Despite expectations that the boom the gambling sector experienced during the pandemic would be a temporary surge in revenues brought about as millions across the country were forced to stay at home, as the country recovers from the pandemic, gambling revenues have remained strong even as in-person gaming begins to take place again. Particularly for those players playing online pokies for real money, the economic picture for the sector as a whole is looking extremely bright.
Figures
This is at least according to the latest figures released by the New Zealand Department of Internal Affairs. According to the report—which covered the financial years for 2020/21—New Zealanders were spending 17% more on gambling than the previous year, for a total of NZ$2.63 billion across the four main types of gambling.
Interestingly, of this NZ$2.63 billion, spending on pokies accounted for highest of any of these types of gambling. Spending on pokies was up 23% from the previous year for a total of NZ$987 million.
Pokies have performed similarly strongly across Australia. According to the figures for 2021, a post-lockdown surge in gambling revenues was driven by increases in revenues on pokies games. These latest figures reversed a downward trend in the popularity of pokies that Australia had been experiencing for the past 15 years.
But what exactly are pokies, and why have they proved so popular with punters across New Zealand and Australia?
The History & the Future
‘Pokie’ is slang for ‘poker machine’, which is a type of video slot that first grew popular in pubs, clubs, and casinos across the country.
Although the precise origins of the name are popular, it is more than likely that it comes from some of the early casino games that got popularised in the Australian and New Zealand pub scene, which were a type of video poker machine. From there, the name got shortened to ‘pokies’, which are still incredibly popular across the country. The term ‘pokies’ has not reached far beyond the Australia and New Zealand market, however, where online slots are generally referred to as ‘slots’.
These types of games proved popular in a pub setting, as the level of concentration required was quite low compared to some of the more complicated games you might play such as poker, blackjack, or baccarat. Slot machines focus on pure entertainment, without the need for any particularly complex strategizing to win.
This has proved similarly true as online casino games have increased in popularity. Online slots are incredibly beginner friendly and the basic game mechanics can be picked up in a matter of minutes. They can also be played more casually without the need for any serious time commitment. This is perfect for the online casino setting, where players typically prefer to play in shorter sessions.
These games also tend to carry the very highest of any jackpots found in the casino space. The biggest single win occurred just recently in 2021, with an anonymous Belgian player pulling in $22 million from a $17 bet.
For online iGaming platforms and in-person casinos, pokies also tend to generate significantly more revenue when compared to other games—which perhaps explains the strong support for them in recent years. According to a 2016 study of the Australian market, pokies generated twice the revenue of other casino games.
Given that the figures for Q1, Q2, and Q3 of 2022 have not been released yet by the Department of Internal Affairs, it is not yet clear how the sector will perform. However, if last year’s figures are anything to go by, we can expect to see strong revenues for the sector as the whole—particularly as online casinos gain deeper market penetration.
