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Under the deal Woolworths would provide the corporate might and hold a 75 per cent share of the business, Mathieson would keep 25 per cent and provide the pub and pokie industry expertise that Woolies lacked. By comparison, says the former retail executive, Coles public not at first fully understand the business it pokies bought into.

He recalls leading senior staff on a tour of the company's new Queensland acquisitions. They seemed unimpressed, he says, until they returned to Melbourne and, a short time later, saw a month's worth of figures from the pubs. We hadn't.

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Suddenly gaming was making real money for the retailers. Coles reported in that it grown its hotel portfolio to a total of 85 hotels on new sites in Western Australia, South Australia and Queensland. Australian adults lose on average twice as much as those in any other Western nation to gambling.

People dependent on welfare play pokies at a higher rate than most and those with a gambling problem account for 17 per cent of regular punters, the study found.

Problem gamblers account for more than half of all spending on pokies. In response to questions from Fairfax Media, Woolworths said surveys it had seen suggested less than 1 per cent of Australians were problem gamblers.

Other research suggests that around 20 per cent public the world's pokies can be found in Australia and 10 per cent in NSW, though Clubs NSW disputes these figures, saying they do not include other popular forms of electronic gaming around the world.

None of this sits easily with Woolworths' sunny public public, nor according to some reports, with the views of some of its most senior executives.

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