Woolworths Poker Machines

2021年5月28日
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*Woolworths Poker Machines Machine
*Woolworths Poker Machines Machine
Independent Federal MP Andrew Wilkie was among those to welcome Woolworths’ planned exit from Australia’s largest poker machine operator. ’Poker machines are a toxic product and any responsible business should have nothing to do with them,’ Mr Wilkie said.
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*WOOLWORTHS has been accused of “spying” on poker machine players at hotel venues and keeping a secret database of their personal information to assist staff in encouraging increased gambling.
One of Australia’s largest supermarket brands is currently undergoing a major restructuring effort. The plans include the separation of alcohol and poker. The plan is currently being voted on by the company’s principal shareholders. If approved, the company will release its Endeavour Group, which contains the division responsible for poker machines, alcohol, hotels and nightclubs.
Woolworths has launched a new subsidiary of its enterprise that will be exclusively for leisure, hotels, nightclubs, poker and alcohol. ©Concord90/Pixabay
The idea is quite simple and will ensure that the Woolworths brand maintains its operational efficiency within the supermarket groceries business. For the many millions of Australians who have become accustomed to the Woolworths brand deep association with poker gambling, this move will be unexpected and will take some time to adjust.
This week will see the proceedings begin within the group of shareholders responsible for enacting the three-stage restructuring plan. The Woolworths corporation is for sure about to undergo fundamental changes at all levels of the organization. Initially, the poker operation within Woolworths will be transferred to the newly formed Endeavour Group. This newly formed spin-off entity will completely take control of the nightclubs, hotels, pubs, bars and poker machine venues – relinquishing the responsibility entirely from Woolworths. It is being widely analyzed in the Australian business commentary publications, with analysts billing this as the biggest re-structuring in the long history of Woolworths.
The initial forecasting by the entities currently serving as the majority shareholder in Woolworths suggests that the new satellite organization that will launch out of the ashes, Endeavour Group, is set to take control of the Australian drinks and hospitality business entirely. Economically, this is also huge, the newly formed Endeavour will control a market worth over AU$10 billion and expect to bring in revenues of over AU$1 billion. After the separation is complete, Woolworths will own an 85% share in Endeavour Group, making them firmly in control of the board and free to exercise any agenda they see fit for the new company.Succumbing to External Pressure?
The announcement to differentiate the supermarket business from the gambling and alcohol serving divisions of the Woolworths business has not gone unnoticed by those that vehemently campaigned for this eventuality. The pressure to distance Woolworths from casual poker gambling has been growing from various groups including investors, anti-gambling charities and politicians for several years. But since the details of the split have been made public, it is obvious that the fiscal reasons are the primary motivation.
At the time the company announced its intentions to separate poker machines and alcohol drinking from the main Woolworths business enterprise, the news was welcomed by anti-gambling groups and investors. However, the CEO of Woolworths Brad Banducci does not seem to share this sentiment, in fact, he was downplaying the significance of this move by the firm, and commented.
The time to separate our supermarket and leisure divisions had been looming for some time. In order to achieve the necessary growth targets, it was essential to make this move, and we are pleased with the hard work and cooperation of all those who helped us achieve this.Brad Banducci, CEO Woolworths
With this dissociative language being flippantly put into the public domain by the Woolworths CEO, many critics are feeling disheartened. The reality is poker machine gambling will become significantly harder under the new corporate structure of Woolworths, and yet, advocates of gambling restrictions are unsatisfied. Time will tell how impactful this move will be. Removing alcohol and gambling elements from a business that primarily focuses of its retail supermarket vertical as the primary revenue stream is a logical step and one that will surely be paying dividends in the coming years.The Future Divergence of Endeavour and Woolworths
Although these two organizations will be inherently different, with business operations in industries that hold completely opposite sets of challenges and obstacles, Woolworths as an entity will remain completely behind the driving wheel. By merging its leisure and hospitality segments into an external company, the firm can be allocated more abundantly the resources so desperately needed to fuel a supermarket chain currently occupying the position of market leader in Australia.
Sell coins online. Endeavour will be a new venture – having already established a formidable reputation within the nightclubs, and hotels business, the natural succession that includes poker gaming and alcohol will slot neatly into the already burgeoning portfolio of business verticals. The main objective now will be to ensure that revenue targets are continuously being met, regulations and ethical guidelines are being kept up with, and the business continues to make investments into the development of its own staff.
But perhaps the greatest concern of stakeholders in the next years will be to improve the ethical standards that the company operates within. Under Woolworths, the newly formed Endeavour group will have to shake off the legacy of the concerning allegations filed against them in New South Wales of illegal and unethical behavior. The new company structure will serve as an adequate vehicle to re-establish the brand and gain back the trust of the customers they have squandered so often in the previous years.
Woolworths is reported to be instructing staff to ply gamblers with food and drink and to keep dossiers on the private lives. And while Woolworths has been singled out for systematically requiring these kind of practices from their staff, the company is hardly alone in putting profits ahead of gambler’s well-being.
Poker-machine operators have good reason to treat their customers like this. Their primary goal is to take as much money from their customers as possible, and with poker machines, this means easing gamblers “into the zone”.
Read more: FactCheck: are ’around 5,000 jobs’ at risk if pokies are removed from pubs and clubs in Tasmania?
“The zone” is the term that frequent poker-machine gamblers often use to describe the altered state they enter into when gambling on pokies. The experience of entering the zone - and even the term itself - has been independently described by gamblers in studies in Australia and the United States.
Gamblers describe it as an out-of-body experience. As one gambler put it:
You aren’t really there, you’re with the machine and that’s all you’re with.
Or in the words of another gambler:
I feel connected to the machine when I play, like it’s an extension of me, as if physically you couldn’t separate me from the machine.
But the zone is also an expensive state to access. Gambling on pokies costs - on average - around A$120 per hour, or up to A$1,200 per hour if machines are played to their maximum capacity.
It’s when their customers are in the zone that poker-machine venues are at their most profitable.Easing gamblers into ‘the zone’
Poker-machines are specifically engineered to ease people into the zone and to keep them there, according to emerging evidence. But in order for people to enter the zone, people must play the machines, and preferably play uninterrupted. This is where the tactics of venues like Woolworths loom large.
Venues use a wide range of tactics to get gamblers in through the door and in front of machines.
First of all, poker-machine venues are located in convenient locations, near to high traffic transport routes, shopping centres and the like. This facilitates frequent visits, and venues try to decrease the distance from your home to the closest poker-machine venue.
For the same reasons, gambling venues are open very long hours. Operators want poker machines to be available should you need somewhere to go at 3am.
Indeed, poker-machine operators also go to extraordinary lengths to make their venues feel comfortable and welcoming. Operators have known for decades that the venue environment is crucial to facilitate profitable gambling. A cottage industry of research has sprung up in recent years to better help casino managers understand what sort of venues will keep gamblers feeling at ease.
Read more: ’No pokies’ Xenophon goes for ’some pokies’, but does his gambling policy go far enough?
For example, a 2011 study of pokie venue gamblers in Australia found there were certain gambler-friendly qualities of the venue which could be improved on to attract more gamblers. These included free refreshments; attentive customer service; safety and security; loyalty programs; and comfortable seating.
Casino design manuals go into great detail about how the manipulation of casino atmospheres can encourage people to stay and play. These manuals state that lighting should be steady and even, and should be angled away from gamblers faces. Woolworths Poker Machines Online
Smells are said to affect gamblers’ decisions to continue gambling or leave, and so venues regulate them. Special attention is given to keeping out bad odours. In casinos, even architectural decisions such as ceiling height are calibrated to maximise gamblers’ “cognitive satisfaction”.
Ambient music shouldn’t be too loud or too soft, and should be deflected, reverberating off walls rather than directed into gamblers faces. And music coming from the poker machines themselves shouldn’t be too jarring lest it distract the gambler, or attract too much attention to a win.
All these amount to providing what one study has termed “social accessibility”, the degree to which venues provide safe, friendly and easy places to visit - and to stay. The relationship with venue staff is central to this, as one problem gambler from the same study put it, “[In] all my preferred venues they [the staff] know me quite well”. It is this social accessibility that appears to be being manipulated by unscrupulous operators.
On a grander scale, US casinos use big data to devise tailored marketing strategies which will pull people back in. Recent court findings have shown that US casino giant Caeser’s values its customer database at more than US$1 billion dollars.
While Australian pubs and clubs are not allowed to promote poker machines directly, they are able to cross-promote other events that might serve as vehicles to bring patrons into the venue, and thus facilitate a gambling session.
Venues also offer a place where children are encouraged to come and play. Not only does this facilitate the gambling of their parents and carers, but hearing or seeing adults gamble may serve to normalise the practice for the next generation. In particular, new research has found that marketing, especially of family-friendly events, is influential in shaping children’s and adults’ perceptions of gambling venues and products and thereby increase the likelihood that children will gamble when they grow up.Woolworths Poker Machines MachineWhen good hospitality becomes harmful
All of these measures are designed to make gamblers as comfortable and relaxed in venues as possible. So why is this a problem?
In short, poker machines are highly addictive and cause a great deal of harm. Subtle manipulation of gambling venues are tested and tweaked by operators to maximise the chance that someone will come in, play the poker machines, and keep on playing.
What may look like good hospitality, is in effect a subtle - or in the case of Woolworths not so subtle - attempt to keep people gambling after the point at which they would otherwise have stopped.
The Woolworths revelations demonstrate once again that poker-machine venues can’t be trusted to self-regulate in the best interests of their patrons.Woolworths Poker Machines Machine
Industry practices such as codes of conduct - and the “responsible gambling” mantra - are simply inadequate when venues have a business model reliant on harmful levels of gambling.
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