Volume 2: Report (Part D)
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Australia’s Gambling Inquiry Report Industries Volume 2: Report (Part D) Report No. 10 26 November 1999 Contents of Volume 2 PART D THE POLICY ENVIRONMENT 12 Gambling policy: overview and assessment framework 1 12.1 Introduction 1 12.2 Policy processes 4 12.3 Clear rationales? 7 12.4 Allowing for ‘government failure’ 15 12.5 Good process and design 16 12.6 The policy goal: maximising net community benefits 18 13 Regulatory arrangements for major forms of gambling 1 13.1 Introduction 2 13.2 Electronic gaming machines 4 13.3 Casino gaming 20 13.4 Racing and sports betting 30 13.5 Lotteries 41 13.6 ‘Minor’ gaming 47 14 Are constraints on competition justified? 1 14.1 Introduction 2 14.2 ‘Exclusivity’ arrangements 2 14.3 Should gambling be restricted to particular venue types? 28 15 Regulating access 1 15.1 Introduction 2 15.2 What are the impacts of state-wide poker machine caps? 5 15.3 What are the impacts of venue caps on gaming machines? 16 15.4 Other access approaches 28 15.5 Would other measures perform better? 30 III 16 Consumer protection 1 16.1 Introduction 2 16.2 A ban on gambling? 6 16.3 Basic consumer information 10 16.4 Advertising and promotion of gambling products 34 16.5 Controlling the gambling environment 40 16.6 Do venues have the right incentives to protect their patrons? 42 16.7 Controlling accessibility 51 16.8 Controlling the venue environment 57 16.9 Controlling game features and design 67 16.10 Bankruptcy and problem gamblers 88 16.11 Probity 89 17 Help for people affected by problem gambling 1 17.1 Introduction 2 17.2 An overview of problem gambling help services 2 17.3 Government responses to problem gambling 5 17.4 Funding of services for problem gamblers 12 17.5 Problem gambling telephone helpline services 17 17.6 Problem gambling counselling services 22 17.7 Aspects of help services delivery 48 18 Policy for new technologies 1 18.1 Introduction and framework 2 18.2 Background 4 18.3 What are the potential benefits of interactive gambling? 14 18.4 What are the costs of interactive gambling? 16 18.5 Non-regulatory responses to problems 33 18.6 Are non-regulatory responses enough, or are regulatory controls warranted? 39 18.7 To what extent can internet gambling be controlled? 41 18.8 Current policy responses by Australian governments 49 18.9 Policy options for internet gambling 54 IV 19 The taxation of gambling 1 19.1 Introduction 2 19.2 The changing pattern of gambling tax revenue 2 19.3 The importance of gambling taxes in state and territory revenues 6 19.4 The role of Commonwealth/State financial arrangements 8 19.5 Differences in revenue collected between types of gambling 11 19.6 Are the levels of gambling taxes appropriate? 14 19.7 Design issues 35 20 Earmarking 1 20.1 Earmarking revenue for problem gambling services 5 20.2 Earmarking for other programs 6 20.3 Conclusions 11 21 Mutuality 1 21.1 Introduction 2 21.2 What is the mutuality principle? 3 21.3 Clubs, mutuality and taxation 3 21.4 The club industry 11 21.5 What are the economic grounds for the mutuality principle? 17 21.6 The consequences of growth 21 21.7 Can anything be done? 34 22 Regulatory processes and institutions 1 22.1 Introduction 2 22.2 What regulatory functions need to be undertaken? 4 22.3 Towards a blueprint for gambling regulation 20 23 Information issues 1 23.1 Introduction 1 23.2 Some specific information gaps 4 23.3 Better processes are also needed 9 23.4 What role for the ABS? 17 V Contents of other volumes VOLUME 1 Terms of reference Key findings Summary of the report Part A Introduction 1 The inquiry Part B The gambling industries 2 An overview of Australia's gambling industries 3 Consumption of gambling Part C Impacts 4 Impacts of gambling: a framework for assessment 5 Assessing the benefits 6 What is problem gambling? 7 The impacts of problem gambling 8 The link between accessibility and problems 9 Quantifying the costs of problem gambling 10 Broader community impacts 11 Gauging the net impacts VI VOLUME 3 Appendices A Participation and public consultation B Participation in gambling: data tables C Estimating consumer surplus D The sensitivity of the demand for gambling to price changes E Gambling in indigenous communities F National Gambling Survey G Survey of Clients of Counselling Agencies H Problem gambling and crime I Regional data analysis J Measuring costs K Recent US estimates of the costs of problem gambling L Survey of Counselling Services M Gambling taxes N Gaming machines: some international comparisons O Displacement of illegal gambling? P Spending by problem gamblers Q Who are the problem gamblers? R Bankruptcy and gambling S State and territory gambling data T Divorce and separations U How gaming machines work V Use of the SOGS in Australian gambling surveys References VII Australia’s Gambling Inquiry Report Industries Volume 2: Report (Part D) Report No. 10 26 November 1999 Contents of Volume 2 PART D THE POLICY ENVIRONMENT 12 Gambling policy: overview and assessment framework 1 12.1 Introduction 1 12.2 Policy processes 4 12.3 Clear rationales? 7 12.4 Allowing for ‘government failure’ 15 12.5 Good process and design 16 12.6 The policy goal: maximising net community benefits 18 13 Regulatory arrangements for major forms of gambling 1 13.1 Introduction 2 13.2 Electronic gaming machines 4 13.3 Casino gaming 20 13.4 Racing and sports betting 30 13.5 Lotteries 41 13.6 ‘Minor’ gaming 47 14 Are constraints on competition justified? 1 14.1 Introduction 2 14.2 ‘Exclusivity’ arrangements 2 14.3 Should gambling be restricted to particular venue types? 28 15 Regulating access 1 15.1 Introduction 2 15.2 What are the impacts of state-wide poker machine caps? 5 15.3 What are the impacts of venue caps on gaming machines? 16 15.4 Other access approaches 28 15.5 Would other measures perform better? 30 III 16 Consumer protection 1 16.1 Introduction 2 16.2 A ban on gambling? 6 16.3 Basic consumer information 10 16.4 Advertising and promotion of gambling products 34 16.5 Controlling the gambling environment 40 16.6 Do venues have the right incentives to protect their patrons? 42 16.7 Controlling accessibility 51 16.8 Controlling the venue environment 57 16.9 Controlling game features and design 67 16.10 Bankruptcy and problem gamblers 88 16.11 Probity 89 17 Help for people affected by problem gambling 1 17.1 Introduction 2 17.2 An overview of problem gambling help services 2 17.3 Government responses to problem gambling 5 17.4 Funding of services for problem gamblers 12 17.5 Problem gambling telephone helpline services 17 17.6 Problem gambling counselling services 22 17.7 Aspects of help services delivery 48 18 Policy for new technologies 1 18.1 Introduction and framework 2 18.2 Background 4 18.3 What are the potential benefits of interactive gambling? 14 18.4 What are the costs of interactive gambling? 16 18.5 Non-regulatory responses to problems 33 18.6 Are non-regulatory responses enough, or are regulatory controls warranted? 39 18.7 To what extent can internet gambling be controlled? 41 18.8 Current policy responses by Australian governments 49 18.9 Policy options for internet gambling 54 IV 19 The taxation of gambling 1 19.1 Introduction 2 19.2 The changing pattern of gambling tax revenue 2 19.3 The importance of gambling taxes in state and territory revenues 6 19.4 The role of Commonwealth/State financial arrangements 8 19.5 Differences in revenue collected between types of gambling 11 19.6 Are the levels of gambling taxes appropriate? 14 19.7 Design issues 35 20 Earmarking 1 20.1 Earmarking revenue for problem gambling services 5 20.2 Earmarking for other programs 6 20.3 Conclusions 11 21 Mutuality 1 21.1 Introduction 2 21.2 What is the mutuality principle? 3 21.3 Clubs, mutuality and taxation 3 21.4 The club industry 11 21.5 What are the economic grounds for the mutuality principle? 17 21.6 The consequences of growth 21 21.7 Can anything be done? 34 22 Regulatory processes and institutions 1 22.1 Introduction 2 22.2 What regulatory functions need to be undertaken? 4 22.3 Towards a blueprint for gambling regulation 20 23 Information issues 1 23.1 Introduction 1 23.2 Some specific information gaps 4 23.3 Better processes are also needed 9 23.4 What role for the ABS? 17 V Contents of other volumes VOLUME 1 Terms of reference Key findings Summary of the report Part A Introduction 1 The inquiry Part B The gambling industries 2 An overview of Australia's gambling industries 3 Consumption of gambling Part C Impacts 4 Impacts of gambling: a framework for assessment 5 Assessing the benefits 6 What is problem gambling? 7 The impacts of problem gambling 8 The link between accessibility and problems 9 Quantifying the costs of problem gambling 10 Broader community impacts 11 Gauging the net impacts VI VOLUME 3 Appendices A Participation and public consultation B Participation in gambling: data tables C Estimating consumer surplus D The sensitivity of the demand for gambling to price changes E Gambling in indigenous communities F National Gambling Survey G Survey of Clients of Counselling Agencies H Problem gambling and crime I Regional data analysis J Measuring costs K Recent US estimates of the costs of problem gambling L Survey of Counselling Services M Gambling taxes N Gaming machines: some international comparisons O Displacement of illegal gambling? P Spending by problem gamblers Q Who are the problem gamblers? R Bankruptcy and gambling S State and territory gambling data T Divorce and separations U How gaming machines work V Use of the SOGS in Australian gambling surveys References VII 12 Gambling policy: overview and assessment framework Box 12.1 Key messages • Transparent processes, careful attention to policy design and evidence-based choices among competing options are the keys to good policy.