Australia's Gambling Industries - Productivity Commission

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H.7 What happens to problem gamblers who are convicted? The Blaszczynski and McConaghy (1994a) study also sheds light on what proportion of gambling related crimes actually result in charges being laid. Of the 306 NSW problem gamblers surveyed: • 24 per cent had been charged with committing a gambling related offence. This represents around 40 per cent of subjects who admitted to committing a gambling related offence. Only around one quarter of those committing larceny were charged, and slightly less than half of those committing embezzlement or misappropriation (table H.7, column 3). But typically, the more serious types of offences — such as armed robbery, break and enter, and drug dealing — were associated with a greater likelihood of arrest. Table H.7 Convictions and type of sentences, sample of 306 NSW problem gamblers Offence Number charged with an offence a Number charged as a % of number committing an offence Range in number of counts Number jailed Number receiving bond Number receiving fine Larceny 24 25 1–53 3 12 0 Embezzlement 29 44 1–40 9 15 4 Misappropriation 9 45 1–33 2 4 2 Break and enter 15 94 1–46 7 6 2 Shop-lifting 3 23 1–10 0 3 0 Armed robbery 7 88 1–7 7 0 0 Drug dealing 3 60 1–3 3 0 0 Other 3 60 1–3 0 2 0 a Of the 306 problem gamblers surveyed, 73 had been charged with an offence. However, the sum of the number of gamblers charged with individual offences is greater than this number because some gamblers were charged with more than one type of offence. Source: Blaszczynski and McConaghy 1994a, table 6. For crimes like larceny and embezzlement, the most common sentence imposed was a good behaviour bond. However, all convictions for armed robbery and drugrelated offences, and around half the convictions for break and enters, resulted in jail sentences. Overall, the mean prison term actually served by those receiving jail sentences was 2.6 years — or 1.4 years if two subjects who served especially long sentences are excluded. PROBLEM GAMBLING AND CRIME H.21
H.8 Problem gambling and loan shark lending Problem gamblers may resort to borrowing money from ‘loan sharks’ (or ‘fringe’ credit providers) when possibilities for borrowing from mainstream avenues such as banks, credit unions, and financial institutions are exhausted. Dealing with loan sharks signals desperation on the part of the borrower because such loans not only entail exorbitant interest rates but also a menacing context in the event of nonrepayment. Legal Aid Queensland (sub. D282) reported on loan sharking in South East Queensland, involving a network of credit providers who typically lend amounts of between $1000 and $2000 to borrowers at interest rates of 150-200 per cent per annum. Box H.2 Some loan sharking experiences Fred is a 26 year old ... club staff member ... [who] only started gambling about two years ago and has developed a very serious problem in the last 12 months. After gambling all of his savings away at the casino, Fred was introduced to some loan sharks who operate there. His financial problem was very severe given his limited income and there is significant pressure building over his failure to make the payments on some personal loans he got at the casino. Fred’s debts exceed $40 000 and he is very depressed. He has attempted suicide recently. The main pressure on Fred is coming from a man who provided money at the casino. ... Another of Fred’s personal loans was arranged by a loan shark who charged a fee of $2 000 in order to arrange a loan of $10 000 (BetSafeNews, April 1999, p. 3). ... some [clients] have been approached by people at the gaming venue to lend them money. ... One of them was ... [for] a loan of $9 000 and she had to pay $300 interest a month. There’s a lot of issues involving that sort of thing because sometimes its a private individual lender and threats of violence may be used ... towards the gambler (Australian Vietnamese Women’s Welfare Association, transcript, p. 563). There’s some pretty awful loan sharking going on down on the Gold Coast. The people are too frightened to even tell you about it, who they are or terribly much about it ... because of the types of threats that have been made to people who don’t pay up (Relationships Australia Queensland, Transcript, p. 129). Group members as gamblers were not only perpetrators of crime, but also witnesses and victims. One group member reported witnessing theft at a gambling venue. Another had been extended credit by a loan shark and received threats when he was unable to meet repayments (Break Even–Gold Coast, sub. 73, p. 4). <strong>Gambling</strong> venues like casinos provide problem gamblers with access to loan sharking — people spot at casinos and approach gamblers to take out loans (box H.2). The Australian Vietnamese Women’s Welfare Association reported on the experience of some of its clients: H.22 GAMBLING
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Australia’s Gambling Industries I
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Contents of other volumes Volume 1
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Australian Capital Territory Federa
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Tasmania Wrest Point Casino New Zea
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Marianne James Prof Jan McMillen Pe
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Canberra, 30 November 1998 Senator
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Sydney, 16-17 September 1999 Rev Fr
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N Ward 28 Evelyn Jago 29 Territory
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Australian Hotels Association (SA)
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Women’s Health West 176 Norfolk I
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BetSafe Group - Paul Symond Consult
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B Participation in gambling: data t
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Table B.2 Participation in gambling
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Table B.4 Participation in gambling
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product in excess of the price paid
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C.2 Consumer surplus in the gamblin
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from increased consumption resultin
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Figure C.2 Tax and consumer surplus
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Table C.3 Price elasticities of dem
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Figure C.3 Consumer surplus for pro
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Box C.1 continued (e) That part of
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Table C.4 continued Wagering Lotter
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s n = share of gambling expenditure
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Figure C.6 Demand for gambling by p
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• the triangular area ’g’ whi
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The Commission’s treatment falls
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Box C.4 Explaining the lack of vari
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demand may become elastic, as peopl
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There are a number possible explana
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• Firstly, there has been extraor
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E Gambling in indigenous communitie
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The pattern of institutionally-base
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chase the “miracles” offered by
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F National Gambling Survey F.1 Intr
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F.2 The questionnaire Development o
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The use of this sampling approach m
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Box F.1 List of gambling activities
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• Big spending regular or less fr
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Questions asked of all respondents
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Comparisons of aggregate expenditur
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elated to their gambling — all
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Interview duration As with any ques
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ecause of non-payment), while there
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• post-weighting the sample data
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particular area/age/gender cell fro
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esult in turn reflects the survey p
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F.11 Contact and participation rate
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Being aware of the need to minimise
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NATIONAL GAMBLING SURVEY F.31
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F.52 GAMBLING
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F.54 GAMBLING
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F.56 GAMBLING
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F.58 GAMBLING
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F.60 GAMBLING
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Page 135 and 136: G Survey of Clients of Counselling
Page 137 and 138: G.3 Question by question A1 to A3
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Page 141 and 142: of problem gambling (eg how many ch
Page 143 and 144: CLIENT SURVEY G.9
Page 161 and 162: Problem gamblers may subsequently b
Page 163 and 164: For a subset of 856 clients in 1996
Page 165 and 166: Table H.3 Variable Logistic estimat
Page 167 and 168: Prison, South Australia’s main re
Page 169 and 170: • “Has your gambling ever led y
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Page 173 and 174: This finding is consistent with the
Page 175 and 176: H.5 What crimes do problem gamblers
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Page 179: But as noted above, police statisti
Page 183 and 184: epayments were required — but mos
Page 185 and 186: State Gaming Authorities data The s
Page 187 and 188: Table I.2 Unweighted estimation Med
Page 189 and 190: machines. There is no statistically
Page 191 and 192: Figure I.2 Expenditure on gaming ma
Page 193 and 194: Weighted results The Commission’s
Page 195 and 196: Table I.7 Summary of Victorian metr
Page 197 and 198: Table I.9 Summary of Queensland reg
Page 199 and 200: it is likely to represent the more
Page 201 and 202: Table J.1 presents the information
Page 203 and 204: suffer from some of the adverse con
Page 205 and 206: • costs of gambling counselling s
Page 207 and 208: To the extent that borrowed money i
Page 209 and 210: This fee is only taken in estates w
Page 211 and 212: • for a higher estimate, the numb
Page 213 and 214: The Commission has assumed that the
Page 215 and 216: • to estimate the income lost ove
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Page 219 and 220: • 336 people receiving a jail sen
Page 221 and 222: states offer up to $50 000 each for
Page 223 and 224: As indicated in table J.6, where pr
Page 225 and 226: seen as part of the informal contra
Page 227 and 228: Almost all divorce cases are uncont
Page 229 and 230: of their gambling during the period
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Suicide ideation The Commission’s
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Table J.10 continued People a Per p
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Table J.12 Value of annual transfer
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pathological and problem gamblers a
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Table K.2 Summary of cost estimates
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L Survey of Counselling Services Th
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Several academics working in the ar
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L.4 Survey results Nature of agenci
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Number of clients The survey includ
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Characteristics of gambling clients
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counselling because of someone else
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Table L.17 Full time equivalent pai
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Table L.20 Approaches used to help
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Table L.24 Gambling clients ending
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More specifically, agencies said fu
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Centacare (Whyalla) Centre for Anxi
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SURVEY OF COUNSELLING SERVICES L.23
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Table M.1 Major forms of gambling t
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and sport development fund. In some
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Tax on keno In New South Wales, the
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Poker machines In most states, lice
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Table M3: Gaming machine taxation b
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Table M3: (continued) Hotels: Levie
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Table M4: (continued) NSW VIC QLD W
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Table M5: (continued) OTHER GAMBLIN
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N.1 Characteristics of machines of
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Table N.1 Australia, Japan, United
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Table N.2 Australia, Indiana, Conne
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The following discussion of gaming
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Canada Broadly speaking, Canada has
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Figure N.4 Japanese pachislo machin
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Winnings Progressive jackpots are p
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Bets and losses Bets and losses on
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In Japan, the minimum amount requir
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N.2 Market segments As with many ot
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Box N.4 Comments on market segments
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O Displacement of illegal gambling?
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survive together because they cater
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P Spending by problem gamblers The
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Table P.1 Outlays, player losses an
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Table P.3 Concentration of outlays
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Figure P.2 Distribution of outlay b
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Table P.4 Expenditure shares of pro
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is adjusted for biases in its estim
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ACIL (sub. D233. p. 48) claimed tha
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P.5 Estimating the expenditure shar
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expenditures shares are shown in ta
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of counselling agencies is necessar
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Table Q.2 Employment status of prob
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Table Q.3 continued Study Average a
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Relationship status The greater inv
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Table Q.6 Gender of problem gambler
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The pattern of an increased feminis
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R Bankruptcy and gambling This appe
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Table R.2 Age profile of bankrupts,
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Table R.5 New bankruptcies per mill
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Figure R.2 continued Western Austra
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• The penalty has become less sev
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S State and territory gambling data
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Table S.4 Real government revenue f
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Table S.8 Real government revenue,
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Table S.12 Real government revenue
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Dickerson et al (1998, p. 79) for e
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However, the survey used a set of p
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T.3 The logistic approach The NORC
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Table T.3 Method Various estimates
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such as France and the US (Casino I
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Table U.2 An example of an outcome
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intensity on the 85.15 per cent Cas
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considers that the machine price
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egular playing (30 years) the proba
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for an amount of time that is less
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U.6 The gambler’s fallacy Gambler
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This does not mean that a person ca
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V Use of the SOGS in Australian gam
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Differences in question wording and
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References AADAC (Alberta Alcohol a
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—— 1998, Efficient Tobacco Taxa
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Bickerdyke, I. and Lattimore, R. 19
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——, Dickerson, M. and Harley, B
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Campbell, C. and Smith G. 1998, Can
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—— and Winefield, A.H. 1996, Co
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——, Baxter, P., Boreham, P., Ha
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Ferguson, B. 1996, A Note on the In
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—— 1997, Legalised Gambling as
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Horner, T. and Bradfield, G. 1998,
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——, Marston, A., Singer, R., Wi
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Gambling Studies, ‘Towards 2000:
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—— 1995b, Social impacts of urb
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—— and Ohtsuka, K. 1999, ‘The
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NT Select Committee (Select Committ
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Prosser, G., Breen, H., Weeks, P. a
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Single, E., Collins, D., Easton, B.
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Thomas, S., Jackson, A., Thomason,
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—— 1997, Gambling and Problem G
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Australia's Gambling Industries - Productivity Commission

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