Woolworths is one of the country’s biggest poker machine providers. Working with the Australian Leisure and Hospitality (ALH) Group, operating its pokies as the company’s majority shareholder, it owns thousands of poker machines across Australia. However, these games are not evenly distributed across the country; instead, new reports show that they are focused on low-income neighbourhoods.
The Land has published the results of a study, which has examined all of the pokies operated by Woolworths. The research has found that the company is making $300 million per year from just seven venues in Victoria in which the average income is on the low end of the spectrum. These statistics are just a snapshot of Woolworths’ treatment of low-income areas in Australia.
Many studies have shown that low-income individuals are the most likely to gamble and develop gambling addictions. So, it comes as no surprise that the country’s biggest gambling operator would see an opportunity in these neighbourhoods. However, it does present a moral dilemma, as poker machines are draining these communities of their hard-earned wages.
According to Charles Livingstone, Monash University professor and author of the study, states that the placement of the pokies is not accidental. Rather than promoting responsible gambling activity in low-income areas, Livingstone’s study finds that Woolworths seems to be encouraging gambling. “Woolworths is a massive Australian company which prides itself on being socially responsible,” he says.
“This doesn't sit well with that.'' The study was funded by GetUp!, an organization that has been working tirelessly to convince Woolworths to adopt $1 betting limits. Since Woolworths is the biggest poker machine operator in the country, GetUp! believes that the company has the power to influence the entire industry. As a result of Woolworths adopting betting limits, the group hopes that other operators will follow suit.
Livingstone’s study is aimed at compelling the resistant pokies operator to take a stand for responsible gambling; however, Woolworths remains reluctant to make any changes to its pokies operations. The company has also denied the claims that it targets low-income areas, as spokesperson Claire Kimball states that the ALH hotels were built before pokies were introduced. As such, Woolworths’ placement of poker machines is not deliberate.