health issues are particularly susceptible

But then, you do win some of it back! You win thousands, and you think: great, I will use these winnings as a platform to win the rest back. Then Iga Swiatek, world No 1, who has won a record breaking 37 matches in a row, will inexplicably lose. Or, frequently, every leg, bar one of your accumulator – a bet requiring multiple results to come in – will win. Gamblers live in a permanent state of if only and what if. What if I hadn’t cashed out then; what if I had? What if I’d trusted my gut instinct on that one? What if I hadn’t?

I tried to quit many times. I would utilise “self-excluding” options. I used, and eventually blocked myself from, 16 different online bookies. When I blocked myself from the bigger sites, I would then use even dodgier outfits: less attractive odds, glitchy websites, opaque terms and conditions.

At one point, in true addict style, I roped family into it. I ended up lying to my mother and sister to borrow their bank cards to set up new accounts. (I transferred money to them, so I was still gambling with my own money and not theirs, which was at least something.) I had multiple identities on multiple websites. I was three different people.

Unfortunately, all of them were losing.


According to the UK Health Security Agency 2.2 million people in England either have a form of gambling addiction, or are at risk of one. In 2021, there were more than 400 gambling-related suicides in the UK (where gambling addiction was noted as a contributing factor at inquest). The charity Gambling With Lives, established by the parents of Jack Ritchie, who was 24 when he died, documents just some of them on its website.

Twenty-three-year-old Joshua Jones, a talented musician who played in the Wiltshire Youth Jazz Orchestra, gambled his first term university grant and sold his possessions as things spiralled, and he ended up sleeping on a friend’s sofa. Paul Wills, 48, a popular police sergeant, whose wife, Hana, had no idea that her husband had been sucked into gambling.

Kimberly Wadsworth, 32, worked in marketing. She had told her family about what was happening – they even helped her book a hypnotherapy session – but she took her own life in 2018. Gambling companies had made her a “VIP” customer; a status that confers special offers and promotions for people spending (i.e. losing) a lot of money, and sometimes gives partial rebates on losses to encourage them to keep going.

I remember one friend, when my losses were at £15k, said: “Well, the good thing is, it could be worse.” At the time I thought: How could this possibly be worse? Then I lost another 25 grand, spent another six months in total despair, so she was right. But I haven’t become homeless, or had a marriage fall apart. I’m still alive.

It will probably not come as a surprise that, though anyone can fall into problem gambling, people with existing mental health issues are particularly susceptible.

The future of the gambling industry is, depending on which side of the net margins you fall, bleak or booming

When it comes to my own diagnoses, multiple studies have established links between them and gambling. According to a Cambridge University study, one in 10 people with bipolar disorder develop “moderate to severe problems” with gambling. Interestingly, while in the general population men make up the majority of problem gamblers, in bipolar patients there is no gender differential.

One study of people addicted to gambling who had sought treatment at a clinic in Melbourne reported that almost 30% screened positively for ADHD (compared with a 14% rate in a community sample), and there was a positive correlation between the severity of an individual’s ADHD and the severity of their addiction. This rather throws into relief a recent tendency for people to self-diagnosis ADHD on the basis that they, say, once lost their keys.

Incidence of problem gambling is also higher for those with other mental illnesses and addictions. Vulnerable and underprivileged people are lucrative customers across the board – and targeted. Those with the largest losses, both online and in-person, are concentrated in the most deprived areas. The east London borough of Newham, one of the poorest areas in the country, has more than 80 betting shops. At one point, there were 18 in a single street.

This is a practice known as “clustering” – a way of getting around a rule that limits each shop to four fixed-odds betting terminals (FOBTs), modern touch screen slot-machines, which, alongside the flashing lights, musical jingles and tumbling coins of traditional arcade units, offer rapid financial ruin.

Clustering as an unethical workaround is not out of character for bookmakers. If the house always wins, that’s partly because the house is haunted. When customers are on winning streaks, bookmakers will engage in “gubbing”, a term for restricting the activity of bettors. This happened to me many times. If I was consistently winning, I would have my bets restricted, or be limited to pennies per stake. But if I was losing hundreds – even thousands – of pounds in days, I could bet however much I liked. Bookies are never not moving the goalposts.


With sports betting, there’s that other hazard: fixing. Tennis is ripe for fixing. The million-dollar endorsement deals of top athletes belie just how poorly paid lower ranked players are. Most struggle to break even. A first-round win in a Futures tournament will earn a player around $150. Factor in travel, accommodation, and equipment costs – and a salary paid to a coach – and professional tennis is far from a remunerative career.

About a year into my gambling hell, I discovered that a player who I frequently bet on, Nicolas Kicker, had been suspended from professional tennis for throwing matches and only recently rejoined the tour. At the time of his offences, Kicker was in significant debt, worrying about how to support his young son. He bought second-hand rackets, which he strung himself.

So when Kicker was approached and offered $15,000 to lose a match in three sets, he took it. The problem was that Kicker’s under par performance was so obvious that it blew up on social media. In footage of the match available on YouTube, Kicker hits feeble serves and swipes aimless returns like a cat failing to catch a fly. He is almost visibly annoyed whenever he wins a point. Almost £700,000 had been traded on the match on Betfair alone. It was just hours before an investigation was opened.

After years of criticism for little action on corruption in the game, a toothless body named the Tennis Investigation Unit was replaced with the independent International Tennis Integrity Agency headed, among others, Dee Bain, the former veteran Metropolitan detective who had ensnared Kicker. Barely a month now passes without fines and suspensions meted out, underscoring just how insidious the practice is.

Tournament organisers are also becoming wise to “courtsiders”, members of crime rings who sit in stadiums and relay real-time information to bettors, via encrypted apps such as Telegram, in attempts to beat online and television score updates. They have even been known to evade security with fake beards and wigs. The integrity agency has a big task on its hands. Not only does the ITF sell its own in-play data to bookies, but fixing is fully fledged organised crime. Mafia-linked rings, spread across Europe and Asia, move around millions of pounds. What if that player I bet on isn’t underperforming because she came on her period after all, but because she’s been paid off by a Russian syndicate?


I was contacted, eventually, by the “safer gambling teams” of some betting outlets – not all. I lied to them about my income and savings, and how much I could afford to lose. One time I said I had inherited a windfall. Another time I said I earned £30k more than I do. They didn’t check, but if they had, I’m not sure I wouldn’t have been furious rather than grateful.

Because the problem with sicknesses of the mind is their immanent ruthlessness. The person with deep-rooted trauma in desperate need of effective therapy might defensively try to undermine their therapist. The patient with life-destroying insomnia will sleep through their appointments at the sleep clinic. Addicts will lie, and lie, and lie again.

Nevertheless, these companies should have checked. A gambler’s word is not worth the betting slip it’s written on. Bookmakers cannot be allowed to continue operating in profitable disingenuousness, encouraging people with clear problems to carry on; to lose everything and then, finally, their lives.

I’ve written here mostly in the past tense. But the truth is I decided to write this piece because I am still gambling, and I considered that this might be the one thing that could stop me. Because, though I currently have the very real and justified worries that I will lose my job, friends and home, I also have, as I type this, one eye on my phone checking for results.

At the time of writing, the US Open, the most unpredictable of the slams, is about to begin. The sweltering, late-summer sun will see sweat dripping from the peaks of players’ caps, ball boys and girls running with towels to mop it from the court. I tell myself that after this tournament I must stop. That I will retire along with Serena Williams, whether or not I win everything back (I have a feeling). In the meantime: there’s a ball to be struck, a line call to be made, a fist to be pumped – and I hold my breath.

by Hannah Jane Parkinson

Sun 20 Nov 2022 19.00 AEDT

https://www.theguardian.com/society/2022/nov/20/gambling-addiction-tennis-bet365-online-betting-hannah-jane-parkinson

More than one in 10 Australians reported participating in online gambling. Learning healthy ways of regulating painful emotions and practising self-care can help break the vicious cycle.

As a father of four and construction business owner, Robert* doesn’t have a lot of spare time. In his early 40s, Robert is the breadwinner and feels a deep responsibility to provide for his family. Yet, almost every break he gets, you’ll find Robert, brow furrowed, studying his mobile phone. To his wife, children and employees, it appears that he is hard at work, coordinating one of his many building projects. But his reality is very different. Robert is a gambling addict. Within just a few minutes of meeting him, he admits that he spends at least four hours a day betting through different apps on his phone.

Robert didn’t always spend his days on betting apps. In fact, in recent years, he’d never really even gambled. Robert is not an unusual case. Research shows that online gambling (particularly on sports) is rapidly rising and young men are the most at risk group.

We live in an age where it’s never been easier to slip into gambling addiction. Compulsive gambling is marked by the rare highs from wins, denial that there’s a problem and tendency to attempt to recoup losses instead of calling it quits. Like substance addictions, process addictions also prey on our neurological functioning. It’s a cycle fuelled by the hit of dopamine during the occasional win, as well as the anticipation of a future win. And just as with alcohol or drugs, we begin to need more and more to experience the same high. This cycle becomes difficult to break, usually leads to painful feelings of remorse and failure, and can result in depression.

At our first session, we try to gain some understanding of how Robert’s upbringing may have contributed to why he is sitting here today. Robert grew up in a first-generation immigrant family in Melbourne. He lived with his parents and two younger sisters. The family was a somewhat typical working-class family – his father worked a couple of jobs and was often away from the family home. In contrast, his mother worked in the school canteen and looked after the children and the household. The children were well looked after in terms of physical needs and education. However, his father was verbally abusive on occasions. Getting ahead financially was the main priority. As the family’s first child, Robert was pressured to help out and also do well in school. He often experienced devaluing statements and shaming offered as encouragement by his father. If he did well in school, his father, instead of praising and encouraging him, would pressure him to help out around the house and with his work more.

As a result, Robert developed a lack of self-worth and the constant feeling of not being good enough. The rare occasions his father would spend time with him would be watching sports on TV or going to the races. While his father was not a compulsive gambler, he would place bets on a horse a couple of times a year and shared the excitement of winning with his son.

Robert grew up learning that hard work and financial success are the ways to gain approval and love from his parents and other people. He became a plumber and later a builder. Throughout the years, he built a successful property development company. He married his high school sweetheart and they had four children in quick succession. While his marriage was mostly happy, during times of conflict with his wife, Robert found himself playing on the pokies in the pub. In his mind, he justified this behaviour by saying that he needed peace and quiet and to be alone from the pressure of work and a noisy household. Looking back, this was a tell-tale sign that he was in danger of developing a bigger problem.

During the first Covid lockdown, Robert’s business suffered a huge financial loss and consequently his self-esteem equally plummeted. He felt worthless and hopeless while he still had to attend to his family’s needs. It was at this time he developed a taste for online gambling. While he confesses that he only bet once a day at the start, the easy access to gambling apps and occasional dopamine hits of the sparse wins kept him going, increasing his involvement and developing into an addiction within just four months.

He became more and more withdrawn from his family, irritable and distant. The financial impacts were also severe. He lost more than $50,000 and tried to hide this from his wife by borrowing money from friends and gambling more. He started to lie constantly, which exaggerated his feelings of shame, worthlessness and isolation. He was in the depths of the vicious cycle of gambling addiction.

Dealing with the triggers

In treatment, we talk about how his early life experiences affected his self-esteem. Robert realises how money and success gave him a false sense of self-worth. In the therapeutic community setting and group therapy, he also learns that he is not alone in his online gambling addiction. In fact, Robert now understands there are thousands in the community just like him.

In 2022, the Australian Communications and Media Authority found that more than one in 10 Australians (11%) reported participating in online gambling at some stage in the previous six months. This figure is up from 8% in 2020.

After several months of treatment, Robert has found empathy for himself and learned healthy ways of regulating himself and his painful emotions. After treatment, Robert committed to couples and family therapy as he was very keen to not perpetuate the cycle of addiction to his school-age children.

Six months on, he is in recovery and optimistic about his future. Robert avoids high-risk settings that encourage gambling and takes regular time to exercise and practise self-care to minimise his stress levels when he feels overwhelmed by work and home life. We continue to work through his childhood trauma and he is now attending 12-step meetings to prevent a relapse into his gambling addiction.

* Name has been changed for privacy and the client’s story is an amalgam of several cases

Dr Ashwini Padhi is a psychiatrist and Andrea Szasz is the program director at South Pacific Private, a treatment centre for trauma, addiction and mental health

https://www.theguardian.com/commentisfree/2022/nov/14/its-never-been-easier-to-slip-into-gambling-addiction-finding-your-self-worth-is-key

Ashwini Padhi and Andrea Szasz

Mon 14 Nov 2022

The pokies are a highly addictive product that targets well-known psychological processes, where the worst losses happen in communities where people can least afford it.

In October, a Senate inquiry was established into online gambling and its impacts on those experiencing gambling harm.

The $25bn lost on gambling annually comes mostly from those who can least afford it, but repeated attempts at policy reform have foundered. In the first part of a new series we ask why, and whether that may be about to change.

Just off the freeway in a small suburb in Melbourne’s west is the Kealba Hotel. It looks like any other suburban sports pub: there’s a bistro and a beer garden, an indoor children’s playground, and huge TV screens showing live football matches and horse races.

And there are 86 poker machines. This pub in the middle of Brimbank, Victoria’s third most disadvantaged local government area, has had the dubious distinction, year after year, of being the venue in the state where people lose the most money on the pokies.

Last financial year, nearly $20.5m was lost in this building alone. That’s the equivalent of 391 yearly salaries at the median wage. And yet it’s a small number in the context of a very big, very expensive national problem.

Australia is addicted to gambling. About $25bn is lost to legal forms of gambling every year, according to recent estimates from the Australian Institute of Health and Welfare. Nearly half of this goes into poker machines.

The profits of pokies first and most obviously flow to the casinos, pubs and clubs that own licences to run them. When the chance of landing a jackpot on a poker machine is literally one in 35,640,000, the real jackpot is holding the licence to collect the losses.

But all aspects of Australian life are steeped in gambling money as it flows back and forth through the economy.

A substantial proportion of profits goes to the governments that allow poker machines to run. It flows to state and federal budgets through taxes, and also to political parties through donations.

Some is ploughed back into local communities, typically in the form of support for junior sport, which gives the clubs an effective argument against attempts to rein in their numbers. And many Australians invest in the gaming companies via their superannuation funds, including some marketed as “socially aware,” completing a circle that makes reducing harm from problem gambling such an intractable problem.

Most pokies losses come from the pockets of the poor

In Victoria, where the data available is most robust, the largest amount of money is lost on pokies in Brimbank – $128m in the last financial year, despite pubs and clubs being closed for months due to Covid lockdowns. The previous financial year, it was more than $92m. In Greater Dandenong, the second-most disadvantaged local government area in Victoria, gamblers lost $102m in the last financial year.

There were more than 29,000 poker machines in the state at the end of last year. The Victorian government collected more than $2.2bn in gambling taxes and expects to collect $2.4bn this financial year – $1.2bn of it from pokies.

In New South Wales, things are worse: the state has by far the highest concentration of pokies in the country, with 86,640 machines in its pubs and clubs.

And the most money is lost in western Sydney. More than $900m was lost in the local government areas of Fairfield and Canterbury-Bankstown on 8,578 machines in the last financial year . Fairfield is ranked as the city’s most disadvantaged area, with Canterbury-Bankstown not far behind.

The NSW government expects to rake in $3.26bn this financial year from gambling taxes.

One of the oft-repeated phrases by defenders of legal gambling is the benefit to the public from the taxes imposed on the industry. But as the data shows, this is money coming directly from the pockets of the people who have the least to lose, and who are losing it on machines that are designed to addict them.

“It’s impossible to describe how effective they are,” says Monash University associate professor Charles Livingstone, who has been researching pokies for more than two decades. “They are enormously efficient at getting people to keep putting money into them. It’s a highly addictive product that targets well-known psychological processes and stimulates the release of brain chemicals that make people feel good … and the clubs bank on it.”

Anti-pokies campaigners estimate at least 40% of losses from poker machines come from gamblers already at risk of or experiencing gambling harm, which can reach devastating levels.

There has been no shortage of attempts to curb the harm. A 2010 Productivity Commission report recommended a host of reforms, including $1 bet limits on poker machines and mandatory pre-commitment systems that would allow players to set a universal limit on their losses.

The Gillard government’s 2012 national gambling reform bill included pre-commitment systems, but stopped short of $1 bet limits. The pre-commitment systems were abandoned in the face of pressure from the clubs and hotel industry lobbyists, particularly Clubs NSW and the Australian Hotels Association, who threatened a marginal seat campaign against her minority government.

In 2015, the Coalition government under Tony Abbott announced a review into online gambling, led by the former NSW premier Barry O’Farrell. O’Farrell’s review made 19 recommendations, including that companies be required to regularly send itemised activity statements to online gamblers clearly showing how much money they had bet, won and lost, and to set up a national self-exclusion register. The government agreed in principle to all but one of the reforms, but no legislation was brought forward.

Since then, the market has exploded, with online gambling advertising at saturation level. While some restrictions still apply, particularly around broadcast advertisements, it’s impossible to escape the billboards, placards, decals and online advertising, let alone attend a sporting match without betting odds flashing from every screen pushing the gambling brands whose logos are emblazoned across players’ uniforms.

But there are small signs change may be in the air.

The inquiry into casino operator Crown Resorts in Victoria last year found a string of licence breaches and conduct described by the commissioner as “variously illegal, dishonest, unethical and exploitative,” including towards the company’s treatment of people experiencing gambling harm. Similar findings have emerged in relation to Star, which has been found to be unsuitable to hold a casino licence in NSW and Queensland.

A report from the NSW Crime Commission, handed down last month, found that large sums of the proceeds of crime were being gambled in pokies.

Yet shadows of the clubs’ campaign against the Gillard government are looming as NSW Labour resists offering bipartisan support to the Liberal premier, Dominic Perrottet, as he edges towards industry reform.

All this has occurred as both parties seek to shore up their positions ahead of the NSW state election in March, making the question of what role pokies will play in that poll inescapable.

Since its election in May, the federal Labour government has begun rolling out the relatively small but significant reforms recommended by the O’Farrell review. In October, a Senate inquiry was established into online gambling and its impacts on those experiencing gambling harm. More than 50 submissions have been received so far. One writer, who has been diagnosed with severe gambling disorder, described the industry as “a playground of madness.”

Perhaps the most unexpected shift in the wind has come from Tasmania, where the gambling lobby’s influence has previously been most striking. In September, the Liberal government announced that it would introduce a mandatory pre-commitment scheme. While experts say the design has holes, it’s nevertheless a step towards harm minimisation that seemed completely off the table just a year ago.

The recent inquiries “have lifted a rock,” Livingstone says. “And once you lift the rock and see what’s squirming around underneath it, you have to act.”

https://www.theguardian.com/australia-news/2022/nov/14/australias-gambling-addiction-can-politics-finally-stop-the-money-wheel-turning

Stephanie Convery, Josh Nicholas and Andy Ball

14th November 2022