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Podium finish for Westyern Sydney pubs

Wesley Mission 8 mins read

Media release                                                                             08 January 2024

Podium finish for Western Sydney pubs

Three pubs in Sydney’s west step onto the podium of poker machine misery after Wesley Mission’s analysis of the latest quarterly data from NSW Liquor and Gaming.

The 2023 third quarter data set places the Markets Hotel (Homebush) atop of the dais with the highest losses over the 92-day period, followed by the Cross Roads (Casula) and Wentworth (Homebush West) hotels respectively. Wesley Mission CEO and leading gambling reform advocate, Rev Stu Cameron, says it is time to highlight the significant gambling harm occurring across the state’s hotels and the regulations and business practices that allow it to occur.

“As horrifying as these figures are it’s sadly not surprising when, for example, the Markets Hotel is operating from 6am to 3am Fridays and Saturdays and the gaming room is open 168 hours per week.  It is staggering when you consider the average person’s working week is 37.5 hours.

New South Wales hotels operating the permitted maximum 30 poker machines per venue reaped, on average, $65,589 per machine in Q3 2023, equating to $262,356 per machine per year[1].   Maximising a hotel’s poker machine allocation and a venue’s operating hours are an attractive and lucrative revenue stream for hotel operators, generating significantly higher losses per machine for pub owners with 30 active machines.

Cameron says there is a small cohort of pubs that are ‘hell bent’ on maximising every misery laden dollar from their maximum allocation of machines with 22% of hotels responsible for 62% of reported losses[2].

“It is this zealous pursuit of poker machine profit, particularly by a number of hotel operators, that has helped fuel the state’s growing levels of gambling harm and a worsening public health crisis.

“This pursuit of profit at all costs sees these pubs, and those that own them use legislative loopholes such as ‘hardship provisions’ allowing for extended trading hours. They need to be held to account.  Their business models make them more akin to mini casinos than a local pub.”

The 92 days from 1 July to 30 September 2023 saw the people of NSW lose $2.1 billion to poker machines. That equates to $250 for every adult and child in the state.

$1.16 billion was lost to the 65,000 poker machines in Clubs, with $946 million (or almost 45% of all losses) lost to the 22,000 poker machines in hotels. Overall, hotel losses for the top 25% of venues were higher compared to the same period in 2022, signalling an upward trajectory of tragedy, while some Clubs in New South Wales reported a decrease in losses compared to the same quarter in 2022.

Cameron says it’s difficult to definitively state why these decreases in Clubs have occurred. 

“The implementation of reforms, education and the cost-of-living crisis have potentially all played a part. Either way, any decrease in losses is always welcomed news.”

Wesley Mission has been advocating for the introduction of a mandatory cashless gambling card with mandatory loss limits, along with a range of other reforms aimed at reducing gambling harm. Wesley Mission is also a member of the NSW Government’s Independent Panel on Gambling Reform.

ENDS

Rev Stu Cameron is available for interview

Media contacts: Anne Holt on 0418 628 342 or anne.holt@wesleymission.org.au

 

 

Q3 2023 Poker machine data – clubs and hotels

Data: Department of Liquor and Gaming
Analysis: Wesley Mission Communications & Advocacy. The data labelled by Liquor and Gaming as Net Profit is profit to venues – Wesley Mission considers this Losses to individuals and communities.

 

Table 1: Summary of losses in Q3 2023 (92 days)

Variables

NSW

Hotels

Clubs

Total Net Losses

$2,111,892,314

$946,131,959

(44.8% of total)

$1,165,760,355

(55.2% of total)

Daily losses

$22,955,351

$10,284,043

$12,671,308

Total EGMs #

87,401

22,485

(25.7% of total)

64,916

(74.3% of total)

Total Premises #

2,180

1,171

1,009

 

 

 

 

Q3 2022 Comparison

Total net losses

$ 2,177,949,137

$964,559,258

44.3%

$1,213,389,879

55.7%

Daily losses

$23,673,360

$10,484,339

$13,189,020

Total EGM #

86,568

22,339

25.8%

64,229

74.2%

Premises

2,220

1,202

1,018

 

Table 2: TOP 20 LGAs in NSW Q3 2023

(Burwood & Strathfield club data combined by Liquor and Gaming, hotel data combined by Wesley Mission)

LGA/Type of Premise

Net Losses

EGM #

Premises #

Ranking in Q3 2022

1

Canterbury-Bankstown

$178,711,522

4,905

61

1

 

Clubs

$98,626,665

3,992

28

 

 

Hotels

$80,084,857

913

33

 

2

Fairfield

$168,863,630

3,776

36

2

 

Clubs

$111,628,052

3,269

17

 

 

Hotels

$57,235,578

507

19

 

3

Cumberland

$122,022,445

2,718

32

3

 

Clubs

$67,173,381

2,196

14

 

 

Hotels

$54,849,064

522

18

 

4

Sydney

$96,577,857

3,483

163

5

 

Clubs

$5,985,559

480

7

 

 

Hotels

$90,592,297

3,003

156

 

5

Blacktown

$94,672,193

2,893

37

4

 

Clubs

$47,269,170

2,145

10

 

 

Hotels

$47,403,023

748

27

 

6

Central Coast

$78,919,763

4,284

64

6

 

Clubs

$55,860,124

3,654

36

 

 

Hotels

$23,059,639

630

28

 

7

Georges River

$64,437,771

2,068

30

9

 

Clubs

$34,894,512

1,642

15

 

 

Hotels

$29,543,259

426

15

 

8

Parramatta

$64,288,814

1,726

33

8

 

Clubs

$24,810,119

1,105

10

 

 

Hotels

$39,478,695

621

23

 

9

Penrith

$59,698,581

2,487

35

7

 

Clubs

$33,623,627

1,993

15

 

 

Hotels

$26,074,954

494

20

 

10

Campbelltown

$55,301,950

1,907

21

10

 

Clubs

$33,784,987

1,564

9

 

 

Hotels

$21,516,963

343

12

 

11

Liverpool

$52,570,174

1,395

19

11

 

Clubs

$25,737,960

1,052

7

 

 

Hotels

$26,832,214

343

12

 

12

Burwood/Strathfield

$51,345,859

875

18

14

 

Clubs

$19,421,876

573

7

 

 

Hotels

$31,923,982

302

11

 

13

Wollongong

$48,856,942

2,754

63

12

 

Clubs

$32,538,471

2,182

34

 

 

Hotels

$16,318,471

572

29

 

14

Newcastle

$48,249,613

2,725

82

13

 

Clubs

$27,263,963

1,861

28

 

 

Hotels

$20,985,650

864

54

 

15

Bayside

$45,660,371

1,526

34

15

 

Clubs

$17,805,417

1,098

19

 

 

Hotels

$27,854,954

428

15

 

16

Inner West

$40,000,203

1,829

62

16

 

Clubs

$13,798,119

956

16

 

 

Hotels

$26,202,084

873

46

 

17

Lake Macquarie

$38,775,957

2,405

58

17

 

Clubs

$23,645,586

1,892

33

 

 

Hotels

$15,130,371

513

25

 

18

Northern Beaches

$36,306,806

2,075

41

18

 

Clubs

$24,996,673

1,662

25

 

 

Hotels

$11,310,133

413

16

 

19

Sutherland

$34,968,348

1,945

37

19

 

Clubs

$22,524,854

1,569

22

 

 

Hotels

$12,443,494

376

15

 

20

Ryde

$34,558,806

1,206

21

20

 

Clubs

$13,365,395

915

11

 

 

Hotels

$21,193,412

291

10

 

 

Totals

$1,414,787,606

48,982

947

$1,454,783,473

 

Daily losses

$15,378,126

 

 

$15,812,864

 

% of state totals

67%

56%

43%

 

 

 

 

Table 3: TOP 10 Metro LGAs in Q3 2023

LGA/Type of premise

Net Losses

EGM #

Premise #

Canterbury-Bankstown

178,711,522

4,905

61

Clubs

98,626,665

3,992

28

Hotels

80,084,857

913

33

Fairfield

168,863,630

3,776

36

Clubs

111,628,052

3,269

17

Hotels

57,235,578

507

19

Cumberland

122,022,445

2,718

32

Clubs

67,173,381

2,196

14

Hotels

54,849,064

522

18

Sydney

96,577,857

3,483

163

Clubs

5,985,559

480

7

Hotels

90,592,297

3,003

156

Blacktown

94,672,193

2,893

37

Clubs

47,269,170

2,145

10

Hotels

47,403,023

748

27

Georges River

64,437,771

2,068

30

Clubs

34,894,512

1,642

15

Hotels

29,543,259

426

15

Parramatta

64,288,814

1,726

33

Clubs

24,810,119

1,105

10

Hotels

39,478,695

621

23

Penrith

59,698,581

2,487

35

Clubs

33,623,627

1,993

15

Hotels

26,074,954

494

20

Campbelltown

55,301,950

1,907

21

Clubs

33,784,987

1,564

9

Hotels

21,516,963

343

12

Liverpool

52,570,174

1,395

19

Clubs

25,737,960

1,052

7

Hotels

26,832,214

343

12

Grand total

957,144,938

27,358

467

Percentage of state totals

45%

31%

21%

 

Table 4: TOP 10 Regional LGAs in Q3 2023

LGA/Type of premise

Sum of Net Losses

EGM #

Premise #

Central Coast

78,919,763

4,284

64

Clubs

55,860,124

3,654

36

Hotels

23,059,639

630

28

Wollongong

48,856,942

2,754

63

Clubs

32,538,471

2,182

34

Hotels

16,318,471

572

29

Newcastle

48,249,613

2,725

82

Clubs

27,263,963

1,861

28

Hotels

20,985,650

864

54

Lake Macquarie

38,775,957

2,405

58

Clubs

23,645,586

1,892

33

Hotels

15,130,371

513

25

Tweed

28,380,748

1,836

27

Clubs

22,964,220

1,639

15

Hotels

5,416,528

197

12

Shoalhaven

23,253,801

1,603

36

Clubs

18,632,622

1,374

22

Hotels

4,621,179

229

14

Mid-Coast

20,051,992

1,362

47

Clubs

13,250,389

1,092

28

Hotels

6,801,604

270

19

Port Macquarie-Hastings

18,777,462

1,184

28

Clubs

13,579,109

988

14

Hotels

5,198,353

196

14

Albury

See notes below

Queanbeyan-Palerang

17,300,850

787

15

Clubs

11,919,070

630

8

Hotels

5,381,780

157

7

Coffs Harbour

17,034,682

777

24

Clubs

9,733,307

548

12

Hotels

7,301,375

229

12

Murray River

See notes below

 

Grand Total

339,601,811

19,717

444

Percentage of state totals

16%

23%

20%

Note: Although Albury LGA should be in this table, the amalgamations by Liquor and Gaming of Albury with Greater Hume for clubs, and then Greater Hume with Lockhart, and Snowy Valleys mean it is impossible for our analysis to calculate the correct amount of losses in the LGA. Clubs in Albury and Greater Hume combined took $17,764,965, which is more than clubs and pubs combined in Queanbeyan-Palerang. Hotels alone in Albury took $5,534,465, which is more than the hotels in Queanbeyan-Palerang.

Similarly Murray River LGA should also be on this list, but although we have the data for Murray River clubs ($16,163,667 in losses in Q3 2023), the hotel data is bundled with Berrigan, Edward River and Federation ($3,065,830).

 

 

 

Table 5: Comparison of Net Losses for Q3 top-10 (across NSW) between 2022 and 2023

LGA/Type of Premise

Q3 Net Loss Change: 2022 vs 2023

Q3 2023 Net Loss

Q3 2022 Net Loss

Canterbury-Bankstown

-4,207,586

178,711,522

182,919,108

Clubs

-4,601,833

98,626,665

103,228,498

Hotels

394,247

80,084,857

79,690,610

Fairfield

-5,962,890

168,863,630

174,826,520

Clubs

-6,047,861

111,628,052

117,675,913

Hotels

84,971

57,235,578

57,150,608

Cumberland

-2,060,330

122,022,445

124,082,775

Clubs

451,967

67,173,381

66,721,414

Hotels

-2,512,297

54,849,064

57,361,361

Sydney

369,358

96,577,857

96,208,499

Clubs

-1,196,119

5,985,559

7,181,678

Hotels

1,565,477

90,592,297

89,026,821

Blacktown

-5,649,750

94,672,193

100,321,943

Clubs

-2,773,798

47,269,170

50,042,968

Hotels

-2,875,953

47,403,023

50,278,976

Central Coast

-6,967,598

78,919,763

85,887,361

Clubs

-6,515,946

55,860,124

62,376,071

Hotels

-451,652

23,059,639

23,511,290

Georges River

1,881,442

64,437,771

62,556,329

Clubs

1,470,265

34,894,512

33,424,248

Hotels

411,178

29,543,259

29,132,082

Parramatta

994,330

64,288,814

63,294,484

Clubs

-2,003,092

24,810,119

26,813,212

Hotels

2,997,423

39,478,695

36,481,272

Penrith

-4,667,581

59,698,581

64,366,162

Clubs

-2,969,329

33,623,627

36,592,956

Hotels

-1,698,252

26,074,954

27,773,206

Campbelltown

-1,800,826

55,301,950

57,102,776

Clubs

-2,295,752

33,784,987

36,080,739

Hotels

494,927

21,516,963

21,022,037

 

 

 

 

 

Clubs and Hotels: state rankings by net profits

The NSW Department of Liquor and Gaming provides spreadsheets ranking individual hotels and clubs by their net profit (losses taken) per machine, and overall net profit (losses taken). These rankings are usually identical for hotels because they are capped at 30 machines.

Table 8: Top 5 hotels and clubs making the most profit per EGM/per venue in NSW

Rank losses per machine

Venue

Rank losses per venue

Venue

Hotels – out of 1,171 pubs in NSW with EGMs (the top 5 hotels each have 30 machines)

1

Market Hotel, Strathfield LGA

1

Market Hotel, Strathfield LGA

2

Cross Roads Hotel, Liverpool LGA

2

Cross Roads Hotel, Liverpool LGA

3

Wentworth Hotel, Strathfield LGA

3

Wentworth Hotel, Strathfield LGA

4

Oasis on Beamish, Canterbury-Bankstown LGA

4

Oasis on Beamish, Canterbury-Bankstown LGA

5

Railway Hotel, Cumberland LGA

5

Railway Hotel, Cumberland LGA

Clubs – out of 1,009 clubs in NSW with EGMs

Rank losses per machine

Venue

Rank losses per venue

Venue

1

Mounties (Mt Pritchard & District Community Club), Fairfield LGA (615 EGMs)

1

Mounties (Mt Pritchard & District Community Club), Fairfield LGA (615 EGMs)

2

Dooleys Lidcombe Catholic Club, Cumberland LGA (450 EGMs)

2

Bankstown Sports Club, Canterbury Bankstown LGA (745 EGMs)

3

Cabra-Vale Ex-Active Servicement’s Club (Diggers), Fairfield LGA (450 EGMs)

3

Wentworthville Leagues Club, Cumberland LGA (545 EGMs)

4

Club Burwood, Burwood LGA (94 EGMs)

4

Dooleys Lidcombe Catholic Club, Cumberland LGA (450 EGMs)

5

Triglav Mounties, Fairfield LGA (54 EGMs)

5

Cabra-Vale Ex-Active Servicement’s Club (Diggers), Fairfield LGA (450 EGMs)

 

 

Table 10: Total losses, number of premises and machines per profit range, hotels, Q3 2019-2023

 

Quarter

Profit range

Premises

EGMs

Total Losses

Q3 2019

<= $6250

51

271

$76,139

 

 

4% of premises

1.2% of EGMs

0.01% of losses

 

>$1,200,000

189

5,517

$367,555,920

 

 

14% of premises

24.3% of EGMs

51.6% of losses

Q3 2020

<= $6250

74

474

$93,513

 

 

5.8%

2.1%

0.01%

 

>$1,200,000

223

6,462

$465,946,350

 

 

17.4%

28.8%

56.2%

Q3 2022

<= $6250

30

154

$37,303

 

 

2.5%

0.7%

0.004%

 

>$1,200,000

265

7,638

$600,104,364

 

 

22%

34.2%

62.2%

Q3 2023

<= $6250

22

137

$13,155

 

 

1.9%

0.6%

0.001%

 

>$1,200,000

266

7,697

$588,888,702

 

 

22.7%

34.2%

62.2%

 

 

 

Chart 1: Average net profit per EGM Hotels Q3 2019-2023

This chart shows the average net profit per EGM in hotels in NSW as the number of EGMs increases.

Note: anomalies with averages for amounts per EGM for 1 machine may occur when venues divest during the reporting period

For hotels with only 1 EGM, their average net profit per machine (=losses to individuals) for Q3 2023 was $8,505. For hotels with 30 EGMs, their average net profit per machine Q3 2023 was $65,589 – nearly 8 times the profit (loss) per machine.

 

 

 

 

Who we are:

Wesley Mission provides practical care and support for more than 130,000 people annually in NSW and across Australia, including help for people experiencing homelessness, local community action groups preventing suicide, and gambling and financial counselling among more than 120 programs. www.wesleymission.org.au

 



[1] See Table 1 below.

2 See Table 10 below

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