Australia's Gambling Industries - Productivity Commission

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Box C.1 continued (e) That part of the tax for which consumers do not receive matching benefit. This area represents a loss to the consumer but this loss is offset by the gain to government. Thus, overall the area represents a transfer between groups and is neither a loss or benefit overall. (c) That part of the consumers’ payment to industry for the purchase of the product for which consumers do not receive a matching benefit. For the consumer this area is a loss. The payment to industry covers the cost of production and thus it is not a benefit for that group. Thus this area represents a loss overall. C.3 The Commission’s estimates The Commission has used the depiction of demand by problem and recreational gamblers outlined above to arrive at a range of estimates of the benefits from the introduction of gambling. The following sections of this appendix outline in more detail the key data used (table C.4) and calculations undertaken by the Commission to estimate the benefits presented in chapter 5. Table C.4 Key data used Wagering Lotteries Scratchies Gaming machines Casino games Other All gambling Share of total spending by Australians accounted for by: MPGs % 9.5 3.7 11.3 8.7 8.2 8.5 8.3 SPGs % 23.5 2.1 7.8 33.7 2.5 16.5 24.8 All PGs % 33.1 5.7 19.1 42.3 10.7 25.0 33.0 Total expenditure $m 1 600.2 1 179.1 246.4 6 400.8 1 431.6 449.2 11 307.3 NPGs $m 1 071.1 1 111.4 199.2 3 690.7 799.4 337.0 7 208.9 MPGs $m 152.4 43.4 28.0 554.1 73.3 38.2 889.4 SPGs $m 376.7 24.3 19.2 2 156.0 22.4 74.0 2 672.6 All PGs $m 529.1 67.7 47.2 2 710.1 95.7 112.2 3 562.0 foreign $m 0 0 0 0 563.5 0 563.5 Note: MPG = moderate problem gamblers, SPG = severe problem gamblers; PG = problem gamblers; NPG, non-problem (recreational) gamblers. a Gamblers and problem gamblers engage in more than one mode of gambling thus the number of gamblers in each mode cannot be added to arrive at the total number. b Per head spend in individual modes is low because gamblers and problem gamblers spend in modes other than those which account for the bulk of their expenditure. c estimated from ABS household disposable income divided by the adult population. Source: PC National Gambling Survey, Tasmanian Gaming Commission, and Commission estimates. C.14 GAMBLING
Table C.4 continued Wagering Lotteries Scratchies Gaming machines Casino games Other All gambling Tax $m 610.9 832.1 173.5 2 365.0 279.9 50.8 4 312.2 NPGs $m 408.9 784.3 140.3 1 363.6 170.3 38.1 2 826.4 MPGs $m 58.2 30.6 19.7 204.7 15.6 4.3 348.7 SPGs $m 143.8 17.1 13.5 796.6 4.8 8.4 1 047.8 All PGs $m 202.0 47.8 33.2 1 001.3 20.4 12.7 1 396.5 foreign $m 0 0 0 0 89.3 0 89.3 Price 0.14 0.40 0.38 0.10 0.11 0.33 0.16 Price elasticity (high) NPGs -1.3 -1.3 -1.3 -1.3 -1.3 -1.3 -1.3 MPGs -1.0 -1.0 -1.0 -1.0 -1.0 -1.0 -1.0 SPGs -1.0 -1.0 -1.0 -1.0 -1.0 -1.0 -1.0 Price elasticity (low) NPGs -0.8 -0.8 -0.8 -0.8 -0.8 -0.8 -0.8 MPGs -0.6 -0.6 -0.6 -0.6 -0.6 -0.6 -0.6 SPGs -0.3 -0.3 -0.3 -0.3 -0.3 -0.3 -0.3 Income elasticity 0.79 0.79 0.79 0.79 0.79 0.79 0.79 Number of ’000 279.7 235.8 342.2 5 196.6 366.6 134.8 11 185.6 NPGs a 3 8 6 1 3 Number of ’000 84.5 133.3 105.3 141.5 53.1 105.6 163.4 MPGs a Number of ’000 68.5 99.2 79.3 112.9 36.1 80.5 129.3 SPGs a Total PGs a ’000 152.9 232.6 184.6 254.4 89.2 186.1 292.7 Spend per head b NPGs $ 327 135 31 710 585 108 644 MPGs $ 1805 325 266 3915 1382 362 5443 SPGs $ 5502 245 242 19,104 619 919 20 662 All PGs $ - - - - - - 12 168 Disposable $ 25 095 25 095 25 095 25 095 25 095 25 095 25 095 per head c income (1997-98) Gambling budget share NPGs % 1.30 0.54 0.13 2.83 2.33 0.43 2.57 MPGs % 7.19 1.30 1.06 15.60 5.51 1.44 21.69 SPGs % 21.92 0.98 0.96 76.12 2.47 3.66 82.33 All PGs % 13.79 1.16 1.02 42.45 4.28 2.40 48.49 Note: MPG = moderate problem gamblers, SPG = severe problem gamblers; PG = problem gamblers; NPG, non-problem (recreational) gamblers. a Gamblers and problem gamblers engage in more than one mode of gambling thus the number of gamblers in each mode cannot be added to arrive at the total number. b Per head spend in individual modes is low because gamblers and problem gamblers spend in modes other than those which account for the bulk of their expenditure. c estimated from ABS household disposable income divided by the adult population. Source: PC National Gambling Survey, Tasmanian Gaming Commission (1999), and Commission estimates. ESTIMATING CONSUMER SURPLUS C.15
Page 1 and 2: Australia’s Gambling Industries I
Page 3: Contents of other volumes Volume 1
Page 6 and 7: Australian Capital Territory Federa
Page 8 and 9: Tasmania Wrest Point Casino New Zea
Page 10 and 11: Marianne James Prof Jan McMillen Pe
Page 12 and 13: Canberra, 30 November 1998 Senator
Page 14 and 15: Sydney, 16-17 September 1999 Rev Fr
Page 16 and 17: N Ward 28 Evelyn Jago 29 Territory
Page 18 and 19: Australian Hotels Association (SA)
Page 20 and 21: Women’s Health West 176 Norfolk I
Page 22 and 23: BetSafe Group - Paul Symond Consult
Page 24 and 25: B Participation in gambling: data t
Page 26 and 27: Table B.2 Participation in gambling
Page 28 and 29: Table B.4 Participation in gambling
Page 30 and 31: product in excess of the price paid
Page 32 and 33: C.2 Consumer surplus in the gamblin
Page 34 and 35: from increased consumption resultin
Page 36 and 37: Figure C.2 Tax and consumer surplus
Page 38 and 39: Table C.3 Price elasticities of dem
Page 40 and 41: Figure C.3 Consumer surplus for pro
Page 44 and 45: Table C.4 continued Wagering Lotter
Page 46 and 47: s n = share of gambling expenditure
Page 48 and 49: Figure C.6 Demand for gambling by p
Page 50 and 51: • the triangular area ’g’ whi
Page 52 and 53: The Commission’s treatment falls
Page 54 and 55: Box C.4 Explaining the lack of vari
Page 56 and 57: demand may become elastic, as peopl
Page 58 and 59: There are a number possible explana
Page 60 and 61: • Firstly, there has been extraor
Page 62 and 63: E Gambling in indigenous communitie
Page 64 and 65: The pattern of institutionally-base
Page 66 and 67: chase the “miracles” offered by
Page 68 and 69: F National Gambling Survey F.1 Intr
Page 70 and 71: F.2 The questionnaire Development o
Page 72 and 73: The use of this sampling approach m
Page 74 and 75: Box F.1 List of gambling activities
Page 76 and 77: • Big spending regular or less fr
Page 78 and 79: Questions asked of all respondents
Page 80 and 81: Comparisons of aggregate expenditur
Page 82 and 83: elated to their gambling — all
Page 84 and 85: Interview duration As with any ques
Page 86 and 87: ecause of non-payment), while there
Page 88 and 89: • post-weighting the sample data
Page 90 and 91: 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
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Table L.17 Full time equivalent pai
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Table L.20 Approaches used to help
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Table L.24 Gambling clients ending
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More specifically, agencies said fu
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Centacare (Whyalla) Centre for Anxi
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SURVEY OF COUNSELLING SERVICES L.23
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Table M.1 Major forms of gambling t
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and sport development fund. In some
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Tax on keno In New South Wales, the
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Poker machines In most states, lice
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Table M3: Gaming machine taxation b
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Table M3: (continued) Hotels: Levie
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Table M4: (continued) NSW VIC QLD W
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Table M5: (continued) OTHER GAMBLIN
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N.1 Characteristics of machines of
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Table N.1 Australia, Japan, United
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Table N.2 Australia, Indiana, Conne
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The following discussion of gaming
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Canada Broadly speaking, Canada has
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Figure N.4 Japanese pachislo machin
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Winnings Progressive jackpots are p
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Bets and losses Bets and losses on
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In Japan, the minimum amount requir
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N.2 Market segments As with many ot
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Box N.4 Comments on market segments
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O Displacement of illegal gambling?
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survive together because they cater
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P Spending by problem gamblers The
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Table P.1 Outlays, player losses an
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Table P.3 Concentration of outlays
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Figure P.2 Distribution of outlay b
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Table P.4 Expenditure shares of pro
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is adjusted for biases in its estim
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ACIL (sub. D233. p. 48) claimed tha
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P.5 Estimating the expenditure shar
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expenditures shares are shown in ta
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of counselling agencies is necessar
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Table Q.2 Employment status of prob
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Table Q.3 continued Study Average a
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Relationship status The greater inv
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Table Q.6 Gender of problem gambler
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The pattern of an increased feminis
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R Bankruptcy and gambling This appe
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Table R.2 Age profile of bankrupts,
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Table R.5 New bankruptcies per mill
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Figure R.2 continued Western Austra
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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
Page 411 and 412:
—— and Winefield, A.H. 1996, Co
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——, Baxter, P., Boreham, P., Ha
Page 415 and 416:
Ferguson, B. 1996, A Note on the In
Page 417 and 418:
—— 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
Page 427 and 428:
—— and Ohtsuka, K. 1999, ‘The
Page 429 and 430:
NT Select Committee (Select Committ
Page 431 and 432:
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,
Page 437 and 438:
—— 1997, Gambling and Problem G
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Australia's Gambling Industries - Productivity Commission

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