The man whose name is all over Sydney | Agents of Influence | Part 3

Agents of Influence: The Ainsworth Legacy and Poker Machines in Australia

Key Concepts:

• Poker machine influence on Australian society
• Len Ainsworth's role as the "Pokés King" and philanthropist
• Gambling harm and its impact on families and communities
• Political lobbying and the legalization of poker machines
• Tax revenue dependency on poker machines
• Philanthropy and its connection to the poker machine industry
• The Ainsworth family's legacy and their involvement in the industry
• Poker machine reform and harm reduction measures

Nelson's Story: A Personal Perspective

• The story begins with Nelson, an artist from Western Sydney, whose artwork explores his experience growing up as the child of a gambler.
• One of Nelson's artworks is a collage featuring a photograph of him as a child standing next to Len Ainsworth, the "Pokés King" of Australia.
• Nelson's art reflects the harm caused by gambling in his family and community, including constant conflict, money troubles, and the loss of family moments.
• Nelson's experience highlights the profound and scarring impact of gambling on families.
• Quote: "It's almost like you grow up on quicksand you know the ground underneath you is so unstable growing up money became another part of the family because you realize it has such a power over everyone and it has a way that it controls your life" - Nelson

Len Ainsworth: From Pokés King to Philanthropist

• Len Ainsworth is the founder of Aristocrat, the world's largest poker machine manufacturer, with a company worth $40 billion.
• Ainsworth has become a prominent philanthropist, pledging to give away half of his billions of dollars.
• He and his family are major donors to the arts, science, and culture.
• This philanthropy creates a complex dynamic, as Ainsworth's wealth is derived from an industry that causes harm to many families.
• The Australian art world is small, and artists may be hesitant to criticize major donors like Ainsworth.

Susan Marsden's Biography: The Patriarch of the Pokés

• Historian Susan Marsden was commissioned to write a biography of Len Ainsworth, titled "The Patriarch of the Pokés."
• The family decided not to publish the biography, citing privacy concerns.
• Marsden's research reveals Ainsworth's aggressive expansion strategy in the poker machine industry, including buying out competitors and advocating for the industry in the media.
• In the late 1970s, Ainsworth began bankrolling the Australian Clubs Development Association to lobby for the legalization of poker machines in other states.
• He spent $150,000 a year in the 80s on the association itself and then $100,000 a year paying a lobbyist to run this whole campaign.
• In 1982, Ainsworth was arrested, and his factory was raided by New South Wales police, but the charges were later dropped.

The Spread of Poker Machines and State Revenue

• Following Ainsworth's lobbying efforts, Queensland, Victoria, and South Australia legalized poker machines in clubs in the early 1990s.
• The legalization of poker machines led to a significant increase in gambling losses, with losses more than doubling to $3.8 billion between 1990 and 1995.
• States became reliant on tax revenue from poker machines, creating a dependency that continues today.
• The governments were really scrambling to find money and Pokey's revenue was there to fill the void

Ainsworth's Philanthropic Shift

• In the 1990s, Ainsworth was diagnosed with prostate cancer, which led to a shift in his life and a focus on philanthropy.
• In 1996, he made his first major philanthropic donation of $1.5 million to Sydney Children's Hospital.
• He gave away his company, Aristocrat, to his wife and seven children.
• When Aristocrat floated on the stock market, each of those shares that Len had given to his sons and his wives they were worth $30 million each within a few years though each of those stakes were worth $500 million each.
• Ainsworth's sons also became involved in philanthropy, supporting various causes, including the arts, environmental protection, and anti-fracking initiatives.
• The Ainsworth name is visible on buildings at universities, hospitals, and cultural institutions throughout Sydney, thanks to their donations.

Ethical Questions and Institutional Responses

• The Art Gallery of New South Wales has an Ainsworth Family Gallery, named in recognition of a $10 million donation from Len and his sons.
• Nelson expresses mixed feelings about the Ainsworth name being associated with the gallery, given the harm that poker machines have caused in his family.
• Other institutions that have accepted Ainsworth's money include Sydney Children's Hospital, the University of New South Wales, Macquarie University, and the Children's Medical Research Institute.
• These institutions stated that they have processes to decide on taking donations and were comfortable taking Len Ainsworth's money, citing his genuine connection to their causes and long-term support.
• Tim Costello argues that there is a moral issue with institutions taking money from the poker machine industry, drawing a parallel to tobacco companies.

Political Influence and the Gordian Knot

• The poker machine industry has significant political influence, with both major parties benefiting from the revenue generated by poker machines.
• Andrew Wilkie, an independent MP, experienced firsthand the power of the poker machine lobby when he attempted to introduce reforms, such as $1 maximum bets.
• Julia Gillard, then Prime Minister, initially agreed to implement mandatory pre-commitment across all poker machines but later walked away from the promise due to pressure from the clubs and within her own party.
• The Labour Party has close ties to clubs that own poker machines, with the constitutions of some clubs stating that their purpose is to fund and expand the party.
• The situation is described as a "Gordian knot," with pubs, clubs, the government, Aristocrat, and political parties all dependent on the poker machine industry.

The Call for Reform and the Ainsworth Family

• Poker machine reformers are pushing for a system in New South Wales that would require players to sign up for an account, which experts say would help reduce gambling harm and money laundering.
• The poker machine industry has refused to support the system, and the government has been slow to act on a report calling for it.
• Tim Costello suggests that an Ainsworth family member speaking out in favor of reform could help break the impasse.
• The reporter attempted to contact members of the Ainsworth family but was unsuccessful in securing any on-the-record interviews.
• Tim Costello has been quietly engaging with someone in the Ainsworth family who has been generous to the Alliance for Gambling Reform.

Nelson's Art and the Cycle of Harm

• Nelson's art exhibition showcases his personal experience with gambling harm and raises awareness about the issue.
• His artwork, including a dollhouse covered in losing scratchies, highlights the cycle of harm and the extraction of wealth from vulnerable individuals.
• Nelson's story underscores the need to shift the focus from blaming the gambler to addressing the systemic issues that perpetuate gambling harm.
• Quote: "It's only as an adult that you realize actually that anger you know it's um it's misplaced it's misplaced um because you've been told to to judge the gambler the person experiencing the gambling harm so your focus is there until you realize actually there's another party or other parties at play here and how come they don't get you know any of your focus" - Nelson

Conclusion

The story of Len Ainsworth and the poker machine industry in Australia is a complex one, filled with contradictions and ethical dilemmas. Ainsworth's invention has had a profound impact on Australian society, creating wealth for some while causing harm to many others. The reliance on poker machine revenue by governments and political parties has created a Gordian knot that is difficult to untangle. While Ainsworth and his family have engaged in significant philanthropy, questions remain about whether this is enough to atone for the harm caused by their industry. The story of Nelson, the artist from Western Sydney, serves as a powerful reminder of the human cost of gambling and the need for meaningful reform.