Cost of gambling harm in Victoria reaches $14 billion, with pokies behind most losses

Australia Broadcast Center

26-06-2025

Louise* was just seven when she started noticing jewellery and household appliances going missing — her mother was selling furniture and whitegoods to fuel a gambling addiction.
"I came home one day when I was 14 years old to find I didn't have a home anymore," said Louise, now in her 40s.
"We'd also go a few days at a time without much to eat.
"It created devastating amounts of poverty and mental health issues for us. We certainly experienced material deprivation, but it also caused serious family breakdowns."
Her mother's addiction — mainly pokies — forced Louise to grow up quickly, navigating instability while trying to trust the woman she loved.
"It is a horribly normalised addiction," she said.
A new Victorian government study has found the social cost of gambling harm in the state has reached $14 billion.
The findings are expected to increase pressure on Premier Jacinta Allan, who recently delayed landmark poker machine reforms aimed at reducing gambling harm.
The report, based on population surveys from 2022–23, estimates gambling harm cost Victorians more than $14 billion in the 2022–23 financial year — a substantial increase from the last report in 2014–15.
The estimate considers financial impacts such as bankruptcy, relationship costs such as divorce, and emotional and psychological harm such as depression and suicide, and productivity loss and impacts to work or study.
Pokies were the biggest contributor, with two-thirds of financial losses coming from problem gamblers.
The largest cost to individuals came from financial impacts, mostly due to excessive spending by players.
The report also noted an "intensification" of gambling since 2014, with problem gamblers losing larger amounts.
Of the $14 billion in estimated costs, $5.2 billion was attributed to negative financial impacts.
Emotional and psychological harm, including suicides, was estimated to cost the state $3.3 billion.
The cost to state and local governments was put at $1.3 billion.
Under former premier Daniel Andrews, Labor had promised to introduce a mandatory pre-commitment system, requiring players to set a loss limit before using poker machines.
The system has already been implemented at Crown Casino following a royal commission.
However, last month's state budget revealed the government had delayed both the trial and statewide rollout of the scheme until at least 2027 — a move that will see the state continue to collect billions in gambling tax revenue.
Louise says gambling has become too normalised in society.
"I don't feel like they take the serious amount of harm that gambling produces for communities seriously enough," she said.
The delay to reforms also avoids a political clash with the powerful Australian Hotels Association.
The decision has angered some Labor MPs, who see it as a missed opportunity, with some even calling it a "betrayal".
The venues with the highest poker machine losses are often located in communities facing high socio-economic disadvantage.
The Alliance for Gambling Reform said Labor MPs were aware of the harm gambling was causing in their electorates — especially during a cost-of-living crisis — and called on the premier to act.
"Everyone is being harmed here — not just the gamblers, but their families, workplaces, and the broader community," the organisation's chief executive, Martin Thomas, said.
"The government knows that mandatory carded play is the gold standard for reducing harm from gambling.
"It's time for Labor to put their foot down and demonstrate their progressive credentials, their commitment to social justice, and the people they represent."
Minister for Casino, Gaming and Liquor Regulation Enver Erdogan said the government was aware of the impact of gambling harm.
He said that was why Labor had already introduced reforms, including limiting pokies venue opening hours.
"The trial of account-based play is expected to start later this year. We'll work hand in glove with the industry and stakeholders on this, and we'll have more to say soon," Mr Erdogan said.
Earlier this month, he told a parliamentary inquiry the delay was intended to "futureproof" the reforms.
"I am committed to pre-commitment account-based play, but we've got to look at a system that can stand the test of time," he said.
"We're also looking at what's happening in other jurisdictions — South Australia and New South Wales — to ensure our system aligns with theirs."
Both South Australia and New South Wales have used facial recognition technology to identify problem gamblers, a policy supported by the pubs and clubs lobby.
Victorian Greens leader Ellen Sandell called on the government to urgently introduce the delayed reforms.
"What's really saddening and disappointing is that the Labor state government has consistently given in to the gambling lobby," she said.
"We need to be doing everything we can to reduce gambling losses and the harm they cause."
*Louise is a pseudonym used to protect her family's privacy.