Poker Machine Spending Exposed: 1995 Cabinet Records Unsealed

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Poker Machine Spending Exposed: 1995 Cabinet Records Unsealed

Key Takeaways

  • A trove of unsealed cabinet records from 1995 reveals internal government discussions that led to an explosion in the number of poker machines in the Northern Territory.
  • The NT passed world-first legislation allowing voluntary assisted dying (VAD) in 1995, with amendments to the Rights of the Terminally Ill Act discussed in the documents.
  • The confidential papers contain formal policy submissions to the government of the day, but 57 documents remain sealed for legal reasons.
  • The introduction of poker machines in community clubs led to a significant increase in revenue for the government, with nearly 60% of venues naming the machines as a "significant" contributor to gross profits in 1998.
  • The NT remains the only Australian state or territory where VAD is illegal, despite being the first to legislate it in 1995.

Introduction to the Unsealed Documents
A trove of unsealed cabinet records from 1995 has been released to the public, revealing internal government discussions that led to significant changes in the Northern Territory. The documents, which are released each year by the NT’s Library and Archives, contain formal policy submissions to the government of the day. However, not everything is released, with 57 documents remaining sealed for legal reasons. According to Michelle Grantham, executive director of the NT’s cabinet office, "Thirty years isn’t that long ago and some of these individuals are still alive, so there is a process that records are generally closed or redacted for a further 15 years."

What Was Happening in 1995
In 1995, the world was a different place. Nelson Mandela was congratulating the Springbok captain Francois Pienaar after South Africa’s victory in the Rugby World Cup, and Coolio’s song Gangsta’s Paradise was topping the charts. In the Northern Territory, discussions were being had about the crocodile farming industry and tourism strategies for various national parks. The NT’s Country Liberal Party government, led by Shane Stone, was also passing laws that would allow poker machines in the bars of community sporting clubs. This decision would have a significant impact on the territory, with a wider gambling study later finding that 530 poker machines were rolled out across 31 community clubs by the end of 1997.

The Introduction of Poker Machines
The unsealed documents show that cabinet initially approved $1.9 million to buy and install poker machines at community venues, with projected costs of $3.6 million for machine and maintenance costs the following year. The government was predicting a return on its investment, with Treasury estimates suggesting that the government’s net position would be at least budget neutral in the start-up years, with a net revenue gain starting at $5-6 million per year from 1997/98. The Department of Health supported the policy, suggesting that Aboriginal communities without liquor licenses should be considered for access to poker machines. The Gaming Machine Act 1995 was passed later that year, restricting poker machine applications to clubs with liquor licenses.

The Impact of Poker Machines
The introduction of poker machines had a significant impact on the Northern Territory, with nearly 60% of community clubs naming the machines as a "significant" contributor to gross profits in 1998. The government also offered the territory’s two casinos a rebate from club’s pokies winnings, to subsidise losing their exclusive access to poker machines. A study by the NT Racing and Gaming Authority found that between January 1996 and December 1997, the MGM Grand Darwin and Lasseter’s Hotel Casino in Alice Springs recouped $6.8 million from this rebate. However, due to the slow rollout of community machines, the casinos did not see a dip in pokies profits.

Voluntary Assisted Dying
In 1995, the Northern Territory made history by passing world-first legislation allowing voluntary assisted dying (VAD). The Rights of the Terminally Ill Act was introduced by Chief Minister Marshall Perron, who resigned from politics on the morning of the second reading of the bill. The documents include discussions months later within cabinet about amendments to mandate a third assessment of applicants by a psychiatrist, following a terminal illness prognosis by a doctor. However, less than a year later, a private members bill was introduced and passed by the federal parliament, effectively outlawing the practice in the NT. Today, the Northern Territory remains the only Australian state or territory where VAD is illegal.

Legacy of the Unsealed Documents
The unsealed documents provide a unique insight into the internal discussions and decision-making processes of the Northern Territory government in 1995. They highlight the significant impact of the introduction of poker machines on the territory, as well as the groundbreaking legislation allowing voluntary assisted dying. However, they also reveal the challenges and complexities of implementing such policies, and the ongoing debates and controversies surrounding them. As the Northern Territory continues to grapple with these issues, the unsealed documents provide a valuable historical context and a reminder of the importance of transparency and accountability in government decision-making.

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