Research: RSL focus on pokies is gambling with veterans’ lives

New research has revealed only a small percentage of profits from RSL venues operating gambling machines in Victoria is spent on improving veteran welfare — and a focus on gambling could, in fact, be creating greater harm in the community.

Research from Curtin University and Monash University published today in the Australian and New Zealand Journal of Public Health reviewed community benefit statements from Victorian Returned and Services League (RSL) venues with electronic gambling machines between 2009-2019.

It focused on how much revenue was used for veteran welfare and gambling harm prevention and found:

• Less than 10 per cent of reported community contributions supported veterans.
• For every $100 in gambler losses, only $1.50 was directed toward veteran welfare.
• On average Victorian RSLs with electronic gambling machines claimed 12 times more on business expenses than on veteran support contributions.
• Total gambler losses at RSL venues in Victoria during this period reached $9.75 billion, however less than 0.002 per cent of funds went toward preventing or treating gambling-related harm.

Study lead Dr Louise Francis, from the Curtin School of Population Health, said Australian veterans record higher rates of harmful gambling in comparison to the general population.

“There is an argument any ties to gambling — and more specifically, high-risk electronic gambling machines — run counter to the RSL’s position as a benchmark ex-service organisation playing a critical role in supporting veteran health and wellbeing,” Dr Francis said.

Licensed Australian not-for-profit organisations including RSLs are granted tax concessions in exchange for funding programs and initiatives benefitting the community.

“This tax exemption system is intended to help licensed NFPs direct gambling profits toward community and veteran support,” Dr Francis said.

“Our research shows in this instance, spending on charitable services from gambling revenue is very modest among Australia’s principal veteran’s organisation.

“Most funds are spent on venue operational costs rather than veteran services, which fails to align with the RSL’s core mission of supporting veterans and raises ethical concerns.”

Dr Francis said the RSL risked potentially harming its reputation and public trust by adopting practices from the gambling industry.

“Globally, funding ‘good causes’ is a legitimation tactic for gambling operations: they use apparent acts of philanthropy to divert attention away from the adverse impacts of what is ultimately a harmful product,” Dr Francis said.

Public Health Association of Australia CEO and Curtin University Adjunct Professor Terry Slevin said the study raises serious questions about the role RSLs play in Australian society. 

“This study shows it’s time for RSLs to re-evaluate their ties with gambling,” Professor Slevin said.

“If RSLs are reliant on colourful computers programmed to take money out of the pockets of the people they are meant to be serving, then we need to weigh up the benefits they bring against the harms they cause.

“Western Australian RSLs operate under a different model, without being hooked on pokies revenue: their 106 subbranches show that change is absolutely possible.”

Dr Francis said there were many courses of action available to better ensure not-for-profits such as RSLs meet their community obligations including reforming tax policies, improving transparency, strengthening public health measures and reducing dependence on gambling revenue.

“Without significant reform, RSL clubs risk continuing to fall short of their commitments to veteran welfare, weakening their credibility as charitable organisations and ultimately failing to serve the vulnerable people they were created to help,” Dr Francis said.

Co-authors on the study were Associate Professor Charles Livingstone (Monash University School of Public Health and Preventive Medicine) and Associate Professor Jonathan Hallett (Curtin School of Population Health).

‘A review of Returned and Services League (RSL) venues operating electronic gambling machines (EGMs) in Victoria, Australia and the level of funding contributed to veterans’ was published in the Australian and New Zealand Journal of Public Health.