For years, responsible gambling lobbyists have publically voiced their disapproval of Woolworth’s ownership of gaming machines. Now, they may finally get what they want, as the grocery store chain could be considering selling its pokie clubs and pubs. Woolworths is currently in the process of evaluation options for divesting its property portfolio.
This could mean that the company would sell its properties and lease them back while still having control of the gaming and liquor licenses. While they would no longer own the property, they would still have ‘operational control’. So, on the surface it seems as though Woolworths no longer owns the poker machines.
While that is technically true, the company is still attached to the gambling industry – and some responsible gambling advocates see through the plan. "They may now after so much public pressure wisely be trying to distance their brands from the ownership of these hotels and dangerous machines, but they will continue to operate,” says Erin McCallum of anti-gambling group GetUp.
“As long as that is true, they will remain the pokies people”. Recently, Woolworths has attained quite a bad reputation among many consumers. Families that shop at Woolworths grocery stores are not particularly pleased that the company is so involved in the local gambling market. By distancing itself from its poker machines, Woolworths will be able to improve its reputation among its target customer base.
It is certainly a wise business decision, and it will result in a win-win situation for Woolworths. "I suspect someone like Woolworths is going to be conscious of what their customers across all their activities think of Woolworths," says Dr Stuart Palmer of the Australian Ethical Investment. Woolworths' ALH Group consists of 323 hotels and owns 537 liquor stores.
All-in-all, the company owns 11,000 gaming machines. Selling the venues will be a big change for the company, but plenty of things will remain the same.