Australia and Pokies — The Global Outlier
No country in the world — outside casino-tourism enclaves like Macau and Monaco — has more poker machines per capita than Australia. Despite representing just 0.3% of the global population, Australia is home to approximately 18% of the world's pub and club poker machines. That is an extraordinary concentration for a country of 26 million people, and it is the direct result of policy decisions made in the 1990s that have never been reversed.
The expansion of electronic gaming machines into Australian pubs and clubs began in the early 1990s, when state governments began issuing licences to non-casino venues. New South Wales was first, in 1956 — but the floodgates opened nationally in the early 1990s. Between 1990 and 2000, pokie losses in pubs and clubs increased fourfold. By 2005, losses had plateaued at around AUD $860 per adult per year — a figure that has never returned to pre-liberalisation levels and has been climbing again sharply since 2020.
IBISWorld research confirms that Australians spent $32 billion on gambling in 2023–24, with state governments collecting $9.4 billion in taxes — the equivalent of the entire Northern Territory's Gross State Product. Pokies are by far the largest contributor to that total. In NSW alone, $9.3 billion was lost to pokies in 2025 — an 8% increase on the $8.6 billion lost the prior year.
EGM Numbers by State and Territory
The total number of pokies operating in Australia has declined modestly from its early-2000s peak as successive state governments have imposed caps, but the overall national count remains one of the highest in the world on a per-capita basis. Western Australia is the sole exception — it has never permitted EGMs in pubs or clubs, and they operate only at Crown Perth casino.
| State / Territory | EGMs (approx.) | Venues | Per Capita (adults) | Cap / Limit | Notes |
|---|---|---|---|---|---|
| New South Wales | ~95,739 | ~1,500+ | ~1 per 82 adults | 95,739 (cap reduced Dec 2024) | Second only to Nevada globally; heaviest losses in western Sydney |
| Queensland | ~44,000 | ~1,000+ | ~1 per 113 adults | No per-venue cap | ~24% of national total; publishes monthly LGA data |
| Victoria | ~28,000 | ~500+ | ~1 per 222 adults | Venue caps apply; regional variation | $100 load-up limit from Dec 2025; mandatory carded play legislated |
| South Australia | ~13,000 | ~600+ | ~1 per 131 adults | Per-venue limits apply | Separate EGM monitoring system; strong club culture |
| Northern Territory | ~1,900 | ~60 | Highest per-capita nationally | Venue caps apply | Highest problem gambling rate in Australia; includes casino machines |
| ACT | ~4,900 | ~60 clubs | ~1 per 68 adults | 500 per venue | Clubs-only; no hotel pokies; high per-capita losses despite progressive policy |
| Tasmania | ~2,700 | ~80 | ~1 per 190 adults | Includes casino EGMs | Cashless gaming reform stalled Nov 2024; only 2 casinos plus limited venues |
| Western Australia | ~1,500 (casino only) | 1 (Crown Perth) | N/A (casino only) | Casino licence only | No pub or club EGMs — the only state to maintain this restriction |
Sources: QGSO 40th Edition (2023–24); VGCCC; Liquor & Gaming NSW; Wikipedia. Machine counts are approximate and subject to change; venue closures, transfers and regulatory changes affect totals regularly.
Player Losses by State
Player losses — the net amount extracted from gamblers by machines after payouts — are the standard measure of pokie harm in Australia. They are sometimes described as "expenditure" or "revenue" in government publications, but they represent money lost by players. The following data covers pub and club EGMs only, unless otherwise noted, and excludes casino EGM losses.
Annual EGM player losses (pub and club machines), AUD billions. Sources: Wesley Mission / NSW Govt; VGCCC; QGSO 40th Edition. VIC figure includes casino pokies.
| State | EGM Player Losses | YoY Change | Govt Tax Revenue | Effective Tax Rate | Per Adult Loss |
|---|---|---|---|---|---|
| NSW | $9.30B (2025) | +8.1% | ~$2.6B | Hotels ~41.8%; Clubs 0–29.9% | ~$978 per adult |
| VIC | $3.02B pub/club (2022–23) | +35% on COVID lows | ~$1.2B | ~41.8% | ~$550 per adult |
| QLD | ~$2.8B | Growing | ~$0.85B | Tiered; up to 35% | ~$700 per adult |
| SA | ~$0.85B | Stable | ~$0.3B | Tiered | ~$600 per adult |
| ACT | ~$0.35B | Growing | ~$0.14B | ~40% | ~$1,100 per adult (3rd highest) |
| NT | ~$0.15B (excl. casino) | Stable | Highest % of state revenue: 12.1% | Variable | Highest per capita in Australia |
| TAS | ~$0.22B | Stable | ~$0.08B | Tiered | ~$283 per adult (lowest) |
| WA | Casino only | N/A | Lowest: 0.9% of total | Casino-specific | No pub/club losses |
Sources: Wesley Mission 2026; IBISWorld; The Conversation analysis; QGSO 40th Edition. Some figures estimated from available data; periods vary by jurisdiction.
How Pokies Are Designed to Work
Understanding how electronic gaming machines are designed and regulated is essential context for the harm data. Pokies are not — as their name and presentation sometimes imply — skill games. They are mathematically optimised extraction devices, regulated for their return-to-player (RTP) rate but designed to generate maximum engagement through psychological mechanisms identified and studied over decades.
Return to Player (RTP)
Australian pub and club EGMs must return a minimum of 85% of all money wagered to players over a theoretical long run. In practice, most machines run at 87–92% RTP. This means for every $1 wagered, the machine returns 87–92 cents on average. The gap — 8–13 cents — is the house edge per spin.
Spin Rate and Session Speed
Standard Australian pokies complete a spin in around 2.1–2.3 seconds. At minimum bet ($0.01 per line, 25 lines = $0.25 per spin), a player spinning continuously loses money at an average rate of around $1.50–$2.50 per minute at low stakes. At higher stakes, session losses mount extremely quickly. Victoria's reform slows the minimum spin rate to 3 seconds from December 2025.
Near Misses
EGM software is programmed to display "near miss" outcomes — where symbols align two-out-of-three on a payline — more frequently than would occur by pure chance. Research consistently shows near misses trigger the same neurological response as actual wins, sustaining engagement and encouraging continued play. This is a documented design feature, not an accident.
Losses Disguised as Wins (LDWs)
Modern multi-line machines can pay out less than the amount wagered while still triggering celebratory sounds and animations — a "win" of 15 cents on a 50-cent spin is technically a loss of 35 cents, but the machine responds as if you've won. Studies find LDWs account for a significant proportion of "winning" spins and are associated with increased gambling persistence.
Jackpots and Linked Progressives
Progressive jackpots link machines across a venue or network, growing with each spin until a winner is triggered. The appeal of a life-changing win at low odds is a powerful engagement driver. In practice, the mathematical expected value of a progressive jackpot ticket is typically lower than standard spins — the "jackpot premium" inflates the perceived value of each bet.
ATMs and Cash Access
The proximity of ATMs to pokie areas in Australian venues has been a longstanding harm concern. Liquor & Gaming NSW completed 200+ compliance inspections of cash-dispensing facilities at hotels and clubs in 2025, finding widespread non-compliance with ATM placement rules. Several jurisdictions have moved to restrict or ban ATMs within gaming areas.
Where Harm Concentrates
The distribution of pokie harm in Australia is not random. Research and government data consistently show that gambling losses, problem gambling rates and associated social harms are concentrated in communities with lower average incomes, higher unemployment and greater socioeconomic disadvantage. This is a documented pattern across every state, not an isolated finding.
Annual loss per active pokie gambler
The average NSW and Victorian pokie gambler loses approximately $3,500 per year — around $65 per week — from pub and club machines alone. This is the average across all active players, including those who play occasionally. Regular players in high-density areas lose substantially more.
Per adult loss in Greater Dandenong (VIC)
In Greater Dandenong — one of Victoria's most disadvantaged communities — $141 million was lost to EGMs in 2024–25, equating to $1,077 per adult — nearly twice the metropolitan average of $581. Since EGMs arrived in 1992, $4.9 billion has been extracted from this single council area alone.
Share of Victorian mental health costs attributable to gambling
The Victorian Responsible Gambling Foundation estimates that gambling harm accounts for 22% of the state's mental health sector costs. The state's total gambling harm cost was estimated at $14.1 billion in 2022–23 — nearly six times the $2.4 billion in taxes collected.
Share of gambling tax spent on harm minimisation
Despite collecting $1.9 billion in gambling taxes in 2022–23, the Queensland Audit Office found that only 0.6% was returned to harm minimisation programs — a figure the Auditor described as "inadequate." The pattern is similar in other states. The gap between revenue collected and money spent on harm prevention is one of the most persistent criticisms of Australian gambling policy.
Pokies and Money Laundering
A Documented Criminal Problem
The NSW Crime Commission has found that money laundering through poker machines is commonplace in New South Wales. The mechanism is straightforward: criminals insert large amounts of cash into machines, play briefly or not at all, and cash out a ticket — effectively converting criminal proceeds into a verifiable gambling receipt. Unlike banks and casinos, which are subject to Anti-Money Laundering (AML) reporting obligations, pubs and clubs in NSW and most other states were historically exempt from AML/CTF requirements for their EGM operations.
Consecutive NSW Crime Commission investigations documented criminal cash flowing into gaming machines and "for the most part not coming out" — the machines acting as effective cash-to-ticket conversion devices. The IBISWorld analysis of NSW government budget documents notes this revenue stream directly, observing that the NSW government is collecting an "increasingly pungent revenue stream" from machines that criminal proceeds flow through.
The introduction of mandatory cashless gaming cards — which require identity verification before play — is the most effective proposed solution to machine-based money laundering. It is also the reform most vigorously resisted by the hospitality industry, and the one that has moved most slowly through Australian legislatures. Cashless gaming forces identity, and identity ends anonymous cash insertion.
EGM Taxation — State by State
EGM taxation is among the most complex and politically sensitive areas of Australian state revenue. Tax rates are designed to distinguish between clubs (which are community-owned, non-profit entities) and hotels (which are commercial businesses), with hotels typically taxed at higher rates. The result is a system where the social costs of pokies are borne disproportionately by low-income communities, while the tax burden varies enormously depending on venue type and jurisdiction.
| State | Hotel Tax Rate | Club Tax Rate | 2023–24 EGM Tax Revenue | % of State Total Revenue | Notes |
|---|---|---|---|---|---|
| NSW | ~41.8% (effective) | 0–29.9% (tiered by profit) | ~$2.6B (2025–26) | 6.9% of total | Pubs deliver bigger take due to higher rate; clubs benefit from profit-based tiering |
| VIC | ~41.8% (effective) | Tiered, similar rate | ~$1.2B | 5.9% of total; highest conversion at 33% | Highest statutory rates; fewest concessions; VIC collects most relative to spend |
| QLD | Up to 35% | Up to 35% | ~$0.85B (EGM component) | 7.5% of state gambling total | Second-highest as % of revenue after NT |
| SA | Tiered | Tiered | ~$0.3B | ~5% | Separate monitoring system (TITO) |
| NT | Variable | Variable | Not separately published | 12.1% — highest share nationally | Smallest tax base makes gambling revenue outsized; NT most dependent on gambling tax of any jurisdiction |
| ACT | ~40% | ~40% | ~$0.14B | ~6% | Clubs-only; strong reform advocacy from Greens and independents |
| TAS | Tiered | Tiered | ~$0.08B | ~4% | Tasmania lotteries in Victoria, 73.48% tax — but EGMs lower; casino machines included in totals |
Sources: IBISWorld gambling tax analysis; QGSO 40th Edition; state budget papers 2025–26. Tax rates are indicative; actual liability depends on monthly profit bands and classification of venue.
The Reform Landscape (2024–2025)
Australian pokie reform has been debated for decades, but the period from 2022 to 2025 has seen more concrete legislative action than any previous period — largely driven by the convergence of anti-money-laundering concerns, problem gambling data, and the post-COVID acceleration in losses. The most significant reforms involve cashless gaming cards — mandatory identity-linked cards required to use a machine — which address both money laundering and harm in one mechanism.
Mandatory Carded Play + $100 Load Limit
Victoria's Gambling Legislation Amendment (Pre-commitment and Carded Play) Bill 2024 passed the Victorian Parliament on 27 May 2025. From 1 December 2025, mandatory carded play commences using the existing YourPlay framework. The load-up limit is reduced from $1,000 to $100. New machines approved after December 2025 must have a minimum spin rate of 3 seconds (up from 2.14 seconds). Mandatory closure of EGM areas from 4am–10am took effect 30 August 2025. Crown Melbourne has had mandatory carded play since October 2023.
✓ Legislation PassedCashless Gaming Trial + Cap Reduction
NSW reduced its legislative EGM cap from 99,000 to 95,739 in December 2024. On cashless gaming, the NSW Government commissioned an Independent Panel on Gaming Reform, the results of which were delivered in late 2024. The government has taken a "considered approach" to evaluating the findings, with mandatory cashless play for NSW not expected until late 2028 at the earliest. Pub pokies are projected to grow at 7.2% per year through to 2028–29 in NSW budget estimates.
⏳ Under ReviewMandatory Card — Announced, Then Shelved
Tasmania was poised to become the first Australian state to implement cashless gambling with universal pre-commitment. The scheme, including default limits of $100/day, $500/month and $5,000/year, was developed by the Tasmanian Liquor and Gaming Commission and was on track for December 2025 implementation. In November 2024, Premier Jeremy Rockliff's government abruptly shelved the mandatory card — preferring to work with other states toward a national solution. The decision was widely condemned by health advocates and independent MPs.
✗ Stalled IndefinitelyAnti-Money Laundering Extension to Venues
The federal government's AML/CTF reform program, which came into effect September 2024, now requires online gambling service providers to complete customer identification before establishing accounts. Extending similar requirements to land-based EGM venues — which would require identity verification at machine level — remains under consideration as part of the broader AML reform agenda. This would effectively mandate cashless gaming nationally from an AML perspective, even without state-level harm minimisation legislation.
⏳ Under ConsiderationOperating Hours Restrictions
Multiple advocacy groups — including Wesley Mission — have called for mandatory closure of pokies between midnight and 10am in NSW. Research shows that late-night and early-morning pokie sessions are strongly associated with problem gambling behaviour and financial harm. The NSW Government has not legislated operating hours restrictions as of May 2025, citing the need to balance harm minimisation against hospitality industry concerns.
⏳ Advocated, Not LegislatedAdvertising and Venue ATM Reforms
Liquor & Gaming NSW completed 200+ compliance inspections of ATMs and EFTPOS facilities at pokie venues in 2025, finding widespread non-compliance with placement and signage rules. Several states have introduced or are considering rules to restrict ATM proximity to gaming areas. Nationally, the federal advertising reform package announced April 2026 — restricting gambling ads in sports broadcasts — applies to wagering but not to EGM venue advertising, which remains largely unregulated.
✓ Partial — OngoingWestern Australia — The Case for Restriction
Western Australia is the natural control group in any analysis of Australian pokie harm. It is the only jurisdiction in Australia — and one of the very few in the developed world — that has never permitted electronic gaming machines in hotels or clubs, restricting them exclusively to the casino floor at Crown Perth.
The consequences are stark in the data. The Conversation's analysis found that WA's gambling tax rate is the lowest of any state at just 0.9% of total revenue, while its pokie harm metrics are substantially lower than comparable jurisdictions. Problem gambling rates, financial counselling referrals related to gambling, and gambling-related domestic violence statistics are all lower in WA than in states with unrestricted pub and club machines.
WA's position is the result of a political decision maintained over three decades, not geography or culture. Successive WA governments have resisted the introduction of pub and club EGMs despite significant pressure from hospitality lobby groups. The ClubsWA and hospitality industry has made periodic arguments that WA residents are disadvantaged compared to other states by the restriction — but public support for maintaining the ban has consistently been high in polling.
For researchers and policymakers studying pokies reform, Western Australia represents the most compelling evidence available that restricting access to EGMs reduces harm. Whether other states have the political will to act on that evidence is a different question entirely.
Pokies Data by State
Pokie losses, machine counts and regulatory environments vary significantly by state. Click any state for detailed EGM statistics, revenue breakdowns and regulatory information for that jurisdiction.
