Key events and developments such as the pending draft report from the Productivity Commission inquiry have directed renewed attention on the role of government in gambling regulation.

Why another gambling enquiry?

Many industry participants have questioned the need for public inquiries such as the Productivity Commission, when Australian boasts one of the most highly regulated gambling industries in the world.

"There is definitely a need for a broader review of the industry on a national basis, and to take into account inter-jurisdictional issues from an arms-length perspective," said Mr Gary Banks, the Chair of the Productivity Commission.

"The Productivity Commission provides an independent, community-wide perspective covering the impact of the gambling industry."

Mr Banks described the nature and approach of the inquiry during the recent National Gambling Regulation conference presented by the Australian Institute of Criminology in conjunction with the Australian Institute for Gambling Research.

He explained how the Commission has been gathering and reviewing submissions and information to assess the economic and social impacts of gambling, and the role and effects of regulations.

According to Mr Banks, there have been 195 submissions, public hearings in all capital cities, and round-table discussions. "We have even had meetings with problem gamblers in their own backyards." The major sources of submissions came from welfare and community organisations, representing 36%, followed by individuals at 25%, and gaming providers at 16%.

The Productivity Commission has taken an integrated approach across the traditional modes of gambling, as well as the advent of the digital age and interactive gambling which is changing crime opportunities and consumer issues.

The draft report is available at the end of June, with public hearings from mid-August and the final report scheduled for completion at the end of November.

The report will be effectively structured as follows:
Part A - background information
Part B - Costs, net impacts, benefits.
Part C - Policy issues

What is special about the gambling industry?

The second part of the report attempts to measure the benefits of the industry, including job creation, benefits to consumers in terms of the gambling experience. There will also be a focus on problem gambling, as it is a "downside" of the industry.

"Problem gambling is one of our key tasks," said Mr Banks. "If there wasn't problem gambling, there wouldn't be an enquiry."

Policy issues, covered in Part C of the report, includes competition, probity, consumer protection (advertising and harm minimisation such as self-regulation), new technologies, and tax issues.

The problem gambler

Peter Fletcher from the NSW TAB raised an interesting scenario during the conference, where the operator sees the regulator as a "nuisance, like a mother-in-law." He's obviously had some experience in this field, having spent 15 years as a regulator, and the last 5 years as an operator.

Mr Fletcher cites the significant shift in the direction of current regulations, using the 1916 and 1997 TAB totalisator acts as an example.

Back in 1916, the act of 44 pages comprised over 60% of the act assisting operators. The 1997 Totalisator act has only 6 pages of the 91 pages on operations.

"We have obviously moved from operational to licensing and probity matters," said Mr Fletcher.
Moreover, he raised the issue that gambling is over-taxed and over-regulated compared to other industries.

"Yes, there is consistent regulation and fair taxation, but it is overburdened and disadvantaged by the perceived involvement of this sin industry."

The topical driver of the problem gambler appears to be played up by governments trying to rationalise taxation and the misperception of the gambling industry. Proponents of the industry are true believers in this stance, with the view that it is not the role of governments to divert consumer spending over gambling.

David Ford, the Executive Director of the Queensland Office of Gaming Regulation, summed up best the success of a gaming regulator. He said that this depends on social responsibility, globalisation, convergence and technology.

SIDE-BAR
The only product that changes hands is money

NSW Department of Gaming & Racing Director-General, Mr Ken Brown, opened his presentation at the Institute of Criminology conference with this line of thinking.

He outlined key issues of debate as;
- the extent to which gambling should be available in the community
- Government's role in minimising social and personal harm
- The problem gambling situation or the irresponsible provision of
gambling services.

The key objectives of gaming regulation can be summarised as follows:
- Keep the industry free of criminal activity
- Ensure protection for players
- Ensure that gaming is conducted fairly
- Minimise social and personal harm associated with gambling
- Ensure that an appropriate share of gaming revenue is paid in taxation
for the benefit of the community.

SIDE-BAR

Our national gambling addiction

Australians wagered around $90 billion in 1997-1998 for a net loss of A$11.1 billion.
And a report by the Australian Bureau of Statistics released in late June showed the proliferation of poker machines in NSW led to a 42 per cent increase in gambling in just three years.

While takings at casinos rose by 41 per cent in the past three years, takings from off-course TAB sales were up only 8% and lottery takings up 11%.

Based on an adult population of just over A$14 million, Australia's gambling losses were worth $790 for each adult. Gamblers in NSW lost the most at an average of $945 per adult, followed by $927 for each Victorian.