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Alcohol's gone to their heads, and the gambling to their pockets

25 February 2001

Australian pub keepers in New South Wales have reportedly not kept their promise of dropping beer prices once they got poker machines. According to the Daily Telegraph, the average price of a beer is still about 40 cents cheaper in a club than hotel, and often 70 cents less expensive. Prior to their introduction five years ago, the pub owners complained that they could not compete with clubs, which subsidized their beer profits with their gaming profits. Now, they earn $1 billion annually in gaming profits, and claim that they have not discounted the alcohol because of a responsibility not to encourage gambling.

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