Australia's Gambling Industries - Productivity Commission

severe problem gamblers. For parents, the numbers are 168 200 for moderate
problem gamblers and 133 200 for severe problem gamblers.
In valuing the emotional distress caused to immediate family members, the
Commission has used the range of numbers from the lower of the two compensation
schedules — $5000 to $15 000. For parents, the range used is zero to $5000. To be
even more conservative, the Commission has applied dollar values only to the
immediate families and parents of severe problem gamblers.
This generates a cost range of $756 million to $2.3 billion for the immediate family
and zero to $666 million for parents (table J.8).
Table J.8
Estimates of emotional distress of family members
Number of
people affected
Per person cost assumption
Total cost
Low High Low High
Number $ $ $ million $ million
Immediate family
Moderate 190 900 ne ne ne ne
Severe 151 100 5,000 15 000 756 2 267
Parents
Moderate 168 200 ne ne ne ne
Severe 133 200 0 5 000 0 666
ne: not estimated.
Source: PC estimates
Financial costs of divorce or separation
The national survey indicated that, Australia-wide, some 59 500 gamblers suffered a
break up of a relationship as a result of their gambling, and that for an estimated
39 200, this occurred in the last 12 months. Of the 59 500 who suffered a
relationship breakup, 42 600 are estimated to have led to divorce or separation. The
survey did not ask participants whether this divorce or separation had occurred in
the last 12 months. Appendix T discusses the numbers relating to divorce and
separation in Australia, and identifies the likely number attributable to problem
gambling to range between 1600 and 4000 divorces a year (and around double this
number for divorces and separations combined). The Commission has taken the
lower of these numbers as the basis for estimating the cost of divorce and
separation. Thus, the number of divorces and separations, following the causality
adjustment, amounts to 2560 in 1997-98.
For the vast majority of divorce proceedings the direct financial cost is low. Szabo
(1997) said:
MEASURING COSTS J.29