Pokie king reaping millions

Reporter: Lynda Kinkade
Broadcast Date: May 08, 2009

With many of us doing it tough at the moment, one man with a fleet of fancy Ferraris and a multitude of mansions is reaping the rewards.

Self-made billionaire, Bruce Mathieson, hits the jackpot again and again and again.

The latest windfall is an $18 million beach front mansion to add to his collection.

Mr Mathieson swooped on the six-bedroom, six-bathroom, 10-car garage nest paying $15 million less than the asking price.

This latest abode is just around the corner from another $20 million mansion he calls home.

For a boy who left school at 13, Bruce Mathieson has done pretty well.

BRW Rich List Editor, John Stensholt, said last year Bruce was number 31 on the BRW Rich 200 list with $1.13 billion.

"I really suspect that he's going to get richer and richer as years go by," John said.

"Poker machines are probably in a way, a recession proof industry to be in, Mr Mathieson is already a billionaire, but he's going to get richer."

Mr Mathieson had his first taste of business at the age of eight, flogging gold watches.

His father had died and he was forced to make ends meet. His love of gold jewellery earned him the street name "Mr Bojangles".

By 18, he bought an engineering business.

"By the age of 22, he decided he'd buy a pub and a year later he was worth more than $1 million," John said.

Today the 65-year-old's empire extends to 270 hotels, 450 liquor retailers and 12,000 poker machines and he has enough mansions to go around his three children and seven grandchildren.

Through his partnership with Woolworths, Mr Mathieson controls most of the poker machines in Victoria.

Dr Nikki Dowling from Problem Gambling Treatment said there is a general view that poker machines are the most addictive form of gambling.

"You often find that people can lose hundreds and hundreds of dollars in one session," she said.

"About 40 per cent of Australians gamble on pokies every year and about half of our per capita gambling expenditure, is spent on poker machine gambling."

Each year gamblers lose $10 billion on the pokies.

One machine alone can earn more than the average Australian wage, so where does it all go when we lose?

During the last three years, that fun at your expense has earned Mr Mathieson a cool $700 million.

Under new gaming legislation in Victoria, Mr Mathieson's wealth is set to soar even higher.

From 2012, hotels will be able to bid directly for 10-year gaming licences in Victoria, opening the door for Mr Mathieson to own up to 18,000 machines.

But gambling experts say it opens the door to lure more addicts.

"They are highly available and accessible, venues are located in community areas like suburban shopping centres and residential areas, their flexible opening hours make them particularly attractive so that gamblers can fit in gambling around their normal responsibilities," Dr. Dowling said.

Mr Mathieson declined to be interviewed.