Gambling in Victoria 1 © VLGA 2010 Gambling in Australia • $19 billion lost on gambling in 2008/2009 • $12 billion on the pokies 2 © VLGA 2010 Gambling in Victoria • Electronic Gaming Machines (pokies) • Crown Casino • Wagering (racing and sports betting) • Lotteries • Club Keno 3 © VLGA 2010 Regulation of gambling in Victoria • 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 4 © VLGA 2010 Legal gambling losses in Victoria 2011-12, $m Casino, 957.2, 29% EGMs, 1638.7, 49% Wagering, 482.6, 14% Lotteries, 281.4, 8% Club Keno, 3.5, 0.1% 5 © VLGA 2010 Taxation raised from gambling in Victoria 2011-12, $m Casino, 195.3, 12% EGMs, 886.2, 55% + 125.7 Health Benefits Levy Wagering, 136.5, 9% Lotteries , 386.7, 24% Club Keno, 1.7, 0.1% 6 © VLGA 2010 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 7 © VLGA 2010 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 8 © VLGA 2010 EGM caps • 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 9 © VLGA 2010 EGM caps 10 © VLGA 2010 EGM caps 11 © VLGA 2010 Deregulation of EGM licences 12 • 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 2010 EGM venue management 13 • 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 2010 EGM pre-commitment 14 • 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 2010 Issues facing councils managing EGMs 15 • 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 2010 Problem gambling Industry behaviour Venue features Games features Help services Problem gambling Accessibility Information Government behaviour 16 © VLGA 2010 Gambler characteristics and behaviour Impacts of problem gambling Problem gamblers Their families Loss of income, anxiety, depression, other addictions, poor health, mental illness, suicide Household 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 17 © VLGA 2010 Impacts of problem gambling • 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 201011 • 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 18 © VLGA 2010 Role of local government in managing EGMs Harm minimisation Protecting vulnerable communities from impacts of problem gambling 19 © VLGA 2010 Reducing convenient access to EGM venues What can councils do? POLICY Develop a social policy on gambling Include gambling in Municipal Public Health Plans ADVOCACY Victorian and Commonwealth Governments, VLGA Local Government Working Group on Gambling and other forums REGULATION Council can regulate the management of EGMs through Local Planning Scheme Policy and Differential Council Rates for EGM venues 20 © VLGA 2010 Impact of EGM gambling in (insert council name) 21 • 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 © VLGA 2010