Pubs reject pokies as SA revenue hits $1bn for the first time
The state’s peak medical body is welcoming news that growing numbers of local pubs are ditching gaming machines – despite latest data showing SA pokies are pulling in record dollars.
Adelaide Hills venues, the Charleston Hotel and Kersbrook Hill Wine and Cider — which has removed machines from the recently acquired Maidstone Hotel in Kersbrook — were the latest to remove poker machines from their premises in the past month.
The Charleston Hotel, located around 40 kilometres east of Adelaide CBD, announced its gaming room would be removed on September 14 via social media, attracting a positive reaction and the pub’s highest engagement to a post from punters.
Charleston Hotel owner Rex Alexander said the move was both a financial decision and also a bid to take the venue in a more “family-oriented” direction.
“Bring your dog along to the beer garden and bring the family is the vibe we are going for, and the gaming room didn’t fit in with that,” he said.
“We only had a small gaming room, so the space they were taking up could be used for additional dining space in the winter.”
Alexander said the decision “wasn’t taken lightly”, but the community response had been positive.
“It’s been overwhelmingly positive, which is really pleasing — we’re very happy and I think the community is very happy,” he said.
The move was welcomed by the SA chief of the Australian Medication Association, who said gambling-related harm from pokies was a serious public health issue.
Data from the Australian Institute of Health and Welfare shows Australians are the biggest gamblers in the world per capita, with an average of approximately $25 billion lost on legal forms of gambling every year.
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AMA SA President Associate Professor Peter Subramaniam called for SA to follow Western Australia’s model of confining poker machines to casinos and said the State and Federal Government is “morally obligated to protect citizens from harm”.
“The true cost of gambling addiction far exceeds any revenue benefits when we consider healthcare costs, family support services, justice system impacts, and the immeasurable human suffering,” he said.
Statistics provided by an AMA spokesperson said that for every one person with a gambling problem, around six others — often close friends and family — were impacted either psychologically or financially.
“While we understand gambling has traditionally been part of Australian culture, the industry that has grown around it has become demonstrably harmful,” Subramaniam said.
According to data from the Consumer and Business Services, the net revenue from gaming machines in South Australia reached over $1 billion for the first time last financial year, an increase of $53 million from the previous financial year.
The net revenue in Adelaide Hills — which has 171 machines across 13 venues — increased by almost $1 million since the 2022-23 financial year.
Alexander urged business owners to consult with their regulars and the community before committing to the removal of gaming rooms.
“I understand that a lot of hospitality venues are doing it tough at the moment, so it was definitely a risk and I’m aware of the risk,” Alexander said.
Another pub that has parted ways with its pokies machines is The Golden Wattle on Pirie Street; its owners removed the machines two and a half years ago.
The Golden Wattle got rid of 14 machines and turned the former gaming area into an event and dining space with in-built couch booths.
Director Damien Kelly told InDaily the decision to get rid of the machines was primarily motivated by financial factors.
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“I think it was a recognition that we could make more out of that floor space through food and beverage than gaming,” Kelly said.
“We’re happy to not have them now, and we’re making the best out of that situation as it is.”
Kelly said The Golden Wattle has increased its revenue since transforming the space, labelling it a “good financial decision”.
“Whilst the gaming machines weren’t losing us money, the amount that we were making out of them has been well exceeded by the revenue that we’re making from the floor spaces from food and beverages,” he said.
Asked if there has been a trend of pubs moving away from gaming, Kelly said that suburban hotels were less likely than city pubs to give up their pokies machines.
“All venues have to manage their revenue streams and how they grow their business,” he said.
“Gaming has enabled venues to have a revenue stream that has shown to be consistent and reliable.”
Greens leader Robert Simms welcomed the decision from venues to remove pokies and has renewed calls for the State Government to phase out gaming machines.
“This demonstrates that it can be done, and I hope that other SA pubs will follow suit,” he said.
“The Greens have been calling on the Malinauskas Government to commit to phasing out pokies by 2030 and set up a fund to support pubs and clubs in making this transition.”
The Australian Hotels Association SA CEO Anna Moeller said the phase out of gaming machines would place many SA hospitality venues at risk.
“Venues that have chosen not to have gaming rooms are obviously looking at offering a range of other products, but for a number of pubs it’s a really important part of their business model,” she said.
“Removing pokies will ensure that people who wish to continue gambling are pushed to unregulated online, offshore platforms that are unsupported.”
Minister for Consumer and Business Affairs Andrea Michaels said the State Government was committed to reducing the number of gaming machines in SA.
“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.
“We continue to support people struggling with gambling-related harm, including with our new ‘Take a Break’ QR code that is available in venues across the state so people can bar themselves from gaming venues in around 2 minutes.”
Anyone struggling should contact Gambling Harm Support SA on 1800 858 858.”
