Poker Machine Documentary

The Hon. J.A. DARLEY (15:45): On 20 October, the ABC aired the documentary Ka-Ching! Pokie Nation. This insightful documentary provided viewers with not often seen behind-the-scenes access to the poker machine industry. There is no question that poker machines are addictive, but Ka-Ching! went that step further and explored the methods poker machine manufacturers use to engage players and the methods used to keep them playing.

The founder of Aristocrat, Len Ainsworth, was quoted as saying that people can win when playing the pokies, and his advice to players was to know when to stop. However, in relation to machine development and the secret to his success, he says that it is a matter of 'building a better mouse trap', a trap to capture players and imprison them to the machine.

The documentary exposed facts which many of us have known for years but which are often ignored by governments, in particular. For instance, poker machine manufactures, such as Aristocrat, use sound engineers and composers to create soundtracks that will appeal to the player, entice them to play and keep their attention on the machine so that they continue to play. The tracks are purely positive to the point that machines will emit positive reinforcement for losses to disguise them as wins and avoid creating negative feedback.

Similarly, designers are used to develop games that will appeal to certain markets. Games with strong masculine characters which feature race cars may appeal to men, whereas games featuring exotic destinations may appeal to people who have a sense of adventure. Players ae given the illusion that they will be transported to and experience these exotic destinations if they play the machine. For punters facing problems in other areas of their life, the allure of the machine provides a form of escapism for them to a place where everything seems happy and positive—even losing.

Poker machine manufacturers use psychological manipulation to exploit the weaknesses of human nature. Research has found that it is not only when a person wins that the pleasure chemical dopamine is released but also when a person is anticipating winning. As such 'near misses', where a player is just one symbol away from a big win, are maximised. This stimulates the brain to produce dopamine, which increases pleasure and encourages people to keep on gambling.

Pokies are mathematically designed so that the odds of winning are less than other forms of gambling. Mathematicians use predetermined algorithms to maximise losses, depending on what level of return the machine owner would like to realise. In Australia, these returns are usually set between 85 to 92 per cent, which is higher than in other countries. In South Australia, the rate is set at 87.5 per cent.

This means that for every dollar gambled, on average, the punter will walk away with 10¢. However, because of the bells and whistles on the machines, the player still thinks they have won because their loss is disguised as a win. Little regard is had to the fact that, the longer a person gambles on a machine, the less likely they are of recouping any winnings and to the fact that rates of return apply over the life of machines, as distinct from a set period of time.

Perhaps one of the most striking messages from the documentary was the comments made about the Australian experience with pokies. Modern machines give players the ability to bet once every three seconds, sometimes at $10 per bet. In most other countries, these high-powered machines are found only in casinos; however, in Australia, they are found in the local pub. Comments were also made that Australian pokies manufacturers were known for their innovations in gaming machine technology and the stronghold the gambling industry has on lobbying and the governments due to the revenue it provides from gambling taxes.

I would like to make a special mention of Julia Karpathakis, who appeared in the program. Julia is a former poker machine addict who runs Pokies Anonymous in South Australia. Julia advocates tirelessly on gambling-related issues, and my office and I continue to work closely with her on gambling-related matters. Her contribution in this space is highly valued.

In closing, Ka-Ching! has certainly reinvigorated public discussion around poker machines which can only be a good thing. It is my hope that this government will take heed of the messages shared and the lessons to be learnt instead of continuing to rely hopelessly on the revenue generated predominantly off the backs of problem gamblers.