Dr Caudwell said the source of gambling addiction runs deeper than the financial incentive of trying to win money. Kim Caudwell says "problem gamblers" use the pokies as a coping mechanism. Over that three-year period, gamblers spent a total of $430 million on NT poker machines. The department classes areas outside major regional towns as places such as Nhulunbuy and highway roadhouses. The new Racing and Wagering Fund levy adds a small additional amount but does not structurally change the 5% capped model. Research published in the Journal of Public Health found that Aboriginal respondents in both urban and regional settings experienced significantly higher rates of problem gambling and harm from their own or someone else's gambling, compared to non-Aboriginal counterparts. The QGSO national dataset includes NT figures, but these are annual and not broken down below state level.
These three measures are analysed in relation to different types of gambling industries including racing, casino (excluding pokies), gaming (pokies excluding casinos), and other gaming (instant scratch tickets, interactive gaming, lotteries, keno and pools). The social cost of gambling harm in the NT, including financial harm, mental health impacts, relationship breakdown and lost productivity, was estimated at a figure significantly exceeding the direct gambling tax revenue the territory collected. Every Australian gambling prevalence survey — state-based and national — consistently finds the Northern Territory records higher problem gambling rates than any other jurisdiction. Under the old Racing and Betting Act 1983, these operators paid 5% tax on monthly gross profits, capped at approximately $1.35–$1.41 million annually — a sum that bore no relationship to their actual revenues. While casino operators are subject to some harm prevention obligations, the same rigorous standards don’t apply to pubs and clubs, where much of the local gambling occurs. Supporters of the industry argue that poker machines and gambling venues provide significant economic benefits to the Territory.
Last financial year, the NT government collected $48.4 million in gaming machine taxes from pubs and clubs, as well as $15.1 million from casinos and hotels for a "community benefit levy". The wagering tax paid by operators to the NT is based on their national turnover from NT-licensed operations — it does not represent money lost by NT residents. For most of the past two decades, corporate bookmakers licensed in the NT paid wagering tax of just 5% of gross monthly profits, capped at a maximum of AUD $1.41 million per year — regardless of how much their turnover grew nationally. However on average, gamblers spent the most money per poker machine in venues outside major regional towns.
The company has confirmed its hospitality venues offer a balanced experience that goes beyond gambling, including food, accommodation, and entertainment. On the other hand, operators like IRIS Capital maintain that they are acting within the legal framework and have put harm minimisation strategies in place. In Alice Springs, where many patrons are Indigenous, there is growing concern about the link between gambling addiction and domestic violence, financial hardship, and other social problems. The expansion has raised questions about the social cost of gambling in communities already grappling with crime and disadvantage.
His remarks came after it was revealed that Alice Springs has seen a sharp increase in poker machines in recent years—184 new machines have been added since 2019, most of them in venues owned by IRIS Capital. The ongoing debate over poker machines in the Northern Territory has intensified following comments from former Prime Minister John Howard, who described them as a serious social issue that demands immediate attention. Mr Kelly said Anglicare knew of problem gamblers in the NT who had lost their homes and other valuable assets due to gambling addiction.
"For some people ... they tend to see gambling as something that helps them deal with or escape their everyday problems or escape their stresses," he said. "For those people, if they're drawn to gambling for reasons of coping or managing those emotions, they might be more likely to engage in gambling over that period," he said. Kim Caudwell, a senior lecturer in psychology at Charles Darwin University (CDU), said there was a risk some problem gamblers could be feeling "cut off from family or estranged from friends" during the festive season.
5% NT wagering tax rate — capped at $1.41M/year (lowest nationally) Racing & Wagering Act 2024 The path forward may lie not in a blanket ban or unchecked expansion, but in developing stronger, Territory-specific regulations that address both community wellbeing and the economic role of gambling in the region. Some advocate for policy models like Western Australia’s, where online pokies real money australia are limited to casinos, or Tasmania’s, which imposes daily spending limits. The challenge for the Northern Territory lies in striking the right balance between preserving personal choice and economic development, while protecting vulnerable communities from harm.
That's one poker machine per 89 people, compared with one poker machine per 173 people in the NT. "If you can't make mortgage repayments because you're leaking money as a household, or having cars repossessed or things being sold, that's a very common result of problem gambling," he said. "That's particularly concerning, because these are people who are almost using gambling as a way of managing or coping with their emotional states."
Critics, including local health professionals and Indigenous leaders, argue that poker machines disproportionately harm vulnerable populations. Australia is known for its widespread use of poker machines, which can be found in pubs, clubs and casinos in almost every state and territory except for Western Australia, which has tighter regulations. Government data showing a monthly breakdown of annual pokies losses in the territory over the past three financial years indicates a slight uptick each December, before decreasing in January. Gamblers lost nearly $150 million on NT poker machines during the last financial year, data shows Highest Problem gambling rates nationally — consistent across all survey waves since 2005 37.6% EGM participation in regional NT towns — highest of any region nationally The NT has approximately 1,900 EGMs in hotels and clubs — a relatively small absolute number reflecting the territory's small population, but generating one of the highest per-capita loss rates nationally.
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