Poker machines are a significant source of government funding in Australia. Every year, they generate hundreds of millions of dollars in taxes which are used to benefit the country as a whole. Unfortunately, the government faces a shortfall this year as poker machine revenue, and result tax earnings, have dropped this year. According to recent reports, Treasurer Jack Snelling will be about $20 million short this year.
In 2011, poker machines brought in $291 million in taxes for the local government. This year, they generated just $270 million, leaving a hole in government coffers’ resources. With poker machine reform looming, it seems that things will only get worse, but politicians remain optimistic. Government documents predict that the next four years will see an increase in poker machine taxes.
Snelling estimates that they will increase steadily until 2016, when taxes reach $300 million. For this to occur, poker machine revenues would have to increase by at least 30%. Seeing as profits have already decreased this year, it seems highly unlikely that this goal will be met. The situation is further complicated by the fact that the local government is taking steps towards to passing poker machine reform.
While this bill benefits the local community by curbing problem gambling rates, it also jeopardizes the potential growth for pokie tax revenues. With less money being spent on pokies, taxes will inevitably fall. Gaming clubs and sports organizations have been worried about this downside for months, as a decline in poker machine revenue will interfere with their operations.
It is an unfortunate reality of poker machine reform, but the overall consensus is that it benefits the greater good. Since it is important to reduce gambling spending as well as the number of problem gambling in the country, the gaming clubs, sports organizations and the local Treasury will need to find new ways to make up for their financial shortcomings due to pokie reform.
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