With less than 1% of the world's population, Australia has 21% of its poker machines. Known as "pokies", they bear such names as the Black Rhino, Texas Rose and Elf Magic and generate big profits for the bowling leagues and ex-servicemen's clubs that flower across the continent.
Pubs in New South Wales were recently allowed to install them, and there are now more than 170,000 gaming machines in the state.
The Productivity Commission's report to the federal parliament showed that more than 80% of Australians gamble - on everything from the races and lotteries to roulette. Only half as many Europeans or Americans allow themselves a flutter. Australian punters lose US$47.5 bn a year, nearly twice the amount they spend on power and fuel.
The prime minister, John Howard, said: "This is an achievement of which I am ashamed. I would like the federal and state governments to get together and see what . . . we can do to curb the abuse."
The irony is that state governments, such as that of New South Wales, depend on the booming revenues from gaming for more than 10% of their income.
Queensland's Labor premier, Peter Beattie, blamed cuts in funding from Canberra. "The emergence over the years of gambling at a state level has been a direct response to the lack of federal funding," he said.
The independent Productivity Commission estimates that 2.3% of the adult population are problem gamblers. On average they spend US$8,000 a year on gambling. Most are under 35 with families, and women represent approximately 50% of problem gamblers.
The losses of each of these chronic punters affect between five and 10 other people, and many of them suffer from depression, unemployment and alcoholism.
But in the short term, the alarming report has only increased gambling fever. By the week's end, the only people getting rich were those holding licences to operate the pokies. The price of a NSW poker machine licence rose 25 per cent to US$68,000, amid concerns that the number of licences would be curtailed.
