Record $2.3b runs through WA TAB operator as spend on problem gambling drops – WAtoday

The state grant money had since run out, and it was only now financial counsellors were starting to get more clients.

RWWA is the principal authority for thoroughbred, harness and greyhound racing in WA, as well as the operator of the state-owned TAB which is marketed as TABtouch.

WA is the last state or territory to run its own TAB with most now operated by the privately owned Tabcorp.

While about half of the WA TABs revenue still comes through its more than 300 retail outlets, turnover from mobile devices increased in the past financial year by 40 per cent despite the number of phone users only going up 12 per cent.

The WA TAB recorded a $374 million margin from its wagering activities in 2020-21 which was $64 million higher than the previous reporting period and $35 million higher than the previous peak in 2013-14.

About $2.3 billion of cash passed through the hands of RWWA in 2020-21, which is mostly made up of bets, with $1.9 billion going back to customers. Overall wagering on WA racing across the country increased 17 per cent to $3.8 billion in the same period.

A RWWA spokeswoman said COVID had provided a significant uplift in the amount of national wagering turnover.

While its difficult to pinpoint the exact reasons for this, it is presumed that the reduction in other discretionary spending opportunities, most notably due to travel restrictions, is a significant contributing factor to the increase, she said.

The increase in advertising and promotions during the period positively impacted the performance of the WA TAB in line with expectations.

RWWAs advertising and promotion spend increased by $6 million in the past financial year in a significant jump from the previous three years when an average of $28 million was spent.

Greens MLC Brad Pettitt said the increase in marketing dollars coming out of the COVID-19 pandemic when people were vulnerable was appalling on several levels.

Encouraging gambling to support the racing industry self-perpetuate is not something a responsible state government should be doing, he said.

We all know gambling disproportionately impacts the less well-off sections of our community and this promotion just makes it worse.

But advertising the TAB is in RWWA and the racing industrys interest, with profits going back into the sport to keep the sector financially healthy.

About $175 million was distributed between the three racing codes in 2020-21 from RWWA.

The RWWA spokeswoman said profits from the TAB kept the industry sustainable.

The wagering market is highly competitive and it is important for the organisation to hold a prominent place in this environment to maintain funding for WA racing, she said.

All activities are in line with all relevant advertising laws and requirements.

We actively encourage our customers to ensure they stick to their entertainment budget and wager responsibly. Our support services are promoted to all customers at retail outlets and online.

About 13.5 per cent of the 109,000 TABtouch account holders used gambling help tools in 2021.

There was a 14 per cent increase from 2020 in the number of people who accessed gambling help tools compared to 12.6 per cent increase in the number of overall account holders.

Racing and Gaming Minister Reece Whitby said the state government took responsible gambling seriously and he wanted to increase efforts around the initiative, but this came with a caveat.

We need to keep the TAB viable, we need to make sure that its an asset that we can get the best return possible, he said.

WA Racing and Gaming Minister Reece Whitby.Credit:Facebook

RWWA makes those investment decisions in terms of advertising, its not something Im responsible for, but they want to make sure the TAB is as valuable an asset as possible so that we get the best return for racing.

The TAB is currently up for sale after negotiations to transfer the entity to Tabcorp fell apart last year as the latter had a $1 billion write-down.

Tabcorp is still the leading contender but several other companies have shown interest in the TAB, which could fetch upwards of $1 billion given the new owner will not have to underwrite WAs racing industry, which had previously been a condition of the sale.

The state government says it will find an alternative funding arrangement for the horseracing codes if the sale goes ahead.

Mr Whitby said he did not want to put a price tag on what the TAB would fetch but he wanted to see the sale go ahead with the best price possible for the racing industry and taxpayers.

Theres no doubt that over COVID that the betting has increased and the TAB is an attractive asset for many betting operators but we will only proceed with a sale if its in the best interest of WA racing, he said.

Although the percentage of Australians who gamble has been on the decline, WA still has the highest proportion of gamblers in all of the country with 62 per cent of the states population enjoying a flutter.

Even though the majority of West Australians will place a bet or buy a lotto ticket, the state has some of the lowest instances of problem or at-risk gamblers in the nation.

A report by CQUniversity gambling researchers, led by Professor Matthew Rockloff and prepared for the ongoing Perth Casino Royal Commission, noted there were fewer problem gamblers in WA compared to the rest of the country because not as many people played electronic gaming machines.

EGMs are only allowed to be used at Crowns Burswood casino and bear similarities to poker machines in the eastern states, which are associated with high levels of problem gambling and are banned in WA.

Ms Every said because there were not pokies in WA there was a perception the state did not have an issue with problem gambling.

But she said there was an issue with the easy online access to gambling and its glamorisation in advertising, which particularly targeted young men.

WAs gambling watchdog, the Gaming and Wagering Commission, manages the distribution of funds for the states main support services for problem gamblers.

The Problem Gambling Support Services Committee, which sits under the GWC, includes representatives from RWWA, Crown and several government departments and distributes funding for in-person and phone-in counselling.

About 55 per cent of the 316 clients who used face-to-face counselling services provided by Centrecare in 2019-20 preferred to gamble online compared to an estimated 5 per cent in 2012-13.

About 65 per cent of the clients were men aged 25 and older.

A national study released by Gambling Research Australia last month concluded there had been several notable sector trends including for interactive or online gamblers.

Rapidly growing participation, the emergence of new products, the rise of smartphone betting which has increased accessibility, prolific wagering advertising and inducements, substantial use of illegal offshore operators, limited use of consumer protection tools and help services, and increased rates of problem gambling amongst interactive gamblers, it said.

Funding distributed by the PGSSC for research and gambling support has decreased over the past three years based on reported spending by the GWC but more is set to go towards an awareness campaign which will run in 2022-23.

A Department of Local Government Sports and Cultural Industries spokeswoman also said members of the PGSSC had contributed $1.5 million to the committee in the past financial year.

The PGSSC has been around since the 1990s but has never conducted or paid for any of its own studies into the extent of problem gambling in WA.

The GWCs annual report, released on Wednesday, revealed the PGSSC now intends to conduct the local research with the first phase to be completed in May.

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Record $2.3b runs through WA TAB operator as spend on problem gambling drops - WAtoday