In Australia these laws are set by every state, so any decision like this would not apply at the federal (national) level.
Indeed. OP is misleading when he/she states Australia rather than New South Wales. The subject itself is misleading for two reasons. One, it is not Australia and, two, a ban is not impending. There are only different plans at this point.
On the other hand, in Western Australia these machines are banned and they can only be used inside a Casino, and not in every pub like in NSW.
As per the article, pokies are not banned in Western Australia. But not only are they not allowed in pubs and clubs, they are also not allowed in any casino.
Western Australia only allows pokies in its Crown Casino in Perth.
They seem to be trying to stop problem gamblers in NSW though[2], but these measures aren't very effective. For example, a proposed card for gambling is not likely to pass in NSW due to massive lobbying power from the pubs and clubs[3].
Not only lobbying. Apparently, one of the main reasons is the huge revenue that the government generates from them. Not to mention that millions are also poured into political parties.