© VLGA 20101

Gambling in

Victoria

© VLGA 20102

Gambling in Australia

• $19 billion lost on gambling in 2008/2009• $12 billion on the pokies

© VLGA 20103

Gambling in Victoria

• Electronic Gaming Machines (pokies)

• Crown Casino

• Wagering (racing and sports betting)

• Lotteries

• Club Keno

© VLGA 20104

• Gambling in Victoria is regulated by the Victorian Commission for Gambling and Liquor Regulation (VCGLR)

• Online Gambling is regulated by the Commonwealth through the Interactive Gambling Act 2001

Regulation of gambling in Victoria

© VLGA 20105

Casino, 957.2, 29%

Wagering; 482.6; 14%

Lotteries, 281.4, 8%Club Keno, 3.5, 0.1%

EGMs, 1638.7, 49%

Legal gambling losses in Victoria 2011-12, $m

© VLGA 20106

Taxation raised from gambling in Victoria 2011-12, $m

Casino; 195.3; 12%

Wagering; 136.5; 8%

Lotteries ; 386.7; 24%

Club Keno, 1.7, 0.1%

EGMs, 886.2, 55% + 125.7

Health Benefits Levy

© VLGA 20107

Electronic Gaming Machines – EGMs

As of 30 June 2012:

• There are 26,778 EGMs in Victoria, located in 509 venues

• Total losses of over $2.68 billion for 2011-2012

• The average net losses per adult were $601

• The adult population per venue is 8,756

© VLGA 20108

Why focus on EGMs?

• Represent 40% of total losses of problem gamblers

• High level of convenience - 90% of people living in metropolitan Melbourne reside within 2.5 kms of an EGM venue

• Major impact on vulnerable communities - Braybrook, 2nd most disadvantaged suburb in Victoria - high EGM losses - $15.5m in 2011-12

© VLGA 20109

• Victorian Government introduced EGM caps in 2001 and extended them across Victoria in 2006

• Currently EGM Caps on 19 regions - set at a maximum of 10 EGMs per 1000 people

• Caps are intended to protect vulnerable communities from the harmful effects of gambling

• Caps will be reviewed by the State Government in October 2014

EGM caps

© VLGA 201010

EGM caps

© VLGA 201011

EGM caps

© VLGA 201012

Deregulation of EGM licences

• Ownership and distribution of EGM licences has been deregulated since August 2012

• EGM Licences now owned by clubs and pubs across Victoria

• The new arrangements will mean that EGMs licences will move around the State

• Will lead to an increase in the number of applications from venues seeking to increase their EGM numbers

© VLGA 201013

EGM venue management

• Limit of 105 EGMs per venue

• ATMs banned from venues – replaced by EFTPOS machines which have no withdrawal limit

• Standard ‘pokies’ signs outside venues

• Venue staff trained to assist problem gamblers

• Restrictions on venue design and signage that encourages gambling

© VLGA 201014

EGM pre-commitment

• Involves EGM gamblers committing to restricting the amount of money they bet in each session

• Recommended by Productivity Commission Report into gambling along with $1 bet limits per play on machines

• Federal Government reneged on deal with Independent MP Andrew Wilkie to introduce mandatory pre-commitment - will instead establish trial of mandatory pre-commitment in the ACT

© VLGA 201015

Issues facing councils managing EGMs

• Increase in losses, particularly in vulnerable communities

• Increase in number and concentration of EGMs, particularly in uncapped areas

• Loss of appeals on decisions – number of cases rejected by the VCGLR and VCAT

• Lack of funding and resources to appeal against decisions or develop Local Planning Policies

© VLGA 201016

Problem gambling

Problem gambling

Industry behaviour

Help services

Gambler characteristics and behaviour

Information

Government behaviour

Accessibility

Games features

Venue features

© VLGA 201017

Impacts of problem gambling

Problem gamblers Loss of income,

anxiety, depression, other addictions,

poor health, mental illness, suicide

Their familiesHousehold budget pressures, housing stress, food security

problems, relationship

breakdown, family violence

The local community

↑ social and economic disadvantage

↑ social exclusion - problem gamblers and their families withdraw

from the local community↑ in crime

© VLGA 201018

• The VCEC Inquiry into problem gambling estimates that the total economic cost of problem gambling in the community was between $1.5 and $2.7 billion in 2010-11

• The vast majority of the quantifiable costs comes from two sources:

1. Costs associated with financial losses to problem gamblers - $1 billion to $1.4 billion

2. The intangible costs associated with impacts on mental wellbeing for problem gamblers and their families $400 million to $1.2 billion

Impacts of problem gambling

© VLGA 201019

Role of local government in managing EGMs

Harm minimisation

Protecting vulnerable

communities from impacts of

problem gambling

Reducing convenient

access to EGM venues

© VLGA 201020

What can councils do?

POLICYDevelop a social policy on gamblingInclude gambling in Municipal Public Health Plans

ADVOCACY Victorian and Commonwealth Governments, VLGA Local Government Working Group on Gambling and other forums

REGULATIONCouncil can regulate the management of EGMs through Local Planning Scheme Policy and Differential Council Rates for EGM venues

© VLGA 201021

• Statistics on number venues and number of EGMs in the municipality

• Statistics on losses from EGM venues and losses per adult, compared to other municipalities

• Impact of EGM gambling on vulnerable communities

Impact of EGM gambling in (insert council name)