Submission to the Victorian Competition & Efficiency Commission’s
inquiry into the social and economic costs of problem gambling in
Victoria
August 2012
For more information about this submission please contact:
Karen Foster
Executive Officer
Great South Coast Group
2/102 Lava Street, Warrnambool 3280
About the Great South Coast Group Inc.
The Great South Coast Group Inc. is a formal alliance of local government, business and the
community sectors working collectively to create a thriving, multi-faceted and resilient economy, while
valuing and protecting the natural resources and environment.
The focus of the Great South Coast Group Inc. is to ensure the people who live in the region are
healthy, have access to quality education options and enjoy great lifestyle choices.
The group also gives voice to regional issues and concern.
Snapshot of the Great South Coast region
The Great South Coast region is located in the south west of Victoria. The region covers the shires of
Colac Otway, Corangamite, Glenelg, Moyne, Southern Grampians and the City of Warrnambool.
More than 125,000 people live in the region with over quarter living in Warrnambool. Other large
population centres include Colac, Hamilton and Portland.
Nearly one half of the population is aged over 45 years and that proportion is set to rise dramatically.
The region’s economy has a substantial agriculture sector. It also has large manufacturing, retail,
healthcare and community services sectors.
Limitations of Great South Coast Group submission
The Great South Coast Group acknowledges that the Victorian Competition & Efficiency
Commission’s inquiry into problem gambling is seeking to quantify the costs of problem gambling in
Victoria.
Calculation of the cost of the harms for individuals and the community, especially the intangible
impacts on the wellbeing of individuals and communities, is beyond the capacity of the Great South
Coast Group.
The Great South Coast Group and its partners are however are well placed to make comment on
some of the ‘information requests’ for the inquiry.
The focus of this submission is on the harms of problem gambling specifically attributable to electronic
gaming machines. The focus on electronic gaming machines has been selected because:

Electronic gaming machines are associated with a higher prevalence of problem gambling
compared to other forms of gambling. It is estimated that problem gamblers account for 22 to
60 per cent of total gaming machine spending (average 41). The likely range for moderate risk
and problem gamblers is 42 to 75.

The harms and costs of problem gambling from electronic gaming machines are felt at the local
level, however the powers and capacity of local government and the community to address
these is limited.
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Focus of Great South Coast Group submission
The focus of this submission is on:

highlighting local examples of impacts of problem gambling that are not immediately apparent

deficiencies in information on the harms and costs of problem gambling for a population group
at risk

possible compounding of costs of problem gambling for disadvantaged population groups

costs of diversion of capacity.
The submission draws on local experiences in the region, specifically with regard to our Indigenous
communities and community attitudes towards electronic gaming.
Problem gambling issues in Indigenous communities
The Great South Coast Group is concerned that the issues attributable to problem gambling may
impose an additional layer of socio-economic stress to the existing disadvantage faced by Aboriginal
communities.
The Great South Coast region has a small but significant Aboriginal population. The majority are
under 15 years (40 per cent).
Our Aboriginal population is disadvantaged across a range of socio economic factors. They
experience lower levels of income and home ownership, earlier school leaving, higher unemployment
rates and there are a high proportion of single parent families.
In 2011 concerns were raised locally about problem gambling issues in Aboriginal communities in
south west Victoria. In response a scoping project was undertaken which indicated:

problem gambling is causing social and emotional problems in Aboriginal communities in south
west Victoria

that electronic gaming machines are a significant cause of problem gambling

that having a problem with gambling is viewed as a ‘shame job’

there is an unwillingness by some to address problem gambling as a community health issue

Aboriginal communities are overwhelmed by the myriad of factors that contribute to Indigenous
disadvantage which may be contributing to problem gambling getting overlooked

a culture of shared responsibility means that Aboriginal problem gamblers and their families
are likely to receive support from extended family and friends, which may be contributing to
hardship for those providing support.
A selection of comments from the local scoping project follows.
Their priorities are getting all screwed up.
On pay day it used to be do shopping, pay bills then poke.
Woman
from
the
Framlingham community
Now it’s reversed.
I see the kids unable to get stuff because Mum and Dad have
blown the money on the pokies.
The kids go to a house in the community where there is no
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gambling and the older ones know what’s happening.
Then the kids play out.
Some people in our community gamble all their money straight
away and they have no money left til they get paid again.
Man from the Gunditjmara
community
They hit up family members.
They take advantage of others. They are manipulative.
It affects a number in the community.
There is people that go to the pokies.
It results in no food. It results in lack of school attendance.
Woman
from
Framlingham community
the
It’s only a small group.
They just survive off others. There is always someone to help
them out.
When they (the person helping out) get sick of them, they move
onto someone else.
Everyone knows what’s going on (regarding gambling) but they
turn a blind eye.
Man from the Framlingham
community
We need to start talking about the consequences.
Like no school books.
The problem with pokies is passed onto the kids.
I know a family that can’t get enough of them.
Woman from the Gunditjmara
community
As soon as their son got paid, they would sneak him in with them so
he could press too.
A theme from the comments, and a matter of concern, is the impacts of gambling on children.
This raises the question of ‘what are the compounding impacts of problem gambling for
Indigenous children of problem gamblers?’.

Students in the Great South Coast region are leaving school earlier than students in other parts
of the state as the region continues to lag behind Victorian Year 12 attainment rates.

Data from Census 2011 shows only 56.8 per cent of Great South Coast people aged 20-24
have completed Year 12 or equivalent. This compares to a state average of 74.4 per cent. The
rates for our young Indigenous people in the Great South Coast are even further behind.

The completion of upper secondary education has become an important international
benchmark of performance and Australia has set a target of 90 per cent of students completing
Year 12 or a Certificate II or above by 2015.

The completion of secondary education is increasingly recognised as the minimum level
needed for participation in further study and in the labour force. It is the requirement for entry to
many post-secondary education and training courses, and important also as a minimum
credential for successful entry to the labour market.
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
Over time secondary school completion has also become more and more influential in
determining how economic and other life benefits, such as good health, are distributed.
In June 2012 agreement was reached to form a partnership to work collaboratively to raise community
awareness of problem gambling and to implement ways to prevent or better manage problem
gambling at the local level.
The partnership involves representatives from Gunditjmara Aboriginal Cooperative, Kirrae Health
Services, South West Consortia Closing the Gap, Bethany’s Gambler’s Help Services and the South
West Primary Care Partnership.
The work of the partnership will endeavour to gain an understanding of the ways in which problem
gambling affects gamblers, their families and communities. It may be able to establish if problem
gambling is a contributing factor to early school leaving for our Indigenous young people.
The partnership believes:

the impacts of problem gambling creates an additional layer of socio-economic stress to the
existing disadvantage faced by Aboriginal communities, particularly children

a culture of shared responsibility may be causing hardship to extended family and friends who
are supporting problem gamblers and their families.
This local initiative highlights:

an example of potential impacts of problem gambling that are not immediately apparent

concerns about the compounding impact of costs for disadvantaged groups

concerns about the impacts gambling is having on Indigenous children

an example where problem gambling is drawing on the limited capacity of local
organisations working to address the disadvantage in Aboriginal communities.
Problem gambling impacts on community wellbeing
The Great South Coast Group believes there is solid evidence of the impacts problem gambling has
on gamblers and their families, friends, workplaces and community services.
We are of the view there are gaps in the understanding of the harms and costs problem gambling has
on communities.
When gaming machines were introduced in Victoria there was a degree of optimism regarding the
social and economic benefits. Over time citizens have formed points of view on electronic gaming,
often based on personal experiences.
The Shire of Moyne currently does not have any electronic gaming venues. In 2010 the Shire of
Moyne conducted a whole of community survey to determine attitudes toward establishing gaming
venues in the shire. Surveys were distributed by Australia Post to all ratepayers and householders in
Moyne. All posted surveys were individually numbered. There was a limit of one survey per
household, and no photocopied surveys were accepted.
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A total of 1,723 completed surveys were returned with an overwhelming opposition to the idea of
introducing electronic gaming into Moyne and toward electronic gaming generally.
Of the completed surveys there were 923 recorded comments and suggestions which provide
invaluable insights into individual concerns of problem gambling and the potential impact electronic
gaming have on community wellbeing.
A selection of response to question 23 inviting respondents to make comment or
suggestions
Returning
number
We are strongly opposed to pokies. The evidence that they create social and economic
disruption and harm. They would bring absolutely no benefit to the Moyne Shire. Pokies
only create company profits and government rely too heavily on the taxes they produce.
It is just greed to have pokies in Moyne.
361
Dead against poker machines. I have seen the adverse effects to families and
individuals as they frequent these venues from early mornings in some cases. Also
devastating effect on small business as money is redirected to gambling from normal
areas.
902
Strongly against pokies until the problems of problem gambling is brought under control.
Pokies isolate people rather than engage social interaction.
931
I am strongly against pokie machines & do not see the need for any venues to operate in
the Moyne Shire. If it was by choice I would close them all down. They are dangerous to
our community and only cause poverty & hunger.
1259
Completely against gambling. Conned out of a large sum of money by a problem
gambler. Poker machines should never have been let in Victoria.
1269
I do not support pokies in Moyne Shire. I would consider moving if pokies were
introduced.
2113
They break up families. Hate them for what they have done to mine.
2884
Gambling is against our religion. We try to honour God in all things.
1453
Please do not allow pokies in Moyne Shire. My wife’s best friend’s husband killed himself
after struggling with a pokie habit for 3 years. He came home after losing $16000 in a
two day binge and now a woman & 3 children suffer daily. This is the real cost of these
machines, mostly children suffer.
3715
If Port Fairy has pokies it will close small business. Empty shops will not help tourism.
3944
It is evidence based that gambling has so many social, emotional and financial
problems. I regard the Moyne Shire as a Shire of sustainable and family friendly
attractions. Pokies are family destructive.
3945
Poker machines are totally incompatible with Port Fairy and the wider Moyne Shire.
5057
We have chosen to live in Port Fairy knowing it was a pokie free town. Our household
includes a severe problem gambler, who in the past has been able to elude all of the
checks & balances put in place at various venues. At least in Port Fairy we have some
peace and a chance to support our addict with other recreational choices. Victoria needs
5164
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more pokie free towns, encourages rehabilitation.
They should be banned and any government or Council that receive revenue from them
should be thrown out of office.
5732
I know that if pokies were readily available I would play them more often. It is quite easy
for me to lose more than I can afford when I play them. Because they are in
Warrnambool it is easy for me to keep away from them.
5914
I am a tourism operator within Port Fairy. The overwhelming response from visitors to
our lovely town is they are glad to see no pokies & that the town has kept its charm.
Visitors keep saying keep pokies out of Port Fairy.
6002
I recommend no gaming machines at any price in the Moyne Shire. They are a problem
for too many families.
7274
I think pokies are a bad idea. I can’t think of any good that comes from the pokies. There
are pokies in Warrnambool already so put them in the Moyne Shire? We go all the way
around the city. They almost destroyed my life with my ex playing them all the time.
Instead of bringing home the week’s pay he would take it to the pokies and try and
double it. It never happened. My life has since moved on but the memories will never go
away. I hate the pokies they are horrible things. We really don’t need them in the Moyne
Shire. Let’s stay as one of the few shires with no pokies. Thank you.
8041
I worked in a pokie venue and was sickened by the inability of people to control
themselves. I witnessed thousands being lost, money and then lost again. It is a
devastatingly horrible industry. Do not ruin Port Fairy.
8106
I am opposed to the introduction of poker machines in any venue in Moyne Shire. It is
my experience that these machines adversely affect the financial wellbeing of some of
the most vulnerable people in our society. I know of instances where families have gone
without basic needs due to expenditure on pokies. Don’t let them in.
8174
The results of this survey confer with evidence suggesting that people have not become more
accepting of poker machines with lengthened exposure to it.
This raises the question as to whether the measurement of the costs of electronic gaming
should include a new category–impact on community wellbeing.
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Harms from problem gambling
Job loss
Stress
Suicide
Absenteeism
Work &
study
Depression &
anxiety
Personal
Poor
Performance
Loads on
charities
Social, emotional,
cultural & spiritual
wellbeing
Financial
hardship
community
wellbeing
Community
services
Financial
Debts
Loads on
public purse
Asset losses
Neglect of
family
Legal
Interpersonal
Bankruptcy
Loan sharks
Social, emotional,
cultural & spiritual
wellbeing of whole
community
Relationship
breakdown
Domestic or
other violence
Theft
Imprisonment
The Productivity Commission’s approach to measuring social and economic costs of problem
gambling concentrates on gamblers, their families, workplaces and treatment costs. This does not
take into account the impact that gaming venues have had on community wellbeing overall and the
impact problem gambling has had on citizens who have not been directly impacted by a problem
gambler.
The significance of community attitudes in regard to electronic gaming was clarified by the Supreme
Court of Victoria in a matter involving the Romsey Hotel and Macedon Ranges Shire Council. The
court found that a proposal for a gaming venue that was considered likely to diminish the citizens’
sense of happiness with, or contentment in, their community was a social impact considered
detrimental to community wellbeing. The court determined that if members of a community ‘find the
prospect of gaming at [the proposed venue] so disconcerting that it would have a significant effect
upon that community’, it is immaterial whether such concerns are founded on philosophical or moral
or religious views (or some combination of these) or simply reflect unarticulated views about the kind
of community in which people wish to live.
Recommendations
We are of the view that the Victorian government’s aim of determining the true costs of problem
gambling and where they fall is admirable.
Our submission has raised matters for consideration regarding the costing of problem gambling based
on local knowledge.
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We have focused on: impacts of problem gambling that are not readily apparent; deficiencies in
information on the harms and costs of problem gambling for Indigenous children; the notion of
compounding of costs of problem gambling for disadvantaged population groups; and costs of
diversion of capacity.
The Great South Coast Group supports any effort by the Victorian government to introduce regulatory
interventions to reduce the harm caused by electronic gaming machines.
We would also support the collection of information that would assist us to protect disadvantaged
population groups and vulnerable communities.
Thank you for considering our submission.
References
Australian Bureau of Statistics, 2011 Census of Population and Housing
Great South Coast Group, The Great South Coast Regional Strategic Plan, 2010
Moyne Shire Council, Attitudes on electronic gaming machines, September 2011
Productivity Commission, Gambling: Productivity Commission Inquiry Report, Report no. 50, 26
February 2010
South West Primary Care Partnership, An introduction to gambling issues in Aboriginal communities
in south west Victoria, June 2012
South West Primary Care Partnership, Year 12 completion project, May 2012
Supreme Court of Victoria, Court of Appeal, Macedon Ranges Shire Council v Romsey Hotel Pty Ltd
& Anor [2008] VSCA 45 (19 March 2008)
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