gambling as an extractive industry & the moral jeopardy it generates peter j. adams, 2008 school...

Gambling as an Extractive Gambling as an Extractive Industry & the Moral Industry & the Moral

Jeopardy it Generates Jeopardy it Generates Peter J. Adams, 2008Peter J. Adams, 2008

School of Population HealthSchool of Population HealthUniversity of AucklandUniversity of Auckland

Centre for Gambling Studies, 2008Centre for Gambling Studies, 2008


Expansion of Commercial GamblingExpansion of Commercial Gambling

• Major societal Major societal changechange

• Impacts socially & Impacts socially & economicallyeconomically

• Also impacts on Also impacts on political ecologypolitical ecology

• Links with Links with expansion globallyexpansion globally


WellingtonWellington

AucklandAuckland

ChristchurchChristchurch


Gambling Expenditure in NZGambling Expenditure in NZ

0

100

200

300

400

500

600

700

1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992

Mil

lion

s N

Z$

SourceSource: : Department of Internal AffairsDepartment of Internal Affairs

((Excluding bingo & raffles)Excluding bingo & raffles)



0

200

400

600

800

1000

1200

1400

1600

1800

Mil

lion

s N

Z$

SourceSource: : DepartmentDepartment of Internal Affairsof Internal Affairs


1993 2002


0

100

200

300

400

500

600

700

800

900

1000

Mil

lion

s $N

Z

TrackLotteriesMachines (non-casino)Casinos

Gambling Expenditure in NZGambling Expenditure in NZSourceSource: : DepartmentDepartment of Internal Affairsof Internal Affairs




0

500

1000

1500

2000

Mil

lion

s N

Z$

SourceSource: Department of Internal Affairs: Department of Internal Affairs

((Excluding housie & raffles)Excluding housie & raffles)

INDIVIDUALTREATMENT

PUBLIC HEALTH

POLITICAL ECOLOGY

REGULATION

LIBERALISATION

NORMALISATION


Ecological Perspective…Ecological Perspective…

• Gambling as an Gambling as an extractive industryextractive industry

• No substantial No substantial productproduct

• Extraction within Extraction within current systemscurrent systems

• Those systems in Those systems in turn are affectedturn are affected

Drivers for Native Logging Drivers for Native Logging

• Governments interested in profits Governments interested in profits from large scale extractionfrom large scale extraction

• Multinational ability to maximize Multinational ability to maximize profit potentialprofit potential

• Entrepreneurs quick to recognize Entrepreneurs quick to recognize profit potentialprofit potential

• Rapid expansion relies on absence Rapid expansion relies on absence of popular oppositionof popular opposition

0

500

1000

1500

2000

Mill

ions

NZ$


Degradation of Degradation of natural ecologynatural ecology

Degradation of Degradation of socio-political socio-political ecologyecology

With Rapid Expansion ofWith Rapid Expansion of Extractive Extractive Industries comes…Industries comes…



Expenditure

Profit

Benefits

Taxes

0

500

1000

1500

2000

Mil

lion

s N

Z$

SourceSource: Department of Internal Affairs: Department of Internal Affairs


REGULATION

LIBERALISATION

NORMALISATION

WORRWORRYY


Money Builds RelationshipsMoney Builds Relationships• Money exchange forges Money exchange forges

ongoing connectionsongoing connections

• Establishes expectations Establishes expectations and obligationsand obligations

• Reinforced by multiple Reinforced by multiple exchangesexchanges

• Links cut across other Links cut across other relationshipsrelationships


Where are they leading?Where are they leading?

What are the risks?What are the risks?

Can they be reversed?Can they be reversed?

What are the long term What are the long term prospects for these profit-prospects for these profit-

driven relationships?driven relationships?


Moral & ethical dilemmas Moral & ethical dilemmas generated by receiving generated by receiving gambling fundsgambling funds

Environments promoting high Environments promoting high industry connectednessindustry connectedness

Conflicted relationships very Conflicted relationships very likelylikely

Multiple traps for the naïve, Multiple traps for the naïve, greedy & fearfulgreedy & fearful


Risks in Accepting ProfitsRisks in Accepting Profits

1.1. Ethical risksEthical risks

2.2. Reputational Reputational risksrisks

3.3. Governance Governance risksrisks

4.4. Relationship Relationship risksrisks


1. Ethical Risks1. Ethical Risks• Trying to do good from Trying to do good from

sources that do harmsources that do harm

• Majority of gambling funds Majority of gambling funds from low income families & from low income families & problem gamblersproblem gamblers

• Credentialing providers Credentialing providers (improving public profile)(improving public profile)

• Contributing to salesContributing to sales


2. Reputational Risks2. Reputational Risks

• How link is judged How link is judged by othersby others

• Collegial Collegial disapprovaldisapproval

• Consumer Consumer discomfortdiscomfort

• Government agency Government agency ambivalenceambivalence


3. Governance Risks3. Governance Risks

• Creeping relianceCreeping reliance

• Perception of Perception of vulnerabilityvulnerability

• Threatens independence Threatens independence & sovereignty & sovereignty

• Perceived reliance leads Perceived reliance leads to silence & complianceto silence & compliance


4. Relationship Risks4. Relationship Risks

• Between colleaguesBetween colleagues

• In larger organisations, In larger organisations, between sections & between sections & levelslevels

• Potential loss of voice, Potential loss of voice, loss of interest, loss of loss of interest, loss of staffstaff

How to respond to How to respond to gambling profit-driven gambling profit-driven

increases in moral increases in moral jeopardy?jeopardy?


Intensity of RelationshipIntensity of Relationship

Continuum of Moral JeopardyContinuum of Moral Jeopardy


Low RiskLow RiskModerate RiskModerate Risk

High RiskHigh RiskExtremelyExtremelyHigh RiskHigh Risk

Primary Concern


Moral Jeopardy & Loss of VoiceMoral Jeopardy & Loss of Voice• Community charities receiving Community charities receiving

significant funds from pokie trustssignificant funds from pokie trusts• Researchers with gambling funding Researchers with gambling funding

avoiding “rocking the boat”avoiding “rocking the boat”• Government agency managing funds Government agency managing funds

from gamblingfrom gambling• Newspapers relying heavily on Newspapers relying heavily on

funding from gambling advertising funding from gambling advertising • Politicians & political parties Politicians & political parties

accepting or influencing distribution accepting or influencing distribution

Low Moral Jeopardy EnvironmentsLow Moral Jeopardy Environments• Principle 1:Principle 1: Ethical consciousnessEthical consciousness

• Moral jeopardy awareness raising activitiesMoral jeopardy awareness raising activities• E.g. workshops with governance boardsE.g. workshops with governance boards

• Principle 2:Principle 2: Informed participationInformed participation • Requirements for disclosure of funding sourcesRequirements for disclosure of funding sources• E.g. web-based observatory tracking moneyE.g. web-based observatory tracking money

• Principle 3:Principle 3: Independence of functionIndependence of function• Reduction in reliance on gambling fundingReduction in reliance on gambling funding• E.g. seek reductions in gambling profitsE.g. seek reductions in gambling profits

• Principle 4:Principle 4: Government duty of careGovernment duty of care• Benchmark standards regarding conflicts of interestBenchmark standards regarding conflicts of interest• E.g. adherence to international charterE.g. adherence to international charter


Concluding RemarksConcluding Remarks

• Long term environment of Long term environment of high moral jeopardyhigh moral jeopardy

• Compromises community Compromises community & government sector& government sector

• Subtle degradation of Subtle degradation of democratic systemsdemocratic systems

• Future obligations to Future obligations to devise safeguardsdevise safeguards


Adams, P. J. (2007). Assessing whether to receive funding support from tobacco, alcohol, gambling and other dangerous consumption industries. Addiction, 102(7), 1027–1033.

Adams, P. J. & Rossen, F. (2006). Reducing the moral jeopardy associated with receiving funds from the proceeds of gambling. Journal of Gambling Issues, Issue 17, August 2006

Adams, P. J. Gambling, Freedom and Democracy. New York: Routledge (Jan 2008)

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gambling as an extractive industry & the moral jeopardy it generates peter j. adams, 2008 school...

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