Australia's Gambling Industries - Productivity Commission

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Most Australian gaming machines in pubs and clubs can take bets up to a maximum of $10 ($5 in some states and territories) (table 12.3). Machine denominations vary from 2c to $2 in pubs and clubs, with up to nine lines and ten credits available to gamblers. For a $10 bet, a speed of play of 5 seconds per game, and a payout rate of 90 per cent, the maximum average loss rate is around $720 per hour. Bet limits vary across US states. Machine denominations range from US5c to US$100, with even the odd US$500 machine. However, in states where information is available, almost all machines are US$1 denomination or below, and the single most popular is the US25c machine (NGCB 1999a; IGC 1998, ch. 6; MGC 1999b). Multiple credits and/or lines can usually be played, but are generally more limited than in Australia. However, in the future, US machines may more closely resemble Australian machines: In Nevada, the multi-coin games are generating higher incomes on the states 1 500 nickel ($5c) machines. However, executives also say they are considering using them in their dollar and five dollar games (Casino International 1999b). For a US$8 bet, 1 with an average speed of 6 seconds per game, and an average payout rate of 90 per cent, the maximum average loss rate is US$480 ($A705) per hour. Some US states have limited bet sizes. In Colorado, a maximum of US$5 can be placed on any single bet. Canadian slots have a range of machine denominations similar to US machines. The maximum bet on a VLT is C$2.50 (Azmier, J., Canada West Foundation, pers. comm., 9 November 1999). For a C$2.50 bet, an average speed of 4 seconds per VLT game, and an average payout of 92 per cent, the maximum average loss rate is C$180 (A$186) per hour. AWP and all-cash AWPs in the UK have a maximum bet of 30p, and jackpot machines have a bet limit of 50p (Lockyer, A., UK Home Office, pers. comm, 29 October 1999). More complex games and the use of skill stops means that the average speed of play is likely to be slower than Australian games. For a 50p bet, and using the average speed of play for an Australian game of 5 seconds (which is likely to be faster than the more complex UK games) and a payout rate of around 80 per cent, a maximum average loss rate would be around £72 (A$131) per hour. 1 As the overwhelming majority of machine denominations in the identified US states are US$1 or below (with the 25c machine being most popular) and there are usually less options in terms of lines and credits in the US than in Australia, US$8 was taken to be a rough approximation of a realistic maximum bet. However, higher denominations are possible, but relatively rare. INTERNATIONAL GAMING MACHINES N.17
In Japan, the minimum amount required to play pachinko is Y500 (A$6), which buys around 100 balls. At an average speed of play of around 100 balls per minute, not including the time required to exchange balls for prizes and consequently for money, and a payout rate of 85 per cent, the maximum average loss rate is Y4500 (A$52) per hour. On pachinko machines, the Australian Casino Association (sub. D234, p. 5) noted: Modern pinball style Pachinko machines in Japan are a far cry from the traditional pinball machines of the past – pinballs used in the machines can activate an EGM style screen similar to traditional EGMs and prizes are won depending on what combinations appear on the screen. High value prizes can be won. Although pachinko machines have developed technologically over the years, the style of play on these machines does keep the maximum average loss rate much lower than Australian gaming machines. The maximum average loss rate for Japanese pachislo machines is expected to be below that for pachinko. Accessibility If gaming machines are more accessible, all other things being equal, this is expected to increase the prevalence of problem gambling (chapter 15). All the identified countries limit (or intend to limit) access to gaming machines to adult venues, apart from the UK for AWPs. These UK machines (limited to 30p bet maximums and maximum £5 wins) are allowed in cafes, fish and chip shops, as well as pubs (Lockyer, A., UK Home Office, pers. comm, 29 October 1999). Other UK machines are less accessible: up to 2 all-cash AWPs are allowed per venue (pubs and clubs, betting offices and adult arcades), and a maximum of 3 jackpot machines are allowed in clubs, 4 in bingo halls, and 10 in casinos. In Australia, gaming machines are limited to licensed venues and casinos, and caps apply in many states and territories (section 12.2). Around 184 526 machines are currently in operation and they are spread across 5866 venues — including clubs and pubs in all states and territories (apart from Western Australia) and all casinos (apart from the ACT). Similarly, in New Zealand gaming machines are limited to licensed venues and casinos. Non-casino sites have a 18 machine limit (Osmond, M., Department of Internal Affairs (NZ), pers. comm., 5 November 1999) In Japan, 4 690 708 pachinko and pachislo machines are located in 16 764 parlours, giving an average of 280 machines per parlour (Heiwa 1998, p. 5). N.18 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
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Characteristics of gambling clients
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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
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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 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
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Page 297 and 298: Figure N.4 Japanese pachislo machin
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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
Page 319 and 320: Figure P.2 Distribution of outlay b
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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
Page 349 and 350: Figure R.2 continued Western Austra
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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
Page 419 and 420:
Horner, T. and Bradfield, G. 1998,
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——, Marston, A., Singer, R., Wi
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Gambling Studies, ‘Towards 2000:
Page 425 and 426:
—— 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.
Page 435 and 436:
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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