VCGR Annual Report 10-11
Total Page：16
File Type：pdf, Size：1020Kb
Annual Report 2010–2011 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 15 September 2011 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 2010–2011. 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 2010 and 30 June 2011. Yours sincerely BRUCE THOMPSON Chairman 1 2 Contents Chairman’s Letter to Minister 1 Chairman’s Report 5 Highlights in 2010–2011 7 Output Performance 10 Part 1 – The Victorian Commission for Gambling Regulation 11 Overview 12 Objectives 13 Functions 14 Commission Members 16 Organisational Structure 17 Organisational Chart as at 30 June 2011 18 Corporate Governance 20 Part 2 – Report of Operations 2010–2011 by Intended Outcomes 21 1 Gambling Activities: The conduct of gambling properly protects players and other stakeholders 22 2 Gambling Participants: Gambling is conducted honestly, is free from criminal influence and commercial licensees deliver on their obligations 31 3 Gambling Benefits: The Victorian community receives the benefits arising from gambling 42 4 Gambling Harm Minimisation: The harm caused by problem gambling is minimised 47 5 VCGR Resources: VCGR fulfils its Government and legislative responsibilities and achieves its service delivery objectives by innovative, effective and efficient use of resources 52 Summary of Financial Results 62 Part 3 – Financial Statements 2010–2011 67 Part 4 – Appendices 107 1A Principal Legislation Administered by the Minister for Gaming 109 1B Commencement Dates of Legislation 110 1C Subordinate Legislation 111 2 Ministerial Direction 112 3 Ministerial Determinations – Community Benefit Statements 115 4 Victorian Commission for Gambling Regulation Rules 117 5 Commission Decisions on Applications for New Premises and Venue Operator Licence Amendments 120 6 Commission Meetings, Inquiries and Hearings 2010–2011 122 7 Gaming Machine Entitlements as at 30 June 2011 124 8 Gaming Venues as at 30 June 2011 130 9 Registered Bookmakers as at 30 June 2011 143 10 Bingo Centres and Commercial Raffle Organisers as at 30 June 2011 147 11 Licensing Activities 148 12 Number of Active Licences at 30 June 2010 and 30 June 2011 150 13 Roll of Manufacturers, Suppliers and Testers as at 30 June 2011 151 14 Responsible Gaming Training Course Providers as at 30 June 2011 152 15 Community Benefit Statements – Summary of the Total Claims Made by Club Gaming Venues 154 16 Gambling Player Loss and Taxes and Levies Paid 2010–2011 155 17 Distribution of Taxes from Gambling 157 18 Player Loss from Gaming Machines – Statistical Data Fact Sheet 159 19 Distribution of Player Loss from Gaming Machines 160 20 Regional Caps 161 21 Municipal Limits 164 22 Representation on Working Parties 166 23 Commission Whistleblower Procedures 167 24 Staff Profile by Position 2010–2011 177 25 Other Information Available on Request 178 Disclosure Index 179 Glossary 181 3 4 Chairman’s Report As I pointed out in my Chairman’s report last year, and I believe, it is worth reiterating, the fundamental role of the Commission is very clearly defined by law. In a very broad sense our regulatory responsibilities focus on keeping the industry free of any criminal influence and exploitation and fostering responsible gambling in order to minimise harm. Over the past several years, by all accounts, the Commission A second major change in our industry structure is, as outlined has done a very commendable job in achieving those high last year, the merger of the Gambling and Liquor regulatory level objectives prescribed by the legislation. The Commission functions into one body, the Victorian Commission for Gambling has operated in a relatively stable environment and has built and Liquor Regulation, the ‘VCGLR’. The legislation required to up a vast reservoir of capability, knowledge and expertise as it give effect to this change is being prepared and is expected to undertakes its regulatory role. be in force in the new year. I have been involved in a number ‘Stable’ environments, however, don’t last forever and the of mergers and acquisitions and, in fact, one significant Commission’s flexibility and adaptability will be seriously tested ‘demerger’, and I know that at an individual level such events over the next twelve months as we embark on a very significant can be stressful. Quite naturally, the individual employee will structural and environmental change process. Taken individually, always ask ‘What does this mean for me?’. During periods of each of these changes is significant. But taken collectively they uncertainty this is natural and expected. Successful mergers represent an event of potentially seismic proportions. are usually characterised by strong leadership, which includes well thought out and well communicated strategies, and a Let’s look at each of these in turn. demonstrated understanding of key issues at both the individual From a gaming machine standpoint, the industry is in the midst and stakeholder level. of the transition from the Tattersall’s and Tabcorp duopoly. This change, in my view, will open up a vast array of The auction has been held and gaming machine entitlements opportunities for people at all levels and provide an purchased. Clubs and pubs in Victoria paid out a total of $980 extraordinary base for organisational reinvention. There is no million for 27,300 entitlements. The market is now more open doubt in my mind that as a result, together we can become a and competitive and the economics of the industry have already modern, ‘best in class’ regulator. changed dramatically. A third, but in my view less significant change, is the move of Clubs and pubs that had sound auction strategies in place both organisations to a new building in Richmond. Whilst less and are well organised to take on the challenges of the new significant this is symbolic and it does in a way represent a fresh environment should fare particularly well. The Commission is start. Such symbolism, if captured correctly, can be powerful. mindful of the potential regulatory risks associated with the shift in industry balance, but our regulatory role has not changed and we will insist that the high standards of probity and performance against statutory requirements continue to be maintained. 5 Chairman’s Report continued Over the last few months the Commission has been working with the Department of Justice to recruit a new CEO to replace Peter Cohen. This person will become CEO of the newly formed VCGLR entity and clearly, therefore, will be critical in creating the new outstanding performance culture. The former CEO, Peter Cohen, left the organisation after fourteen years of service, the last eight as Executive Commissioner. We thank him for his considerable contribution over the journey. I also thank my fellow Commissioners, Judith King, Gail Owen OAM and Ches Baragwanath AO, for their invaluable counsel and contribution over the year, and the Commission staff in fulfilling their respective roles so very capably over the course of the year. As a result of these efforts the public can be confident that the industry operates fairly and that the outcomes contemplated by the legislation are achieved. Bruce Thompson Chairman 6 Highlights in 2010–2011 Fair Gambling • supporting an effective system of gambling regulation and implementation of Government policy by: – introducing processes to reduce the regulatory burden of gambling regulation by implementing on-line application services utilising smart forms; and – enhancing the efficiency of the employee licence application process with the introduction of new technology to allow licence applicants to have finger and palm prints recorded electronically; • promoting player confidence in the integrity of gambling products by: – providing a range of gambling product approval programs including product rules, systems and equipment; and – approving trade promotion lotteries; • minimising the risk and impact of gambling regulatory breaches by: – monitoring the casino and supervising lottery draws; – conducting compliance audits and investigations of licensed gambling venues and minor gaming, lotteries and race track activities; – investigating gaming venue and casino patron complaints; – publishing on the VCGR website updated regulatory information to assist industry participants to comply with licensing requirements; – being a party in Court proceedings to determine the legality of the use of computer terminals in Victoria known as ‘Betbox’, currently being appealed by Sportsbet Pty Ltd. 7 Highlights in 2010–2011 continued Crime Free Gambling Industry • enhancing confidence that gambling industry participants are suitable by: – conducting probity and financial checks for licences and approvals for gaming machine manufacturers, suppliers and testers; casino suppliers; venue operators; bingo centre operators; commercial raffle organisers; casino special employees;