This is despite the fact that Australia is recognised as a world-leading jurisdiction for gambling regulation, imposing lengthy probity checks and testing procedures for every form of gaming and wagering.

Widely publicised and reviewed by the media, the Productivity Commission's 1000-page synopsis of the industry has nevertheless
resulted in much debate and re-analysis of this thriving form of entertainment that's been growing at an average rate of 18% for at least the past three years.

Some forget that the "gambling" industry's casinos, lotteries, TAB's, bookmakers and the like generate some 36,000 career positions each year (plus another 120,000 in clubs and pubs where gambling is the secondary activity). Gambling facilities also contribute millions of tax dollars for each state and territory government in Australia - funding the Opera

House, schools, public facilities and educational centres.

Our democratic government allows privately-owned hotels to reap profits by offering gaming as a form of entertainment to their patrons. Clubs effectively offer the same service, although the profits are regenerated for the community's benefit via additional facilities, donations and sponsorships.

Effectively, Australia's gambling industry has thrived because it's what people choose to do in their spare time. And importantly, the Productivity Commission acknowledges this. The report makes it clear that gambling provides enjoyment to most Australians.

Over 80 per cent of legal gambling age gambled in the last year - spending about $11 billion - with 40 per cent gambling regularly.

The Commission's key findings state that there are particular deficiencies in:
- information about the "price" and nature of gambling products (especially gaming machines);
- information about the risks of problem gambling;
- controls on advertising (which can be inherently misleading);
- availability of ATM's and credit; and
- self-exclusion arrangements.

A number of significant events have occurred since the report's release on July 19. Two days after dismissing the Productivity Commission's review as "old news", Victoria's premier Mr Jeff kennett abandoned a five-year review of the cap on gaming machines and pledged to ban
misleading ads. The club and hotel industry, which has been pushing for the state's 27,500 gaming machine cap to be lifted, were united in their view that dropping the review was "ridiculous".

Prime Minister John Howard has called for a change in the way state governments treat gambling and a summit with state leaders to discuss
how to bring about this change.

In Tasmania, hotels are set to install ATM's near poker machines for the first time as a service to patrons, despite the study's belief that teller machines should be banned from gaming venues. At the moment, patrons are only offered EFTPOS cash from behind the bar, which requires waiting for assistance from a staff member.

Anyone who looks at the Productivity Commission's extensive 1000-page report has to be impressed by the vast and detailed research effort. As the first study of its kind ever undertaken in Australia, the landmark study will no doubt become the definitive guide to gambling regulation.

There is an overwhelming amount of information about problem gamblers, taxation, crime, consumer attitudes and the internet. Australia, says the report, is home to 21% of the world's slot machines. "With 18.5 million people, it's not a record I'm very proud of at all," said Prime Minister John Howard.

Players on average lose $800 every year - whether that's on scratchies, the races, pokies or any one of the ten forms of gambling available in the nation's states and territories. This amount, says the report, is double the amount lost by players in Europe or the US.

The report questions the economic benefits from things like increased employment and investment, referring to them as "largely illusory."
Their surveys also reveal that some more than 2 per cent of the population, or 330,000 people, have gambling problems, losing an average of $12,000 per year. Moreover, the report finds that each of these people affect another 10 Australians.

The draft report calls for greater regulation of the industry, and recommends a campaign of public education and warnings in venues like "if you think you can win, you're a loser."

The study is now open for further submissions and discussion, with a final report due out at the end of this year.

NSW clubs - poker machine revenue

1978 $425.2 million
1983 $665.3 million
1988 $973.7 million
1993 $1472.0 million
1998 $2385.2 million

Source: NSW Department of Gaming and Racing

Total Participation of gambling by Australians
Source: PC National Gambling Survey

Poker or gaming machines 39%
Racing 25%
Lottery or other lottery game 60%
Instant scratch tickets 47%
Keno 16%
Casino table games 10%
Bingo 5%
Sports betting 6%
Played an internet casino game 0.4%
Private gambling 5%
ANY GAMBLING ACTIVITY 82%