Australia's Gambling Industries - Productivity Commission

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The Commission has not been able to estimate the private costs of gambling-related crime, such as the cost of protecting property, but such costs can be substantial. Walker (1997) commented: Estimates provided by the Australian Security Industry Association Ltd (ASIAL) (personal communication) suggest that the industry was worth $1250 million in 1991- 92. This covers the principal areas of security industry activity; man-power (guards, surveillance, cash carrying etc), alarms (monitoring, responding etc) and electronics (access control, closed-circuit TV etc). Information on the value of money obtained illegally was not obtained in the survey. More general information indicates that the average value of property stolen can be high. Walker (1996) reported the following estimates of the average property loss per incident: • breaking and entering (commercial premises), Victoria: $1786; • breaking and entering (non-commercial premises), Victoria: $2307; • breaking and entering (commercial premises), National: $1413; • fraud and misappropriation (deception), Victoria: $3225; and • stealing from the person: $500. How has the transfer as a result of crime been calculated? The key data used to estimate the extent of the transfer as a result of gamblingrelated crime by gamblers are: • 9700 people committing a gambling related crime (other than fraudulent cheques) in the last 12 months; • for a lower estimate, a value of money and goods stolen of $500; and • for a higher estimate, a value of money and goods stolen of $3225. This represents a transfer of some $5 million to $31 million a year. The Commission has not attempted to estimate what the cost of managing and responding to this level of crime, but some component of that cost will be included in the following estimates of the cost of police incidents, court appearances and jail terms resulting from gambling. The cost of police incidents On the basis of the National Gambling Survey, it is estimated that 6300 people were involved in an incident with the police as a result of their gambling activities in the last 12 months. Dickerson et al (1998) used a cost per police incident of $510 and MEASURING COSTS J.19
the Commission has used this estimate in its analysis. This gives a cost of $3.2 million a year for Australia as a whole. Court cases The national survey results indicate that over 13 100 people have been involved in a court case as a result of their gambling at some time in their lives, and that for 700 people this occurred in the last 12 months. In comparison with earlier work in Australia, this appears low for the nation as a whole. Dickerson et al (1998) estimated 815 court cases a year for New South Wales alone and, in addition, this number was drawn from the population of problem gamblers only. The costs of court proceedings can vary widely, depending on the complexity of the case and the extent to which it is contested. Szabo (1997) said: Contested cases involve two stages. The first is up to what is called the “pre trial hearing” at which directions are given. The second is the time after that hearing and up to the start of the final hearing. Costs for the first stage commonly range from $3,000.00 to $8,000.00 depending at which stage you settle. The second stage involves similar costs. Costs average around $4,000.00 for each day the matter takes during the final hearing, including a barrister’s fee. Typically residence cases run for three to four days. On this basis, full court proceedings would cost between $23 000 and $32 000. Not all the cost is carried by the plaintiff in the case. In 1997-98 expenditure on courts amounted to $452 million (all Australian courts except the High Court) (Steering Committee 1999). Court fees recovered from the plaintiffs represent 42 per cent of expenditure in 1997-98. With over 1.7 million cases initiated, the cost averages $442 per case of which $237 is carried by the taxpayer. In their NSW study, Dickerson et al (1998) used an average court case cost of $6600. In this study, the Commission has used the following information: • an annual number of gambling related court cases of 700; and • a cost of $8000 for each case. On this basis, the court cases involving problem gamblers cost $5.6 million per year. J.20 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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F.62 GAMBLING
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F.64 GAMBLING
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F.66 GAMBLING
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G Survey of Clients of Counselling
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G.3 Question by question A1 to A3
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D23 — is concerned with the mecha
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of problem gambling (eg how many ch
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CLIENT SURVEY G.9
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CLIENT SURVEY G.11
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CLIENT SURVEY G.13
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CLIENT SURVEY G.15
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CLIENT SURVEY G.17
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CLIENT SURVEY G.19
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CLIENT SURVEY G.21
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CLIENT SURVEY G.23
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CLIENT SURVEY G.25
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Problem gamblers may subsequently b
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For a subset of 856 clients in 1996
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Page 167 and 168: Prison, South Australia’s main re
Page 169 and 170: • “Has your gambling ever led y
Page 171 and 172: elicit information on vocational, f
Page 173 and 174: This finding is consistent with the
Page 175 and 176: H.5 What crimes do problem gamblers
Page 177 and 178: Other more violent crimes such as b
Page 179 and 180: But as noted above, police statisti
Page 181 and 182: H.8 Problem gambling and loan shark
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: • to estimate the income lost ove
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
Page 231 and 232: Suicide ideation The Commission’s
Page 233 and 234: Table J.10 continued People a Per p
Page 235 and 236: Table J.12 Value of annual transfer
Page 237 and 238: pathological and problem gamblers a
Page 239 and 240: Table K.2 Summary of cost estimates
Page 241 and 242: L Survey of Counselling Services Th
Page 243 and 244: Several academics working in the ar
Page 245 and 246: L.4 Survey results Nature of agenci
Page 247 and 248: Number of clients The survey includ
Page 249 and 250: Characteristics of gambling clients
Page 251 and 252: counselling because of someone else
Page 253 and 254: Table L.17 Full time equivalent pai
Page 255 and 256: Table L.20 Approaches used to help
Page 257 and 258: Table L.24 Gambling clients ending
Page 259 and 260: More specifically, agencies said fu
Page 261 and 262: Centacare (Whyalla) Centre for Anxi
Page 263 and 264: SURVEY OF COUNSELLING SERVICES L.23
Page 265 and 266: SURVEY OF COUNSELLING SERVICES L.25
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SURVEY OF COUNSELLING SERVICES L.27
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SURVEY OF COUNSELLING SERVICES L.29
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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
Page 433 and 434:
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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