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Australia's Gambling Industries - Productivity Commission

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data to derive an overall estimate of the shares of commercial gambling accounted<br />

for by the two groups of problem gamblers (table P.8).<br />

Table P.8<br />

Shares of player losses by severe and moderate problem<br />

gamblers<br />

<strong>Gambling</strong> type Severe share Moderate share Problem gambling<br />

share<br />

% % %<br />

Gaming machines 33.7 8.7 42.3<br />

Wagering 23.5 9.5 33.1<br />

Scratchies 7.8 11.3 19.1<br />

Lotteries 2.1 3.7 5.7<br />

Casino table games 2.5 8.2 10.7<br />

Other commercial 16.5 8.5 25.0<br />

Total 24.8 8.3 33.0<br />

Source: PC National <strong>Gambling</strong> Survey and table P.6.<br />

Interestingly, the data suggests that severe gamblers account for the bulk of<br />

expenditure by problem gamblers in gaming machines and wagering. They account<br />

for rather less in the remaining gambling forms, where the evidence from both the<br />

prevalence and treatment data suggest gambling problems are much less extreme.<br />

P.6 Standard errors<br />

The <strong>Commission</strong>’s survey uses a complex design, with a two phase selection<br />

process for asking expenditure and SOGS questions. This means that conventional<br />

standard errors will tend to suggest a higher level of precision than is actually the<br />

case. In order to provide an estimate of the standard errors corrected for the<br />

complex design, the <strong>Commission</strong> used a re-sampling approach (the ‘bootstrap’).<br />

This involves using a computer to draw many repeated samples from a ‘master’ data<br />

set, replicating all the features of the complex survey design in each replication.<br />

Then the outcomes from the replications provide an idea of the extent to which the<br />

design and sampling variability affect the precision of the estimates.<br />

The <strong>Commission</strong> undertook a simulation, with 5 000 replications, to examine the<br />

expenditure shares of each of the major gambling modes as above. For each<br />

replication, a weighted average of the expenditure shares across the modes was<br />

calculated, using the weights from table P.6. These weighted averages were then<br />

sorted in ascending order. The 125 th observation in the list of values then represents<br />

the estimate of the lower 2.5% tail of the 95 per cent confidence interval. Other<br />

values from the list represent other significance cutoff points. The confidence<br />

intervals for each of the gambling modes and for the weighted average of gambling<br />

P.16 GAMBLING

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