ATMs in gaming venues were banned by the state government in 2012, with Melbourne entertainment complex Crown exempt from the law.
But gambling reform advocates claim that dozens of venues have simply switched to Eftpos cash-back machines, which dispense money to patrons after they complete a card transaction with a member of staff.
The machines have been heavily marketed to gambling venues, with Fairfax media reporting that one of Victoria’s prime gaming venues, the Epping Plaza Hotel, has a prominently advertised Eftpos machine near poker machines. The hotel made $21m from poker machines in the last financial year.
Critics say the machines, which restrict users to a $200 withdrawal limit, are counterproductive to the cause of reducing problem gambling.
Tom Cummings, a former problem gambler-turned-reform advocate, told Guardian Australia that the Eftpos machines “make a mockery” of the ATM laws.
“I’ve seen them in operation and they look exactly like ATMs and people are directed towards them to withdraw money,” he said. “I’d say most pubs in the gaming network now have them. They’ve started coming in since the ban.
“The industry will say that staff are trained to deal with problem gamblers but in reality, the staff won’t be motivated to ask the question and you can get around it. You’d just go up, ask for $200, they’d ask if you’re OK and you’ll say ‘yeah, it’s fine mate.’”
Cummings added that convenient access to cash is an important factor in problem gambling, which affects around 30,000 Victorians, with a further 100,000 at risk of developing a problem.
“Easy access to money is a killer,” he said. “If you have to take a break to leave and get more money, it gets you away from the lights and smell of the venue and makes you think ‘I might just get a drink or go home instead.’
“Gambling in itself isn’t bad but when you automate it, that’s where the problems start. When you take the human interaction out, it’s a slippery slope. I’d keep the Eftpos facility there, but the machines themselves should probably be banned.”
ALH Group, which is Australia’s largest operator of electronic gaming machines, said it has Eftpos facilities in each of its 300 licensed venues. It operates around 5,000 poker machines in Victoria.
A company spokesman told Guardian Australia the machines were a “normal part of doing business” in a hotel which has various elements, such as bars, bistros and gaming.
“Many customers need to access cash to pay for many of the functions and services provided by the hotel,” he said.
“To utilise Eftpos to withdraw cash, you need to approach the staff who must key in data into the pin pad to enable you to withdraw cash.
“To make a withdrawal, the staff member must activate the transaction. This is different to an ATM transaction where no staff are involved.
“We disagree with the criticism, and note that the use of Eftpos in hotels in Victoria has been approved by the relevant regulatory authorities.”
In December, the state government hailed the removal of ATMs as an “outstanding success”, contributing to a 6.7%, or $62m, reduction in spending on pokies over the previous year.
The government pointed to Swinburne University research that showed the removal of ATMs had reduced the average amount spent by problem gamblers on pokies by around $90 a visit.
Separate statistics released last year showed that 128 people committed suicide in Victoria as a result of problem gambling between 2000 and 2012.
A government spokesman was approached by Guardian Australia for comment but had not responded at the time of publication.
