Australia's Gambling Industries - Productivity Commission

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Policy makers in Australia already draw distinctions between different types of machines. For example, ACT hotels cannot operate multi-coin slot machines. In Western Australia, only Burswood casino can operate gaming machines and these must emulate casino games (that is, no ‘pokies’ are allowed). Available information on the gaming machine environments in Australia, Japan, the United States, Canada, New Zealand and the United Kingdom is briefly summarised in table N.1. The variety of gaming machine environments within the United States is shown in table N.2. Some comments on international information and sources are provided in box N.2. Box N.2 Some comments on international information and sources Detailed information about the complex design of all international gaming machines and regulatory environments is difficult to obtain. As a result, in this appendix, more in depth information is provided only for selected countries: Japan, the United States, the United Kingdom, Australia, Canada and New Zealand. These countries amount to a large proportion of the world’s total gaming machines and information was more readily available on them. The following sources were used in compiling information: • submissions to the inquiry (in particular, helpful submissions from Professor Marfels (sub. D222), the Australian Casino Association (sub. D234), the Australian Gaming Machine Manufacturer’s Association (sub. D257) and Aristocrat (sub. D266); • international regulators and government organisations; • international industry associations and gambling providers; • internet sites (of gambling providers and players); and • other sources (including industry journals). The information elicited from these sources was of variable quality. In particular it was difficult to separate typical characteristics from those representing the market extremes. However, the <strong>Commission</strong> believes the information presented here is a fair representation of the general gaming machine environment for these countries. Where otherwise, this is noted. In the future, it would be useful to have a more systematic analysis of machine design and regulatory environment by jurisdiction, involving co-operative work by regulatory agencies. INTERNATIONAL GAMING MACHINES N.3
Table N.1 Australia, Japan, United States, Canada, New Zealand, United Kingdom, 1997-98 1, 2 Australia Japan Adult population 13 831 000 a 98 957 428 j No. of machines 3 184 526 b 3 686 066 pachinko machines and 1 004 642 k pachislo machines Total expenditure (A$) $5.9 billion c $36.5 billion l Gaming machines per 10 000 adults 133 474 Average weekly earnings (A$) $740 d $1100 m Expenditure per adult (A$) $420 $370 Expenditure per machine (A$) $32 000 $7 880 Number of venues with gaming 5866 venues (including e 17 418 parlours n machines clubs, hotels and casinos). Range of possible bets per game (local currency and A$) Denominations 1c to $2. Maximum bet in many pubs and clubs is $10. Up to 10 credits and 9 lines. f Pachinko (Japanese pinball) – minimum of around Y500 (A$6) for around 100–125 balls (5–6 cents per ball). Prepaid card costs from Y1000–10 000 (A$12–120). Pachislo – players insert up to three tokens per game (usually 50 tokens for Y1000 (A$12) or around Y20 (A23c) per token). o Duration of game All games played by button pushes. Average of 5 seconds per game. g Pachinko – speed of play is 100 balls per minute. Pachislo – players start reels spinning and use three ‘skill stop’ buttons to stop the reels in a winning combination. p Maximum average loss per hour (A$) Other Range of prizes (local currency and A$) $720 $52 (pachinko) Can use money to wager. h Some parlours display payout data for individual Bill acceptors. machines. Pachislo is seen as a ‘lower stakes game’. Cash prizes and progressive jackpots available i Pachinko – Balls won from machine are swapped for non-cash prizes such as biscuits. Prizes can be swapped for cash at a nearby independent outlet. Players (indirectly) receive around 3–4 cents per ball. Pachislo machine credits winners. q r 1 Local currencies converted to 1997-98 Australian dollars (using exchange rates from dX database, RBA 1999). 2 Some information is more recent than 1997-98 (this is indicated where possible). 3 Machines are apportioned where this information was available, unfortunately, information was insufficient to apportion into drawcard and reel machines. Australia — a TGC 1999; b, e ch. 12 (1999 estimate); c TGC 1999; d appendix J; f table 12.3; g table 15.1; h, i ch. 12, ch. 15. Japan — j Population 20 and over (data grouping constraints) US Bureau of the Census 1999b; k Heiwa 1998, p. 5; l Leisure Development Centre (MITI) 1998 quoted by Costin, R. DFAT, Japan, pers. comm., 20 September 1999; Heiwa 1995, profile; Heiwa 1997, p. 2 m Japan Institute of Labour 1999 ; n Heiwa 1998, p. 5; o Akatsuka, N. DFAT, Japan, pers. comm., 5 October 1999, Fresco-Shinjuku 1999, Hatano 1996, p. 3, Masaru, T. 1999; p Schauwecker 1999, Heiwa 1995; q Hatano 1996, Heiwa 1998; r Fresco-Shinjuku 1999, Akatsuka, N. DFAT, Japan, pers. comm., 5 September 1999, Hatano 1996. N.4 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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Table J.12 Value of annual transfer
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Page 239 and 240: Table K.2 Summary of cost estimates
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Page 245 and 246: L.4 Survey results Nature of agenci
Page 247 and 248: Number of clients The survey includ
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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
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Page 271 and 272: Table M.1 Major forms of gambling t
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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 and 286: Table M5: (continued) OTHER GAMBLIN
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Page 307 and 308: Box N.4 Comments on market segments
Page 309 and 310: O Displacement of illegal gambling?
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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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