TAKING ACTION ON PROBLEM GAMBLINGA strategy for combating problem gambling in Victoria

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2006

October 2006

Authorised by Ross Kennedy, Office of Gaming and Racing,Department of Justice121 Exhibition Street Melbourne 3000

October 2006

© Copyright State of Victoria, Department of Justice, 2006

This publication is copyright. No part may be reproduced byany process except in accordance with the provisions of theCopyright Act 1968.

ISBN 1 92102 834 3

Also published on www.justice.vic.gov.au

Designed by Fenton CommunicationsLevel 10 423 Bourke Street Melbourne 3000

Printed by Bambra Press6 Rocklea Drive Port Melbourne 3207

This document is printed on Tudor RP 100% Recycled

ContentsMessage from the Premier 2

Message from the Minister for Gaming 3

EXECUTIVE SUMMARY 4

01 ENVIRONMENT 6

Why take action on problem gambling? 6

Victoria’s gambling industry 7

Why do we need a gambling policy? 8

Gambling and the law 9

Helping problem gamblers and their families 9

02 KEY CHALLENGES 10

03 GUIDING PRINCIPLES 11

04 PRIORITIES FOR ACTION 12

Action Area 1: Building better treatment services 13

Action Area 2: Ensuring a more socially responsible gambling industry 20

Action Area 3: Promoting healthy communities 24

Action Area 4: Protecting vulnerable communities 28

Action Area 5: Improving consumer protection 32

Action Area 6: Enhancing the regulator 36

Action Area 7: Fostering gambling research 38

05 COMMITMENT TO PROGRESS 40

Appendix: Government investment in Taking action on problem gambling 42

Supplement: Taking action on problem gambling: Regional caps – see separate supplement document

Message from the PremierProblem gambling has been high on theVictorian Government’s agenda sincecoming to office in 1999.

At that time, it was estimated that morethan two per cent of the Victorian adultpopulation were experiencing problemswith their gambling, and the industry wasgrowing rapidly.

While a great many Victorians enjoy theentertainment and leisure experiencesoffered by gambling, some cannot managetheir gambling and it becomes a problemfor them, their families and the community.

In any society with a legal gamblingindustry, the challenge for governments,industry and the community is how torespond to this problem.

The Government is committed toreducing the harm caused by problemgambling. We have taken strong actionover the last six years to address problemgambling and our action has been effective,with the prevalence of problem gamblersin Victoria declining to one per cent.

While much has been achieved, we mustmaintain the momentum.

This is why we have developed theframework set out in Taking action onproblem gambling. It will ensure wepursue an integrated approach toconsumer protection and to theprevention, early intervention andtreatment of gambling related harm.

Taking action on problem gambling setsout the actions and initiatives that theGovernment will put in place over fiveyears to tackle problem gambling.

We have acted to ensure that theVictorian gambling industry operates in abalanced way that minimises theincidence of problem gambling whilecreating an environment where those whogamble safely are permitted to do so.

The Government is proud of its record in developing a responsible, sustainablegambling industry in Victoria. But moreneeds to be done for the benefit of all Victorians.

STEVE BRACKS MPPremier of Victoria

2

Many Victorians are rightly concernedabout the harm caused by problemgambling and as the Minister for Gaming I share that concern.

It is important to recognise, however, thatnot every dollar spent on gambling is adollar of harm. Indeed for the vastmajority of Victorians, gambling in itsmany forms is a legitimate and enjoyablerecreational activity. Many people gamblesafely without causing harm tothemselves or others.

Furthermore, the gambling industry makesa significant contribution to the Victorianeconomy. Over 15,000 people areemployed at clubs and hotels withgaming machines, the Melbourne casinoand TAB agencies, while the racingindustry is an important source ofemployment in rural and regional Victoria.

Gambling taxes help to fund some of theessential services that the Governmentprovides for all Victorians, including vitalhealth services, community projects,problem gambling services andcommunity education initiatives. Since1999, 85 per cent of gaming machinetaxes – about $4.4 billion – was spent onhealth and community projects acrossevery region of Victoria.

Problem gaming is, however, a very realproblem for some Victorians. Sincecoming to office the Government has putin place a range of strategies that havehalved the number of problem gamblersand increased the number receivingcounselling.

Taking action on problem gambling willbuild on these achievements andrepresents the biggest commitment offunding for problem gambling inAustralian history.

I look forward to working with thegambling industry, local government andthe community as we put the initiativesset out in Taking action on problemgambling in place. Together we canfurther combat problem gambling inVictoria.

Daniel Andrews MPMinister for Gaming

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Message from the Minister for Gaming

Taking action on problem gamblingoutlines Victoria’s response to problemgambling over five years and sets out themajor initiatives and actions theGovernment will take to combat problemgambling.

The Government will spend $132.3 millionbetween 2006-07 and 2010-11 to build asafer gambling environment and improvetreatment services for problem gamblersand their families.

Highlights from the seven Action Areas inTaking action on problem gambling include:

Action Area One: Building bettertreatment services

• The Government will increase fundingfor gambler’s help services by $36.8 million(or nearly $7.4 million a year) to $79.8 million over five years.

Action Area Two: Ensuring a moresocially responsible gambling industry

• The Government will work withindustry and community advocates ongambling to finalise a single code ofconduct for the Victorian gamblingindustry for proposed implementationin 2007.

• The Government will inject $2.6 millionto strengthen the industry self-exclusionprogram through a partnership betweengambler’s help services and thegambling industry.

• The Government will provide $1.2 millionto resource the Responsible GamblingMinisterial Advisory Council to continueits advisory role to the Government onresponsible gambling issues.

Action Area Three: Promoting healthy communities

• The Government will commit $37.5million over five years to furtherdevelop the Problem GamblingCommunity Awareness and Education Strategy.

• The strategy will include:- $24 million for community education

aimed at making Victorians less likelyto become problem gamblers

- $5 million for local communityeducation activities

- $580,000 for community education and health promotion

- $1.4 million for the development of school-based learning programs

- $4.6 million for community partnerships- $2 million for community advocacy for

responsible gambling.

Action Area Four: Protecting vulnerable communities

• The Government will double the numberof capped regions and extend theboundaries of the existing metropolitancapped regions. There will be 19 regionscapped at 10 gaming machines perthousand adults, resulting in the removalof approximately 540 gaming machinesfrom vulnerable communities. Cappedregions that currently have a lowerdensity than 10 will be capped at thelower density.

• By 2010, the maximum density ofgaming machines for all other localgovernment areas (with the exceptionof the central business district, Southbankand Docklands in the City of Melbourne),will be set at 10 gaming machines per thousand adults, with areas below10 gaming machines per thousand adultsable to increase machine numbers up to the maximum density.

• The Government will investigatedestination gaming and release adiscussion paper on proposals fordestination gaming in Victoria. Theinvestigation will examine the suitabilityof gaming venues located at racetracksas destination gaming venues.

• The Government will amend the VictoriaPlanning Provisions to give local councilsa greater say by requiring a planningpermit for the placement of gamingmachines in their communities.

Action Area Five: Improving consumer protection

• The Government will require the removalof any automatic teller machine in agaming venue, or within 50 metres of anentrance to the Melbourne casino gamingfloor, that does not limit the amount thata consumer can withdraw per day to $400.

• The Government will reduce themaximum gaming machine bet limitfrom $10 to $5*.

• The Government will give the VictorianCommission for Gambling Regulation(VCGR) power to ban a product orpractice that encourages consumers to engage in behaviours associated with problem gambling.

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A $132.3 million commitment over five years.

Executive Summary

• The Minister for Gaming will be givennew powers to ban any gamblingproduct that is designed to explicitlyavoid or undermine any aspect of theGovernment’s responsible gamblingpolicy or legislation.

• The Government will reduce themaximum amount that a player can putinto a gaming machine at the start ofplay by 90 per cent to $1000 and willrequire all winnings over $1000 be paidout fully by cheque*.

Action Area Six: Enhancing the regulator

• The VCGR will be required to consider a broader range of matters whendetermining an application for approvalof a new gaming venue or determining anapplication for an increase in the numberof machines in an existing venue.

• The Government will provide $4 millionto the VCGR for monitoring compliancewith the industry code of conduct andto support industry in implementing thecode.

Action Area Seven: Fostering gambling research

• The Government will act on theVictorian Gambling Research Agenda byproviding a total of $7.2 million forgambling related research.

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*Other than a machine located in the Melbourne casino

1996-1999

5

2003-2006

10

15

20

16%

1.9%

AVERAGE GROWTH IN GAMING MACHINE SPENDING

Gambling activity grew dramatically inVictoria in the second half of the 1990s.This gave rise to significant concern aboutthe harm caused by problem gambling.

Between 1996 and 1999 gaming machineexpenditure grew at an average of 16 percent per annum. By 1999 it was estimatedthat more than two per cent of theVictorian adult population wereexperiencing problems with theirgambling. This meant 75,074 Victorianswere estimated to be problem gamblers.

Victoria has the lowest density of gamingmachines of any State except WesternAustralia. It has almost one-third thedensity of New South Wales and halfthat of Queensland and South Australia.Victoria also has some of the moststringent regulations controlling bettingand gaming.

Yet the unavoidable fact is that someVictorians still have problems withgambling. The Government shares theconcern many Victorians have about thisand is committed to a coordinated,systematic and evidence-based approachto combat the very real effects ofproblem gambling.

Since coming to office in 1999, theGovernment has reduced the size ofVictoria’s gambling problem. In 2006 thegrowth rate of gaming machine expenditurehas fallen to 3.3 per cent. The rate ofproblem gambling is now estimated byindependent research to have halved to 1.1 per cent* of the Victorian adultpopulation or 43,957 individuals.

While our successes are significant, thereis no room for complacency. If Victoria isto maintain momentum in addressingproblem gambling then a new, targetedeffort is needed. The Governmentbelieves that concerted action canfurther reduce and manage problemgambling more effectively.

Taking action on problem gamblingsets out, for the first time, a broadframework to guide the development and implementation of our strategy to combat problem gambling. It is an integrated approach to consumerprotection and to the prevention, earlyintervention and treatment of gamblingrelated harm.

Taking action on problem gambling is a five year strategy covering the periodbetween 2006-07 and 2010-11. It outlinesthe guiding principles and objectives thatwill drive Victoria’s response to problemgambling and sets out the areas foraction that the Government will pursueto meet those objectives.

It will enable the Government to respondmore effectively to the challengesassociated with problem gambling.

Taking action on problem gambling willalso help the gambling industry andcommunity to understand theGovernment’s strategic direction, toengage more fully in the debate on howbest to tackle problem gambling andcommit to playing their part.

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The Government believes that concerted action can further reduce problem gambling.

01ENVIRONMENT

Why takeaction onproblemgambling?

* 2003 Victorian Longitudinal Community AttitudesSurvey, Centre for Gambling Research, AustralianNational University

The gambling industry worldwide isundergoing a period of rapid change,most notably through the emergence ofnew gambling technologies and theconsolidation of industry players.

Victoria has not been immune from thesetrends. Over the last two decades wehave witnessed rapid growth in the rangeof gambling products available toVictorian consumers.

When the Government was elected in1999, there were already 30,000 electronicgaming machines across Victoria, a casinoin Melbourne, a wagering and sportsbetting industry and an assortment oflottery and minor gaming products.

Since this time, we have seen theemergence of new gambling products.Online casinos, mobile phone technologiesand other ‘e-gambling’ products are allreshaping Victoria’s gambling industriesand how they provide their services.

A marked consolidation of the industrynationally during this period hassignificantly reduced the number ofoperators as some move into otherproducts or gambling markets in otherjurisdictions, both interstate andoverseas. This consolidation has seen the key operators in Victoria take onlarger roles in the national andinternational gambling markets.

We cannot ignore the fact that Victoria’sgambling industry makes a significantcontribution to the Victorian economy interms of employment, investment andtax revenue.

The gambling industry is a big employerin Victoria. Around 15,000 people areemployed at clubs and hotels withgaming machines, the Melbourne casinoand stand-alone TAB agencies.

The racing industry is an even biggerprovider of jobs. According to a recentstudy, almost 50,000 Victorians aredirectly employed in the racing industryand another 25,000 are employed insupport industries. These 75,000 jobsequate to around 30,000 full-time jobs.The racing industry is a particularlyimportant source of employment inregional and rural communities.

In dollar terms, more than $4 billion isspent on all forms of gambling in Victoriaeach year, representing two per cent ofGross State Product. This generatesaround $1.5 billion in tax revenue for theState, helping to fund vital health andcommunity services.

The racing industry alone is estimated tocontribute more than $2 billion to theVictorian economy each year, or aroundone per cent of the entire economy.Importantly, more than half of thiseconomic value is generated in regionaland rural communities.

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Victoria’s gambling industry

WHAT IS PROBLEMGAMBLING?

The Government uses thefollowing definition developedby Gambling ResearchAustralia and endorsed by theAustralian Ministerial Councilon Gambling:

Problem gambling ischaracterised by difficulties inlimiting money and/or timespent on gambling, whichleads to adverse consequencesfor the gambler, others or forthe community.

In Victoria the gambling industry is legaland enjoyed by many Victorians.

However, the industry is tightly regulatedand the Government’s gambling policy isdeveloped according to clear, unequivocalassumptions. These are that:

1 | Gambling creates external costs tothe community

There is no doubt that some in thecommunity experience significant harmfrom problem gambling and others are atrisk of becoming problem gamblers. Thoseimpacted by problem gambling can includethe gambler’s family and friends. As thisharm results in a significant cost to theVictorian community, it is appropriatethat the Government develops strategiesto combat problem gambling andprovides services to support problemgamblers, their families and friends.

2 | The Government should tax thegambling industry to provide services and other benefits to theVictorian community

The gambling industry is highly profitableand reaps the benefit of operating in atightly regulated market in which thenumber of licensed participants is limited.It is within this context that theGovernment taxes the industry. The taxrevenue raised from gambling should beused to address the harm caused byproblem gambling and to deliver otherbenefits to Victorians such as health,education and other community services.

3 | Gambling products should be fair to consumers

Many people who gamble are unable tojudge whether or not a particulargambling product is fair or whether theywill receive winnings that might be owedto them. For this reason, it is crucial thatgovernment intervenes to ensure fairnessand product integrity.

4 | Gambling can attract corrupt andcriminal involvement

Society and democratic institutions aresignificantly damaged when illegalgambling takes root. The endemiccorruption identified by CommissionerTony Fitzgerald in Queensland was, forexample, partly the result of illegalgambling operators protectingthemselves from prosecution. Having alegal, crime-free gambling industry is thebest way to minimise this real threat.

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Gambling regulation seeks to balance the needs of recreational and problem gamblers.

01ENVIRONMENT

Why dowe need agamblingpolicy?

The regulatory framework for gambling inVictoria specifically authorises certaingambling and makes other forms ofgambling illegal.

The Acts regulating gambling in Victoria are:

• the Gambling Regulation Act 2003

• the Casino Control Act 1991

• the Casino (Management Agreement)Act 1993.

There are also regulations made underthese Acts.

As the main legislative instrument, theGambling Regulation Act aims, amongstother things, to:

• foster responsible gambling in order to minimise the harm caused byproblem gambling

• accommodate those who gamblewithout harming themselves or others.

The Gambling Regulation Act establishesthe independent regulator, the VictorianCommission of Gambling Regulation (VCGR).

It also sets out most of the taxes ongambling activities to be paid by thegambling industry. It establishes theCommunity Support Fund, which fundsproblem gambling services, research andother community services.

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Gambling and the lawINDUSTRY SNAPSHOT

• 15,000 people are employedat clubs and hotels withgaming machines, theMelbourne casino and TAB agencies.

• More than $4 billion is spenton all forms of gambling inVictoria each year.

• $1.5 billion collected in tax revenue is used to fund vital health andcommunity services.

• Around 85 per cent ofgaming machine taxes –about $4.4 billion since 1999– was spent on health and communityprojects across every region in Victoria.

Services for people with gamblingproblems and their families and friendsare provided through an extensivenetwork of community agencies. TheGovernment funds these agencies to provide:

• problem gambling counselling

• financial counselling

• community education

• a 24-hour Gambler’s Help line.

Services are provided in metropolitan,regional and rural locations. Specialistservices are also provided to culturallyand linguistically diverse and Indigenous communities.

Helpingproblemgamblersand theirfamilies

As a popular legal activity, gamblingpresents many challenges for governmentpolicy makers, industry participants andcommunity advocates. These include:

Moral conflict

The community has a wide range of viewsabout gambling and its place in oursociety. Whilst many Victorians enjoygambling, others consider it to be morallyquestionable. The Government recognisesthat gambling occurs in every society andthat the harm caused by criminalisinggambling may be greater than the harmcaused by legalising and regulating it.

Technological change and product convergence

The gambling industry is increasinglytechnologically sophisticated and thepace of technical innovation over the lastthree to five years has been extraordinary.The Government expects the pace ofchange to increase and our laws mustkeep pace with these changes.

Consolidation of the gambling industry

Since 2000, the number of gamblingproviders has more than halved. In thehotel sector, for example, more hotels(particularly those with gaming machines)are now in the hands of hotel groupsthan are owned by individuals.

Big operators have become even bigger.TABCORP, for example, was almostexclusively a Victorian business a decadeago; now it is a company with significantinvestments in most states andinternationally. This consolidation presents

opportunities and challenges for theGovernment as it works to achieve itspolicy objectives.

Relationship between problem gamblingand other critical social problems

Problem gamblers often have otherhealth or lifestyle problems. For example,serious mental illness, depression, anddrug or alcohol abuse may co-exist with agambling problem. Understanding thenature of this relationship is critical tocreating coordinated and responsiveservices for problem gamblers. This is asignificant challenge for both governmentand service providers.

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02KEY CHALLENGES

The aim of the strategy set out in Taking action on problem gambling is to assist Government, industry and thecommunity to respond more effectivelyto the challenges associated withproblem gambling.

Taking action on problem gambling outlinesthe ways in which the Government willaddress the harm caused by problemgambling. The Government’s problemgambling strategies will be informed bythe following guiding principles:

1 | Net community benefit

Policies and strategies to address problemgambling must deliver a net communitybenefit to Victoria. The net benefit to thecommunity will be measured by weighing upboth social and economic considerations.

2 | A whole-of-community approach

The prevention and minimisation of the harm caused by problem gamblingrequires a whole-of-government approach.It also requires the involvement ofindividuals, industry, communities andnot-for-profit organisations.

3 | A long-term approach

Problem gambling cannot be reducedovernight. It is a complex problem thatrequires a long-term investment and a coordinated approach. Problem gamblingtrends, and the effectiveness of strategiesdeveloped in response to those trends,may only emerge over time.

4 | An evidence-based approach

Policies and strategies designed to respondto the harm caused by problem gamblingmust be evidence-based. They should bewell founded and based on objectiveanalysis, research and experience, fromboth local and overseas sources.

5 | A multi-faceted approach

The complex nature of problem gamblingrequires a diverse range of responses thataddress problem gambling from publichealth, social regulation and consumerprotection perspectives.

6 | Cultural relevance

The design and delivery of prevention andharm minimisation strategies must meetthe needs of all Victorians, includingthose from culturally and linguisticallydiverse and Indigenous communities.

7 | Open and informed decisions

Decisions on gambling and strategiesdesigned to respond to the harm causedby problem gambling should be informedand the reasons for decisions should beopen and transparent.

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Problem gambling strategies must deliver a net community benefit.

03GUIDING PRINCIPLES

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04PRIORITIES FOR ACTION

The Victorian Government will act on the following priority areas to reduce

problem gambling and its effects on Victoria.

Each action area contains a number of initiatives. These initiatives build on

the Government’s past successes and will put Victoria at the leading edge of

world efforts to address problem gambling.

The seven priority Action Areas

1 Building better treatment services

2 Ensuring a more socially responsible gambling industry

3 Promoting healthy communities

4 Protecting vulnerable communities

5 Improving consumer protection

6 Enhancing the regulator

7 Fostering gambling research

2001/02-2005/06

20

2006/07-2010/11

40

60

80

$43

$79.

8

SPENDING ON PROBLEM GAMBLING TREATMENT

Problem gamblers and their families andfriends have diverse needs. Providing agambler’s help service system that respondseffectively to those needs is a keychallenge for government.

An effective system should include publichealth measures designed to preventproblem gambling as well as specialistintervention services for thoseexperiencing harm.

What we have done

The Government has a sustained recordof addressing problem gambling throughits problem gambling strategy, whichintegrates service delivery, communityeducation and community partnerships.

The Government has increased fundingfor the problem gambling strategy,spending $87.7 million since 1999.

Over $54 million has been spent onservices to help problem gamblers andtheir families. These funds have provideda comprehensive statewide gambler’shelp services system that comprisesproblem gambling counselling, financialcounselling, local community educationactivities and a 24-hour telephoneinformation and referral service.

More than 22,000 problem gamblersreceived counselling between 2002-03 and2004-05, involving more than 130,000 hoursof counselling.

In 2002, the Government invested anadditional $12 million to improvegambler’s help services through thedelivery of:

• after hours services

• services to culturally and linguisticallydiverse communities

• services to Indigenous Victorians

• the recovery assistance program toprovide material aid and other assistanceto families in gambling related crisis

• better integration of telephonecounselling and face-to-face services

• a gambling resource kit for healthcare professionals

• an online self-help pack for problemgamblers, their families and friends.

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$79.8 million for problem gambling treatment services.

Action Area

Building better treatment services

01

$ millions

GAMBLER’S HELP IN VICTORIA: A SNAPSHOT

• 17 gambler’s help services operate from around 100 locations throughout Victoria.

• More than $400,000 was distributed in material aid and recovery assistance to problem gamblers andtheir families.

• Additional funds were provided to establish specialist statewide services for both culturally andlinguistically diverse and Indigenous communities.

• Gambler’s help services deliver 60,000 hours of counselling and financial counselling a year.

• About 75 per cent of clients live in metropolitan Melbourne and 25 per cent live in regional and rural Victoria.

• About 20 per cent of clients were a friend or family member of a problem gambler.

• Gambler’s help services dealt with over 7,800 clients in 2004-05.

• About half the clients have health or lifestyle issues as well as a gambling problem.

• A statewide network of community educators provides local responses and targets vulnerable communities.

• More than 10,000 calls are received each year by Gambler’s Help Line.

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ACTION AREA 01

What we will do

The gambler’s help service system willcontinue to be based on the followingservice delivery principles:

• services will be spread across Victoriato ensure immediate and equitableaccess for rural, regional andmetropolitan communities

• service hours will cater to all clientneeds, including after hours

• services will, where possible, be co-locatedwith other relevant health and welfareservices to ensure a holistic approachto case management and referral

• a range of services will be provided,including telephone counselling, face-to-face counselling and advice and referral

• services will cater for and be responsiveto the needs of all Victorians, includingthose from culturally and linguisticallydiverse backgrounds, Indigenouscommunities, and isolated communitiessuch as prisoners, youth, older peopleand new migrants

• culturally specific programs will operatealongside mainstream services.

Building better treatment services

The gambler’s help service system willcontinue to be the cornerstone of theGovernment’s response to problemgambling. It will continue to be providedfree of charge to all Victorians.

The Government will provide $79.8 millionfor gambler’s help services over five yearsbetween 2006-07 and 2010-11. This is anoverall increase of $36.8 million comparedto the previous five financial years, anaverage increase of $7.4 million a year.

Funds will be provided as follows:

Enhanced problem gambling treatment services

The Government will provide $53.6 millionover five years for direct counsellingservices across Victoria. This will enhancethe existing 24-hour help line to giveVictorians improved access to telephone-based counselling. It will bring totalcounselling provided to 100,000 hours ayear and provide at least 40,000additional hours of problem gamblingtreatment and support over five years.

As part of this commitment, theGovernment will provide an immediateincrease of $750,000 in funding togambler’s help services to respond to areasof high demand and bolster services in:

• the southern metropolitan region of Melbourne

• the northern metropolitan region of Melbourne

• the Monash local government area.

Online treatment

The Government will provide $500,000 todevelop a new, integrated internet basedsupport service to provide onlinecounselling and self-help tools.

Build on existing after hours capabilities

$2.1 million will be provided over fiveyears to expand after hours gambler’s helpservices. It will support an on-call systemof counsellors to assist venues andproblem gamblers around the clock whenthey need immediate assistance.

Enhanced service model for culturallydiverse and socially isolated people and communities

The Government will provide $500,000 thisfinancial year for the development ofnew services for culturally diverse andsocially isolated communities to addressgaps identified in the current system.

Funding will provide services for:

• recently arrived migrants

• isolated women

• people in the corrections system

• Indigenous communities.

Case management and mobile counselling

The Government will allocate $4.3 millionover five years to improve existing casemanagement and referral systems. Thesechanges will enable a person seekingcounselling to make an appointment to seea gambling counsellor at any time and fromany place in the state. They will also providebetter data and service management.

15

Victoria has a comprehensive statewide gambler’s help services system.

Centre for Excellence in ProblemGambling Treatment

The Government will allocate $4.2 millionover five years to a joint venture betweenthe University of Melbourne and MonashUniversity to create a world-leadingCentre for Excellence in ProblemGambling Treatment. The Centre will:

• conduct cutting-edge research intoproblem gambling treatment approaches

• develop new clinical practices

• train new and existing staff working ingambler’s help services

• establish a postgraduate qualification inproblem gambling treatment

• conduct a sustained epidemiologicalstudy of the various forms of gambling

• provide training on problem gamblingto industry on a commercial basis.

Culturally and linguistically diverse andIndigenous services

The Government is a leader in providingcommunity-specific problem gamblingservices to culturally and linguisticallydiverse and Indigenous communities.Over five years, $4.9 million will beinvested in maintaining and enhancingthese services.

Community support trial

The Government will provide $300,000 fora pilot program to provide a wider rangeof sentencing options for problemgamblers who come into contact with thecriminal justice system. The program willensure that problem gamblers and thosemost affected by their problem gamblinghave the best chance of reconciliation and remediation.

Enhanced support for affected families

The Government will create a newprogram focussed on the families ofproblem gamblers who face severehardship as a consequence of theproblem gambler’s behaviour. This newFamilies Support Program will include theold Recovery Assistance Program. It willreceive $4.8 million over five years toprovide material aid to problem gamblersand their families.

Program management and development

The Government will invest $4.2 millionover five years to manage the Government’sproblem gambling services program. Withinthis, $3.8 million will be provided over fouryears from 2007-08 to develop a ProblemGambling Program Management Unit. Theunit will ensure problem gambling servicesremain efficient and effective and thattaxpayers receive value for money.

System reform and data transparency

The Government will provide funding of$350,000 this financial year to improvedata on the use of problem gambler’shelp services by:

• producing client profile and data reportsfor the period since 2002-03 (lastpublished data available)

• improving the existing data collection system.

16

$4.9 million towards services for culturally and linguistically diverse and Indigenous communities.

ACTION AREA 01

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“...counselling has been a great personal breakthrough. I am becoming awareof what caused my gambling to get out of control in the first place.”

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Putting thepieces backtogether:a problemgambler’sstory

A year ago the only relationship in Kate’slife was the all-consuming one with apoker machine at her favourite club.

In the six months that followed until shepicked up a phone to get help, the rest ofher life simply fell away.

The intensity of the relationship plungedKate into turmoil. By her own admission,Kate was in a dark pit and unable tocontrol her gambling or her life.

Fear, panic, guilt, shame and depressionfollowed each lengthy session at the pokies.

“I started gambling because it seemed to give some release from the stress and anxiety in my life. I had paid off myhouse and I had money to spare. But it very quickly went from me wantingentertainment after work to looking to gamble.

“I would be thinking about it all the timeat work. I just couldn’t wait to get there.If I could, I would be there every day 24 hours a day.”

She kept her relationship with the pokermachines a deep secret.

A decision to return to study part-timewas the lifeline Kate threw herself.

“Everything I valued had beenundermined. I wanted this to stop and,one particularly black day, I calledGambler’s Help Line, looking for a quickanswer to my problems.

“Making the call wasn’t so hard because Iwas talking to someone in confidenceand they understood. Discovering thatthere was no magic pill that would makeeverything right for me was hard.”

Kate began regular counselling withGambler’s Help and over 12 months hasbeen able to put the pieces of her life backtogether “just as if they were a puzzle”.

“Counselling is the long-term solution.You can get help with techniques to limityour gambling when it is out of control.But, for me, counselling has been a greatpersonal breakthrough. I am becomingaware of what caused my gambling to getout of control in the first place.”

Kate is still in counselling and herinfrequent visits with friends to thepokies now fit the category ofresponsible gambling.

ACTION AREA 01

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Minimising the harm caused by problemgambling requires the active involvementof the gambling industry.

Whilst government is responsible for the regulatory framework – including the licensing and monitoring of industry participants – industry must do more than simply comply with itslegal obligations. The industry has aresponsibility to ensure that consumersunderstand the risks of excessivegambling and that gambling environmentsencourage responsible gambling.

What we have done

The Government has encouraged a moreresponsible gambling industry by:

• establishing the Responsible GamblingMinisterial Advisory Council to engageindustry participants in the debatesurrounding problem gambling

• making training in the responsibleservice of gambling compulsory for allstaff employed in the gaming machinearea of a gaming venue or theMelbourne casino

• supporting the staging of ResponsibleGambling Awareness Week.

What we will do

An industry code of conduct

The Government is continuing to work withindustry and community advocates ongambling to develop a single code ofconduct for the Victorian gambling industry.

The Government has given the ResponsibleGambling Ministerial Advisory Councilthe task of developing this industry code.

The Council will finalise the code by theend of 2006 and the Government willwork with all parties to implement itduring 2007.

The code will be supported by anenforcement system that will rewardoperators that adhere to the code whilepenalising those who fail to ensureresponsible gambling practices.

Responsibility for monitoring and enforcingthe code will be given to the independentregulator, the Victorian Commission forGambling Regulation (VCGR).

The VCGR will be required to establish acode of conduct education andcompliance unit to implement andmonitor the new code. This unit will alsobe responsible for educating thegambling industry about the code andhelping to implement the code inindividual gambling businesses.

20

Tackling problem gambling requires the active involvement of the gambling industry.

Ensuring a more sociallyresponsiblegambling industry

02Action Area

Working together to combat problemgambling: the Responsible GamblingMinisterial Advisory Council

• The Council was established to provide adviceto the Government, through the Minister forGaming, on responsible gambling.

• Its first meeting was held on 18 January 2005.

• The Council has 18 members from diversebackgrounds including the gambling industryand community advocacy groups.

• The Council and its working groups have met 75 times to date.

• Key achievements to date include:

- recommendations for gaming venue staff training

- advancing an industry code of conduct

- supporting the establishment of ResponsibleGambling Awareness Week

- contributing to a review of gaming machineplayer information materials

- developing principles to help improve self-exclusion programs

- developing a new Victorian GamblingResearch Agenda.

21

What the industry code will cover:

• provision of information to consumers aboutproblem gambling and help services

• how venue staff interact with customers andthe community

• information about self-exclusion procedures

• designing and managing venues to promoteresponsible gambling

• policies about financial transactions with customers

• encouraging advertising and promotions thatpromote responsible gambling messages.

Gamble responsibly. Stay in Control. Responsible Gambling Awareness Week

• Responsible Gambling Awareness Week is a partnership between government, industry and communitygroups.

• Its key objective was to raise community awareness of the importance of responsible gambling at apersonal, community and venue level.

• The key theme was “Gamble Responsibly. Stay in Control.” – to highlight to recreational gamblers thatwhen they gamble they should do so responsibly and stay in control.

• Clubs, hotels, community centres, gambling venues, sporting facilities and church centres promotedresponsible gambling to their patrons and visitors.

• Posters, brochures, tent cards and coasters were displayed and made available at gambling and gaminglocations around the state, including hotels, clubs, TAB and Tattslotto outlets, the Melbourne casinoand community centres.

• Awareness and education campaigns were held for staff in gaming venues throughout the week.

• Activities coincided with the Think of What You’re Really Gambling With campaign, which involvedextensive television, radio and press exposure.

22

ACTION AREA 02

Strengthen the industry self-exclusion program

The Government will provide $2.6 millionover five years to gambler’s help agencies totrain staff to attend self-exclusion interviewsand assist in the management, monitoringand ongoing support of people choosingto self-exclude from gaming venues.

The program is a partnership betweengambler’s help agencies and the membersof the Victorian Gaming MachineIndustry. A pilot program has alreadybegun and full implementation of theprogram will progress during 2006-07.

The Government will immediately provideadditional funds for two self-exclusionofficers for rural and regional Victoria inan enhanced self-exclusion pilot. Fundswill also be provided for an externalevaluation of the pilot project, to be ledby a prominent gambling researcher.

The Government will work with thegambling industry to improve the systemof self-exclusions so that people enteringgaming venues are more likely to bedetected and receive better supportduring the course of their exclusion.

The Government and industry will alsowork to make statewide exclusions moreeffective for consumers who wish toexclude themselves from all gamingvenues across the state.

Resourcing the Responsible GamblingMinisterial Advisory Council

The Government will provide $1.2 millionto resource the Responsible GamblingMinisterial Advisory Council to continueits advisory role to the Government onresponsible gambling issues.

23

The Government will work with the gaming industry to improve the system of self-exclusion.

Promoting healthycommunities

03Action Area Encouraging more responsible gambling

behaviour across the community is animportant complement to providingeffective gambler’s help services.

To promote healthy communities, we firstneed to enable communities to identifythe risks of problem gambling and equipthem to take action to mitigate problemgambling behaviour in its early stages.

Policies and strategies therefore need totarget both individuals who have a problemwith gambling and the broader community.

What we have done

Communication strategy

The Government has committed anestimated $19.5 million to the ProblemGambling Communication Strategysince 2000.

The Think of What You’re Really GamblingWith advertising campaign has been thecornerstone of the strategy. The campaignhas increased awareness of the risksassociated with problem gambling in theVictorian community, with awareness ofthe advertising campaign peaking at 96 per cent and awareness of the tagThink of What You’re Really GamblingWith peaking at 88 per cent.

In October 2005, the Governmentlaunched the Questions campaign, settinga new direction that significantlybroadened the scope and focus of thecampaign messages to include earlyintervention, risk awareness andconsumer protection strategies.

There is a clear correlation betweencampaign activity and an increase in callsand referrals to the Gambler’s Help Lineand counselling services.

Key achievements of the communicationstrategy include:

• creating and promoting Gambler’s Helpas a single ‘brand’ for problem gambling services

• implementing four phases of the Thinkof What You’re Really Gambling Withadvertising campaign which reached 96 per cent awareness amongst theVictorian public

• producing a diverse range ofinformation materials for peopleaffected directly and indirectly byproblem gambling

• providing information about problemgambling in gaming venues

• supporting Responsible GamblingAwareness Week in 2006 toraise awareness of responsible gambling practices

• developing learning materials for at riskyouth and a school resource kit to assistschool communities when problemgambling becomes an issue.

Community partnerships

The Government’s Problem GamblingCommunity Partnership Strategy aims tobring together people and organisationsto improve understanding of problemgambling issues and risks and to assistthem in helping individuals and theirfamilies affected by problem gambling.

The strategy also aims to reduce theshame and stigma associated with

24

Bringing people and organisations together to improve understanding of problem gambling.

25

Partnerships: some examples of how we are working with communities to combat problem gambling

CPA Australia partnership

The Government has worked in partnership with CPA Australia since 2004 to help the organisation andits members become leading advocates on problem gambling issues in the workplace. By raisingawareness of the emotional and financial impacts of problem gambling amongst chartered practisingaccountants, these professional advisers are better equipped to encourage employers to be moreproactive on the issue within the workplace.

Essendon Football Club partnership

The Government has joined forces with Essendon Football Club to promote responsible gambling andraise awareness of the impacts of problem gambling among club members, supporters and the broadercommunity. The partnership has a particular focus on educating young people on the risks associatedwith gambling.

Carlton Neighbourhood Learning Centre partnership

The Government provided a grant to Carlton Neighbourhood Learning Centre to work with local youngpeople at risk of developing gambling problems. The 12-month project incorporated education on riskybehaviours such as gambling into their existing English literacy programs, youth groups, camps andmentoring programs for Horn of Africa men and young people from non-English speaking backgrounds.

Incolink partnership

The Government formed a partnership with Incolink, a joint enterprise of employer associations andunions that supports workers in the building industry, to address gambling issues in the industry. Researchconducted amongst 272 apprentices revealed that gambling was an issue for this group. The partnershipproduced a DVD and information kit for use in the apprenticeship training environment. The kit includesinformation on how to identify problem gambling and where to go for advice and support.

problem gambling by emphasising theability of individuals and the communityto address problem gambling and todiscuss its impacts.

Under the strategy, the Government workswith a broad range of community-basedorganisations to:

• target gamblers who are at risk

• encourage people to adoptpreventative measures so that gamblingproblems do not develop or escalate

• promote the counselling and supportservices available, and how easy they areto access before gambling triggers a crisis

• foster community discussion onproblem gambling.

The Government has provided $2.9 millionto 60 diverse community organisations,including the Women’s Information and Referral Exchange and the ChineseHealth Foundation of Australia, to buildcommunity knowledge of, and resilienceto, problem gambling.

Community advocacy

In January 2006, the Governmentannounced funding to establish theCommunity Advocacy for ResponsibleGambling project to be run byCommunity Action on Pokie Problemswith support from the Victorian LocalGovernance Association.

The project is an exciting step forward inadvocacy on responsible gambling inVictoria. It aims to enhance localcommunity and council participation inthe debate on gambling and their capacityto inform policy development in this area.

What we will do

Building on successes

The Government will commit $37.5 millionto further develop the Problem GamblingCommunity Awareness and EducationStrategy between 2006-07 and 2010-11.

The strategy seeks to change attitudes andaddress high-risk behaviours associatedwith problem gambling and is based on:

• early intervention and prevention inrelation to problem gambling

• promotion of available help andsupport services

• building community resilience, trust and networks

• risk awareness and consumer protection.

These themes are incorporated into thefive initiatives below.

Statewide community education andawareness campaigns

The Government will invest $24 millionover five years in a statewide communityeducation and awareness campaign.Future campaigns will seek to raisecommunity awareness of the importanceof responsible gambling practice at thepersonal, community and venue levels,and of the risks associated with newforms of gambling such as internetgambling and telephone gambling.

Within this, the Government will spend$6.3 million in 2006-07 on the Questions –Think of What You’re Really GamblingWith advertising campaign, ResponsibleGambling Awareness Week 2007, in-venue

advertising and a partnership with RadioSport 927.

Community education and health promotion

The Government will provide $580,000this financial year to improve communityaccess to information.

Funding will be provided to coordinateand develop:

• information and service promotion materials

• community education initiatives.

This will include funding for a centrallylocated community education liaisonofficer, who will act as a conduit forcommunity education activities, and forthe production of community educationand promotional materials.

The Government will also provide fundingfor the production and distribution ofthe Self Assessment Problem GamblingScreen. This pamphlet contains a series ofquestions that indicate whether a personmay have a problem with gambling. It willbe distributed to the community viadoctors’ surgeries, community healthcentres, pubs and clubs.

Local community education, services,marketing and promotion activities

The Government will provide $5 millionover five years to deliver communityeducation activities in local communitiesacross Victoria.

26

$24 million to raise community awareness of the importance of responsiblegambling practices.

ACTION AREA 03

Local campaigns, based on the needs of communities, will be developed toimprove community resilience to thedevelopment of problem gambling. Thesecampaigns will deal with all stages ofproblem gambling from prevention andearly intervention through to referral tolocal services for counselling and support.

School-based learning programs

The Government will commit $1.4 millionover five years for the development ofschool-based learning programs thatbuild on the work already undertakenover the past two years.

The programs will raise awareness withinschool communities of problem gamblingand its impacts, and enhance the healthand social well being of students affectedor potentially affected by gambling.

Strategies will also be designed to reach young people disengaged frommainstream schools.

Partnerships

The Government will invest $4.6 millionover five years to build on the workalready undertaken through thecommunity partnerships strategy.

Building community advocacy ongambling issues

The Government will provide an additional$2 million over five years for communityadvocacy for responsible gambling toensure that there is a strong and viablecommunity voice on gambling issues.

27

Some communities are more at risk than others from the harm caused byproblem gambling.

In Victoria, there is a significantconcentration of gaming machines in areasof high socio-economic disadvantage.These communities are particularly at riskfrom the harm associated with problemgambling and often have multipleindicators of disadvantage, including;

• low levels of workforce participationand income

• lower educational and literacy levels

• public health risks associated with ahigher incidence of smoking andalcohol abuse.

The Government is committed toeffectively managing the distribution ofgaming opportunities to better protectthe communities most at risk fromproblem gambling.

What we have done

The Government first introduced regionalcaps on gaming machines in 2001 toprotect vulnerable regions in Victoria fromhigh concentrations of gaming machines.

Regional caps seek to limit access togambling opportunities in vulnerablecommunities. Research suggests asignificant connection between greateraccessibility – particularly to gamingmachines – and an increased prevalenceof problem gambling.

Communities that are identified as more vulnerable to the harm caused byproblem gambling may have a combination

of risk factors, such as being highlydisadvantaged, having access to significantnumbers of gaming machines and higherthan average spending on machines.

The five regions capped under the 2001 regional caps policy are:

• Maribyrnong Plus (incorporating theCity of Maribyrnong and parts of thecities of Brimbank, Hobsons Bay and Melbourne)

• Darebin Plus (incorporating the City of Darebin and parts of the cities ofWhittlesea, Hume, Moreland and Banyule)

• Greater Dandenong Plus (incorporatingthe City of Greater Dandenong andparts of the cities of Monash and Casey)

• Bass Coast Shire

• City of Latrobe.

The caps impose a limit on the numberof gaming machines that can be locatedin a capped region. Any gaming machinesin excess of this level were removed from the region at the direction of theVictorian Commission for GamblingRegulation (VCGR).

The regional caps have stopped thegrowth of gaming machines in some ofVictoria’s most vulnerable communitiesand seen the removal of 406 gamingmachines from these regions.

In the period 2000-01 to 2003-04, totalgaming machine spending in the fivecapped areas fell 5.4 per cent, comparedwith a statewide decline of 3.2 per cent.

The Government has since consultedwidely with the community on regionalcaps through the Regional Electronic

28

Better protection for communities most at risk.

Protectingvulnerablecommunities

04Action Area

Gaming machines in Victoria: the facts

• A maximum of 27,500 gaming machines are permitted to operatein Victoria outside the Melbourne casino.

• At 30 June 2006, 27,147 gaming machines were located in 521 venues.

• There are currently 6.92 gaming machines per thousand adults in Victoria.

• Victoria has the lowest density of gaming machines of any stateor territory in Australia, apart from Western Australia which hasno EGMs outside the casino*.

• Victoria’s density of gaming machines is almost one third that ofNSW and almost half that of QLD and SA.

• 248 hotels have gaming machines, which equates to just 13 per centof total licensed hotels in Victoria (1,963).

• 272, or just 13 per cent of the 2,117 licensed clubs in Victoriaoperate gaming machines.

• Growth in spending on gaming machines has declined to anaverage annual rate of 1.9 per cent over the past three years,compared with 16 per cent in the three years to 1999.

• Spending is now $3 billion lower than it would have been hadspending continued to grow at 16 per cent.

• Around $1 billion was collected in gaming machine taxes in 2005-06.

• Gambling taxes comprised 7.1 per cent of all governmentrevenues in 1998-99. In 2006-07, gambling taxes will contributejust 4.8 per cent.

• Around 85 per cent of the Government’s gaming machine taxes– or $4.4 billion in the six years to 2005-06 – were allocated tohealth and community projects across every region in Victoria.

* Australian Gambling Statistics

Gaming Machine Caps Review Panel. The Panel found that the Government’sregional caps policy was an importantcomponent of its ongoing problemgambling strategy.

A separate Supplement on theGovernment’s response to the Panel’srecommendations has been produced inassociation with this strategy.

What we will do

New regional caps

The Government committed to doublethe number of capped regions andextend the boundaries of the existingmetropolitan capped regions in 2002.

The Government will implement thiscommitment and cap gaming machinenumbers in more communities at risk fromthe harm caused by problem gambling.Nineteen regions across metropolitan andregional Victoria will be capped, increasingthe number of local government areascovered by regional caps from 14 to 20.

The maximum number of gamingmachines permitted in capped regionswill be 10 machines per thousand adults.

The Government will also freeze thedensity of gaming machines in cappedregions that currently have below 10 machines per thousand adults at their current density level to preventfurther growth of gaming machines in these communities.

29

BENALLA

TOWONG

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SWAN HILL

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REGIONAL CAPPED AREAS

REGIONAL CAPPED AREAS

Capped Areas.................

BENALLA

TOWONG

INDIGO

WANGARATTA

STRATHBOGIE

GREATERSHEPPARTON

ALPINE

EAST GIPPSLAND

WELLINGTON

LATROBE

BASS COAST

SOUTH GIPPSLAND

BAW BAW

MANSFIELD

MOIRA

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CARDINIAGREATERGEELONG

QUEENSCLIFFE

HEPBURN

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LLAR

AT

GOLDEN PLAINS

GANNAWARRA

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NORTHERNGRAMPIANS

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CORANGAMITE

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G

SWAN HILL

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BULOKE

H RSHAM

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0 100 200kilometres

50 150

g/7000-2

Port Philip

10 20

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0kilometers

Capped Areas............................

HUME

WHITTLESEA

BRIMBANK

DAREBIN

BANYULE

MORELAND

MONASH

GREATER

DANDENONG

CASEY

MARIBYRNONG

MELBOURNE

MOONEE VALLEY

HOBSONS BAY

NILLUMBIK

MANNINGHAM

WHITEHORSE

KNOX

FRANKSTON

KINGSTON

WYNDHAM

MELTON

BOROONDARA

STONNINGTON

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GLEN EIRA

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CARDINIA

YARRA RANGES

MAROONDAH

MURRINDINDI

MITCHELL

MACEDON RANGES

The new capped regions

• Ballarat

• Banyule (partially capped)

• Bass Coast

• Brimbank (partially capped)

• Casey (partially capped)

• Darebin

• Greater Dandenong

• Greater Geelong (including the Borough of Queenscliffe)

• Greater Shepparton

• Hobsons Bay

• Hume (partially capped)

• Latrobe

• Maribyrnong

• Melbourne (partially capped)

• Monash (partially capped)

• Moonee Valley

• Moreland (partially capped)

• Warrnambool

• Whittlesea (partially capped)

An estimated 540 gaming machines willbe removed from capped regions underthe new policy. They will be available forrelocation to other local governmentareas subject to the normal applicationand approval processes of the VCGR.

All excess gaming machines in the cappedregions will be removed over the next 12 months.

Setting a maximum density for localgovernment areas

By 2010, the maximum density of gamingmachines for all other local government

areas (with the exception of the centralbusiness district, Southbank and Docklandsin the City of Melbourne), will be set at10 gaming machines per thousand adults,with areas below 10 gaming machines perthousand adults able to increase machinenumbers up to the maximum density.

Local government areas with a densityabove 10 will have excess gamingmachines removed. It is expected thatthe local government areas of CentralGoldfields, East Gippsland and Wellingtonwill have gaming machines reduced byabout 40 machines in total across allthree local government areas based oncurrent density and population figures.

30

ACTION AREA 04

Protecting local government areas from high concentrations of gaming machines.

VICTORIA

METROPOLITAN CAPPED AREASREGIONAL CAPPED AREAS

31

The maximum density will prevent highconcentrations of gaming machinesoccurring in local government areas inthe future.

The density will be regulated by the VCGR.

Destination gaming zone

The tourism and destination gaming zonecomprising the central business district,Southbank and Docklands precincts inthe City of Melbourne will be maintainedand will be exempt from the maximumdensity for local government areas.

Destination gaming venues

In response to community and industrysupport for destination style gamingvenues, the Government will examinedestination gaming arrangements.

Destination gaming is a style of gamingvenue that encourages pre-determineddecisions to gamble.

Findings in a number of research reportssuggest that less gaming venues mightreduce problem gambling by making itless likely that problem gamblers willattend venues on impulse alone.

The Regional Electronic Gaming MachineCaps Review Panel also recommendedthat the Government examine options torestructure the gaming industry in a waythat makes gaming venues less accessibleto vulnerable communities, shiftingtowards more destination gaming venues,such as racetracks, and resulting in fewervenues across Victoria.

The Government will investigate whetherdestination style gaming will deliver a

net community benefit to Victoria. Theinvestigation will examine the suitabilityof gaming venues at racetracks todestination style gaming and will look at a broad range of issues, including:

• ownership and control

• location and size (i.e. away fromshopping centres, residential areas etc.)

• other entertainment and leisurefacilities that should also be available at the venue

• a reduction in the number of gaming venues

• compliance and responsible gamblingcontrols and conditions.

It will be a medium-term project based onobjective analysis, research and experiencelocally and from other jurisdictions.

The Government will release a discussionpaper and consult broadly with theindustry and the community regardingdestination gaming proposals.

If the investigation indicates thatdestination gaming is likely to deliver anet community benefit to Victoria, theGovernment will trial destination gamingarrangements at a limited number ofvenues selected following industry andcommunity consultation.

Giving greater control to local councils

The Government will give local councilsgreater say in the placement of gamingmachines in their communities. Changesto the Victoria Planning Provisions meanthat a council planning permit will berequired for any new gaming venue or forany increase in the number of gamingmachines at an existing venue.

Some gambling products have inherentrisks. The Government believes thatconsumers must be able to make aninformed choice to use these productsand take personal responsibility for the consequences.

However, it must also be recognised thatthese choices often have a significantimpact on individuals, their families and friends. For this reason, safety netsare required.

There is strong evidence that the featuresof some gambling products make theminherently more risky than others.Consumer protection measures aretherefore needed to:

• provide information to consumers thatreinforces their ability to makeinformed gambling decisions

• limit gambling product designs thathave been shown to be unsafe.

The Government is also mindful of howsuch measures impact on the gamblingconsumer’s right to engage freely in alegitimate recreational activity.

What we have done

The Government has a substantial trackrecord in consumer protection and leadsthe nation in adopting balanced measuresthat protect gambling consumers andcreate safer gambling products. Thesemeasures include:

• requiring electronic gaming machines todisplay information about the odds ofwinning and the amount of time andmoney spent by the player

• requiring clocks to be displayed on allgaming machines

• setting a maximum bet limit of $10 onall gaming machines*

• banning gaming machines accepting$100 bank notes*

• capping ‘spin rates’*

• banning autoplay facilities on gaming machines

• banning 24 hour gaming venues otherthan the Melbourne casino

• banning gaming machine advertising and restricting signage.

What we will do

Limiting access to ATMs and EFTPOS

By 2010, the Government will require the removal of any automatic tellermachine (ATM) in a gaming venue, orwithin 50 metres of an entrance to theMelbourne casino gaming floor, that doesnot limit the amount that a customer canwithdraw to $400 in total per day.

The Government will also work with thegaming industry to implement pertransaction and per customer limits oncash advances via EFTPOS facilities.

These measures are designed to provide asafety net for those consumers whoengage in episodic or ‘binge gambling’.

The measures reflect research conductedby the Australian National UniversityCentre for Gambling Studies in 2004which concluded that a daily limit on theamount that can be withdrawn from ATMswould be a more effective strategy thanthe removal of ATMs from gaming venues.

* does not apply to gaming machines exempted until2008 and to certain gaming machines in theMelbourne casino

32

Problem gambling has declined from 2.14 per cent in 1999 to 1.12 per cent in 2003.

Improvingconsumerprotection

05Action Area

33

Gaming machines: did you know?

By law in Victoria a gaming machine must:

• display instructions that are clear and unambiguous

• have an interval between spins of at least 2.14 seconds*

• use meters that display player entitlements (i.e. credit, bet, win)simultaneously in both dollars and cents and in credits

• clearly display the time of day on the machine

• not give the impression to players that their skill can influencethe outcome of the game or improve their odds of winning

• not contain artwork that is indecent or offensive

• not suggest that playing the game is likely to improve a person’ssocial status, make them more attractive to others or result infinancial betterment

• not contain artwork or a game name that is factually incorrect,misleading or deceptive

• not describe money spent playing the game as an ‘investment’

• not suggest that a person’s chances of winning a prize areinfluenced by the length of time that they play the machine

• not allow a bet per spin above $10*

• not accept $100 notes*.

* does not apply to gaming machines exempted until 2008 and to certain gaming machines in the Melbourne casino

Gaming venues: then and now

• In 1999 there were 133 venueslicensed to operate 24 hours aday. Today, there are no suchvenues other than theMelbourne casino.

• In 1999 a person could walk intoa venue, withdraw $1000 in$100 notes from an ATM, feedthem straight into a machine,bet as much per spin as themachine’s capacity would allowand stay there all day and nightwithout a break.

• Now a person has to leave thegaming area to access an ATM,can withdraw no more than$200 at a time, cannot feed$100 notes into a machine,cannot bet more than $10 perspin, needs to leave the gamingarea if they want a cigaretteand has to stop gambling whenthe gaming room closes asthere are no longer any 24 hourgaming venues outside theMelbourne casino.

• Research shows that theprevalence of problem gamblingin the Victorian population hasdeclined from 2.14 per cent in1999 to 1.12* per cent in 2003.

* 2003 Victorian Longitudinal Community AttitudesSurvey, Centre for Gambling Research, AustralianNational University

Halving maximum bet limits

The Government will reduce themaximum bet on gaming machines from$10 to $5. This limit will apply to allmachines outside of the Melbournecasino.

Prohibiting products or practices thatencourage risky behaviours

The Government will give the VictorianCommission for Gambling Regulation(VCGR) the power to prohibit a productor practice that encourages consumers toengage in behaviours associated withproblem gambling.

For example, the VCGR may issue adirection banning electronic gamingmachine tournaments that offer prizes to the person who accumulates the most credits during the course of thetournament. This is because thesetournaments may encourage consumersto engage in extended and uninterruptedperiods of play inconsistent withresponsible gambling practice.

The VCGR’s power will apply to allgambling types regulated by theGambling Regulation Act 2003 includingelectronic gaming machines, wagering,lotteries, trade promotions andcommunity and charitable gaming.

Ban new products inconsistent with this strategy

The Minister for Gaming will be givennew powers to ban any gambling productthat is designed to explicitly avoid orundermine any aspect of theGovernment’s responsible gamblingpolicy or legislation.

Reducing the maximum starting creditsby 90 per cent

The Government will reduce the maximumamount that a player can put into a gamingmachine at the start of play by 90 per centfrom $9,949 to $1,000.*

There is evidence to suggest that thecurrent maximum far exceeds an averageplayer’s requirement.

Requirement for payment of winnings by cheque

The Government will require all winningson a non-casino gaming machine above$1,000 to be paid entirely by cheque. Thiswill stop winnings over $1,000 being paidpartly by cheque and partly in cash, withthe latter at risk of being reinvestedimmediately in a gaming machine.

34

The maximum bet on gaming machines will be reduced from $10 to $5.

ACTION AREA 05

*Other than a machine located in the Melbourne casino

35

Access to cash in gaming venues

Recent research shows that:

• there is limited evidence to support the removal of ATMs from gaming venues*

• a daily limit on the amount that can be withdrawn from ATMs would be a more effective andacceptable strategy*

• regular and problem gamblers tend to access ATMs at gaming venues more frequently than dorecreational and non-gamblers*

• access to cash is a “common trigger” to overspend limits #

• moderate-risk and problem gamblers make significantly more withdrawals from an ATM than non-problem or low-risk players^

• both gaming machine players and venue managers regard the proposal to further reduce ATMwithdrawal limits – and to limit withdrawals to one transaction per day – as potentially effectivemeasures to mitigate problem gambling^

• most gaming machine players access an ATM at least once during a gambling session^

• gaming venue managers agree that venue-based ATM users are most likely to spend their withdrawalson playing gaming machines^

• there is insufficient evidence to support a complete prohibition on electronic cash withdrawalfacilities in gaming venues.~

^ 2005, Evaluation of Electronic Gaming Machine Harm Minimisation Measures Final Report, commission by the Gambling Research Panel* 2004, The use of ATMs in ACT Gaming Venues: an empirical study, Centre for Gambling Research, Australian National University# 2006, Analysis of Gambler Pre Commitment Behaviour, commissioned by Gambling Research Australia.~2004, Gambling: Promoting a culture of responsibility, Final Report, Independent Pricing and Regulatory Tribunal

An independent regulator with the rightpowers and resources is vital for ensuringthe risks associated with gambling are minimised.

Regulation of the gambling industry inVictoria is the responsibility of theVictorian Commission for GamblingRegulation (VCGR). The VCGR:

• licences and ensures the probity ofindustry participants

• approves new gambling products, gamesand rules for games

• issues permits authorising certaingambling activities

• carries out inspections to ensurecompliance with the law

• conducts investigations

• prosecutes offences and takes disciplinaryaction for regulatory breaches

• advises the Minister for Gaming oncommunity concerns about the socialand economic impact of gambling.

What we have done

The Government has:

• simplified the regulatory framework byconsolidating eight different gamblingActs into one to create the GamblingRegulation Act 2003

• created the new independent regulator,the VCGR

• given the VCGR improved powers formonitoring compliance with the lawand expanded the enforcement actionsavailable to the VCGR to include theright to issue infringement notices forcertain offences

• improved the capacity of the VCGR toexchange information with other lawenforcement agencies

• strengthened the VCGR’s capacity toprosecute illegal betting offences.

What we will do

Matters for consideration in gamingmachine applications

The Government will require that theVCGR consider a broader range of matterswhen determining an application for anew gaming venue or to increase thenumber of machines in an existing venue.

The Government will review the scope ofmatters for VCGR consideration inconsultation with industry, local councils,the community and the ResponsibleGambling Ministerial Advisory Council.

36

An independent regulator is vital for ensuring the risks associated withgambling are minimised.

Enhancing theregulator

06Action Area

The review will consider the breadth ofexisting matters the VCGR must considerand the evidence that an applicant mustprovide in support of an application, aswell as the role that local councils andother interested parties should play inthe decision-making process.

Implementation of industry code of conduct

The Government will provide $4 millionto enable the VCGR to monitorcompliance with the gambling industrycode of conduct and support theindustry in implementing the code.

37

Protecting Victorians: The Victorian Commission for Gambling Regulation

In 2005-06 the VCGR:

• conducted 677 investigations

• prosecuted 10 offences in the Magistrates’ Court

• took disciplinary action against 114 industry participants

• conducted 3,081 inspections and audits

• supervised 990 lottery draws

• investigated 49 gaming venue consumer complaints

• approved 409 modifications to gaming machine areas of gaming venues

• investigated 72 consumer complaints relating to the conduct of gaming in the Melbourne casino

• determined eight appeals against exclusion orders issued by theMelbourne casino

• considered seven applications for new gaming venues and 14 applications for an increase in gaming machines at existing venues

• approved 34 amendments to the rules of the games that can be played in the Melbourne casino

• held 86 meetings

• held 53 inquiries and hearings.

Sound research is critical to thedevelopment of policies and actions that respond to the harm caused byproblem gambling. The Government’sapproach is to strengthen and better linkgambling research to gambling policydevelopment to ensure policies arerelevant, evidence-based and effective.

The Government’s research andevaluation program will:

• create a better understanding ofproblem gambling and how people,products and environments interact

• identify policies that might be moreeffective and what might go wrong

• enhance the capability of the universitysector to undertake high qualitygambling-related research

• begin to build an integrated knowledgebase on how gambling and problemgambling sit in the broader social andcultural context.

What we have done

The Government has established theVictorian Gambling Research Agenda toaddress critical gaps in researchknowledge including: accessibility, youthgambling, effective treatments, emergingtechnologies, gambling and depression,and early interventions.

The agenda was developed and endorsedby the gaming industry, communityadvocates on gambling and localgovernments through the ResponsibleGambling Ministerial Advisory Council. It was also informed by leading Australianindependent gambling researchers.

A key aim of the research agenda is tocommission research that investigates:

• the nature and extent of gamblingactivities in Victoria

• effective measures to maximise thehealth and wellbeing of individuals andcommunities while seeking to minimisethe harm that may be related to gambling.

All problem gambling researchcommissioned by the Government is now subject to a thorough peer review process to ensure it is rigorous.

In June 2006, the Government initiatedthe Submission Based Grants System forGambling Research 2006 Pilot, focusingon accessibility as a priority area in theresearch agenda. The grants system aimsto re-invigorate gambling research byencouraging participation and input froma range of disciplines.

The Government has also supportedGambling Research Australia and thenational gambling research program throughthe provision of secretariat leadership.

Since 2000-01 the Government hasprovided over $2.3 million for gamblingrelated research across 17 projects, whichare publicly available on the websitewww.justice.vic.gov.au

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$7.2 million towards gambling research.

Fosteringgambling research

07Action Area

What we will do

The Government will invest $7.2 millionover five years on gambling research.

The funding will see the Governmentcontinue to lead the way in independentgambling research initiatives and willsignificantly contribute to a betterunderstanding of problem gambling andhow to help problem gamblers.

The research will be consistent with theVictorian Gambling Research Agenda.

Longitudinal Epidemiological Study

The Government will invest $1 million in asustained epidemiological study of thevarious forms of gambling available inVictoria to better understand howproblem gambling develops.

The study will enable the tracking ofspecified population groups includingwomen, culturally and linguistically diversecommunities, at-risk gamblers and problemgamblers, and will be the first Victorianstudy to gather information on how theproblem gambling population is changing.

Ongoing funds for independent research

The Government will provide $3 millionover five years to the IndependentGambling Research Grants Program,enabling it to oversee and steer theresearch process, while encouragingrelevant investigator-initiated research andfacilitating collaboration from researcherslocated at different universities.

Continued support of Gambling Research Australia

The Government will continue to supportnational gambling research arrangements byproviding funding of $1.2 million over fiveyears towards research secretariat services.

Through this role, Victoria is the maindriver of the national research agenda,developing research proposals and ideas for consideration by GamblingResearch Australia and managing research projects undertaken.

Research on emerging and strategic issues

The Government will provide $2 millionto invest in research on emerging andstrategic gambling issues to encouragewell-informed, evidence-based debate on these issues, and inform Governmentconsideration of regulatory and policyissues that arise.

Maintain a close connection betweenpolicy and the research agenda

The Government is committed tomaintaining a close connection betweenpolicy and research by retaining the roleof the Responsible Gambling MinisterialAdvisory Council in informing futureresearch agendas.

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Informing the debate: keyresearch themes of theVictorian Research Agenda

• Accessibility to gambling products

• Youth gambling

• Effective treatments

• Emerging technologies

• Gambling and depression

• Early interventions

The Government is committed tomonitoring and reporting on theeffectiveness of its strategies to combatthe harm caused by problem gambling.

To this end, the Government will reporton a regular basis to the Victoriancommunity on:

• the implementation of this strategy

• the delivery of services to problemgamblers and their families

• the incidence of problem gambling and the level of participation in, and expenditure on, gambling in the community.

Monitoring strategy progress

The Government undertakes toimplement the actions set out in this strategy.

The Government will undertake a reviewof this strategy and the effectiveness ofits implementation in 2010.

Reporting on service delivery

The provision of better services toproblem gamblers, their families andothers affected by problem gambling is apriority for this Government.

The Government will evidence itscommitment by providing regular andtransparent information on:

• the services provided including:

- the number of calls to gambler’s helptelephone services

- the number of clients receivingproblem gambling and financialcounselling services

- the total number of service hours delivered

- the number and type of communityeducation activities conducted

- the demographics of clients using the services

- services provided to culturally and linguistically diverse andIndigenous communities

• the quality and outcome of the services provided.

Reporting on gambling within theVictorian community

The Government has moved to make thereporting of research and gaming machineexpenditure statistics much moretransparent and accessible. This data isnow freely available via the Departmentof Justice and VCGR websites.

The Government will also provide regularinformation to the community on themajor indicators of gambling activity inVictoria, as well as the incidence ofproblem gambling, to communicate itsprogress in combating the harm causedby problem gambling and to betterinform the community debate.

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The Government is committed to monitoring and reporting on theeffectiveness of its strategies.

05COMMITMENT TO PROGRESS

4141

(,000)Program Initiative 5 Year Funding

2006-07 to 2010-11

Building better treatment services $79,847

Treatment services $53,598

Online treament $500

Building on existing after hours service capacity $2,147

Enhanced service model for culturally diverse and socially isolated people and communities $500

Case management and mobile counselling $4,335

Centre of Excellence in Problem Gambling Treatment $4,177

Culturally and linguistically diverse and Indigenous services $4,912

Community support trial $300

Support for affected families – material aid/RAP $4,814

Program management and development $4,214

System reform and data transparency $350

Ensuring a more socially responsible gambling industry $3,799

Strengthen the self-exclusion program $2,630

Resourcing the Responsible Gambling Ministerial Advisory Council $1,169

Promoting healthy communities $37,488

Statewide community education and awareness campaigns $23,967

Community education and health promotion $580

Local community education, services, marketing and promotion activities $5,000

School-based learning programs to raise awareness within school communities of problem gambling $1,390

Partnerships $4,586

Building community advocacy on gambling issues $1,965

Enhancing the regulator $4,000

Implementation of industry code of conduct $4,000

Fostering gambling research $7,182

Longitudinal epidemiological study $1,000

Ongoing funds for independent research $3,000

Continued support of Gambling Research Australia $1,182

Research on emerging and strategic issues $2,000

Total funding $132,316

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APPENDIXGOVERNMENT INVESTMENT IN TAKING ACTION ON PROBLEM GAMBLING

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TAKING ACTION ON PROBLEM GAMBLINGA strategy for combating problem gambling in Victoria

TAKIN

GA

CTIO

NO

NPRO

BLEMG

AM

BLING

October

2006

October 2006