Australia's Gambling Industries - Productivity Commission

Growth in bankruptcies
Total bankruptcies and bankruptcies caused by gambling have increased
significantly over time.
• In 1972-73 about 2500 new bankruptcies were declared, or about 300 for every
million adults. In 1997-98 the number of new bankruptcies increased to
24 000, nearly 1800 per million adults.
• Over the same period, new gambling related bankruptcies increased from 61, or
7 per million adults to 317, or 23 per one million adults (figure R.1 and
table R.5).
• Non-business bankruptcies share of total bankruptcies has increased gradually
over time. In 1972-73 non-business bankruptcies accounted for 44 per cent of
total bankruptcies compared with 80 per cent in 1997-98. For bankruptcies
caused by gambling there is no clear trend. In 1972-73 non-business
bankruptcies accounted for 67 per cent of total gambling related bankruptcies. In
1996-97 this share had risen to 90 per cent but in 1997-98 the share was much
lower at 70 per cent.
Figure R.1
New bankruptcies per million adult population,
1972-73 to 1997-98, Australia
Business bankruptcies
Non-business bankruptcies
Gambling or speculation
10
8
6
4
2
0
1972-73
1975-76
1978-79
1981-82
1984-85
1987-88
1990-91
1993-94
1996-97
450
400
350
300
250
200
150
100
50
0
Total
Gambling or speculation
20
15
10
5
0
1972-73
1975-76
1978-79
1981-82
1984-85
1987-88
1990-91
1993-94
1996-97
1500
1350
1200
1050
900
750
600
450
300
150
0
Total
Gambling or speculation
Total bankruptcies
Gambling or speculation
Total bankruptcies
Source: Inspector-General in Bankruptcy (various years).
R.4 GAMBLING