Call to cut limit on pokie stakes

Maximum poker machine stakes should be cut and binding spending limits should be introduced to tackle Australia's collective gambling problem, says a Government report.

"Pokies" became ubiquitous in pubs and clubs across much of Australia during the 1990s, and critics say state and territory governments have grown addicted to the income they provide: about 10 per cent of total tax revenue.

But the machines have exacerbated the phenomenon of problem gambling, with its high social and economic costs.

The report, published by the Productivity Commission yesterday, estimates that about 125,000 Australians are problem gamblers, and a further 290,000 have "moderate" problems. Many of these people play the pokies, which account for about 65 per cent of total gambling expenditure.

States and territories have introduced regulations aimed at minimising the risks, such as capping the number of machines in one venue, and obliging venues to install clocks on machines and to shut them down for specific periods.

But some measures have had little effect, according to the Productivity Commission, which advises the Federal Government on economic and social issues.

Instead, it recommends restricting the amount of cash that can be gambled, by lowering the bet limit to A$1 ($1.23) per button push, rather than the current A$10 or A$5. This would cut maximum losses from about A$1200 an hour to about A$120.

In addition, machines should not accept banknotes higher than A$20.

The commission also suggests the radical step of forcing gamblers to "pre-commit" to a binding spending limit, which would accompany them from one venue to the next.

The scheme would have to apply to all machines and venues, the report says, and players would be able to opt out. Since machines would need to be redesigned, it proposes that the system be phased in over the next six years.

It does not say how it would work, but in Norway gamblers use smart cards which allow them to lose a maximum daily or weekly sum.

Because the costs of problem gambling - which include crime, suicide and family break-up - are so high, reducing the risks by one-tenth would save society about A$450 million a year, the report says.