Woolworths, one of the biggest supermarket chains in Australia, has seen a difficult time lately. Despite having a near-monopoly on the market, the company has seen a decline in profits over the years. To counteract this financial wane, Woolworths has made a foray into the gambling market and stands firm on its position against Andrew Wilkie’s plan for pokie reform.
In 2004, Woolworths bought a 75% stake in ALH Group, one of Australia’s biggest hotel operators. Operating nearly 300 hotels in the country, ALH is a significant provider of poker machines and electronic gaming devices. Revenue from its gaming operators has helped Woolworths get back on track, but the group is worried about poker machine reform.
Woolworths has been criticized by community groups for getting involved with the company, which – according to some – operates more slot machines than the top five hotels in Las Vegas combined. Community members believe that Woolworths should get behind a project to help reduce problem gambling rates, if the company insists on working in the gaming market.
However, Woolworths does not stand behind Andrew Wilkie’s pokie reform. Chairman James Strong believes that pokie reform would be ineffective in reducing problem gambling rates; however, he has not proposed any alternative solutions.