Gaming Policy Framework Final Report

Mount Alexander Shire Council

December 2010

This report has been prepared for:

Mount Alexander Shire Council

This report has been prepared by: SGS Economics and Planning Pty Ltd ACN 007 437 729

Level 5 171 Latrobe Street MELBOURNE VIC 3000

P: + 61 3 8616 0331 F: + 61 3 8616 0332

E: [email protected] W: www.sgsep.com.au

Offices in Brisbane, Canberra, Hobart, Melbourne, Perth, Sydney

Table of Contents

Executive Summary ...... 4

1 Introduction...... 6

1.1 Project Brief ...... 6 1.2 Context ...... 6 1.3 Work Schedule ...... 7

2 Background and Issues ...... 9

2.1 Electronic Gaming in Victoria ...... 9 2.2 Electronic Gaming in Mount Alexander Shire ...... 9 2.2.1 Mount Alexander 2009/2010 VCGR Data ...... 9 2.2.2 VCGR Cap for Mount Alexander Shire ...... 10 2.3 Issues in Achieving a Suitable Strategic Planning Framework for Gaming in Mount Alexander10 2.3.1 Clause 52.28 of the Mount Alexander Planning Scheme ...... 10 2.3.2 The Distribution of Gaming with Respect to Population Catchments, Transport Corridors and Social Conditions ...... 11 2.3.3 The Location of Alternative and Competing Leisure Amenities in the Vicinity of Electronic Gaming Venues ...... 11 2.3.4 Features of the Premises and Grounds of Gaming Venues ...... 11 2.4 Policy Implications ...... 12

3 Legislative and Policy Context ...... 13

3.1 State Legislation and Policy ...... 13 3.1.1 Gambling Regulations Act 2003 ...... 13 3.1.2 Community Benefit Statements ...... 14 3.1.3 Planning and Environment Act 1987 (Amendment VC39, 2006) ...... 15 3.1.4 Taking Action on Problem Gambling: Regional Caps, 2006 ...... 15 3.1.5 Department of Justice: Gambling Licences Review (2008) ...... 17 3.2 Local Legislation and Policy ...... 18 3.2.1 Mount Alexander Planning Scheme...... 18 3.2.2 Municipal Strategic Statement ...... 19 3.3 Mount Alexander Shire Health and Wellbeing Plan 2010 – 2013 ...... 20 3.4 Policy Implications ...... 20

4 Population Indicators – Mount Alexander Shire ...... 22

4.1 Estimated Resident Population ...... 22 4.2 Estimated Resident Population by Age Group ...... 23 4.3 Household Size ...... 23 4.4 Household Composition ...... 24 4.5 SEIFA Profile ...... 25 4.6 Median Weekly Individual and Household Income ...... 27 4.7 Population Projections ...... 28

20100403_Final Report

Table of Contents

4.8 Infrastructure Overview ...... 28 4.9 Policy Implications ...... 29

5 Problem Gambling and Context for the Modelling – Insights from the Literature ...... 30

5.1 Definition of Problem Gambling ...... 30 5.2 Socio Economic & Demographic Determinants of Household Electronic Gaming in Australia 30 5.3 Policy Implications ...... 31

6 Developing a Methodology ...... 32

6.1 Measuring Gaming Vulnerability ...... 32 6.2 Measuring Gaming Accessibility ...... 35 6.3 Assessing Other Factors that Determine the Suitability of Venue Location...... 35 6.4 Assessing Suitability of Internal Venue Design ...... 36 6.5 Policy Implications ...... 38

7 Managing Electronic Gaming – Insights from Stakeholder Consultation ...... 40

7.1 Key Themes ...... 40 7.1.1 Socio-Economic Considerations ...... 40 7.1.2 Venue Location, Design and Management ...... 41 7.1.3 Role of Council ...... 42 7.2 Policy Implications ...... 43

8 Findings from the Analysis ...... 44

8.1 EGM Density Analysis ...... 44 8.2 Gaming Vulnerability in Mount Alexander Shire ...... 45 8.3 Gaming Accessibility in Mount Alexander Shire ...... 49 8.4 Venue Design ...... 50 8.5 Policy Implications ...... 50 8.5.1 Gaming Vulnerability and Catchments ...... 50 8.5.2 Venue Location ...... 50 8.5.3 Venue Design ...... 51

9 Electronic Gaming Planning Framework ...... 52

9.1 Implementation Framework ...... 52 9.2 Clause 22.33 - Electronic Gaming Policy ...... 53 9.3 Detailed Application Requirements ...... 61 9.4 Location and Land Use Mix Assessment Process ...... 63

10 Summary of Recommendations ...... 66

Appendices ...... 67

Final Report P. ii Table of Contents

Appendix 1 - Glossary of Acronyms ...... 67 Appendix 2 – Stakeholders Consulted ...... 68

Tables Table 1: Electronic Gaming Machine Statistics – 2009/2010 ...... 9 Table 2: Designated Capped Regions – Victoria 2007 ...... 16 Table 3: Estimated Resident Population, 2001 – 2009 ...... 22 Table 4: Household Size, Mount Alexander Shire, Regional Victoria, Metropolitan Melbourne, Victoria ...... 24 Table 5: Median Weekly Household Income, Mt Alexander (S), Regional Victoria, Melbourne SD, Victoria, 1996 – 2006 ...... 27 Table 6: Population Projections by SLA, LGA, Melbourne SD, Regional Victoria, Victoria, 2010 - 2026 ...... 28 Table 7: Electronic Gaming Machine Development Scenarios ...... 44

Figures Figure 1: Context Map, Mount Alexander Shire ...... 7 Figure 2: Project Method ...... 8 Figure 3: Population Pyramid, Mount Alexander Shire, 2004 – 2008...... 23 Figure 4: Household Composition, Mount Alexander (S), 1996 - 2006 ...... 24 Figure 5: Change (p.a.) in Household Composition, Mount Alexander (S), Regional Victoria, Melbourne SD & Victoria, 1996 – 2006 ...... 25 Figure 6: SEIFA Profile, Mount Alexander Shire, 2006...... 26 Figure 7: Median Weekly Individual and Household Income, Mt Alexander Shire, 1996 – 2006 .... 27 Figure 8: Gaming Vulnerability Index, Mount Alexander Shire, 2011 (Estimate) ...... 47 Figure 9: Gaming Vulnerability Index, Mount Alexander Shire, 2016 (Forecast) ...... 48 Figure 10: Gaming Accessibility, Mount Alexander, 2011...... 49 Figure 11: Strategic Planning Framework, Electronic Gaming, Mount Alexander Shire ...... 52 Figure 12: Scheduled Strip Shopping Centres and Areas Where Additional EGMs are Discouraged, Mount Alexander Municipal Map ...... 57 Figure 13: Scheduled Strip Shopping Centres and Areas Where Additional EGMs are Discouraged, Castlemaine and Maldon Districts ...... 58 Figure 14: Scheduled Strip Shopping Centres and Areas Where Additional EGMs are Discouraged, Castlemaine and Maldon Town Centres ...... 59 Figure 15: Gaming Accessibility, Mount Alexander ...... 60

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Executive Summary

SGS Economics and Planning Pty Ltd (SGS) was commissioned by Mount Alexander Shire Council to develop a planning framework and local policy for the management of electronic gaming machines in the municipality.

The focus of the report is to identify appropriate planning scheme responses for the future management and distribution of electronic gaming machines in the municipality. The report also explores other (non planning scheme) initiatives which can be used within a management framework.

Mount Alexander Shire is located around 120 kilometres north-west of metropolitan Melbourne. The Shire had an estimated resident population of 18,293 as of 30 June 2009. 1 Since 2001, Mount Alexander Shire‟s estimated resident population has increased from 17,142 to 18,293, at a rate of 0.8% p.a. It is estimated that by 2026, Mount Alexander will have a population of 22,800.2

As of 2010, Mount Alexander Shire had an EGM density of 2.04 EGMs per 1,000 adults, compared to the Victorian average of 6.28 EGMs per 1,000 adults. Mount Alexander currently has a low spend (measured as loss per resident adult per annum) of $226, relative to the Victorian average of $611. Whilst numbers of EGMs are currently low relative to the total adult population, Mount Alexander may potentially receive an additional 75 EGMs through the EGM entitlements auction process. This will take total provision to 105 EGMs.

Mount Alexander Shire Council recognises that electronic gaming is a legal and controlled activity in Victoria and acknowledges that as population increases, so too will discretionary expenditure which could see additional gambling entertainment provision including EGMs. Mount Alexander Shire is also aware of the harm caused by problem gambling.

Mount Alexander Shire has therefore decided to develop a framework to manage electronic gaming that: Recognises the existing use rights of gaming venues; and Implements a framework to enable electronic gaming to continue in a way that minimises problem gaming risk in the municipality, via a management approach that includes planning scheme responses.

A core element of the management approach is an assessment of gaming vulnerability in the municipality; that is, the vulnerability of individual adults to overspending on electronic gaming machines. This report recommends that any future electronic gaming machine provision, if enabled by a recommended adult-to-machine ratio, should be directed in areas that are at least risk to problem gaming, and within venues that offer alternative forms of entertainment and recreation. This approach enables electronic gaming to continue in existing venues in a way that minimises risks to individuals and the community.

1 ABS Cat. No. 3218.0 2 Victoria in Future Population Projections (2008)

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This report considers the impact of the availability of alternative forms of entertainment on the amount of money spent on electronic gaming machines by all users. The analysis shows that the impact of alternative non gambling forms of entertainment at a venue reduces the overall spend of each electronic gaming machine user, whereas the impact of additional forms of gambling entertainment onsite increases the amount of money spent. This finding has implications for reducing the spending of problem gamblers.

This report provides Council with four key recommendations to reduce the risks of problem electronic gaming in Mount Alexander Shire:

1. Maintaining the existing schedules to prohibit electronic gaming machines from being established in the designated strip shopping centres of Castlemaine and Maldon. This approach is enabled by the Victoria Planning Provisions to minimise the risk of retail spending being unnecessarily diverted to electronic gaming machines.

2. Inclusion of a Local Planning Policy at Clause 22.33 of the Local Planning Policy Framework in the Mount Alexander Planning Scheme, and the designation of zones in which gaming is either discouraged or is an activity afforded qualified support subject to an assessment of social and economic impacts on community wellbeing. This approach utilises the assessed vulnerability index to direct any future electronic gaming machine provision to areas that are deemed to be at low risk of problem gaming.

3. Development of a planning permit application process that assesses venue applications in reference to the availability of alternative activities at the venue, and applies venue conditions and controls that are designed to encourage venues to diversify the range of activities onsite in order to reduce the prevalence of multi-gambling forms within the activity mix.

4. Implementation of initiatives to support provision of alternative recreation and entertainment opportunities via Council social and recreation policies. Provision of alternatives forms of recreation and entertainment is assessed to be a useful way of minimising problem gaming risk.

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1 Introduction

1.1 Project Brief

SGS Economics and Planning Pty Ltd. (SGS) was commissioned by Mount Alexander Shire Council to prepare a Gaming Policy Framework pertaining to the management of electronic gaming machines (EGMs) throughout Mount Alexander Shire. As such, the framework will guide the assessment of planning permit applications that relate to electronic gaming.

The purpose of this report is to present the strategic planning framework and identify appropriate planning scheme responses for the future management and distribution of EGMs in the municipality.

1.2 Context

Mount Alexander Shire is located in Regional Victoria, around 120 kilometres north-west of metropolitan Melbourne. The Shire has an estimated resident population of 18,293 as of 30 June 2009. 3 The municipality is predominantly rural in character but has a major urban centre in Castlemaine and other smaller townships including Maldon, Chewton, Guildford, Harcourt, Newstead and Taradale. The adjoining municipalities to Mount Alexander include Macedon Ranges, Greater Bendigo, Loddon, Hepburn, Central Goldfields, and Mitchell. Mount Alexander is part of Victoria‟s Goldfields Region.

Since 2001, Mount Alexander Shire‟s estimated resident population has increased from 17,142 to 18,293, at a rate of 0.8% p.a. It is estimated that by 2026, Mount Alexander will have a population of 22,800.4

The most significant industry of employment in Mount Alexander in 2006 was manufacturing (16.0% of total employment), followed by health care and social assistance (13.3%), retail trade (11.8%), education and training (9.1%), and construction (7.4%)5. Unemployment in Mount Alexander increased marginally from 6.1% in June quarter 2009 to 6.6% in June quarter 20106.

Castlemaine is the highest order centre within Mount Alexander Shire and hosts civic, retail, commercial, and recreational activities. Castlemaine is accessible via the Melbourne-Bendigo rail line, the Calder and Pyrenees Highways to Melbourne, and the Midland Highway to Bendigo and Ballarat. The highest order centre in the surrounding region is Bendigo, around 40kms from Castlemaine.

A context map of Mount Alexander Shire and its town centres is provided overleaf.

3 ABS Cat. No. 3218.0 4 Victoria in Future Population Projections (2008) 5 ABS 2006 Census 6 Small Area Labour Market Publication June 2010

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Figure 1: Context Map, Mount Alexander Shire

1.3 Work Schedule

This report is based on a research, analysis and consultation program, which is summarised as follows. Desktop research and site analysis covering: State Government Electronic Gaming Policies; Other State Government policy determining EGM venue compliance; and Mount Alexander Planning Scheme and relevant schedules

The project methodology is provided overleaf.

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Figure 2: Project Method

1. Inception Meeting with PMG

3. Review of State/Local 2. Review of Legislation Planning Framework

5. Demand Side Research 4. Supply Side Research - Demography, Economy, Gaming Vulnerability

6. Progress Briefing to PMG

7. Consultation

8. Draft Gaming Policy Framework Report

9. Draft Local Planning 10. Guidelines and 11. Application Policy on Gaming Criteria Requirements

12. Review Meeting with PMG

13. Presentation to EMT 14. Council Briefing

15. Finalisation

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2 Background and Issues

2.1 Electronic Gaming in Victoria

Electronic Gaming Machines were introduced to Victoria in 1991. Gambling activity grew dramatically in the late 1990s and by June 2009 there were 26,666 EGMs spread across 514 hotels & clubs in the State7.

EGMs are recognised as a lawful source of entertainment and provide revenue to Government to support the activities of local sporting and community clubs. EGMs however, are also held responsible for a variety of social issues, particularly the promotion of problem gambling.

2.2 Electronic Gaming in Mount Alexander Shire

2.2.1 Mount Alexander 2009/2010 VCGR Data

Mount Alexander Shire currently contains one venue and approximately $3.3 million was spent on 30 EGMs in this single venue in the year to June 2010. The Victorian State Government auction has seen EGM entitlement allocations to two venue operators totalling a further 75 machines.

Table 1: Electronic Gaming Machine Statistics – 2009/2010

Net EGM Total Net expenditure Net EGM Expenditure per adult EGM per 1000 expenditure 2009-10 No. of Venues EGM No. (18+) (18+) per machine Mount Alexander Shire $3,331,362.89 1 30 $226 2.04 $111,045.43 City of Greater Bendigo $44,251,021.60 10 547 $559 6.91 $80,897.66 Macedon Ranges Shire $8,888,453.63 3 95 $285 3.04 $93,562.67 Shire of Loddon $0.00 0 0 $0 0 $0.00 Hepburn Shire $2,771,297.43 2 50 $236 4.26 $55,425.95 Shire of Central Goldfields $7,580,523.05 2 99 $747 9.75 $76,570.94 Shire of Mitchell $15,935,368.64 5 193 $612 7.41 $82,566.68 Regional Victoria $557,213,566.59 187 7,362 $503 6.65 $75,687.80 Metropolitan Melbourne $2,039,969,557.59 327 19,320 $649 6.15 $105,588.49 Victoria $2,597,183,124.18 514 26,682 $611 6.28 $97,338.40 Source: Victorian Commission for Gambling Regulation website www.vcgr.vic.gov.au

7 Victorian Commission for Gambling Regulation website www.vcgr.vic.gov.au (In addition there are 2,500 Electronic Gaming Machines at Victoria‟s Crown Casino)

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Alexander may potentially receive an additional 75 EGMs through the EGM entitlements auction process. This will take total provision to 105 EGMs.

2.2.2 VCGR Cap for Mount Alexander Shire

The Victorian Commission for Gaming Regulation (VCGR) was established under the auspices of the Gambling Regulation Act 2003. One of the key duties for the VCGR is the power to grant or refuse an application for a gaming licence. In recognition of the increase in EGMs in particular local areas, the VCGR is mandated to undertake a review every five years and determine the maximum permissible number of EGMs in nominated local areas. Specific EGM caps were mandated for 20 Local Government Areas in Victoria8.

In 2009, The State Government applied a maximum default cap of 10 machines per 1,000 adults for all „uncapped‟ municipalities in Victoria. The current default cap for Mount Alexander Shire is a maximum of 141 machines. Based on this maximum, Mount Alexander Shire could see an additional 36 EGMs provided over and above the 105 EGMs noted previously (30 existing; 75 allowed through the EGM entitlements auction).

2.3 Issues in Achieving a Suitable Strategic Planning Framework for Gaming in Mount Alexander

An important consideration in developing a framework to manage gaming in a jurisdiction in which it is a legal and controlled activity is to acknowledge gaming‟s legitimacy within set boundaries. Then, working within a structure of existing laws and regulations, the task is to understand and document an optimal distribution of this activity and then create a toolkit of planning conditions that will achieve the desired outcome.

2.3.1 Clause 52.28 of the Mount Alexander Planning Scheme

To set an overall context for the Strategic Planning Framework for electronic gaming in Mount Alexander, the Mount Alexander Planning Scheme sets out the purpose of Clause 52.28 – Gaming as follows:

To ensure that gaming machines are situated in appropriate locations and premises. To ensure the social and economic impacts of the location of gaming machines are considered. To prohibit gaming machines in specified shopping complexes and strip shopping centres. Source: Mount Alexander Planning Scheme, Clause 52.28 – Gaming

Key issues for achieving a desirable framework are as follows.

8 Department of Justice website www.justice.vic.gov.au , Regional Caps (July 2007)

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2.3.2 The Distribution of Gaming with Respect to Population Catchments, Transport Corridors and Social Conditions

The Victorian State Government has set a maximum permissible density for EGMs of 10 machines per 1,000 adults per Local Government Area (LGA) by 2010. Given that limits are applied to municipalities as a whole and not to part of a municipality, there are no limits to localised EGM densities exceeding 10 machines per 1,000 adults per Statistical Local Area (SLA), or Census Collection District (CCD) provided that total provision does not exceed the municipal cap.

In determining if a local oversupply of EGMs exists, it is important to consider localised EGM densities and localised economic and social conditions. In particular: Is the local average adult expenditure on EGMs high, relative to the municipality‟s average adult expenditure on EGMs? Is the local average adult gaming vulnerability index value high, relative to the municipality‟s average adult gaming vulnerability index value?

2.3.3 The Location of Alternative and Competing Leisure Amenities in the Vicinity of Electronic Gaming Venues

Consumer Theory (refer Section 5.2.1) can be used to help identify the occurrence of „Problem Gambling‟ and measure the extent to which electronic gaming competes with other activities, some of which are arguably not as addictive or harmful. When the notion of competing goods is taken from Consumer Theory and is applied to entertainment, it is clear that part of the solution to alleviating the incidence of problem electronic gaming is to make available in the community alternative activities that are less addictive and/or harmful than electronic gaming.

Councils have a role to play in managing the availability of alternative community activities especially in those neighbourhoods where problem electronic gaming is, or could be most prevalent.

2.3.4 Features of the Premises and Grounds of Gaming Venues

While changes to the Victoria Planning Provisions give local councils the ability to grant or refuse applications depending on local economic and social circumstances, the responsibility for monitoring and enforcing the standard of gaming premises and grounds is primarily vested in the VCGR and in the suite of gaming licence conditions.

The role of local government is limited to providing recommendations to the VCGR and ensuring that the venue meets the necessary provisions of other regulations, namely the Planning and Environment Act 1987.

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2.4 Policy Implications

The Distribution of Gaming with Respect to Population Catchments, Transport Corridors and Social Conditions

EGM density per 1,000 adults in Mount Alexander is 2.04 EGMs per 1,000 adults based on a +18 years population of 14,734. This is lower than the EGM densities of metropolitan Melbourne (6.15) and State (6.28) averages.

With a default municipal cap of 141 EGMs, there is scope for the number of EGMs in Mount Alexander Shire to increase. This is greater than the total (105) of 75 additional machines allocated to Mount Alexander Shire during the EGM entitlement auction process and the 30 machines currently existing in Mount Alexander Shire.

EGM turnover per machine in Mount Alexander Shire ($111,000 per machine in 2009/10) is higher than the State average ($97,300 per machine in 2009/10) indicating limited capacity to accommodate any new demand within existing machines. It is expected additional gaming machines will be sought as catchments develop and EGM entitlements are realised.

The VCGR has approved 75 additional machines across two new venues in Mount Alexander Shire. The State has a benchmark cap of 10 EGMs per 1,000 adults. However, this should be considered as a guide with local conditions and aspirations determining the municipal-specific management framework.

Castlemaine could be expected to account for a greater amount of new venues given its accessibility and established population catchment and critical mass of other activities in the town. Venue establishment in other townships however is a possibility.

The Location of Alternative and Competing Leisure Amenities in the Vicinity of Electronic Gaming Venues

Councils have a role to play in directly providing or supporting the development of alternative activities which are less addictive and/or harmful than electronic gaming.

This role reflects the broader role local councils play in community development and local infrastructure provision.

Features of the Premises and Grounds of Gaming Venues

Local councils have a role to play in influencing built form design of venues which incorporate electronic gaming machines.

This is primarily undertaken through planning approvals processes and through providing submissions to the VCGR as required.

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3 Legislative and Policy Context

This section examines the legislative and policy context for electronic gaming machines at the State and Local levels.

In Victoria, the regulations governing the gambling industry have been derived primarily at the State level in the form of the Gambling Regulations Act 2003 administered by the VCGR, and the Planning and Environment Act 1987 through the Victoria Planning Provisions. With regard to Ministerial responsibility, the former legislation is within the realm of the Minister for Gaming, whilst the latter legislation falls under the Minister for Planning.

3.1 State Legislation and Policy

3.1.1 Gambling Regulations Act 2003

The Gambling Regulations Act 2003 is administered by the VCGR, an independent statutory authority within the Gaming and Racing Business Group of the Department of Justice. The Commission replaced the Victorian Casino and Gaming Authority and the Office of Gambling Regulation on July 1 2004.9

Part 2 of the Gambling Regulations Act 2003 details the general authorisation for gaming on gaming machines; Section 3.2.1 of the Act states that gaming can take place in a venue that has been approved and declared lawful. The Act details the authority that both the VCGR and the Minister for Gaming hold in relation to authorising electronic gaming, including the limits to the number of gaming machines that can be set and the publishing requirements to notify authorisations.

Part 3 details the procedure for obtaining approval for gaming premises from the VCGR. Specifically, it highlights which premises may be approved as suitable for gaming (3.3.2) and the guidelines for applying for approval of premises (3.3.4). Section 3.3.7 states the matters to be considered in determining applications. These are: Whether the applicant has authority to make the application. The premises suitability for the management and operation of gaming machines, taking into consideration the size, layout and facilities. That the net economic and social impact of approval will not be detrimental to the well being of the community and surrounding region. If the Responsible Authority does not make a submission, the VCGR must seek the Responsible Authority‟s views on the application.

Section 3.3.9 to 3.3.13 details the conditions of approval and the VCGR‟s right to revoke approval at a later date.

9 Victorian Commission for Gambling Regulation website; www.vcgr.vic.gov.au

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The Gambling Regulations Act 2003 also states the „Tribunal review of approval‟ (3.3.14) detailing the ability of both the applicant and Responsible Authority to apply to the Victorian Civil and Administrative Tribunal (VCAT) for a review of a decision made by the Commission. According to section 3.3.17, the Applicant may also appeal to the Commission within 28 days of a decision if the decision is made by a single commissioner. Details of the appeal process are explained within this section of the Act.

Implications for Mount Alexander

The provisions of the Gambling Regulations Act 2003 apply to the Mount Alexander context.

3.1.2 Community Benefit Statements

The Gambling Regulation Act 2003 notes that all venue operators who receive gaming revenue in a financial year must lodge a Community Benefit Statement (CBS) with the VCGR showing the application of gaming revenue to community purposes.‟ Community Purposes‟ are defined as: Any philanthropic or benevolent purpose (excluding support for a political party); and Any sporting or recreational purpose.10

The activities that constitute „Community Purposes‟ include the employment expenses of all staff employed by venue operators, gifts and sponsorships by venue operators that fall within the definition of Community Purposes, subsidised activities where the venue operator provides a commercial service to members of the community or community organisations at less than commercial rates; but specifically excludes the provision of gaming revenue as community benefit to any sporting or recreation venue that holds a gaming venue operator licence.

A CBS for each venue must be lodged by 30 September following the financial year to which it relates, and must be published by the Commission on the Internet.

An Amendment to the Act (Section 3.6.9 1A) that came into force from 29 August 2007 removes the requirement for venues with a pub licence to lodge a Community Benefits Statement. This Amendment also retrospectively removed the requirement for venues with a pub licence to lodge a Community Benefits Statement for the 2006/7 financial year. Venues with a club or racing club licence are still required to lodge an annual Community Benefits Statement.

Implications for Mount Alexander

The provisions of the Gambling Regulations Act 2003 apply to the Mount Alexander context, although the scope of these tasks are generally outside the role of local councils in their capacity to regulate the location of EGMs.

10 Victoria Government Gazette No. S 124 Thursday 26 June 2003

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3.1.3 Planning and Environment Act 1987 (Amendment VC39, 2006)

The purpose of the Planning and Environment Act 1987 is “to establish a framework for planning the use, development and protection of land in Victoria in the present and long-term interests of all Victorians.”11 The Act gives effect to the Victoria Planning Provisions and the formulation and amendment of planning schemes, sets out the overarching framework for processing planning applications, and details the framework for enforcement and legal proceedings. The Act also sets out the provisions for Ministerial intervention in the planning system including planning applications and in instances where an amendment is made to the Victoria Planning Provisions.

In 2006, the Minister for Gaming requested the Minister for Planning to amend the Victoria Planning Provisions and all planning schemes in Victoria. On 11 October 2006, the Minister for Planning amended the Victoria Planning Provisions and all planning schemes in Victoria via Amendment VC39 to give effect to new planning provisions for gaming machines in Victoria.

The amendment sought to deliver the following two outcomes: Remove the provisions in Clause 52.28 that allow the installation and use of gaming machines for up to 25% of a premises‟ floor space without a permit; and Require that a planning permit be granted for the installation and use of a gaming machine.

Implications for Mount Alexander

The new provisions sought to deliver an outcome whereby local councils could work with their communities in formulating a response to the location of gaming machines in a municipality and amend the local planning scheme accordingly. Typically, the planning scheme would be amended to include a local planning policy and/or Schedule to Clause 52.28 where prohibited areas can be identified. These provisions can be applied through the Mount Alexander Planning Scheme and this policy framework has been developed to assist in satisfying these provisions.

3.1.4 Taking Action on Problem Gambling: Regional Caps, 2006

The regional caps policy applies to 20 regions across metropolitan Melbourne and regional Victoria that are considered to be vulnerable to problem gambling. Capped regions are based on local government boundaries, yet some LGAs are only partially capped. Where LGAs are partially capped these areas are determined by postcode.

Vulnerability to problem gambling is determined by a combination of risk factors: Being highly disadvantaged (with regards to the Index of Relative Socio-Economic Disadvantage) (SEIFA); Having significant numbers of gaming machines; and Having higher than average expenditure on gaming machines.

11 Planning and Environment Act 1987, p. 1

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The maximum level of cap is set at 10 gaming machines per one thousand adults. Gaming machines must be removed from capped regions where the density of gaming machines per 1,000 adults is greater than the designated maximum „cap‟. It is estimated that the cap will result in the removal of approximately 540 gaming machines from capped areas. For the areas identified as capped regions that are below the cap level, they will be capped at their existing level to protect them from the introduction of further gaming machines.

Although venues may lose a number of gaming machines, the policy also details measures to protect individual venues: No venue will lose more than 70% of its existing machines; A minimum of 20 gaming machines remain in a venue after machines are removed; and No machines will be removed from a venue with less than 20 gaming machines.

The policy directed that by 2010 all other LGAs (excluding the Melbourne Central Business District, Southbank and Docklands), must have a prescribed maximum density of 10 gaming machines per one thousand adults. The capped regions and applicable limits are shown in Table 2 below.

Table 2: Designated Capped Regions – Victoria 2007

EGM density per 1,000 Maximum adults 30 June Permissible Region Determined by Minister for Gaming 2009 Number of EGMs Region 1 City of Ballarat 9.27 663 Region 2 City of Banyule, postcode area 3081 6.79 31 Region 3 Shire of Bass Coast 9.02 216 Region 4 City of Brimbank, postcode areas 3012, 3020, 3021, 3022, 3023, 3038 7.00 903 Region 5 City of Casey, postcode areas 3177, 3803, 3975, 3976 and parts of 3977 4.94 614 Region 6 City of Greater Dandenong 9.50 989 Region 7 City of Darebin 8.84 986 Region 8 City of Greater Geelong and the Borough of Queenscliffe 7.99 and 19.06 1,421 Region 9 City of Greater Shepparton 7.19 329 Region 10 City of Hobsons Bay 8.57 579 Region 11 City of Hume, postcode areas 3043, 3047, 3048, 3060, 3061 6.32 435 Region 12 City of Latrobe 9.47 522 Region 13 City of Maribyrnong 9.06 511 Region 14 City of Melbourne, postcode areas 3031, 3051, 3053 8.41 177 Region 15 City of Monash, postcode areas 3147, 3148, 3166, 3167, 3168, 3170 7.21 623 Region 16 City of Moonee Valley 8.57 746 Region 17 City of Moreland, postcode areas 3055, 3056, 3057, 3058, 3060 6.46 640 Region 18 City of Warrnambool 9.51 234 Region 19 City of Whittlesea, postcode areas 3074, 3075, 3076, 3082, 3083 5.62 581 Region 20 Shire of Yarra Ranges 3.86 1,092 [Data of maximum permissible number of EGMs is dated 21 October 2009]

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On 11 December 2006, the VCGR issued a direction to Tabcorp Holdings Ltd. and Tattersalls Group Ltd. requiring gaming machine reductions for particular venues within six of the twenty capped regions. Namely; City of Greater Dandenong; City of Hume, postcode areas 3043, 3047, 3048, 3060, 3061; City of Latrobe; City of Maribyrnong; City of Monash, postcode areas 3147, 3148, 3166, 3167, 3168, 3170; and City of Warrnambool

The reductions specified for each of the venues within these regions were met by 18 December 2007.

Implications for Mount Alexander

As at 2009, the SEIFA index indicated that Mount Alexander had a score of 980 and was the 25th most disadvantaged municipality in Regional Victoria (out of 48 LGAs). Mount Alexander was ranked 50th most disadvantaged municipality in Victoria (out of 79 LGAs).

As at 30 June 2010, Mount Alexander had 30 gaming machines at 1 venue and a municipal density of 2.04 EGMs per 1,000 adults compared with the State average of 6.28 and the metropolitan Melbourne average of 6.15 EGMs per 1,000 adults. Net expenditure on EGMs in 2009/10 was approximately $3.3 million with a net expenditure per adult of $226 per annum. The VCGR has approved 75 additional entitlements across two new venues in Mount Alexander.

Mount Alexander is an uncapped municipality under the present regional caps policy. The EGM density could potentially rise from its current level of 2.04 gaming machines per one thousand adults to the maximum density of 10 gaming machines per one thousand adults.

3.1.5 Department of Justice: Gambling Licences Review (2008)

The license market is presently constituted by a duopoly consisting of Tabcorp Holdings Ltd. and Tattersalls Group Ltd. The current licensing arrangements enable the companies to distribute, maintain and operate gaming machines in approved venues until 2012.

Overarching Policy (Current Framework Summary)

The Victorian State Government has introduced policies to minimise the adverse impacts of gaming machines on the community. In order to slow the individual rate of gambling, ATMs will now be banned from gaming venues, whilst gaming machines must contain new pre-commitment mechanisms. The Government has also set out a range of quotas to guide machine distribution: Upper quota of 27,500 machines in the Victoria gaming market (excluding Crown); Upper quota of 105 machines per venue; Upper quota of 10 gaming machines per 1000 residents in Regional Victoria;

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Number of gaming machines cannot exceed the densities as of 12 October 2006; 20 to 80 percent of all Victorian machines may be located outside metropolitan Melbourne; Machine numbers will be split evenly between clubs and hotels; and Pre-offer to clubs ahead of this year‟s auctions

Industry Arrangements Post 2012

The Government has signalled the intention to transform the current gaming licenses market from an oligopolistic structure to a more competitive system. Venues will enter into a competitive tendering process for the right (but not the obligation) to possess and operate gaming machines. The VCGR will continue its role of approving and regulating gaming machines in venues. An independent monitoring function was to be introduced in 2009 to monitor the licence trading transactions.

Implications

By dividing licenses up amongst venues and introducing an upper quota of 105 machines per venue; monopoly effects on the part of machine operators and venues should in theory be reduced. However, the market will still be dominated by a small number of large operators including TabCorp Holdings, Tattersalls Group, and new „players‟ such as Woolworths and Matheson Consortium.

Venue operators should also be able to make more direct and accountable responses to local consumer demand for machines compared to the centralised operations of Tattersalls Group or Tabcorp Holdings.

These changes will largely respond to structural issues about EGM ownership. The implication for local government is the potential requirement to process a large number of planning permit applications with pressure from applicants to do so before their entitlements expire in February 2013.

3.2 Local Legislation and Policy

3.2.1 Mount Alexander Planning Scheme

The main role of councils in the regulation of gaming machines in Victoria is through Clause 52.28 of the local planning scheme, which deals with planning permit and location requirements for gaming machines and venues in a municipality. Councils can also make submissions and provide documentation to the VCGR with regard to the issuing of gaming licences.

The Mount Alexander Planning Scheme contains the revised Clause 52.28 provisions for the purposes of assessing applications for gaming machines and venues. Mount Alexander Shire Council can also provide an economic and social impact assessment submission to the VCGR in relation to hearings for gaming machine licences.

The purpose of Clause 52.28 – Gaming of the Mount Alexander Planning Scheme is as follows:

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The provisions of Clause 52.28 include reference to gaming machines in a „shopping complex‟ and a „strip shopping centre‟. A definition of both a „shopping complex‟ and a „strip shopping centre‟ is provided for the purposes of assessing applications for gaming machines and venues: A „shopping complex‟ is any site specified as such by the Schedule Clause 52.28 (Clause 52.28-3) A „strip shopping centre‟ is an area meeting all of the following requirements: o it is zoned for business use; o it consists of at least two separate buildings on at least two separate and adjoining lots;

o it is an area in which a significant proportion of the buildings are shops; and o it is an area in which a significant proportion of the lots abut a road accessible to the public generally.

This approach is intended to minimise the risk of retail spending being unnecessarily diverted to EGMs. A Responsible Authority must consider, in addition to the Decision Guidelines of Clause 65, the State and Local Planning Policy Framework, the compatibility of any proposal with nearby and adjoining land uses, the capability of the site and whether the gaming premises provides a full range of hotel and club facilities and services. Castlemaine and Maldon „strip shopping centes‟ are acknowledged already in a Schedule to Clause 52.28 to the Mount Alexander Planning Scheme.

The schedule to Clause 52.28-3 specifically prohibits gaming machines in a „shopping complex‟. No shopping complexes in Mount Alexander have been included the Schedule to date.

3.2.2 Municipal Strategic Statement

The Mount Alexander Shire Municipal Strategic Statement is located at Clause 21 of the Mount Alexander Planning Scheme and sets the context and strategic vision for the Shire.

Retail escape expenditure is a concept addressed in the Mount Alexander Shire MSS as follows:

Clause 21.04-2 – Strengthening Castlemaine’s Regional Role states:

“A strengthening of Castlemaine‟s regional role will require strategies to reduce “escape” of retail expenditure, support and enhance regional level facilities (health, education, and cultural), and generate local employment facilities.”

Gaming venues can generate significant economic leakages through a range of state taxes, gaming machine leasing arrangements, and the 25% notional return on regional spend. This is particularly so if the Community Support Fund is not specifically allocated to projects within the Shire.

Retail expenditure has two separate aspects: an essential component comprising basic foods, transport, medicines, etc, and a discretionary component comprising restaurants, luxury items, and

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non essential purchases. Gaming spend is a discretionary expenditure item and therefore competes for other expenditure which may otherwise be retained in Mount Alexander.

3.3 Mount Alexander Shire Health and Wellbeing Plan 2010 – 2013

The Mount Alexander Shire Health and Wellbeing Plan 2010-2013 (the Plan) identifies the Shire‟s community health and wellbeing status and priorities. The Plan actively promotes harm minimisation arising from activities associated with an over-concentration of gaming venues and licensed premises. Community Wellbeing as defined in the report identifies the „...social, economic, cultural…‟ as functions of a healthy community (p. 5).

The Plan identifies the increased risk of harm posed by the consumption of alcohol and gambling, particularly for young people and those experiencing varying levels of social disadvantage (p. 16). The Mount Alexander Shire community has a slightly higher level of disadvantage than the Victorian average as defined by the community profile. Housing affordability within the Shire is better relative to Melbourne although a large proportion of the Shire community spends more than 30% of their household income on housing (p. 7). The Plan also identifies that segments of the population have high susceptibility to alcohol related harms in both the short and long term (p. 8). Considered in aggregate, these factors indicate an increase in the regions vulnerability to problem gambling.

Priority 4 of the Plan identifies Council as being actively „…committed to strengthening its policy framework in order to minimise the harms associated with problem gambling and its ability to manage the potential demand for electronic gaming machines in the Shire.‟ (p.16). Council sets out in Part 6 of the Plan that the strategic policy and planning processes during the first year of implementation will involve the development of a Gaming Policy Framework (p.18).

Objective 4.1 of the Plan sets out Council‟s approach to gaming vulnerability: Collaborate with service providers to reduce the harms associated with alcohol and other drug use, tobacco smoking and problem gambling; and Develop a Gaming Policy Framework to manage the social and economic impact of electronic gaming machines on vulnerable communities (p. 16).

3.4 Policy Implications

A Policy Framework is required for the provision of EGMs in Mount Alexander for the following reasons:

State Government policy recognises electronic gaming as a legal but controlled activity in Victoria, having benefits and costs;

Victorian local councils have a role in the regulation of EGMs in their municipality pursuant to Clause 52.28 of the planning scheme. The scope of policy involvement is limited to locational decision-making in the form of shopping complexes and strip shopping centres as

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well as providing submissions to the VCGR as required. A robust policy framework is required to guide council decision-making when considering new planning permit applications for new or upgraded venues which include EGMs.

Local councils have a major role in community development and local planning and therefore all available mechanisms should be used regulate the location of EGMs to ensure that cycles of disadvantage are not continually reinforced.

Mount Alexander is an uncapped municipality under the present regional caps policy. The EGM density could potentially rise from its current level of 2.04 EGMs per one thousand adults to the maximum density of 10 gaming machines per one thousand adults. Council should have a policy in place to manage location outcomes.

There are limited legislative guidelines to assist Councils in managing electronic gaming. The „burden of proof‟ is placed on the local authority if they refuse to grant a planning permit to an application and are required to defend their decision at VCAT.

Historically, there has been a dearth of evidence to demonstrate the likely impacts of a gaming application on the community and the relationship of available socio demographic variables (e.g. SEIFA) to the incidence of problem gaming. Council must therefore use the tools available to it to address these shortcomings.

Gaming venues can generate significant economic leakages through a range of state taxes, gaming machine leasing arrangements, and the 25% notional return on regional spend. This becomes more paramount if the Community Support Fund is not specifically allocated to projects within the Shire.

A management approach for EGMs could include: o Managing the spatial distribution of machines so that they are most accessible to those persons who are least at risk of overspending on electronic gaming; o Managing the site and venue characteristics; or o A combination of these approaches.

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4 Population Indicators – Mount Alexander Shire

This section presents headline socio-economic indicators for Mount Alexander Shire as follows: Estimated Resident Population; Estimated Resident Population by Age Group; Household Size; Household Composition; SEIFA Profile; and Population Projections

These indicators are not exhaustive and have been selected based on their potential relevance to gaming and the modelling of gaming vulnerability.

4.1 Estimated Resident Population

In 2009, Mount Alexander Shire had an estimated resident population of 18,293, an increase from 17,142 in 2001. Since 2001, the population has experienced minimal growth, at a rate of 0.8% p.a. This is lower than that experienced in Greater Bendigo (+1.6% p.a.), Macedon Ranges (+1.4% p.a.) and Mitchell (+2.3% p.a.) and the comparison regions of Regional Victoria, Melbourne and Victoria.

This historical rate of population growth is consistent with expectations for a municipality beyond the peri-urban areas of Melbourne (such as Mitchell & Moorabool). Mount Alexander Shire also does not contain a major regional centre (in scale of say, Bendigo). In turn, LGAs which are neither integrated with Melbourne through a peri-urban location or are a destination for regional population consolidation, are experiencing neutral to negative population growth.

Table 3: Estimated Resident Population, 2001 – 2009

2001 2006 2009 AAGR Mount Alexander Shire 17,142 17,663 18,293 0.8% Greater Bendigo (C) 90,449 96,543 102,373 1.6% Macedon Ranges (S) 37,672 39,933 42,015 1.4% Loddon (S) 8,604 8,087 8,079 -0.8% Hepburn (S) 14,488 14,216 14,803 0.3% Central Goldfields (S) 13,087 12,692 12,899 -0.2% Mitchell (S) 28,406 32,038 34,119 2.3% Regional Victoria 1,696,917 1,768,506 1,860,138 1.2% Metropolitan Melbourne 3,107,809 3,358,034 3,583,090 1.8% Victoria 4,804,726 5,126,540 5,443,228 1.6% Source: ABS, Estimated Resident Population

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4.2 Estimated Resident Population by Age Group

Figure 3 presents a population pyramid for Mount Alexander for the period 2004 to 2008. Mount Alexander has experienced minimal growth in the younger age groups of 0-14 and 25-34 year age groups whilst significant growth is being seen in the older age groups of 50-64 and 65 years+.

This pattern is generally being repeated throughout regional Victoria as younger workers and families consolidate in Melbourne and other major population centres close to employment, education, health and other services. In Mount Alexander Shire, key population drivers may be „tree changers‟ looking for a non-urban lifestyle, ageing in place of the population, and some regional consolidation occurring around Castlemaine.

Figure 3: Population Pyramid, Mount Alexander Shire, 2004 – 2008

65+

50-64

35-49

25-34

15-24

0-14

2,500 2,000 1,500 1,000 500 0 500 1,000 1,500 2,000 2,500

Female 2008 Female 2004 Male 2008 Male 2004

Source: ABS, Estimated Resident Population

4.3 Household Size

Table 4 presents the household size for Mount Alexander Shire compared with Regional Victoria, Melbourne and Victoria as a whole. In 2006, the average household size in Mount Alexander was 2.3, a decline from 2.5 in 1996. This household size is lower than all other comparison regions including Regional Victoria, Melbourne and Victoria as a whole.

A key driver of declining household sizes is an ageing population and growth in single parent and lone person households in Mount Alexander Shire.

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Table 4: Household Size, Mount Alexander Shire, Regional Victoria, Metropolitan Melbourne, Victoria

1996 2001 2006 Mount Alexander 2.5 2.4 2.3 Regional Victoria 2.6 2.5 2.5 Melbourne SD 2.7 2.7 2.6 Victoria 2.7 2.6 2.6 Source: ABS, Time Series Profile

4.4 Household Composition

Figure 4 shows the household composition of Mount Alexander in the 1996, 2001 and 2006 Census years. Couple families with no children have increased consistently from 1,700 in 1996 to 1,900 in 2006, whilst couple families with children have been in decline from a high of 1,900 in 1996 to 1,700 in 2006.

As of 2006, lone person households accounted for the highest number of households in Mount Alexander at 2,000 households. In 1996, there were 1,600 lone person households, the third highest number of households at that time. One parent families have also increased since 1996 from 650 households to 750 households. Group households and other households have increased off small bases.

Figure 4: Household Composition, Mount Alexander (S), 1996 - 2006

2,500

2,000

1,500

1,000

500

0 Couple family Couple family One parent family Other family Lone person Group household Other household with no children with children household

1996 2001 2006

Source: ABS, Time Series Profile

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Figure 5 benchmarks the change in household composition (in % p.a. terms) from 1996 to 2006 across Mount Alexander (S), Regional Victoria, Melbourne SD and Victoria as a whole. Other households have increased at a faster rate across all comparison regions whilst lone person households and group households have increased to a greater extent in Mount Alexander (2.3% and 2.6%, respectively) than the other comparison regions.

Couple families with children have declined across all regions except in the Melbourne SD suggesting a gradual shift of this demographic to Melbourne to gain close proximity to high order employment, education, health and other services. One parent families have increased by 1.4%, which is lower than the comparison regions.

Figure 5: Change (p.a.) in Household Composition, Mount Alexander (S), Regional Victoria, Melbourne SD & Victoria, 1996 – 2006

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0% Couple family with Couple family with One parent family Other family Lone person Group household Other household no children children household

Mount Alexander (S) Regional Victoria Melbourne SD Victoria

Source: ABS, Time Series Profile

In all, this profile reflects an ageing of the population over the past ten years manifesting in declining household sizes, increasing lone person households, declines in couple families with children, and other changes in social structure such as increasing one parent families.

4.5 SEIFA Profile

Figure 6 illustrates the SEIFA profile of Mount Alexander Shire for 2006. The map uses the Index of Relative Socio-economic Advantage and Disadvantage which is a continuum of advantage (high values) to disadvantage (low values) derived from Census variables related to both advantage and

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disadvantage, such as income and tertiary education.12 The SEIFA is universally accepted as a basis for defending the suitability or unsuitability of location proposals for electronic gaming. However, the SGS Gaming Vulnerability Index supplements SEIFA with additional indicators which together represent a more realistic measure of electronic gaming vulnerability.

In relation to Mount Alexander‟s SEIFA profile, the rural areas to the north-east are generally of high advantage (greater than 1,000). The remainder of the municipality is within the 750-1,000 band of advantage. Subtle variations exist around the townships with some CCDs being with the 500-750 band of advantage. This can be seen in areas in the southern CCDs of Castlemaine.

Figure 6: SEIFA Profile, Mount Alexander Shire, 2006

Source: SEIFA 2006, SGS Economics and Planning

The Gaming Vulnerability Index map (Figure 8) shows areas to the north-east having lower relative gaming vulnerability whilst variations exist in other parts of the municipality and within the townships.

12 ABS Census, Product Description; http://www.abs.gov.au/ausstats/[email protected]/mf/2039.0/

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4.6 Median Weekly Individual and Household Income

Figure 7 shows median individual and household income for Mt Alexander Shire from 1996 to 2006. Both income categories have increased over the ten year period with the median individual weekly income increasing from $225/week in 1996 to $366/week. Median weekly household income has risen from $445/week in 1996 to $662/week in 2006.

Over the same period, median weekly household income in Regional Victoria has increased from $504/week in 1996 to $821/week in 2006. The medians for the Melbourne SD are higher at $686/week in 1996 and $1,078/week in 2006. The Victorian average is between that of Regional Victorian and Melbourne SD at $628/week in 1996 and $1,021/week in 2006.

Figure 7: Median Weekly Individual and Household Income, Mt Alexander Shire, 1996 – 2006

700

600

500

400

300

200

100

0 Median individual income ($/weekly) Median household income ($/weekly)

1996 2001 2006

Source: ABS, Time Series Profile

Table 5: Median Weekly Household Income, Mt Alexander (S), Regional Victoria, Melbourne SD, Victoria, 1996 – 2006

Region 1996 2001 2006

Mt Alexander (S) 445 538 662 Regional Victoria 504 679 821 Melbourne SD 686 888 1,078 Victoria 628 812 1,021 Source: ABS, Time Series Profile

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4.7 Population Projections

Victoria in Future 2008 Population Projections indicate that Mount Alexander Shire will grow to a population of 22,800 in 2026 at a rate of 1.3% p.a. The Mount Alexander (S) – Bal SLA will account for the greatest share of population, reaching 13,360 in 2026 compared with the Mount Alexander (S) – Castlemaine SLA of 9,500.

The Mount Alexander LGA is expected to grow at a faster rate (+1.3%) than Regional Victoria (+1.0%) and at the same rate as Victoria as a whole. The City of Greater Bendigo (C) has been included for comparison purposes and will grow at a faster rate (+1.6%) than Mount Alexander. This is expected given that Bendigo is one of Victoria‟s key regional cities and is a driver of population consolidation across the State. The Melbourne SD is expected to experience a growth rate of 1.4% to 2026.

Table 6: Population Projections by SLA, LGA, Melbourne SD, Regional Victoria, Victoria, 2010 - 2026

Region 2010 2014 2018 2022 2026 Change AAGR Mount Alexander (S) - C'maine 7,722 8,090 8,509 8,966 9,448 1,726 1.3% Mount Alexander (S) Bal 10,937 11,566 12,176 12,771 13,358 2,421 1.3% Mount Alexander (S) 18,659 19,656 20,684 21,737 22,806 4,147 1.3% Greater Bendigo (C) 104,407 112,067 119,924 127,812 135,435 31,028 1.6% Melbourne SD 4,018,336 4,271,640 4,521,218 4,764,840 5,000,048 981,712 1.4% Regional Victoria 1,450,717 1,514,029 1,578,487 1,644,735 1,711,142 260,425 1.0% Victoria 5,469,053 5,785,668 6,099,705 6,409,575 6,711,190 1,242,137 1.3% Source: VIF 2008 Population Projections Note: 2010 data is a VIF projection, not estimated resident population

4.8 Infrastructure Overview

The Loddon region has attracted significant infrastructure investment over many years leading to enhanced local and regional accessibility to Melbourne and western Victoria. Mount Alexander is strategically located between Bendigo and Melbourne and in turn has derived improved accessibility from strategic investment in Regional Fast Rail Services from Melbourne to Bendigo. Castlemaine is a key station on the Melbourne to Bendigo rail line.

The region has also seen investments in the high speed road network most notably the Calder Bypass which has cut travel times between Bendigo and Melbourne including through Mount Alexander. This has enhanced regional accessibility for Mount Alexander residents.

Mount Alexander also benefits from a strong network of other high speed road links across the municipality including a link to Ballarat via the Midland Highway and to the Grampians region via the Pyrenees Highway.

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4.9 Policy Implications

This is relevant to the preparation of a Gaming Policy Framework for Mount Alexander for the following reasons:

In 2009, Mount Alexander Shire had an estimated resident population of 18,293 growing at an annual rate of 0.8% p.a. from 2001. Population projections indicate that Mount Alexander Shire will have a population 22,800 in 2026, growing at a rate of 1.3% p.a. The future provision of EGMs in Mount Alexander will be linked to ongoing population growth and will impact on EGM density per 1,000 adults. A policy response is required in anticipation of future EGM provision.

The age group profile of Mount Alexander suggests minimal growth in the younger age groups of 0-14 and 25-34 year age groups and significant growth in the older age groups of 50-64 and 65 years+. Persons who are retired or part time participants in the workforce have the time to participate in a range of day time „leisure‟ activities including electronic gaming. Research (further explored in section 5.2.2 of this report) shows that persons with adult families who receive income from superannuation are prone to spend more on electronic gaming than the average player.

Household composition in Mount Alexander is changing with declines in couple families with children and growth in couple families without children, one parent families and lone person households. One parent families and lone person households could be of a heightened risk when it comes to the effects of problem gambling given perceived limited earning capacity and social isolation.

SEIFA mapping shows that Mount Alexander is of medium-high advantage (greater than 750) although it is acknowledged that with other indicators, variations are possible across the CCDs, especially around Castlemaine and other townships.

Median weekly household incomes in Mount Alexander are lower than Regional Victoria, Melbourne and Victorian averages. Whilst discretionary income may be limited in some circumstances, it also suggests that those engaged in electronic gaming could be susceptible to the worst effects of problem gambling if this pursuit is or becomes addictive.

The Mount Alexander Shire is highly accessible to Ballarat, Bendigo and Melbourne and a range of other townships. Where EGM provision is higher in larger centres, this could lead to expenditure leakage from Mount Alexander Shire when residents choose to access EGMs in nearby municipalities.

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5 Problem Gambling and Context for the Modelling – Insights from the Literature

5.1 Definition of Problem Gambling

An extensive review of research into the relationship between access to electronic gaming machines and gambling harm reveals that there is no clear consensus on what defines a problem gambler. Most definitions take a qualitative approach and define problem gambling as:

“…characterised by difficulties in limiting money and/or time spent on gambling which leads to adverse consequences for the gambler, others, or for the community.”13

“When gambling is more important than anything else you might do….When you are gambling in order to win money to meet financial commitments.”14

„…gambling behaviour that creates negative consequences for the gambler, others in his or her social network, or for the community”15

In undertaking a search of the literature, SGS found that quantitative definitions of problem gambling were scarce. The most useful definitions linked gambling expenditure to the individual‟s ability to pay.

“Excessive gambling is used to describe a level of gambling expenditure that is considered to be higher than can be reasonably afforded relative to the individual‟s available disposable income and as a result produces financial strain”.16

The following pages summarise the main messages from this literature.

5.2 Socio Economic & Demographic Determinants of Household Electronic Gaming in Australia

A Queensland University of Technology study in 200317 investigated the validity of previous qualitative claims that high electronic gaming expenditure correlates to a set of (untested) socio-

13 Problem Gambling and Harm: Towards a National Definition Commissioned for: The Ministerial Council on Gambling Prepared by: The SA Centre for Economic Studies with the Department of Psychology, University of Adelaide November 2005 14 Victorian Gambling Screen, Flinders Technologies Limited, Ben-Tovim, Esterman, Tolchard and Battersby, 2001 15 The Canadian Problem Gambling Index: Final Report: J Ferris, H Wynne, Canadian Centre on Substance Abuse, February 19, 2001 16 Blaszczynski, A., Walker, M., Sagris, A., & Dickerson, M. (1997), „Psychological Aspects of Gambling Behaviour‟, Position Paper prepared for the Directorate of Social Issues, Australian Psychological Society 17 Socio Economic and Demographic Determinants of Household Gambling in Australia: Queensland University of Technology, Worthington, Brown, Crawford, Pickernell, Sep 2003

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economic and demographic variables. Regression modelling was used to predict gaming patterns in Australia on the basis of the data underlying the Australian Bureau of Statistics‟ Household Expenditure Survey of 6,892 households. The following equation was determined:

EGM Expenditure = 1.0320 * NUR - 6.8519 * DEP + 1.5739 * INV – 0.8802 * PEN - 0.1401 * SOC + 1.378

NUR = Number of residents in the Household DEP = Proportion of Dependants in the Household INV = Principal Source of income is Superannuation, investments, and other private income (excludes self employed and salaried and waged employees) PEN = Principal Source of income is an age, disability, unemployment, education or sickness pension. SOC = Index of relative Socio-Economic Disadvantage. Source: Derived from Table 2 Estimated Regression Models, Socio Economic and Demographic Determinants of Household Gambling in Australia: Queensland University of Technology, Worthington, Brown, Crawford, Pickernell, Sep 2003

The study found that in Australia, household structure and composition have a significant influence on gaming expenditure. For example, couples with children are more likely to purchase gambling products that can be consumed at home rather than use EGMs. Additionally, the study found that the primary source of household income, rather than income per se, is a major determining factor in gaming expenditure in Australia. Persons receiving a greater proportion of their income from private sources (INV) are likely to spend more on gaming, than those for whom public sources (PEN) are the sole source of income.

5.3 Policy Implications

The key implications for Mount Alexander are:

Local councils have a role to play in managing the distribution of EGMs through the use of provisions in their planning scheme (Clause 52.28). Mount Alexander Shire will be able to influence the location of EGMs across the municipality through using these provisions effectively.

The Productivity Commission found that problem gambling is correlated to the level of accessibility to the different forms of gambling – particularly accessibility to EGMs. The Productivity Commission has found that 65% to 80% of problem gamblers who sought counselling in Australia in 1998-99 engaged in electronic gaming and that this could be explained by the prevalence and popularity of EGMs versus other gambling products. Council can play a role in ensuring the appropriate design of venues so as to ensure a variety of entertainment options are provided in addition to EGMs.

Research has concluded that gaming machines should be distributed with reference to a gaming distress or risk index. The Gaming Vulnerability Index developed by SGS will be the basis for informing council decision-making about the optimum distribution of EGMs across Mount Alexander Shire.

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6 Developing a Methodology

6.1 Measuring Gaming Vulnerability

Developing the Gaming Vulnerability Indicator

In determining the vulnerability of the Mount Alexander community to problem gaming, it was decided to develop a gaming distress index. In this regard, the first step would be to develop an indicator of vulnerability to problem gaming at a small area level using socio-demographic variables.

The advantage of using this method over a problem gambling index (such as the Canadian Problem Gambling Index (CPGI)) is: It does not require an extensive detailed phone interview across the study area. It is possible to estimate vulnerability at a small area level using demographic information in the ABS Census. It is relatively easy to forecast demographic data at a small area level (and hence the vulnerability index). This would not be possible using a CPGI like index until time series data is available.

Vulnerability is the likelihood that an individual is or will become a problem EGM gamer. In order to link vulnerability to problem gaming to social and demographic indicators, vulnerability is indexed as a measured score. It is measured as the proportion of household income that is spent on electronic gaming, as outlined below:

Gaming Vulnerability Index Score = (Estimated) Proportion of income spent on EGM gaming

Household Gaming Vulnerability = (Estimated) Weekly Household EGM Expenditure (Net) Weekly Household Income

Take the example of a household whose weekly income after tax is $500. If on average, household members spend a total of $5 a week on EGM gaming then: Household Gaming Vulnerability Index Score = 0.01. However, we might then take the example of a household whose weekly income after tax is $5000. If on average, household members spend a total of $50 a week on EGM gaming then: Household Gaming Vulnerability Index Score also = 0.01.

While gaming expenditure of $50 a week for a household earning $5,000 a week gives the same gaming vulnerability index score as gaming expenditure of $5 a week for a household earning $500 a week, it is not as likely to represent overspending. This is a limitation of the gaming vulnerability index.

In order to determine actual overspending we would need to determine a sliding threshold of household income below which particular gaming vulnerability index values do represent households that are likely to be substituting money that should be spent on essential goods for

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electronic gaming. Therefore the index developed in this study best serves as an indicator only of where further socio-demographic analysis is required.

The amount of household income spent on EGM machines is measured in the Household Expenditure Survey (HES). While it is acknowledged that the HES underestimates gaming expenditure, it should be noted that the objective of this indicator is not to approximate the total amount spent, but rather to identify from which socio-demographic sectors persons are more likely to become problem gamblers. It is a risk rating.

Work regarding the linking of EGM expenditure to HES socio-demographic characteristics has already been undertaken previously in the report “Socioeconomic and Demographic Determinants of Household Gambling in Australia” (SDDHGA). The report uses regression modelling to predict gaming patterns in Australia on the basis of the confidential unit record files of the 1998/99 HES survey (representing records of 6,892 households).

In regards to the variables used in the SDDHGA report, it states that while there was “no equivocal rationale for predicting the direction of statistical significance of many of these independent variables, their inclusion is consistent with both past studies of gambling-taxation and demographic/socioeconomic incidence and the presumed interests of policy-makers and other parties.”

In total, 32 socio-economic variables were tested in the SDDHGA report, ranging from items such as household structure, age sex breakdown, country of birth and source of income. Of these, five of the most statistical significant variables where chosen in order to estimate Victorian18 EGM expenditure. The formula is derived at the household level, so for a small area estimate, it is necessary to use median local values for each of the variables, to calculate a median household gaming vulnerability index score as is shown below.

EGM Expenditure = 1.0320 * NUR - 6.8519 * DEP + 1.5739 * INV – 0.8802 * PEN - 0.1401 * SOC + 1.378

18 Regional dummy variables for Western Australia and NSW were included in the SDDHGA report but were omitted here for clarity.

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Using the Gaming Vulnerability Indicator to Measure Spatial Vulnerability

The EGM Expenditure equation on the previous page assigns weightings to the various socio- demographic variables derived from the Household Expenditure Survey Confidential Unit Record Files. The next step in the methodology is to approximate the value of the above variables at a Census Collection District level using data available from the 2006 Census. We extend the above equation to calculate a level of Vulnerability, defined as follows:

Of the socio demographic variables that have an effect on EGM expenditure, three can be approximated almost directly using the 2001 ABS CDATA publication. These are: Number of Residents in the Household ~ Total Persons / Total Dwellings; Proportion of Dependants in the Household ~ Total Persons / Persons Aged 0 to 14; and Index of relative Socio-Economic Disadvantage ~ SEIFA disadvantaged index for Australia19.

The remaining two variables, in regards to income sourced from investments and pensions require additional computation as there is no direct information on sources of income in the ABS Census. To overcome this problem, it was necessary to use information from the ABS publication “Household Wealth and Wealth Distribution, Australia” (Catalogue number 6554.0).

The ABS “Household Wealth and Wealth Distribution” publication lists statistics in regards to source of income against demographic variables such as age, income, tenure and landlord type, all of which are available in the Census at a CCD level. Source of household income was then estimated for each CCD via the age, income, and tenure and landlord type profile, and the results averaged to give an overall estimate of the following two variables: Principal Source of income is Superannuation or Investments ~ Estimated using Age, Income, and Tenure profiles. Principal Source of income is a Pension ~ Estimated using Age, Income, and Tenure profiles.

Using the results above, an estimate for weekly household EGM expenditure in each CCD was finally obtained. This was then divided by overall household income20 to obtain a vulnerability estimate for each CCD. The vulnerability estimates are absolute value estimates of the proportion of household income that households in each of the small areas (CCDs) are spending on electronic gaming.

For mapping purposes, the CCDs for each municipality were then split into percentiles and ranked from 0 to 100, with 0 being the least vulnerable to 100 being the most vulnerable.

Forecasting Gaming Vulnerability

To forecast vulnerability to 2016, the Department of Sustainability and Environment‟s Victoria in Future publication was used to forecast population by age breakdowns at a small area level.

19 This indicator was separated into 10 deciles, with 1 being most disadvantaged and 10 being least disadvantaged, in accordance with the SDDHGA report. 20 Overall Household income for each CCD was obtained using a weighted average approach on Household Income breakdowns as listed in the 2001 Census

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Victoria in Future forecasts population by age to 2016 at an SLA and hence the change in population was attributed to individual CCDs on a pro-rata basis. The methodology to estimate vulnerability was then slightly modified to fully utilise population by age data as follows; Number of residents in the Household ~ Total Persons / Total Dwellings Proportion of Dependants in the Household ~ Total Persons / Persons Aged 0 to 14. Principal Source of income is Superannuation or Investments ~ Estimated using Age profile Principal Source of income is a pension ~ Estimated using Age profile Index of relative Socio-Economic Disadvantage ~ SEIFA disadvantage index for Australia21.

6.2 Measuring Gaming Accessibility

Gaming accessibility was measured by GIS software (MapInfo) using the distance between Census Collection Districts (CCDs) and the Cumberland Hotel in Castlemaine. This method has to be used given the absence of a travel time matrix for Regional Victoria and the availability of only one venue in the municipality as a basis for distance measurement.

The distance was calculated using a “as the crow flies” measurement. The centroid of the CCDs was used to calculate an exact distance in kilometres. Once given an exact value, the CCDs were thematically mapped in a range to indicate proximity to the Cumberland Hotel. The closer the centroid of the CCD, the darker shade of blue the CCD is coloured. To give a geographic spread, 5 kilometre ranges were chosen.

6.3 Assessing Other Factors that Determine the Suitability of Venue Location

Proximity to Substitute Activities

To further understand the potential vulnerability to overspending on EGMs, it is necessary to consider the number of alternative recreational and entertainment activities within a defined area. Consumer Theory reasons that if the only form of recreational activity is EGMs, then EGM expenditure would be higher than if competing recreational activities were present.

Some other activities (such as other forms of gambling) could be considered complementary, and areas where these activities are co-located will induce additional gaming spend. It is reasoned that access is a deciding variable in a competitive environment in which a range of recreational activities are available to suit the demands of the market.

In a previous study conducted by SGS22, the local impact of the availability of alternative activities on resident EGM expenditure was measured by regression analysis.

21 This indicator is separated into 10 deciles, with 1 being most disadvantaged and 10 being least disadvantaged, in accordance with the SDDHGA report. 22 SGS Economics and Planning (2007) Analysis of Electronic Gaming Sustainability in the Southern Metropolitan Region of Melbourne

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Amongst other factors, substitute activities within the same postcode were considered23, such as: Neighbourhood Houses and Community Centres; Cinemas; Sport Centres; Public Libraries; and Parks and Reserves

The research found there is a negative relationship between Community and Neighbourhood Houses (82% certainty) and increased gaming expenditure in the postcode. This means that gaming expenditure was found to decrease as the number of Community and Neighbourhood Houses located in a postcode increased.

In-Centre versus Out-of-Centre Location

SGS has examined the relationship between expenditure on electronic gaming machines and the location of those machines (gaming venues) with respect to the location of strip shopping centres and shopping complexes, complementary and substitute activities and access to public transport. To do so, SGS analysed the relationship between two variables; namely „gaming expenditure per machine‟ verses „in-centre‟ (which is a 1 if venue is in a centre and 0 if it is not).

The findings of this analysis suggest that there is a loosely positive relationship between venue location and expenditure per machine. Whilst there is a positive correlation between the variables ‟in-centre„ and expenditure per machine, the regression exhibits a low r-square indicating that being located in-centre can only partly explain variation in expenditure per machine across different gaming venues.

6.4 Assessing Suitability of Internal Venue Design

Lighting and Timing as ‘Reality Check’ Cues

Environmental cues are an important element in establishing a link to the environment outside of a gaming venue. Cues such as clocks and natural lighting can provide a „reality check‟ for gamers and potentially can reduce harmful gaming spend. There has been an impetus to increase the number of clocks and access to natural lighting where possible as a means of providing these environmental cues.

The Victorian Department of Justice24 has introduced measures to regulate the environment inside a gaming venue and this includes:

23 These services were identified from Council records and Melways directory data 24Ministerial Council on Gambling Progress Report to Council of Australian Governments on Implementation of the National Framework on Problem Gambling 2004-2008 (NFPG) www.facs.gov.au/SA/GAMBLINGDRUGS/PUBS/PROGRESS_REPORT_NFPG/SUMMARY/Pages/responsible_ gambling_environments.aspx

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Time and Lighting The following measures foster responsible gambling by ensuring that gaming venues do not create a timeless environment detached from the outside world: Venues must be adequately lit; All gaming machines must display the time of the day either on the machine screen or on a clock attached to the machine.

Trading Hours Twenty-four hour trading has been abolished in all venues other than Melbourne‟s Crown Casino.

Lighting acts as a visual cue to gamblers about time spent gaming. The principles of providing adequate lighting have been accepted in Victoria whilst the need for „reality checks‟ is highlighted by the Productivity Commission‟s 2010 Inquiry into Gambling. The Inquiry noted the need for clocks as well as natural lighting to establish a “connection with the environment outside of gaming” that makes players aware of the passage of time.

These findings are echoed by Hing (2004)25 who found in a survey of NSW club members:

“..responsible gambling is more likely to occur when a club‟s gambling areas have clocks and natural lighting to make people aware of the passage of time”

The impact of environmental elements is supported by an empirical study by Spenwyn et al. (2009)26 that investigated the role that light and sound plays in determining the activity of a gambler, specifically in regard to electronic gaming. It was found that in a simulated electronic gaming environment the combination of red lighting and fast music increased the speed of bets placed in comparison to slow music and white light. It was also noted by Noseworthy, T & Finlay, K (2009)27 that other environmental features such as background noise and music alone can impact player behaviour.

Trading Hours

The operating hours of a venue can be important in providing break-of-play as identified by Hing (2004)28. A review by the Victorian Justice Department found that through surveys of problem

25 Hing, N (2004) The Efficacy Of Responsible Gambling Measures In NSW Clubs: The Gamblers‟ Perspective, www.austgamingcouncil.org.au/images/pdf/eLibrary/2755.pdf 26Blaszczynski, A, Sharpe, L & Walker, M (2001) Assessment of the Impact of the Reconfiguration on Electronic Gaming Machines as Harm Minimisation Strategies for Problem Gambling, University of Sydney Gambling Research Unit; www.aph.gov.au/senate/committee/clac_ctte/poker_machine_ harm_minimisation/submissions/sub06a.pdf 27 Noseworthy, T & Finlay, K (2009), „A Comparison of Ambient Casino Sound and Music: Effects on Dissociation and on Perceptions of Elapsed Time While Playing Slot Machines‟, Journal of Gambling Studies, vol. 25, no. 3, pp. 331-342 28 Hing, N (2004)

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gamblers, families of problem gamblers and support service providers, a reduction in trading hours was deemed to be „very effective‟ in minimising harmful gaming.

Provision of Alternative Activities

The Australian National Survey of Gambler Pre-commitment Behaviour 2005 outlines some key findings that underline gambling behaviour. A key device for avoiding problem gambling is providing “another diversionary activity to avoid overspending.” This was reported in the survey by 25% of gamblers which indicated that alternative activities could provide an opportunity for gamblers to avoid overspending through diversion.

Alcohol Consumption

As reported by Blaszczynski et al. (2001) alcohol is associated with an increase in potentially irresponsible gambling activity29. In particular, it was found by Kyngdon & Dickerson (1999) (in Blaszczynski et al.) that in a controlled environment participants in a research experiment who drank 3 units of alcohol were twice as likely to gamble until their money was gone. This was also established by focus groups of problem gamblers noting that the consumption of alcohol was a key factor in contributing to problem gambling.

Venue Size, Type and Access

McMillen and Doran (2006)30 suggest in their study of gaming activity in the suburb of Maribyrnong, that expenditure is often influenced by the size and type of venue as well as local access. Venues that are proximate to local shopping centres, residential areas and transport corridors were reported to have a higher spend. This is consistent with previous findings that accessibility is a significant determinant of gaming expenditure at a local level.

6.5 Policy Implications

The following policy implications are relevant for a gaming policy framework in Mount Alexander Shire:

The gaming vulnerability indicator provides an index of the proportion of household income that is expected to be spent on electronic gaming machines by CCD (neighbourhood). The GVI indicates those neighbourhoods in which households are most vulnerable to spend more than they can afford on EGMs. Gaming Policy should discourage the provision of additional EGMs in these neighbourhoods and conditionally support the location of additional EGMs in neighbourhoods that are relatively less vulnerable.

29 Blaszczynski, A, Sharpe, L & Walker, M (2001)

30 McMillen, J., & Doran, B. (2006). „Problem gambling and gaming machine density: socio-spatial analysis of three Victorian localities‟, International Gambling Studies, Vol. 6, pp. 5 -29.

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The gaming vulnerability indicator is a relative index and the score of a CCD does not reveal the actual level of problem gambling in that neighbourhood but rather the rank level relative to other CCDs. As such, it should not be used in isolation to determine the suitability of a permit application.

The gaming „accessibility index‟ provides a measure of how accessible a CCD is to the existing supply of EGMs. This provides a reference for the application criteria.

While previous regression analysis by SGS has identified a negative relationship between the location of EGMs and the location of neighbourhood and community houses, the rationale for locating EGMs proximate to facilities that are designed to cater largely to disadvantaged sections of the community appears counterintuitive and this should not be further explored in this policy.

The gaming policy and permit application process should encourage venue applicants to consider restricting their opening hours to prevent extended continuous EGM play by problem gamblers.

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7 Managing Electronic Gaming – Insights from Stakeholder Consultation

This section summarises the findings of the stakeholder consultation held over two days in Mount Alexander Shire. The insights will be drawn on to inform the development of the Gaming Policy for Mount Alexander Shire.

7.1 Key Themes

The key themes are as follows: Socio-economic considerations; Venue location, design and management; and Role of Council

7.1.1 Socio-Economic Considerations

EGMs Capture Expenditure Which Could Otherwise Be Better Deployed

EGM facilities represent a form of escape expenditure from a local economy through taxation and income to external investors. This sees a loss of discretionary expenditure which could otherwise be spent on alternative forms of entertainment where expenditure is retained in the area.

Lack of Local Gambling Support Services

Mount Alexander has a lack of locally based gambling support services. Regional level services are based in Bendigo with limited outreach services for Mount Alexander Shire residents. In turn, Mount Alexander residents must travel to Bendigo.

Interaction with Kyneton and Bendigo

The strategic location of Mount Alexander between Bendigo and Kyneton means that residents may access EGMs outside the municipality. This is a form of escape expenditure for the municipality. Anecdotal evidence suggests Maldon is closely associated with Bendigo for regional services with lesser economic linkages to Castlemaine.

Location Decisions Should Reflect a Harm Minimisation Strategy

In the future, EGMs should be located within community based venues away from mixed use and accessible town centres. This would reflect a harm minimisation strategy whereby EGMs are not directly accessible to the broader community in town centre contexts.

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Risks to New Migrant Communities

Concerns were expressed about the impact of electronic gaming machines on new migrant communities who are recently settled in Mount Alexander. Recent migrants may not have yet established social networks within the wider community and as such the influence of addictive entertainment pursuits may compromise their establishment in the community.

User Profiles and Gaming Motivations

Electronic gaming can result in significant social costs derived from gambling addiction. The nature and privacy of electronic gaming means that it can be viewed as a form of „escape from circumstance‟, thereby entrenching „at risk‟ citizens.

Electronic gaming is also being used as a form social integration for members of the community which would otherwise by isolated. Using electronic gaming as a solution to social isolation risks such pursuits becoming „normalised‟ with a community. This is particularly relevant to small rural communities where small population sizes and lower incomes could increase vulnerability.

Risks of ‘Gaming Normalisation’ through Family Friendly Activities

Concerns were expressed about the potential for electronic gaming to be normalised through the incorporation of gaming facilities in locations which are perceived to be „family friendly. This includes the incorporation of child minding facilities within venues where such facilities could increase the propensity to spend on electronic gaming.

7.1.2 Venue Location, Design and Management

EGMs Should Not Be Located In Mixed Use Precincts

EGMs should not be located within core shopping areas where convenience and access from residential areas is at its best. This does not reinforce harm minimisation and instead EGMs should be located in areas which are not as easily accessible. This would be contrary to what venues may be looking for which may include areas with high foot traffic and where advertising can be located.

Provision of a ‘Whole of Venue’ Offer

EGM rooms and facilities should be part of an integrated whole of venue offer which includes other recreational opportunities such as dining, function rooms, TAB, outdoor entertainment areas, and other bar facilities.

EGM rooms should not be visible from dining areas or child play areas within the venue and should be positioned discretely in the venue. Signs similar to those relating to consumption of alcohol should be installed for gaming.

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Design Features

The following were considered important components to venue design: Access to natural light into a gaming room; No external advertising of gaming facilities; Provision of sufficient car parking at venues; No ATMs in venues with EGMs; No views into a gaming room from other parts of a venue; and No visual access to EGM rooms from the street.

Maryborough Highland Society Allocation

The Maryborough Highland Society has an allocation of 65 EGMs through the gaming auction process.

Venue Operating Hours

Comments were made that venues should not operate for 24 hours and that the gaming licenses should not automatically be granted for the entire hours of the liquor license of the premises.

7.1.3 Role of Council

Leadership around Planning for Alternative Activities

Stakeholders see Council playing a key role in planning for alternative entertainment activities to electronic gaming. Such opportunities include investing in local level infrastructure to support community development, land use planning regulations through the facilitation of new businesses and facilitating events and other activities at the community level.

Advocacy to State Government

Council has a key role to play in advocacy to State Government around the planning and management of electronic gaming within the community. This includes developing evidence which can probe State Government findings and recommendations in relation to electronic gaming.

Need for Application Requirement to undertake Independent Research

The policy should include a mechanism to require research to be undertaken of the community. This should be undertaken by an independent market research company in the form of a survey as completed in similar situations in Macedon Ranges and Jan Juc. VCAT and VCGR have previously upheld decisions where a survey has been used as evidence on community views.

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Need for Better Monitoring

Council should put in place mechanisms to improve monitoring of problem gaming. This includes monitoring of gaming expenditure and other activities which could be undertaken jointly with other agencies.

7.2 Policy Implications

Key policy implications are as follows:

The permit application process needs to be transparent, fair and defensible. The policy cannot explicitly prohibit further gaming machines rather it should provide strategic direction around expectations and location criteria for EGMs in Mount Alexander.

The policy needs to be implemented in partnership with a package of responses including improved gambling support services in Mount Alexander Shire and additional efforts in harm minimisation.

The gaming policy should target those persons who are most likely to spend more than they can afford on electronic gaming and not unduly penalise the opportunities for the remainder of the population to access electronic gaming machines.

There is stakeholder support for the permit application assessment to include criteria relating to the provision and extent of alternative non-gambling activities in venues.

There is stakeholder support for the permit application assessment to include criteria relating to the ability of a venue to cope with additional patronage in terms of parking, noise and traffic congestion.

An application could be expected for 65 additional EGMs in Mount Alexander Shire from the Maryborough Highland Society. For this reason, a gaming policy must be in place to guide transparent decision-making by local government.

Stakeholders recognised that Council has a role to play in the regulation of electronic gaming in relation to venue location, leadership in developing alternative entertainment activities, advocacy to State Government and contributing to improved monitoring of problem gambling.

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8 Findings from the Analysis

This section presents findings from the analysis as follows; EGM Density Analysis; Gaming Vulnerability Index Modelling; Gaming Accessibility Modelling; and Venue Design

Implications for the gaming policy are also identified.

8.1 EGM Density Analysis

As noted in section 2.2.1, Mount Alexander Shire currently contains 1 venue and approximately $3.3million was spent on EGMs in this single venue in the year to June 2010. This one venue had 30 EGMs. Table 7 sets out scenarios for EGM per 1,000 adults based on known applications and current VCGR „in force‟ entitlements. It is intended to provide an indication of EGM density per 1,000 adults if current conditions were maintained and „in force‟ entitlements were all realised in 2010.

Table 7: Electronic Gaming Machine Development Scenarios

Net EGM Total Net expenditure Net EGM Expenditure No. of per adult EGM per expenditure 2009-10 Venues EGM No. (18+) 1000 (18+) per machine Mount Alexander Shire (Existing) $3,331,362.89 1 30 $226 2.04 $111,045.43

Mount Alexander Shire (With Maryborough Highland Society Inc) $3,331,362.89 2 95 $226 6.45 $35,066.98 Mount Alexander Shire (With Total VCGR Entitlement) $3,331,362.89 ? 105 $226 7.13 $31,727.27

Regional Victoria $557,213,566.59 187 7,362 $503 6.65 $75,687.80

Metropolitan Melbourne $2,039,969,557.59 327 19,320 $649 6.15 $105,588.49

Victoria $2,597,183,124.18 514 26,682 $611 6.28 $97,338.40 Source: Victorian Commission for Gambling Regulation website www.vcgr.vic.gov.au Note: Indicative only; based on maintaining total net expenditure as of 2009-10, all venues developed in 2010 and a 2010 population projection of 14,734

As of 2010, Mount Alexander Shire had an EGM density of 2.04 EGMs per 1,000 adults, compared to the Victorian average of 6.28 EGMs per 1,000 adults. Mount Alexander has been allocated an additional 75 EGMs through the EGM entitlements auction process. This will take total provision to 105 EGMs. The localised EGM Density for the Castlemaine (Urban locality) is calculated at 5.23.

Further, the Maryborough Highland Society could apply for a planning permit for a venue in which to locate its approved entitlements (65 EGMs in Mount Alexander). If this was to occur in 2010, the EGM density per 1,000 adults could rise to 6.45 based on existing conditions. The realisation of the

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full entitlement of 105 EGMs in Mount Alexander in 2010 could see EGM density per 1,000 adults rising to 7.13 based on maintaining existing conditions. It is unlikely that 10 EGMs per 1,000 adults will be exceeded based on these scenarios although the full realisation could see Mount Alexander exceed EGM densities of the comparison regions.

8.2 Gaming Vulnerability in Mount Alexander Shire

In the five years 2011 – 2016, minor demographic changes are expected to occur that will make some neighbourhoods relatively less or more vulnerable in terms of the Gaming Vulnerability Index. Most of these changes are life cycle related and reflect the overall ageing of the population.

These differences include: Change in the average number of household dependents as the population of a particular neighbourhood ages; and Change in the proportion of households drawing income from private investments and private superannuation. The trend in farm household retirees moving to urban centres for supported living and better healthcare opportunities is one process contributing to this change.

These differences are illustrated by slight differences in the shading of CCDs in the 2011 and 2016 estimates.

Estimate – 2011 Gaming Vulnerability (Figure 8)

Figure 8 shows Gaming Vulnerability Index mapping for Mount Alexander for 2011. Key findings are as follows:

Relatively high gaming vulnerability exists in some CCDs of Castlemaine and in the townships of Maldon, Newstead, Chewton and Guildford (a score of 50 or greater). The CCD between Castlemaine and the Calder Highway (Golden Point) also has relatively high gaming vulnerability. Peripheral areas to the key townships have relatively low-medium levels of gaming vulnerability.

SEIFA mapping indicates that rural areas to the north-east are of high advantage (greater than a score of 1,000). These CCDs also demonstrate low gaming vulnerability (yellow= a score of 0) whilst medium-low gaming vulnerability is also seen in other rural areas across the Shire (orange= a score of 25). Areas of low gaming vulnerability also exist around Taradale and Harcourt and in some northern CCDs of Castlemaine.

2016 Gaming Vulnerability (Figures 9)

Figure 9 forecasts gaming vulnerability for 2016. Key findings of the forecasts are as follows:

Areas within Castlemaine which currently exhibit low relative gaming vulnerability are expected to become relatively more vulnerable to 2016, particularly in the north-east. The CCD in the north-west of the municipality is expected to become marginally more

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vulnerable but still less than 50. All areas with high vulnerability in Castlemaine will continue to exhibit high relative vulnerability to 2016.

The townships of Maldon, Newstead and Guildford are expected to retain high relative gaming vulnerability to 2016. The rural area surrounding Maldon (north-west) is expected to decline in relative gaming vulnerability to below 50 by 2016. The rural area surrounding Taradale is expected to become less vulnerable from a score of 50 in 2011 to a score of between 25 and 50 in 2016.

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Figure 8: Gaming Vulnerability Index, Mount Alexander Shire, 2011 (Estimate)

Source: SGS Economics and Planning

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Figure 9: Gaming Vulnerability Index, Mount Alexander Shire, 2016 (Forecast)

Source: SGS Economics and Planning

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8.3 Gaming Accessibility in Mount Alexander Shire

Figure 10 plots accessibility ratings to the Cumberland Hotel and the gaming venues in Kyneton and Bendigo. The Cumberland Hotel is the only venue in Mount Alexander hosting EGMs whilst venues in Bendigo and Kyneton have been included based on initial findings which suggested that some residents in Mount Alexander are accessing these venues. The surrounding CCDs in Castlemaine offer the highest level of access to the Cumberland Hotel given its location.

The adjoining rural CCDs to the north, south and east also offer higher levels of access given the availability of road networks in those directions from Castlemaine and also proximity to Bendigo and Kyneton venues. The centroids of the CCDs to the west (including the townships of Maldon and Newstead) are further away from Castlemaine, Kyneton and Bendigo, thereby having a lower gaming accessibility rating.

Generally, all key townships are within fifteen kilometres of the Cumberland Hotel. Newstead has a high relative gaming vulnerability based on socio-economic indicators but has low gaming accessibility. Maldon has similar characteristics although some CCDs have higher gaming accessibility.

Figure 10: Gaming Accessibility, Mount Alexander, 2011

Source: SGS Economics and Planning

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8.4 Venue Design

The design characteristics of individual venues have not been assessed and instead the findings have been expressed in the form of principles to be considered in section 8.5.3.

8.5 Policy Implications

8.5.1 Gaming Vulnerability and Catchments

The key policy implications for Mount Alexander in relation to gaming vulnerability and socio- demographics are as follows:

High levels of relative gaming vulnerability exist in Castlemaine and the townships of Maldon, Newstead and Guildford. Whilst strip shopping centres in Castlemaine and Maldon are scheduled at Clause 52.28 of the Mount Alexander Planning Scheme, additional EGMs should be discouraged in these other areas with high relative gaming vulnerability.

There are CCDs within Castlemaine which exhibit low relative gaming vulnerability and applications for additional EGMs could come from prospective operators looking to operate machines in these areas.

Applications for additional EGMs could come from prospective operators looking to operate machines in the Harcourt and Taradale townships which currently exhibit low relative gaming vulnerability.

Gaming vulnerability is lower in the rural areas of Mount Alexander Shire and applications for additional EGMs could come from prospective operators looking to operate machines in these areas.

Electronic gaming in Mount Alexander Shire is influenced by policy responses and interaction with venues in the City of Greater Bendigo and Kyneton in Macedon Ranges Shire.

Gaming accessibility is at its greatest around Castlemaine given proximity to the Cumberland Hotel (the only venue in Mount Alexander Shire with EGMs).

8.5.2 Venue Location

The key policy principles for Mount Alexander in relation to venue location are as follows:

Any future EGM provision should be directed away from areas of relatively high gaming vulnerability.

Electronic gaming is prohibited in scheduled shopping strips in Castlemaine and Maldon. These areas are highly accessible locations that also demonstrate relatively high gaming vulnerability. The existing schedules should remain in place.

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Any new EGMs should be located in areas of relatively low gaming vulnerability.

Making EGMs ‘Accessible but not Convenient’

Policy responses to managing electronic gaming in some other Victorian jurisdictions are based on the principle that gaming should be „accessible but not convenient.‟ This policy is not based on the principle of „accessible but not convenient‟ gaming machine location. Nonetheless, the effective operation of this policy is likely to achieve a similar outcome. This is because:

1. The continued scheduling of the Castlemaine and Maldon strip shopping centres ensures that convenience gaming is prohibited in the most accessible retail locations; and

2. The designation of gaming discouraged areas on the basis of gaming vulnerability rather than accessibility means that some accessible locations on the periphery of Castlemaine and other towns circumvent being designated as gaming discouraged areas.

8.5.3 Venue Design

The key policy implications for Mount Alexander in relation to venue design are as follows:

Any future EGM provision should be directed away from venues that have multiple gaming options e.g. TAB, Keno, bingo, poker and limited alterative non-gaming entertainment and recreation options. Any future EGM provision should be directed to venues than offer alternative non-gaming forms of recreation and entertainment.

Decreasing the provision of alternative forms of gambling at the gaming venue could reduce the resident per capita expenditure on electronic gaming at that venue.

Venues should be designed to ensure that patrons in the gaming areas are exposed to high quality natural daylight and time prompts (clocks) to ensure „reality checks‟ are available to make patrons aware of their length of stay. External advertising of gaming facilities should be discouraged and no direct views should be provided into a gaming room from the street or within parts of venues considered family friendly.

Venue trading hours should be specified in planning permits and managed to minimise possible risks of problem gaming. Venues should not operate 24 hours.

Liquor licensing is another mechanism available to regulate permission for applications for new gaming venues to proceed. Gaming licenses do not necessarily have to match liquor licences in relation to hours of operation and could follow reduced hours.

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9 Electronic Gaming Planning Framework

This section presents the strategic planning framework for electronic gaming in Mount Alexander Shire.

9.1 Implementation Framework

Figure 11 below sets out the mechanisms in the Mount Alexander Planning Scheme to be used as the means of implementation for the strategic planning framework for electronic gaming in Mount Alexander Shire.

The framework includes: Local Planning Policy Framework: New Clause 22.33 – Electronic Gaming Policy; and Particular Provisions: Schedule to Clause 52.28 (unmodified)

Figure 11: Strategic Planning Framework, Electronic Gaming, Mount Alexander Shire

Mount Local Planning Alexander Policy Framework Planning Particular Scheme Local Planning Provisions Policy – Clause 22.33 Clause 52.28- Schedule

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9.2 Clause 22.33 - Electronic Gaming Policy

22.33 ELECTRONIC GAMING MACHINE POLICY

This policy applies to all venues within Mount Alexander Shire which have or are proposed to have an electronic gaming machine license.

22.33-1 Policy Basis

In 2009, Mount Alexander Shire had an estimated resident population of 18,293 and has experienced small population growth over the past 8 years of 0.8%. Further, the Municipal Strategic Statement notes that over half the population of Mount Alexander lives within the main town of Castlemaine with the remainder distributed across other smaller townships and rural areas.

State Government population projections indicate that the municipality will reach a population of 22,800 by 2026, at an annual growth rate of 1.3% p.a. This growth rate is higher than what is expected for Regional Victoria (+1.0%) and equal to the State average. Growth drivers will include population consolidation around key regional centres, proximity to the regional city of Bendigo and improved accessibility to Melbourne through high speed road and rail links.

Within this context, it could be expected that there will be increased demand for the provision of electronic gaming machines in Mount Alexander Shire as venues seek to attract a share of the anticipated growth in discretionary expenditure and redistribute existing „escape‟ expenditure back into Mount Alexander. Additionally, gaming vulnerability mapping of the population indicates that Mount Alexander has several Census Collection Districts where future electronic gaming machine (EGM) provision should be prohibited and discouraged. This policy will be used to guide decision- making by Mount Alexander Shire Council in relation to the location of EGMs and the associated design of venues.

The Victorian Commission for Gaming Regulation (VCGR) has allocated a total of 105 EGM entitlements within Mount Alexander Shire consistent with the limit on EGM provision in the municipality of a maximum of 10 EGMs per 1,000 adults in accordance with the default cap for uncapped municipalities. The distribution of gaming vulnerability has been determined for Mount Alexander and its expression has been mapped in relative terms.

It is the basis of this policy that the legitimate EGM entertainment needs of Mount Alexander Shire residents will be sufficiently provided for by achieving an EGM density of no more than 10 EGMs per 1,000 adults. Gaming machines should be located accessible to the general community but the location of additional gaming machines within relatively vulnerable neighbourhoods (Census Collection Districts) is discouraged.

The existing policy framework is such that additional EGMs are prohibited within the strip shopping centres of Castlemaine and Maldon pursuant to the Schedule to Clause 52.28 – 4 of the Mount Alexander Planning Scheme. Where gaming vulnerability mapping suggests those areas which have high relative gaming vulnerability, (a score greater than 50), additional EGM provision will be discouraged. Additional EGM provision should also be discouraged in areas of high relative gaming accessibility. Venues that offer gaming should also provide non-gaming forms of entertainment and recreation so that people can satisfy their social and leisure needs in a variety of ways.

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22.33-2 Objectives

To ensure that overall gaming machine numbers are not excessive in relation to population size.

To ensure that gaming machines are situated in appropriate locations and premises.

To ensure that, following any increase in the total number of gaming machines within Mount Alexander, the total density of electronic gaming machines does not exceed 10 machines per 1,000 adults.

To ensure that gaming machines are located so as to minimise the adverse social and economic consequences of electronic gaming.

To encourage the redistribution of gaming machines away from locations of high relative gaming vulnerability.

To encourage the redistribution of gaming machines away from locations of high relative gaming accessibility.

To encourage the redistribution of gaming machines away from venues which offer a limited range of alternative entertainment for their patrons.

To prohibit gaming machines in specified strip shopping centres.

22.33-3 Policy

Quantity

The number of gaming machines is capped at 10 machines per 1,000 adults in Mount Alexander Shire in accordance with the default cap for uncapped municipalities as set out by the VCGR.

Location

It is policy that: Electronic Gaming Machines be prohibited from strip shopping centres – as per the Schedule to 52.28 and shown in Figures 13-15.

It is preferred that:

Electronic Gaming Machines be located in areas with low relative gaming vulnerability. Refer to Figures 12-14. Electronic Gaming Machines be located in areas with low relative gaming accessibility. Refer to Figure 15.

Figures 12-14 show the distribution of CCDs (neighbourhoods) in which Mount Alexander Shire Council has determined that gaming should be strongly discouraged. In Figures 13-15, the most vulnerable 50% of neighbourhoods in Mount Alexander Shire are to be linked with policy guidance discouraging the location of additional gaming machines in that neighbourhood.

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The remaining 50% of neighborhoods in Mount Alexander are to be overlain with policy guidance recommending qualified support for the location of additional gaming machines within these neighbourhoods, provided that the application satisfies the objectives of the local gaming policy, including, foremost, that the municipal electronic gaming machine cap is not exceeded.

Venue Characteristics

It is policy that gaming machines are located in venues which:

Offer a range of non-gambling entertainment; Offer non-gambling entertainment as the primary purpose of the venue; and Do not allow for 24 hour-a-day operation of gaming machines.

It is policy that the design, location and operations of gaming venues do not adversely affect the surrounding area and are consistent with the Gambling Regulations Act 2003 (and amendments), the Liquor Control Act 1987, and the Planning and Environment Act 1987.

22.33-4 Application Requirements

It is policy to require applicants for planning permits for electronic gaming machines to include the following information:

Quantification of the number of gaming machines that are being added/removed or relocated within Mount Alexander and details of the locations involved; Details of the applicant venue and, if machines are being relocated within Mount Alexander Shire, details of the venue from which machines are being relocated, so as to assist Council in determining whether the relocation of gaming machines is contributing to reducing the negative social and economic impacts of electronic gaming; Details of the expected increase in patronage (if any) at the applicants venue; An assessment of the social, environmental and economic benefits and costs of the application and a forecast of gaming expenditure for the venue; A Venue Management Plan identifying strategies to minimise problem electronic gaming; Details of additional gambling and non-gambling entertainment that will be available at the venue and the hours of operation of these forms of entertainment; and Details of compliance with relevant VCGR administered gaming regulations for premises layout and design.

22.33-5 Decision Guidelines

It is policy that the responsible authority considers as appropriate:

Whether the proposal is within the electronic gaming machine cap as specified in this planning scheme; Whether there is a net social and economic benefit for the Mount Alexander community as a whole, to be derived from the proposal;

Final Report P. 55 Gaming Policy Framework / Mount Alexander Shire Council

Whether the impact of the proposal is likely to increase the value of spending by vulnerable persons and number of persons overspending on electronic gaming within Mount Alexander Shire; Whether the proposal is within an area of high relative gaming vulnerability or otherwise; Whether venue patrons will have a sufficient choice between electronic gaming and non- gambling forms of entertainment; Whether the venue will comply with VCGR and other regulations.

22.33-6 Monitoring and Review

This policy will be reviewed and updated every five years in line with the ABS Census and SEIFA data availability; This policy will be reviewed and updated if any new strip shopping centres or shopping complexes are developed in areas of relatively high gaming vulnerability in Mount Alexander Shire.

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Figure 12: Scheduled Strip Shopping Centres and Areas Where Additional EGMs are Discouraged, Mount Alexander Municipal Map

Note: Focus maps for Castlemaine and Maldon Districts are provided overleaf

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Figure 13: Scheduled Strip Shopping Centres and Areas Where Additional EGMs are Discouraged, Castlemaine and Maldon Districts

Note: Focus maps for Castlemaine and Maldon Town Centres are provided overleaf

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Figure 14: Scheduled Strip Shopping Centres and Areas Where Additional EGMs are Discouraged, Castlemaine and Maldon Town Centres

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Figure 15: Gaming Accessibility, Mount Alexander

Note: This map constitutes a reference tool for the Location and Land Use Mix Assessment (Detailed Application Requirements; section 9.3)

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9.3 Detailed Application Requirements

It is recommended that Council prepares a checklist for all permit applications relating to EGMs that requires at least the following information. These requirements are examples only.

1. Quantification of the number of gaming machines that are being added/removed or relocated within Mount Alexander Shire and details of the locations involved.

Example Only:

No of gaming Operator Origin Destination machines 10 Operator Name Venue and Venue and Address Address

2. Details of the applicant venue and, if machines are being relocated within Mount Alexander Shire, details of the venue from which machines are being relocated, so as to assist Council in determining whether the relocation of EGMs is contributing to reducing the negative social and economic impacts of electronic gaming.

Details to include: Standard contact details of the applicant including venue site address Primary business activity (revenue driver) of the venue(s) Opening (licensing) hours for each day of the week of the venue(s) Venue Capacity (as per fire regulations) Average Weekly Total Venue Patronage (combined estimate of both gaming machine users and other patrons) Present full time equivalent number of employees Additional full time equivalent employment that will be created by the proposal Measures in place to minimise problem gambling

3. Details of the expected increase in patronage (if any) at the applicant venue

Applicant to include an explanation for why they expect to see this change in patronage with the introduction of [additional] electronic gaming machines

4. An assessment of the social, environmental and economic benefits and costs of the application and a forecast of gaming expenditure for the venue

Applicant to include in their assessment: Profile of residents living within a 400 metre walking radius of the venue Profile of the local community Projected future population changes

5. An assessment of the vulnerability of the local community to problem gambling and a comparison of the vulnerability of the local community to Mount Alexander Shire and to Victoria as a whole

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The applicant will be offered the relevant gaming vulnerability data as prepared in this study and updated as necessary.

6. A venue management plan identifying strategies to minimise problem electronic gaming

A venue management plan will ideally include: Proposed operating hours for the dedicated gaming space; Description of how any features of the design of the venue interior and exterior might reduce the incidence of problem gambling; and Measures to reduce any negative consequences of electronic gaming that occurs at that site, even if the negative consequences are realised outside of the venue

7. Details of additional gambling and non-gambling entertainment that will be available at the venue and the hours of availability of these forms of entertainment

Applicants are requested to provide a list of forms of entertainment, hours of availability and the maximum number of persons who can engage in that form of entertainment at any one time – as the example below shows:

Additional Form of Hours Max Participants Entertainment – Gambling

Bingo 5 – 7pm Tue 30 TAB 11am – 5:30pm Mon - Sun no limit Additional Form of Hours Max Participants Entertainment – Non-Gambling

Dance floor 8pm Fri – 1am Sat and 8pm Sat – Capacity of 100 people 1am Sun Pool Tables 7am – 11pm Sun – Thu 8 people (2 x tables x 4 7am – 1am Fri/Sat and Sat/Sun players (doubles)

8. Details of compliance with relevant VCGR administered gaming regulations for premises layout and design.

Ideally, the applicant will progress their application to the VCGR for a gaming license prior to or tandem with their application for a planning permit.

The applicant should submit plans and documents showing that the application is consistent with the gaming license regulations of the VCGR

9. Any additional detail that the applicant wishes to submit to demonstrate the potential effect of their application on the social and economic wellbeing of the community

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9.4 Location and Land Use Mix Assessment Process

It is recommended that Council utilise the following points system to assess relevant planning permit applications to determine whether Council will grant a planning permit, grant a planning permit with conditions, or refuse to grant a permit.

Applications will be assessed on four areas of merit. A total score of at least +1 is required for Council to support the application in principle (subject to other site and building details being satisfied).

1) Will the proposal increase the proportional distribution of electronic gaming machines in Mount Alexander Shire away from those locations in which residents (households) have a higher vulnerability to overspend on electronic gaming products?

Council will refer to the relevant policy guidelines of its planning scheme shown in Figure 4. (These policy guidelines will require revision every five years as updated SEIFA and other Census data is made available to recalculate small area gaming vulnerability index scores).

Points will be credited to applications on the following basis:

Relative Gaming Points Awarded Vulnerability Score 76 - 100 -2 51 - 75 -1 26 - 50 0 0 - 25 +1

2) Will the proposal increase the proportional distribution of electronic gaming machines in Mount Alexander Shire toward those locations in which residents (households) presently have relatively lower accessibility to electronic gaming machines?

Council will refer to the relevant policy guidelines of its planning scheme shown in Figure 5. (These policy guidelines will require revision every five years as updated ABS Journey to Work and Census data is made available to recalculate small area gaming accessibility index scores).

Points will be credited to applications on the following basis:

Relative Gaming Points Awarded Accessibility Score 76 - 100 -2 51 - 75 -1 26 - 50 0 0 - 25 +1

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3) Will the venue offer a sufficient range of alternative non-gambling activities (excluding alcohol consumption) on-site for its patrons during gaming hours?

Sufficient for these purposes is defined as either:

„an activity or combination of activities that is/are available onsite for all patrons to participate at any one time and that is available during at least 50% of gaming hours‟. Examples include restaurant dining, dancing, sports participation or a combination of these and other activities.

„an activity or combination of activities that is/are available onsite for at least 50% of patrons to participate at any one time and that is available throughout gaming hours‟. Examples include restaurant dining, dancing, sports participation or a combination of these and other activities.

Or, a compromise between the above two definitions, provided that the outcome is that the combination of activities is effectively available for at least 50% of total patrons during any specified weekly period.

Patrons for these purposes are defined as either: The average weekly total venue patronage estimated and supplied by the applicant venue; or, the venue capacity (as per fire regulations) if an estimate is not supplied

Council will determine the number of alternative non gambling activity placements available from the information supplied by the applicant as per Question 7, Section 9.3.

Points will be credited to applications on the following basis:

Availability of alternative Points Awarded non gambling activities No alternative non gambling -1 activities in the venue Available to less than 50% 0 of all patrons while they are in the venue Available to more than 50% +1 of all patrons while they are in the venue

4) Will the venue offer other multiple gambling activities onsite for its patrons during gaming hours?

Council will determine the number of alternative gambling activity placements available from the information supplied by the applicant as per Question 7, Section 9.3. Gambling activities that involve a point of sale such as TAB or Keno are deemed to be available to all patrons during the hours of operation of that gambling activity. For those gambling activities that involve the allocation of a limited number of machines or seats to patrons; the applicant can divide the maximum capacity of the venue to accommodate persons participating in those activities at any one time by the maximum capacity of the venue to derive the % availability of gambling activities onsite.

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Points will be credited to applications on the following basis:

Availability of alternative Points Awarded gambling activities Available to more than 50% -2 of all patrons while they are in the venue Available to less than 50% -1 of all patrons while they are in the venue No alternative gambling 0 activities onsite

Total Score

A total score of at least +1 is required for Council to support the application in principle. In practice this means that areas that Mount Alexander Shire Council deems of high gaming vulnerability (top half of Census Collection District scores) in Mount Alexander Shire will not receive support for future gaming development.

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10 Summary of Recommendations

This report provides Council with four key recommendations to reduce the risks of problem electronic gaming in Mount Alexander Shire:

4. Implementation of initiatives to offer alternative recreation and entertainment via Council social and recreation policies. Provision of alternatives forms of recreation and entertainment is assessed to be a useful way of minimising problem gaming risk.

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Appendices

Appendix 1 - Glossary of Acronyms

EGMs: Electronic Gaming Machines

VCGR: Victorian Commission on Gaming Regulation

SLA: Statistical Local Area

CCD: Census Collection District

SEIFA: Socio Economic Index for Areas

ABS: Australian Bureau of Statistics

PMG: Project Management Group

EMT: Executive Management Team

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Appendix 2 – Stakeholders Consulted

Representative Organisation Councillor Janet Cropley (Mayor) Mount Alexander Shire Council Strategic Planning Staff Mount Alexander Shire Council Andrew Clark Cumberland Hotel Don Hester Maryborough Highland Society Chris Hosking & ors EPIC Leah Galvin St Lukes/Anglicare Eileen Brownless Castlemaine District Community Health

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