When " Image " is Everything !

There is little doubt that the people who play poker machines are usually those who can least afford the money they lose in this gambling venture.  It is a form of " escapism " with the promise of a huge jackpot to lure them into another roll of the symbols on the screen.  The odds of winning that illusive pot of gold are about a million to one.

We are well aware of the illusions created by the poker machine makers.  Patrons are attracted by the bells and whistles and the machines are programmed to signal exciting jubilation when even a minor win delivers less money than it cost to make that individual play.  The siting is important and most poker machines are concentrated in suburbs with the lowest socio/economic population.

Two retail power groups control an overwhelming portion of the grocery trade in this country.  It is hard to find even a small country town that does not have competing Woolworths and Coles supermarkets.  Both promise to offer the lowest prices and Woolworths uses the slogan " The Fresh Food  People " to enhance its image.  Woolworths also owns the biggest number of poker machines in this country.

This poker machine empire is sited in pubs and clubs and is operated by a Woolworths offshoot registered as the ALH group. They have more than twelve thousand poker machines scattered across 323 pubs and clubs in Australian states.   Woolworths is under pressure from its shareholders to divest itself from gambling because it does not sit well with its squeaky clean image.

That poker machine offshoot was named in an enquiry for collecting data on big spending gamblers and offering free drinks to get them to continue to gamble.   One of Woolworths most influential shareholders, Perpetual Investments is urging the grocery retailer to withdraw from gambling because that was incompatible with its forty-four billion trading image.

One of the problems Woolworths faces is a peculiarity of Queensland's liquor licensing law.  In that state it is necessary to own pubs to be able to also trade by way of licenses for its bottle shops.  Woolworths also owns the stand alone Dan Murphy's and BWS bottle shops.

This call for Woolworths to withdraw from poker machines is welcomed by the Alliance for Gambling Reform. The fact that it is being instigated by a major Woolworths shareholder illustrates the damage it is doing to Woolworths image.  It is time for Woolworths to bite the bullet - and get out.

If Woolworths accepts that advice it is certain that there will be plenty of eager investors waiting in line to field an offer for the ALH groups assets.  Poker machines in pubs and clubs delivers healthy profits, even if it does immense damage to the healthy image of the owner of these machines.  It seems that Woolworths faces an image problem.   Its squeaky clean presentation as a responsible food retailer is being defaced with the poker machine tar brush !