Gambling

Draft report - Key points

These key points were released with the Gambling draft inquiry report on 21 October 2009.

Gambling is an enjoyable pursuit for many Australians and Government policies need to balance the sizeable benefits for recreational gamblers against the significant harm it causes some people.
Most policy interest centres on people playing regularly on 'riskier' forms of gambling, particularly the 'pokies' (gaming machines).
Excluding people whose only form of regular playing is on Lotto or 'scratchies' (essentially 'safe' forms of gambling), only around 15 per cent of Australian adults gamble regularly.
- Roughly one in ten of those would be classified as 'problem gamblers', with an additional 15 per cent experiencing 'moderate risks'.
About 5 per cent of adults play weekly or more often on gaming machines.
- Around 15 per cent of this group are 'problem gamblers' and their share of total spending is estimated to range around 40 per cent.
- A further 15 per cent of pokie players face 'moderate risks'.
While precision is impossible, estimates of the number of problem gamblers lie in a range around 125 000, with the estimated number of gamblers at moderate-risk ranging around 290 000.
- Their prevalences expressed as shares of the adult population are misleading, given that most of the population do not gamble regularly.
The significant social costs associated with problem gambling mean that even policy measures with modest efficacy will often be worthwhile.
- Rough, but conservative, calculations suggest that even a 10 per cent sustained reduction in harm could provide a gain to society of nearly half a billion dollars annually.
Over the last decade, state and territory governments have put in place an array of regulations and other measures intended to reduce harms to consumers.
- Some have been helpful, but some would have had little effect, and some have imposed unnecessary burdens on the industry.
A more coherent and effective policy approach is called for. There is a particular need for targeted harm minimisation policies that can effectively address the high rate of problem gambling among regular gaming machine players. Most gamblers would not be affected by this approach.
Most recreational gamblers play at low intensity, but the machines allow losses of up to $1200 an hour.
- The bet limit should be lowered to one dollar per button push (equating to losses of around $120 an hour), with much lower limits on how much cash can be fed into machines at any one time. Recreational players would be minimally affected.
Shutdown periods for gaming rooms in hotels and clubs are too brief and occur at the wrong time. They should be extended and commence earlier.
There should be a progressive move over the next six years to a universal pre-commitment system for gaming machines, using technologies that allow all consumers in all venues to set binding limits on their future play.
- Safe default settings would apply, but players could opt out, with periodic checking of their preference to do so.
With effective pre-commitment, many other regulations on gaming machines could be modified, or be removed as they become redundant.
Effective harm minimisation policy for gaming machines will inevitably erode gaming revenues. In the longer run, however, technological changes may attract a wider base of consumers, offsetting this.
Other measures would have modest effects in reducing harms, but are also low cost.
- Better information in venues would help, but school-based education could have perverse effects and should not be extended without review.
- Relocating ATMs away from gaming floors, and lower daily cash withdrawal limits on ATMs, would help some gamblers, but removing ATMs from venues poses costs and risks, and jurisdictions should await an evaluation of Victoria's impending ban.
- Statutory provisions to enable gamblers to seek redress through the courts for egregious behaviour by venues appear necessary.
Help services for problem gamblers have worked well overall, but
- they relate to people who have already developed major problems and are thus not a substitute for preventative measures
- there is a need for enhanced counsellor training and better service coordination, and to reach the 85 per cent of problem gamblers who do not seek help.
Some regulations have poor outcomes for gamblers and providers alike
- Liberalising the domestic supply of online gaming, accompanied by strong harm minimisation, would divert consumers from risky overseas sites.
- A new national approach to wagering that encouraged competition would lead to better outcomes for punters. But it needs to be accompanied by a nationally-set levy on betting suppliers to ensure adequate funding of the racing industry, whose existence underpins the wagering market.
Governments have improved policy-making and regulation with respect to gambling, but significant governance flaws remain in most jurisdictions - including insufficient transparency, regulatory independence and coordination.
- There is a particular need to reform the institutional arrangements underpinning national research.

Background information
Ralph Lattimore (Assistant Commissioner) 02 6240 3242