Australia's Gambling Industries - Productivity Commission

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In Canada, accessibility to VLTs is being restricted to adult areas and slots are limited to casinos. In New Brunswick in 1996, VLTs were operating in nonlicensed sites such as pool halls, restaurants and bowling alleys (Department of Finance (New Brunswick) 1997, app. b). By the year 2000, New Brunswick will only allow VLTs in licensed premises (Azmier and Smith 1998). In the identified US states, the notable exception being Nevada, most gaming machines are located in specific destinations such as casinos (box N.3). Box N.3 Accessibility in some US states In Indiana and Missouri, gambling is only allowed on licensed riverboat casinos. In Indiana, gambling can only take place whilst the riverboats are cruising on the river, and during a half hour docking period where passengers can get on or off the boat (Office of Code Revisions 1999, ch. 9). In practice, the riverboats dock for a half hour period every two hours, and most people tend to stay on board for two excursions before disembarking (IGC 1998, chs. 6, 7). In the US state of Connecticut, slot machines are only available in the two Native American casinos operating in that state (Division of Special Revenue 1998). A large number of machines operate in each casino — 5 495 in Foxwoods Casino and 3017 in the Mohegan Sun Casino (Division of Special Revenue 1998, p. 8). In South Carolina until recently, video poker was available in convenience stores, bars and restaurants. However, a recent Supreme Court decision outlawing video poker means that accessibility is to be wound back (Plotz 1999). In Colorado, gambling may only take place in three mountain towns (Black Hawk, Central City and Cripple Creek) and single bets may only go up to US$5 (Colorado Division of Gaming 1999a, p. 2). In June 1998, 49 casinos were in operation in Colorado (Colorado Division of Gaming 1999a, p. 9). To change the location of gaming in Colorado, to increase the betting limits or to change the types of games allowed would require a change in the Constitutional amendment through a statewide vote of the people. Six initiatives to expand gaming to other locales have appeared on the ballots since 1992 and each of those has been defeated (Colorado Division of Gaming 1999a, p. 2). Two Indian tribes conduct casinos under compacts with the State of Colorado. They are not subject to taxation and are not required to report their revenues to the State. The tribes agreed to conduct limited stakes gaming with US$5 limits (Colorado Division of Gaming 1999a, p.13). In contrast to the other identified US states, Nevada’s 198 232 gaming machines are located in casinos as well as small bars, grocery stores and restaurants (NGCB 1999a, 1999b; Dunstan 1997, ch. 6). Around 90 per cent of the slot machines in Nevada in September 1998 were operated under 428 casino-type licences, which allow any number of table games and slot machines (NGCB 1999a). The remaining ten per cent were under 2 025 licences which allow only 15 machines or less. On average, there were 421 machines per casino-type licence, and 9 machines per smaller, restricted licence. INTERNATIONAL GAMING MACHINES N.19
N.2 Market segments As with many other products, the international gaming machine market is complex. Many different types of machines exist within the broad definition of machines used for gaming purposes where the potential return on a single game is greater than the amount risked on that game (sub. D257, annexure 1). Also, the gaming machine ‘market’ is blurred at the edges. Around 1.5 million Australian households have internet access at home and these computers are potential gaming machines (ch. 18). Studies indicate that few gamblers use the internet at present, although this is expected to increase markedly in the future. Other examples of blurring are the inclusion of crane grabs (which dispense soft toys to winners), and illegal machines. As data was insufficient to make international comparisons on internet and illegal gaming machines, these were excluded from the following discussion of market segments. As a result of the broad definition of gaming machines and the blurring at the edges of the market, it is important to ensure that the purpose of market examination is made clear. Otherwise, combining ‘apples and oranges’ can be misleading or even meaningless. In this appendix, the purpose of examining the international gaming machine market is to inform policy responses to problem gambling. For machines that lie more squarely within the definition of gaming machines, a subjective analysis of risk factors gives some indicative market segments based on risk for problem gamblers (figure N.7): • high intensity machines — where maximum spending per game and the speed of play are comparatively high (these include Australian machines, US slots and other machines, Canadian slots and VLTs, as well as machines in France, New Zealand and South Africa); • AWP-style machines — where maximum spending per game is low and the speed of play is slower (these include UK AWP and jackpot/club machines, German and Spanish AWPs and Japanese pachislo machines); and • pachinko and UK crane grab machines — where the stakes and speed of play are the lowest of all and where the prizes awarded are toys (for crane grabs) and biscuits, cigarettes and magazines for pachinko (although these prizes can be subsequently exchanged for cash). N.20 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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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
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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 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
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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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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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Page 353 and 354: 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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