Tasmania — Overview
Tasmania is a small state with a disproportionately significant place in Australian gambling history and policy. It was home to Australia's first legal casino — Wrest Point in Sandy Bay, Hobart, which opened on 10 February 1973 — predating mainland casinos by over a decade. It has a unique corporate structure in which a single private company, Federal Group, controls both casinos and is the sole EGM operator across all hotels and clubs in the state.
With approximately 570,000 people, Tasmania loses around $190 million annually to pub and club EGMs, plus additional losses at its two casinos. On a per-adult basis, this represents one of the lowest EGM loss rates among states with unrestricted machine access — Tasmania has a low EGM density by design, with a state-wide cap of 2,500 machines in hotels and clubs and per-venue limits of 40 for clubs and 30 for hotels. The casinos add approximately another 600 machines. Despite these limits, data released by Treasury and Finance Tasmania shows more than $524,000 was lost per day in August 2024 — and more than $1.1 billion has been lost since the 2018 state election.
Australia's First Casino — A Brief History
🎲 Wrest Point, 1973 — Australia's Gambling Pioneer
The Wrest Point Hotel Casino opened in Sandy Bay, Hobart, on 10 February 1973, following a 1968 public referendum in which the proposal was approved by 56% of Tasmanian voters. It was Australia's first legal casino — predating Crown Melbourne by over two decades and representing a significant moment in Australian social history. The casino was built by Federal Hotels, now operating as Federal Group, which has maintained its casino operating licences ever since.
Tasmania's early adoption of legal casino gambling was driven by the state's acute economic challenges and its relative isolation. The argument — that a casino would attract mainland and international tourists and generate revenue for a struggling state economy — proved durable enough to persuade a majority of voters despite vocal opposition. That same economic argument has been made, in various forms, to resist almost every harm minimisation reform proposed in Tasmania in the half-century since.
The second Tasmanian casino, Country Club Casino in Launceston, opened in 1982. Both properties continue to operate under Federal Group's licence.
The Federal Group Monopoly
🏢 Federal Group — Tasmania's Unique Gaming Monopoly
Federal Group is a privately owned Tasmanian company that holds an extraordinary position in the state's gambling landscape: it operates both of Tasmania's casinos AND is the sole licensed operator of all electronic gaming machines in hotels and clubs across the entire state. No other Australian jurisdiction gives a single private company this degree of control over an entire state's gaming machine operations.
Through its subsidiary Network Gaming, Federal Group leases EGMs to hotels and clubs across Tasmania — it is both the equipment supplier and the regulatory licensee for all non-casino gaming machines in the state. It also has a restriction that prevents it from placing more than 25% of hotel EGMs in hotels it directly owns, but there is no restriction on its broader monopoly over EGM operations.
This structure means that any harm minimisation reform affecting pub and club pokies in Tasmania directly affects Federal Group's revenue — a company with deep ties to the state's political and business establishment. Tasmania's 2018 election result, in which the Liberal Party successfully fought off Labor's pokies-removal policy while receiving significant campaign support from the Tasmanian Hospitality Association, is widely cited as evidence of the political weight behind this interests.
Electronic Gaming Machine Data
Treasury and Finance Tasmania publishes monthly EGM expenditure data that includes both casino and non-casino machines. Uniquely among Australian states, Tasmania's published data includes casino EGMs alongside hotel and club figures, and is broken down by municipality — making it one of the more geographically granular state datasets available.
| Venue Type | EGMs (approx.) | Annual Losses (est.) | Per Venue Cap | Notes |
|---|---|---|---|---|
| Hotels | ~1,300 | ~$100M | 30 per venue | Maximum 30 EGMs per hotel; jackpots capped at $25,000 |
| Clubs | ~1,200 | ~$90M | 40 per venue | Maximum 40 EGMs per club; lower effective tax rate |
| Wrest Point Casino (Hobart) | ~400 | ~$75M | Casino licence | Australia's first casino (1973); recently renovated ($65M, 2018–2023) |
| Country Club Casino (Launceston) | ~200 | ~$30M | Casino licence | Opened 1982; regional market; significantly smaller than Wrest Point |
| Total (all venues) | ~3,100 | ~$295M | State cap: 2,500 (non-casino) | Lowest EGM density of mainland-comparable states; monthly data by municipality |
Sources: Treasury and Finance Tasmania; QGSO 40th Edition. EGM counts are approximate; casino figures include machines across both properties.
Tasmania's Two Casinos
Wrest Point Hotel Casino
Sandy Bay, Hobart · Opened 10 February 1973
Country Club Casino
Prospect Vale, Launceston · Opened 1982
The Cashless Gaming Card Saga
The story of Tasmania's cashless gaming card is one of the most significant — and most frustrating — episodes in recent Australian gambling policy. In 2023 and 2024, Tasmania was poised to become the first Australian state to introduce mandatory pre-commitment cashless gaming for all EGMs. It came closer to implementation than any other jurisdiction — and then pulled back at the final moment under industry pressure.
✗ Shelved — November 2024
In November 2024, Premier Jeremy Rockliff's government abruptly announced it would not proceed with the mandatory cashless gaming card scheme it had been developing for over two years. The scheme would have required all players to use a pre-registered identity-linked card to operate any gaming machine, with default limits of $100 per day, $500 per month and $5,000 per year. It had been developed in consultation with the Tasmanian Liquor and Gaming Commission and was described as the most comprehensive harm minimisation reform in Tasmania's history.
The government's stated reason for shelving the scheme was a preference for a "national approach" in co-ordination with other states. Critics — including Independent MLCs, health advocates and the Alliance for Gambling Reform — rejected this explanation, noting that no national agreement on cashless gaming exists or is imminent. The real reason, they argued, was the same one that has shaped Tasmanian gambling policy for 50 years: industry pressure from Federal Group and the Tasmanian Hospitality Association.
The Reform Timeline
The Pokies Election
Labor under Rebecca White campaigns on removing all pokies from pubs and clubs — framed as a major election commitment. The Liberal Party, backed by the Tasmanian Hospitality Association, campaigns to retain machines. The Liberals win with a majority government. The pokies-removal policy becomes a political liability Labor does not revisit until 2024.
Cashless Gaming Card Announced
The Rockliff government announces the development of a mandatory cashless gaming scheme, framing it as a harm minimisation measure and a compromise position between the removal of machines and the status quo. The Tasmanian Liquor and Gaming Commission begins developing the technical and policy framework.
Scheme Design Finalised — Default Limits Announced
The TLGC finalises the scheme design. Default limits are set at $100/day, $500/month and $5,000/year — with players able to self-set lower limits but unable to raise beyond the defaults without a formal application. Implementation is targeted for December 2025.
Government Secretly Commissions Deloitte Review
The Department of State Growth commissions Deloitte Access Economics to review the economic impact of gambling policy on the hospitality sector. The existence of the review is not disclosed to parliament or the public until late October 2024, when the Premier confirms it under questioning.
Mandatory Card Shelved — Government Retreats
Premier Rockliff announces the mandatory cashless gaming card will not proceed as planned, citing a preference for national co-ordination. Independent MLCs, health advocates and gambling researchers condemn the decision. The Tasmanian Inquirer reports over $1.1 billion has been lost on pokies since the 2018 election.
Deloitte Report Released — Backs Reform
The Deloitte Access Economics report on EGM reform in Tasmania is published. Its central scenario — cashless gaming with the proposed default limits — projects a net economic benefit of $230 million and 209 additional jobs over 2024–2030. The findings directly contradict the industry's case that harm minimisation would damage the Tasmanian economy.
Policy Future Uncertain
With the Deloitte report now public, political pressure on the government to revisit the cashless card is growing. Independent MLCs and the Tasmanian Greens have committed to continue advocating. Labor — under new leadership — has abandoned the removal policy and supports cashless gaming as a middle path. Federal Group's licence arrangements continue under rolling five-year terms.
Gambling Losses by Product
Estimated TAS gambling losses by product, AUD millions (~2022–23). Casino includes both Wrest Point and Country Club. Sources: QGSO 40th Ed.; Treasury TAS.
| Product | Est. Annual Losses | Market Share | Regulator | Notes |
|---|---|---|---|---|
| EGMs (Hotels + Clubs) | ~$190M | ~37% | TLGC / Federal Group | $524K/day (Aug 2024); $1.1B since 2018 election |
| Casino (Wrest Point + Country Club) | ~$105M | ~20% | TLGC / Federal Group | Table games + casino EGMs; includes keno at casinos |
| Lotteries | ~$100M | ~20% | The Lottery Corporation (TattsLotto brand) | High effective tax rate; online channel growing |
| Wagering (Racing + Sports) | ~$80M | ~16% | TLGC / Tabcorp TAB | New Wagering Tax from January 2020; 15% POCT rate |
| Keno | ~$35M | ~7% | TLGC | Available at hotels, clubs and casinos |
| Total | ~$510M | 100% | TLGC | ~$283 per adult in EGM losses — lower than most states |
Sources: QGSO 40th Edition; Treasury and Finance Tasmania; Tasmanian Inquirer analysis. Figures are estimates; totals may vary by source and period.
Gambling Regulation in Tasmania
Tasmania's gambling regulatory framework is administered by the Tasmanian Liquor and Gaming Commission (TLGC), which oversees all forms of gambling under the Gaming Control Act 1993. The Commission regulates casinos, EGMs, wagering, keno and lotteries, as well as the Responsible Gambling Mandatory Code of Practice — a code that establishes minimum standards for all licensed gambling venues in the state.
Key current regulatory features include:
- Maximum of 2,500 EGMs in hotels and clubs state-wide — among the lowest caps in Australia relative to population
- 30 machines per hotel, 40 per club — strict per-venue limits that prevent the large pokie floors found in NSW and Queensland clubs
- $25,000 jackpot cap on hotel EGMs — introduced following a 2017 responsible gambling code review
- $100 EFTPOS withdrawal limit per patron per day at hotels (not including meals/accommodation)
- Prohibition on serving alcohol to daytime EGM players in hotels
- Monthly EGM data by municipality published by Treasury and Finance Tasmania — one of Australia's more transparent state datasets
- Tasmanian Gambling Exclusion Scheme — state-level self-exclusion covering all EGM venues and casinos
The TLGC completed a review of the Responsible Gambling Mandatory Code of Practice in 2017, adopting eight of eighteen proposed changes. Proposals to ban on-site pokies advertising, mute machine jingles, and toughen regulations for self-excluded gamblers were not adopted at that time.
Wagering Tax and Gambling Revenue
Tasmania introduced a dedicated Wagering Tax on 1 January 2020, applying a 15% rate on net wagering revenue from Tasmanian residents exceeding $150,000 per year. This is consistent with the Point of Consumption Tax model adopted nationally from 2018–2020. Like other small states, Tasmania's absolute gambling tax revenue is modest in national terms — approximately $180 million annually — but represents around 4% of total state revenue.
The Federal Group's casino and EGM monopoly means that a substantial portion of Tasmania's gambling tax revenue comes from a single private corporate entity. This dependency has historically made the government cautious about reforms that could reduce Federal Group's revenue — though the Deloitte report's finding that the central reform scenario would grow the overall economy may shift this calculation.
Gambling Harm in Tasmania
Despite having lower per-capita EGM losses than NSW, Queensland or the ACT, gambling harm in Tasmania is real and well-documented. The state's relatively small population means that even modest absolute loss figures translate to significant community impact. Research consistently shows that a disproportionate share of EGM losses comes from problem gamblers, who account for approximately 48% of total EGM expenditure in Tasmania despite being a small fraction of all players — a figure consistent with national research.
- $524,000 per day was lost on Tasmanian pokies on average in August 2024 — with the daily total rising in the months when the cashless card scheme would have been implemented
- More than $1.1 billion has been lost on pokies since the March 2018 election — the equivalent of roughly $2,000 for every adult Tasmanian
- The Tasmanian Social and Economic Impact Study (SEIS) found that moderate-risk and problem gamblers contributed 48% of total EGM expenditure
- The Deloitte report (December 2025) found cashless gaming reform would reduce EGM participation and harm while producing a net economic benefit of $230 million — directly addressing the government's stated concern about economic impact
- Tasmania's per-adult EGM loss of approximately $283 is lower than NSW ($978) and the ACT (highest per-adult loss nationally) but higher than Western Australia (casino only)
