Australia's Gambling Industries - Productivity Commission

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to 4 cents per ball (Fresco-Shinjuku 1999; Akatsuka, N., Department of Foreign Affairs and Trade, Japan, pers. comm., 5 October 1999). Payout rates The payout rate is the average amount won by players as a share of the cumulative amount staked. This rate is critical in determining player losses. The Australian Gaming Machine Manufacturers Association noted that payout rates are lower outside Australia and that regulation plays an important role: … the ‘return to player’ in both unregulated jurisdictions and certain regulated jurisdictions overseas is considerably lower than it is in Australia; the critical point is that in Australia, the return to player is fixed by regulation and is monitored and enforced by regulatory authorities (sub. D257, annexure 3). While most gaming machines across the world have a payout rate of over 80 per cent, Australian machines do compare favourably, having one of the highest payout rates in the group of identified countries. US payout rates range more widely than Australian rates, although they appear to converge on average. For example, in Colorado, slot machines must pay out between 80 and 100 per cent (Colorado Division of Gaming 1999, p. 15). However, most pay out around 90 per cent, similar to Australian machines. Canadian VLTs pay out at a 92 per cent rate, the highest among the identified countries (Azmier and Smith 1998; McNabb, W., Alberta Gaming and Liquor <strong>Commission</strong>, pers. comm., 2 November 1999). Payout rates in Japan appear to be slightly lower, at around 80 to 90 per cent (Heiwa 1995, profile). There are no statutory controls on the payout rates for UK machines, although the Gaming Board for Great Britain has agreed voluntary minima of (in effect) 70 per cent for most machines, and 80 per cent for casino machines with £1000 prizes (Kavanagh, T., Gaming Board for Great Britain, London, pers. comm, 9 November 1999). Industry sources put the range of payout rates from 76–96 per cent depending on location and game design (White, J., BACTA, pers. comm., 15 November 1999; JPM International Ltd. 1999). INTERNATIONAL GAMING MACHINES N.15
Bets and losses Bets and losses on gaming machines depend on many factors, including maximum bet regulation, technology (including the speed of play and the availability of lines and credits), the nature of winnings, and payout rates. For example, where the initial cost of play on a gaming machine is low, with only a low amount of credits and lines available, and the speed of play is relatively slow, it would be expected that gamblers using these machines could either not spend more than they initially anticipated, or it would take a long time to lose a large amount of money. However, where the machine denomination is low, but a high amount of credits and lines are available to gamblers, and the speed of play is high, this could result in gamblers inadvertently losing a large amount of money within a short space of time on a seemingly low value machine. Thus, if the latter type of environment has any effect on the prevalence of problem gambling, it could be expected to increase its prevalence. The Australian Gaming Machine Manufacturers Association does not share this view: AGMMA disagrees with [the] view … that the ability of a player to spend money more quickly (by selecting a multi-line combination) makes the machine inherently ‘riskier’ than a machine which a player must play for a longer period to spend the same amount of money … [AGMMA believes that] • the ‘return to player’ is far more important than the number of combinations that may be chosen in terms of ‘risk’ assessment … • it is entirely up to the player to choose a multi-line combination or to play a machine for a longer period; • it is not sensible to compare multi-line casino style machines to, say, pachislo machines in Japan because the machines are unique to their respective jurisdictions. As rigorous empirical evidence on the relative influence of lines and credits and payout rates on problem gambling is not currently available, especially across countries, it is not possible to state with certainty which is the most important. Nevertheless, all relevant factors should be considered when looking at risk to problem gamblers — and the ability of a gambler to lose money more quickly is certainly relevant to risk (technology, the nature of winnings, and the payout rate are relevant in working out how quickly this can happen). N.16 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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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
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 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 and 286: Table M5: (continued) OTHER GAMBLIN
Page 287 and 288: N.1 Characteristics of machines of
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
Page 297 and 298: Figure N.4 Japanese pachislo machin
Page 299: Winnings Progressive jackpots are p
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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
Page 313 and 314: P Spending by problem gamblers The
Page 315 and 316: Table P.1 Outlays, player losses an
Page 317 and 318: Table P.3 Concentration of outlays
Page 319 and 320: Figure P.2 Distribution of outlay b
Page 321 and 322: Table P.4 Expenditure shares of pro
Page 323 and 324: is adjusted for biases in its estim
Page 325 and 326: ACIL (sub. D233. p. 48) claimed tha
Page 327 and 328: P.5 Estimating the expenditure shar
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Page 331 and 332: of counselling agencies is necessar
Page 333 and 334: Table Q.2 Employment status of prob
Page 335 and 336: Table Q.3 continued Study Average a
Page 337 and 338: Relationship status The greater inv
Page 339 and 340: Table Q.6 Gender of problem gambler
Page 341 and 342: The pattern of an increased feminis
Page 343 and 344: R Bankruptcy and gambling This appe
Page 345 and 346: Table R.2 Age profile of bankrupts,
Page 347 and 348: Table R.5 New bankruptcies per mill
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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,
Page 437 and 438:
—— 1997, Gambling and Problem G
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