Community Impacts of Electronic Gaming Machine Gambling (Part A)
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Community Impacts of Electronic Gaming Machine Gambling (Part A) FINAL REPORT Commissioned by: The former Victorian Gambling Research Panel Prepared by: The SA Centre for Economic Studies Funded by the Victorian Government Through the Community Support Fund December 2005 ISBN 1921028203 Disclaimer: The opinions, findings and proposals contained in this report represent the views of the author and do not necessarily represent the attitudes or opinions of the Department of Justice, State of Victoria. No warranty is given as to the accuracy of the information and if you rely on it, you do so at your own risk. The Department of Justice specifically excludes any liability for any error or inaccuracy in, or omissions from, this document and any loss or damage that you or any other person may suffer. The Gambling Research Panel ceased operations effective 22 December 2004. At that time it was actively managing five projects that had been commissioned in recent years. The on-going management of these projects was transferred to the Office of Gaming and Racing in the Department of Justice on 22 December 2004. This report was commissioned by the Gambling Research Panel and is one of the five projects transferred to the management of the Department of Justice. Funding remains by Government through the Community Support Fund. Published by the Office of Gaming and Racing Victorian Government Department of Justice Melbourne Victoria Australia May 2005 © Copyright State of Victoria, Department of Justice, 2005 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Also published on www.justice.vic.gov.au Authorised by the Victorian Government, 55 St Andrews Place, Melbourne. Printed by DPA Document Printing Australia Pty Ltd, 332-342 Lorimer Street, Port Melbourne 3207. Page 3 FOREWORD This report, Community Impacts of Electronic Gaming Machine Gambling originates from the 2002-03 Research Plan and its scope was broadened in the 2003-04 Research Plan of the Gambling Research Panel. The focus of the research project is on identifying the community impact of electronic gaming machine gambling by comparing regions in Victoria with similar areas in Western Australia where there are no EGMs outside of Burswood Casino. The researchers undertook consultations with local community leaders in business and local government, and conducted interviews, focus groups and/or surveys with local residents and stakeholders. The functions of the Gambling Research Panel ceased on 22 December 2004. Its research that was still continuing at that time was transferred to the administration of the Office of Gaming and Racing, Department of Justice, to oversee its completion. The Victorian Government continues to be committed to a gambling research program that will inform ongoing policy development. The Responsible Gambling Ministerial Advisory Council (RGMAC) has been established and will advise the Minister for Gaming on priorities for gambling research. Further information about the RGMAC and an electronic copy of this report is available from the Gaming and Racing section of the Department of Justice website at: www.justice.vic.gov.au Ross Kennedy Executive Director Gaming and Racing Community Impacts of Electronic Gaming Machine Gambling: Part A Contents Contents Page Executive Summary (i) 1. Introduction 1 1.1 Introduction 1 1.2 Contrasting Views 2 1.3 Background 6 1.4 Scope of the Research 7 1.5 Project Outcomes 8 2. Profile of the States 10 2.1 Economic Performance and Trends 10 2.2 The People 10 2.3 The Economy 13 2.4 Industry Structure and Employment 15 2.5 Employment and Unemployment 17 2.6 Comments on Savings Rate 20 3. Gambling Industries and Expenditure 22 3.1 Recent history of Australia’s gambling industries 23 3.2 The Victorian gambling industry 26 3.3 The Western Australian gambling industry 28 3.4 Trends in Expenditure following the introduction of Casinos and EGMs 31 3.5 Summary 34 4. Different Gambling Environments 35 4.1 Availability of Gambling 36 4.2 Accessibility and Participation Rates 39 4.3 Gambling Regulation Environment 42 4.4 Impact of Gambling Environment on Problem Gambling 44 5. Impact of Electronic Gaming Machines on Employment 47 5.1 Employment in Hotels, Taverns, Bars and Clubs 48 5.2 Employment in Gambling Services Sector 58 6. Community Attitudes and Awareness 60 6.1 National and Victorian Surveys of Community Attitudes 61 6.2 Survey of Victorian and Western Australian Community Attitudes and Participation in Recreation and Gambling 64 6.3 Survey of Community Participation in Recreation and Gambling: Comparison of Matched Regions 77 7. Problem Gambling 87 7.1 Accessibility and Problem Gambling 88 7.2 Gamblers Help Services: BreakEven and DHS Data 95 7.3 Telephone Help Services: Turning Point and McKessons Data 101 7.4 Problem Gamblers in Financial Counselling 104 7.5 SACES: Survey of Financial Counsellors 106 8. Health Issues 115 8.1 Introduction 115 8.2 Survey of General Practitioners 116 8.3 Consultations by General Practitioners in Matching Regions 120 8.4 Psychiatrists Consultations in Matching Regions 126 8.5 Gambling and Suicide 129 8.6 Analysis of Suicide Data 134 8.7 Interstate and National Comparisons 137 8.8 Conclusions 140 Contents Community Impacts of Electronic Gaming Machine Gambling: Part A Contents (continued ...) Page 9. Crime 142 9.1 Introduction 142 9.2 Understanding Problem Gambling and Crime 144 9.3 Gambling – Offending Cycle 147 9.4 US Studies: Casino Vicinity and Gambling-related Crime 148 9.5 Australian Studies 149 9.6 Judicial Responses to Gambling-related Crime 159 9.7 Conclusion 160 10. Broader Community Impacts, Community Services 161 10.1 Introduction 161 10.2 Trends in Lotteries 163 10.3 Structure of Lotteries in Victoria and Western Australia 164 10.4 Community Funding in Victoria: Community Support Fund 167 10.5 Community Funding in Western Australia: LotteryWest 171 10.6 Participation in Lotteries at the Regional Level 173 10.7 Gaming and Community Clubs 178 10.8 Giving to Charity 180 10.9 Gambling and Pawnbrokers/Second-Hand Dealers 182 11. Assessing the Impacts of Gambling on the Local Community 188 11.1 Introduction 188 11.2 Methodology: the benefits of using a triangulated approach 190 11.3 EGMs are concentrated in vulnerable communities 191 11.4 Impact Studies 195 11.5 Tools and guidelines for preparing community impact assessments in Victoria, Queensland and New South Wales 209 11.6 Conclusion 215 Bibliography 216 The following researchers prepared this report: Mr Michael O’Neil, Director Mr Steve Whetton, Senior Research Economist Dr Penny Neal, Senior Research Economist Mr Ben Dolman, Research Economist Ms Marianne Dolman, Research Economist Mr Anthony Kosturjak, Research Economist Disclaimer: This study, while embodying the best efforts of the investigators is but an expression of the issues considered most relevant, and neither the Centre, the investigators, nor the Universities can be held responsible for any consequences that ensue from the use of the information in this report. Neither the Centre, the investigators, nor the Universities make any warranty or guarantee regarding the contents of the report, and any warranty or guarantee is disavowed except to the extent that statute makes it unavoidable. Community Impacts of Electronic Gaming Machine Gambling: Part A Page (i) Executive Summary The “community of interest” in this study is both the Victorian and Western Australian population, as well as specific regions in both these States. At the State level, data for total gambling expenditure, household disposable income devoted to gambling, per capita expenditure on gambling, average employment in hotels, cafes and restaurants and indicators of EGM problem gambling are provided to consider patterns of gambling, the broader gambling environment and impacts on other sectors (e.g., wagering, lotteries). Historical changes or trends over time such as the decline of wagering on racing, and the availability of Casino gambling are also examined. At the regional level, such factors as community attitudes, participation in gaming, the change in local clubs, visits to local GPs, use of ATMs in hotels and clubs are discussed. Regional level data has been compiled from community surveys undertaken for this study to assess attitudes and behaviours relevant to participating in gambling, and supplemented by interviews with various stakeholders, the gambling industry, surveys of local GPs, financial counsellors and gambling counsellors. Differences between the two States on many variables are observable and attributable to the different gambling and gambling policy environments. On some variables the impact of EGMs on local communities in Victoria are relatively large. On other variables, the impacts are smaller and more difficult to discern. Because the study was specifically concerned with the “impact of electronic gaming machines” it is important to view the expansion of this sector of the gaming industry in context. In Australia (2002-03) there were more venues with electronic gaming machines (5,943 excluding in 13 casinos) than there were TAB outlets1 and outlets for the sale of lottery tickets. The per capita ratio of venues/outlets was as follows for Australia: • EGM venues 1 : 2,275 per adult person; • Lottery outlet 1 : 3,116 per adult person; and • TAB outlet 1 : 3,279 per adult person. In Western Australia and Victoria the number of outlets and per capita gaming or wagering expenditure are shown at Table E1. The most significant difference is that Western Australia has no EGM venues outside of the Burswood Casino and therefore zero expenditure whereas Victoria has 540 local/community venues and average net gaming expenditure on EGMs of $624 per adult person. The availability of “convenience gaming” venues is the key difference in the respective gambling environments. That all three forms of gambling in Table E1 are recreational is not contested.