Wesfarmers, Woolworths rule out pokies exit despite new scrutiny. Sue Mitchell and Lucille Keen. Dec 19, 2016 – 11.00pm. In the great tradition of taking a dump when no-one is looking, the NSW government released this scathing 113-page report about Woolworths and its pokies division late on Friday afternoon. Costello noted that Woolworth's announcement will see the Mathieson family's influence significantly reduced, saying: 'It is good to see Woolworths regularise the corporate structure of its pokies empire, diluting the power currently held by billionaire joint venture partner Bruce Mathieson, who owns 25 per cent of the current ALH joint venture but has management control through his son, ALH CEO Bruce. Woolies is currently Australia's biggest pokies machine owner through its majority stake in ALH Group, but will merge the hotels, pubs and pokies company with its Endeavour Drinks business by the.
Woolies craftily hides behind a family-friendly image while they take food off the tables of thousands of Australian families this holiday season. Until now.
Every time somebody sees one of the real Woolworths Christmas ads, they'll remember our ad and the damage Woolworths-owned pokies are wreaking on Australian families.
Together, we'll crash their Christmas party by exposing the truth – the first step to getting them to clean up their act.
Will you help spread the word by joining the campaign now, by adding your name to the petition?
Find it hard to believe? Here's a screenshot from the FAQ section of the Woolworths Limited website:
In 2012, GetUp members chipped in to fund a report that estimated the total net gambling revenue generated by Woolies poker machines in 2010-11 at $1.29 billion.
Woolies have not been forthcoming with reporting their profits from poker machines:
For too long the pokies industry has deflected attention away from its machines, targeting the 'irresponsible gamblers' who play them.
Here are some of the tricks that were exposed by industry insiders in Ka-Ching!:
- Poker machines are custom built for 'process addiction'. The machines trigger positive chemical responses in the brain with features such as sound, light and animation. Neuroscientists compared these responses to those triggered by cocaine.
- Poker machines manipulate the user through techniques like 'losses disguised as wins'. This is when a user is fed some winning lines, which are celebrated as a win with bright lights and loud noises, when they've actually experienced a net loss.
- Another misleading and deceptive technique is the use of 'near misses', where the reel of the machine is laid out to mislead the user into thinking they've only just missed out on a win. These appear on some machines 13 times more often than they would if the reels were left to chance.
The Alliance is a collaboration of organisations with a shared concern about the deeply harmful and unfair impacts of gambling. It includes more than 40 local governments, churches and community groups. GetUp is joining forces with the Alliance for Gambling Reform on 'The Pokies Play You' campaign.
Together, we intend to hold to account the people who make, control and regulate these machines – from Woolworths, the largest poker machine owner in the country, to government ministers, many of whom sit cosily in the pockets of the gaming industry.
Follow this link to learn more about 'The Pokies Play You' campaign and the Alliance for Gambling Reform: http://www.pokiesplayyou.org.au/
The Woolworths Group proclaims it celebrates 'family-friendly values'. Online fruit machine.
Within its supermarkets the company has sought to demonstrate this commitment. Woolies gives out free fruit to kids, for example, and no longer gives out plastic bags.
Its goal, the group states, is to 'inspire our customers to consume all of our products in a healthy, sustainable way'. It's a noble goal – but one undercut by its profits from pubs and pokies.
Boeing 777x. The company announced yesterday it will separate from its liquor and gaming businesses. This should be be welcomed as a bold step showing its stated commitments aren't just PR gimmickry.
The company's hotels division encompasses 323 licensed venues, many operating poker machines. Its liquor retailing division is bigger still, and includes the well-known brands Dan Murphys, BWS, and Cellarmasters.
Alcohol and gambling both represent significant social problems in Australia. The number of alcohol-induced deaths in 2017 – 1,366 – was the highest in two decades. Per capita gambling losses are the highest in the world.
Just last month, several Woolworths-owned hotels in New South Wales were accused of serving free drinks to encourage patrons to continue gambling.
As much as Woolworths might have done to ensure these business divisions operate as responsibly as possible, there is a stigma associated with their profits. They do not fit easily with 'family-friendly values'.
Reputational risk
Woolworths Pokies Pics
Continuing to operate these businesses would represent a clear reputational risk for Woolworths at a time when consumers increasingly expect organisations to walk their talk and demonstrate they make a positive impact on society.
This trend in consumer sentiments is demonstrated by the result of Swinburne University's Australian Leadership Index. The index is based on a nationally representative survey run quarterly. It tracks consumer perceptions about whether organisations show leadership for the greater good.
At the aggregate level, perceptions of big companies like Woolworths are consistently negative. More consumers think they do little to nothing to contribute to the greater good than those who think they make a positive impact. There is clear desire for businesses to contribute more to society.
Read more: One-third of Australians think banks do nothing for the greater public good
Research by global professional services firm Accenture indicates 61% of Australian consumers consider a company's ethical values and authenticity when making their purchasing decisions, and 40% have boycotted a company over its actions on a social issue. Younger consumers are particularly adamant that companies have clear social values.
The Woolworths Group will first combine its pubs and liquor retail divisions into one, then spin off that division into a separate company, listed on the Australian Stock Exchange.
It will be Australia's largest drinks and hospitality businesses, with expected annual sales of up to A$10 billion.
Woolworths Pokies Pictures
Losing the revenue will cost Woolworths. But the potential long-term benefits are considerable.
Woolworths Pokies Revenue
The separation presents an opportunity for the group to create a clearer perception among consumers of the company's values – a smart move in an evolving marketplace of empowered consumers demanding organisations be social leaders.
