Australia's Gambling Industries - Productivity Commission

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N Gaming machines: some international comparisons The world gaming machine market is highly complex and segmented. There are a host of different machines in terms of technology, winnings, payout rates and the range of bets and losses. In addition, the regulatory environment in which these machines operate often conditions their accessibility and operating characteristics. This situation parallels other commodities, such as alcohol, where variations in the product (taste, alcohol content) together with different market preferences, cultural norms and regulatory environments create similarly complex world markets. This appendix presents evidence on this complex world gaming machine market, examines relevant market segments, and seeks to estimate the number of gaming machines. Common gaming machine terms are explained in box N.1. Box N.1 Gaming machine glossary AWPs — amusement with prizes machines. Three reel slot machines with ‘skill stops’ at the front of the machines to stop the reels. Most have an initial game that includes an opportunity to proceed to a more complex game. Club or jackpot machines — similar to AWPs but with 4 reels and higher stakes and prizes. Draw card machines — gaming machines on which card games are played, usually blackjack or poker. After the game is started the player must decide whether to keep or discard cards. Pachinko — Japanese pinball machine. Players turn a handle which shoots small steel balls into a machine. The balls bounce off steel nails and into catchers, or trigger reel spins, which give winners a stream of balls which can be exchanged for non-cash prizes. These prizes can then be swapped for cash at a nearby independent outlet. Pachislo (or pachisuro) — Japanese slot machine with reels and skill stops. Pokies — an Australian term for multi-line and/or multi-credit video gaming machines. Slot machines — gaming machines with three or more reels. Games involve starting the reels spinning and prizes are paid according to the final combinations of pictures on the reels. Reel spins stop automatically after the game is started. Note: some jurisdictions define ‘slot machines’ as all gaming machines (including machines with reels, video poker, blackjack and keno machines). VLTs — video lottery terminals. VLTs are similar to slot machines in appearance, but give winners a cash value ticket which can be redeemed for cash, have a faster speed of play, and are more accessible. INTERNATIONAL GAMING MACHINES N.1
N.1 Characteristics of machines of relevance to problem gambling Gaming machines can differ in many ways, including: • technology (the types of games played on machines and the speed of play); • the nature of winnings (cash or prizes, maximum limits on prizes, the distribution of wins, the availability of jackpots and progressives); • payout rates; • the range of bets and losses (cash or tokens used in play, numbers of lines and credits, maximum play cost); • accessibility (the number of machines and where they are located, venue and global machine caps); and • the availability of harm minimisation schemes. Unfortunately, international empirical evidence on the influence of these factors on problem gambling is not currently available. Such evidence would require measurement of the prevalence of problem gambling for each country using consistent methodology, identification of the causal factors of problem gambling, and statistical analysis using comparable data from each country. In the absence of systematic international empirical evidence, some reasonable assumptions can be made about the impact of these factors on problem gambling. Take the following example. If two types of gaming machine environments exist: • one where machines are widely accessible, have bill acceptors, with games that only require the player to push buttons with no skill element, with high numbers of lines and credits so that players can lose large amounts of money on low denomination machines in a short space of time, where wins are credited on the machine and progressive jackpots are available; and • one where machines are less accessible, with games that require players to choose strategies, with low numbers of lines and credits and a slower speed of play, and wins are automatically cashed out; then it is reasonable to assume that the former environment will lead to a higher prevalence of problem gambling (see chapters 6–8 and 16). In reality, the likely prevalence of problem gambling cannot usually be determined so easily — most countries have a mix of both high and low risk factors. N.2 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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Table H.3 Variable Logistic estimat
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Prison, South Australia’s main re
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• “Has your gambling ever led y
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elicit information on vocational, f
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This finding is consistent with the
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H.5 What crimes do problem gamblers
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Other more violent crimes such as b
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But as noted above, police statisti
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H.8 Problem gambling and loan shark
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epayments were required — but mos
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State Gaming Authorities data The s
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Table I.2 Unweighted estimation Med
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machines. There is no statistically
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Figure I.2 Expenditure on gaming ma
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Weighted results The Commission’s
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Table I.7 Summary of Victorian metr
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Table I.9 Summary of Queensland reg
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it is likely to represent the more
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Table J.1 presents the information
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suffer from some of the adverse con
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• costs of gambling counselling s
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To the extent that borrowed money i
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This fee is only taken in estates w
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• for a higher estimate, the numb
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The Commission has assumed that the
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• to estimate the income lost ove
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the Commission has used this estima
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• 336 people receiving a jail sen
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states offer up to $50 000 each for
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As indicated in table J.6, where pr
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seen as part of the informal contra
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Almost all divorce cases are uncont
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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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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
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Page 263 and 264: SURVEY OF COUNSELLING SERVICES L.23
Page 271 and 272: Table M.1 Major forms of gambling t
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Page 275 and 276: Tax on keno In New South Wales, the
Page 277 and 278: Poker machines In most states, lice
Page 279 and 280: Table M3: Gaming machine taxation b
Page 281 and 282: Table M3: (continued) Hotels: Levie
Page 283 and 284: Table M4: (continued) NSW VIC QLD W
Page 285: Table M5: (continued) OTHER GAMBLIN
Page 289 and 290: Table N.1 Australia, Japan, United
Page 291 and 292: Table N.2 Australia, Indiana, Conne
Page 293 and 294: The following discussion of gaming
Page 295 and 296: Canada Broadly speaking, Canada has
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Page 305 and 306: N.2 Market segments As with many ot
Page 307 and 308: Box N.4 Comments on market segments
Page 309 and 310: O Displacement of illegal gambling?
Page 311 and 312: survive together because they cater
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Page 315 and 316: Table P.1 Outlays, player losses an
Page 317 and 318: Table P.3 Concentration of outlays
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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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