Gambling Regulation Office

Annual Report 2009–2010 Victorian Commission for Gambling Regulation Office Level 5 35 Spring Street Melbourne Victoria 3000 Postal Address PO Box 1988 Melbourne Victoria 3001 Website: www.vcgr.vic.gov.au Office Hours 9.00 am to 5.00 pm Monday to Friday Switchboard Telephone: 61 3 9651 3333 Facsimile: 61 3 9651 3777 E-mail contact address: [email protected] Complaints hotline: 61 3 9651 3737 Inspectors at Melbourne Casino Southbank: Telephone: 61 3 9690 4657 (24 hours a day 7 days a week) Chairman’s Letter 14 September 2010 Minister for Gaming Parliament House Spring Street MELBOURNE VIC 3002 Dear Minister I am pleased to present the Annual Report of the Victorian Commission for Gambling Regulation for 2009–2010. This Annual Report is prepared in accordance with the provisions of the Financial Management Act 1994, the Gambling Regulation Act 2003 and the Casino Control Act 1991 and covers the period between 1 July 2009 and 30 June 2010. Yours sincerely BRUCE THOMPSON Chairman 1 2 Contents Chairman’s Letter to Minister 1 Chairman’s Report 5 Highlights in 2009–2010 7 Output Performance 12 Part 1 – The Victorian Commission for Gambling Regulation 13 Overview 14 Objectives 15 Functions 16 Commission Members as at 30 June 2010 17 Organisational Chart as at 30 June 2010 18 Organisational Structure 20 Corporate Governance 21 Part 2 – Report of Operations 2009–2010 by Intended Outcomes 23 1 Gambling Activities: The conduct of gambling properly protects players and other stakeholders 24 2 Gambling Participants: Gambling is conducted honestly, is free from criminal influence and commercial licensees deliver on their obligations 36 3 Gambling Benefits: The Victorian community receives the benefits arising from gambling 49 4 Gambling Harm Minimisation: The harm caused by problem gambling is minimised 53 5 VCGR Resources: VCGR fulfils its Government and legislative responsibilities and achieves its service delivery objectives by innovative, effective and efficient use of resources 58 Summary of Financial Results 67 Part 3 – Financial Statements 2009–2010 71 Part 4 – Appendices 109 1A Principal Legislation Administered by the Minister for Gaming 111 1B Commencement Dates of Legislation 112 1C Subordinate Legislation 114 2 Ministerial Direction 115 3 Ministerial Determinations – Community Benefit Statements 118 4 Victorian Commission for Gambling Regulation Rules 120 5 Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments 123 6 Commission Meetings, Inquiries and Hearings 2009–2010 126 7 Gaming Venues as at 30 June 2010 128 8 Registered Bookmakers as at 30 June 2010 141 9 Bingo Centres and Commercial Raffle Organisers as at 30 June 2010 145 10 Licensing Activities 146 11 Number of Active Licences at 30 June 2009 and 30 June 2010 148 12 Roll of Manufacturers, Suppliers and Testers as at 30 June 2010 149 13 Responsible Gaming Training Course Providers as at 30 June 2010 150 14 Community Benefit Statements – Summary of the Total Claims Made by Club Gaming Venues 152 15 Gambling Player Loss and Taxes and Levies Paid 2009–2010 153 16 Distribution of Taxes from Gambling 155 17 Player Loss from Gaming Machines – Statistical Data Fact Sheet 157 18 Distribution of Player Loss from Gaming Machines 158 19 Municipal Limits 159 20 Regional Caps 161 21 Representation on Working Parties 164 22 Commission Whistleblower Procedures 165 23 Staff Profile by Position 2009–2010 175 24 Other Information Available on Request 176 25 Disclosure Index 177 26 Glossary 179 3 4 Chairman’s Report This is my first period as Chairman of the Commission, having been appointed on September 12 last year. Not surprisingly, I have been on a steep learning curve since then, but by working closely with the Executive Commissioner, Peter Cohen, and his staff, as well as Deputy Chair, Judith King, my transition from the private sector to a government regulatory authority has been relatively straightforward. I thank those people for sharing their considerable knowledge and experience. By law the role of the Commission is very clear. Fundamentally From a VCGR standpoint we clearly have the expertise, depth of it is to ensure all forms of gambling are conducted honestly and experience and systems for a smooth transition. As this unfolds free of any criminal influence and exploitation. The legislation our organisation will increase the focus on process management also requires us to foster responsible gambling in order to and process improvement to ensure that this phase is as minimise harm caused by problem gambling. seamless as possible. During the first few months in the role I had the opportunity At the same time, we are aware of the Premier’s statement to to meet with many of our key stakeholders in order to gain Parliament that the Government will streamline the regulatory insight into the industry from their standpoint, particularly functions of the Director of Liquor Licensing and the VCGR to with respect to the regulatory environment they face. It increase efficiency, reduce administrative costs and increase the was gratifying to learn that, by and large, the VCGR was capacity to enforce liquor and gaming laws. We must recognise, perceived to be effective in delivering on its statutory however, that making a significant organisational change such obligations and no doubt much credit for this must go to as this at the same time as radical structural change is being the immediate past Chairman, Ian Dunn. We are grateful made to the gaming industry creates a potentially challenging for the strong leadership he provided during his tenure. environment. However, it is my belief that the VCGR team is up Whilst we are seen to be effective, I do not underestimate the to meeting that challenge should this change occur. challenges we face, particularly over the next couple of years My background in a world of highly-competitive businesses as the transition continues from the Tatts and Tabcorp gaming means that one’s work and achievements could always be operator duopoly. With the gaming machine entitlements auction measured by a single yardstick: success against one’s rivals. process now behind us we must move quickly to ensure that the Naturally, as a statutory authority, the VCGR is different from a organisation is positioned and equipped to maintain the same business entity, but there are strong similarities. For instance, high standard of regulatory oversight in the new environment as in business the focus is on serving the customers, or risk losing exists today. them. The VCGR’s ‘customers’ are its stakeholders, not only the From my observation, the gaming operators, Tatts and Tabcorp, pubs and clubs (and others in the gambling industry) but also share a large portion of the regulatory burden and do so with the public. For venue operators we set out to both consult and a high level of professionalism and integrity. The help and help them do their regulatory tasks better. The public gets a support provided by the gaming operators to clubs and hotels well-run, honest world of gaming, free of any wrongful influences around the State will not be available in this form after 2012, so and maintained in a way that allows enjoyment of legitimate it is of critical importance that all stakeholders in the industry pleasures without undue harm. collectively adapt to the new environment and ensure that current high standards of integrity are maintained. 5 Chairman’s Report continued As I mentioned earlier, an important deliverable for the Commission is the promotion of responsible gambling. The widespread adoption and implementation of mandatory Responsible Gambling Codes of Conduct for all commercial gambling licensees and Self-Exclusion Programs in gaming venues across Victoria are evidence of the progress that has been made in this important area. I note that funding for the work undertaken by the Responsible Gambling Team is finite and will conclude in June next year, but it is my earnest hope that we can work with the Government and find ways to continue to fund this very important activity. Last year our then Chairman, Ian Dunn, made a plea for an enlarged Commission. As a result we have been very pleased to welcome two new non-Executive Commissioners, Gail Owen and Ches Baragwanath. Naturally we are delighted to have two such highly experienced and talented people whose input will be highly valued and key to our future success. I am also extremely pleased to note that both Judith King and Peter Cohen continue in their roles as Commissioners. In conclusion I would like to recognise the significant work that has been undertaken this year by all of the VCGR staff. The high standards of integrity within the industry today do not come about by accident, and reflect well on the capability and endeavour of the VCGR team. In many respects this year has been particularly challenging with the establishment of a ‘second Commission’ to operate behind probity walls and undertake the industry restructure, including the lead-up to the gaming machine entitlements auction as well as assessments for the Wagering and Betting, Monitoring and Keno licences. Both the ‘re-structure’ team and the day-to-day operational team have come through this challenge with flying colours. Bruce Thompson Chairman 6 Highlights in 2009–2010 Fair Gambling • an effective system of gambling regulation and implementation of Government policy was supported by: – granting 58 new venue operator licences in the period leading up to the post-2012 entitlements auction, thus enabling

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