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«REVIEW OF THE ACT GOVERNMENT’S HARM MINIMISATION MEASURES MARCH 2005 COMMISSIONED BY ACT GAMBLING AND RACING COMMISSION Review of the ACT ...»

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CENTRE FOR GAMBLING RESEARCH

REVIEW OF THE ACT GOVERNMENT’S

HARM MINIMISATION MEASURES

MARCH 2005

COMMISSIONED BY

ACT GAMBLING AND RACING COMMISSION

Review of the ACT Government’s Harm Minimisation Measures

© J. McMillen & S. Pitt - Centre for Gambling Research, RegNet, ANU 2005.

ISBN 0-9757104-5-1 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without permission from the authors.

In all cases the authors and ANU Centre for Gambling Research must be acknowledged as the source when reproducing or quoting any part of this publication.

Centre for Gambling Research Postal Address: RegNet, RSSS, ANU, Canberra, ACT, 0200.

Location Address: Coombs Extension, Fellows Road, Acton ACT 0200.

Telephone: 61 2 6125 4665 Facsimile: 61 2 6125 1507 Email Address: anucgr@coombs.anu.edu.au URL Location: http://gambling.anu.edu.au © J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 2 Review of the ACT Government’s Harm Minimisation Measures Table of Contents TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

ACKNOWLEDGEMENTS

DEFINITION OF TERMS

1 INTRODUCTION

2 BACKGROUND

2.1 GAMBLING IN THE ACT

2.2 ACT REGULATORY ENVIRONMENT

2.3 BACKGROUND TO THE REVIEW

2.3.1 Productivity Commission inquiry into Australia’s Gambling Industries

2.3.2 2001 ACT Survey of Gambling and Problem Gambling

2.4 DEVELOPMENT OF THE CURRENT REGULATORY FRAMEWORK

2.5 RESPONSIBLE GAMBLING POLICIES IN AUSTRALIA

2.6 APPLICATION OF THE THREE MEASURES IN AUSTRALIA

2.6.1 Restrictions on trading hours

2.6.2 Restrictions on the maximum bet

2.6.3 Restriction on cash payment of winnings

3 PREVIOUS RESEARCH ON HARM MINIMISATION STRATEGIES

3.1 RESTRICTIONS ON TRADING HOURS

3.1.1 Impacts on problem gamblers

3.1.2 Impacts on recreational gamblers/non-gamblers

3.1.3 Impacts on clubs

RESTRICTIONS ON THE MAXIMUM STAKE

3.2 3.2.1 Impacts on problem gamblers

3.2.2 Impacts on recreational gamblers

3.2.3 Impacts on clubs

RESTRICTIONS ON CASH PAYMENT OF WINNINGS

3.3 4 RESEARCH METHODOLOGY

4.1 ETHICS APPROVAL

4.2 CONSULTATION WITH STAKEHOLDERS

4.3 CENTRE FOR GAMBLING RESEARCH CODE OF PRACTICE

4.4 PRIMARY DATA COLLECTION

4.4.1 Analysis of official data

4.4.2 Interviews with club managers

4.4.3 Interviews with club patrons

4.4.4 Interviews with problem gamblers, families and friends

4.4.5 Interviews with other ACT stakeholders

5 RESEARCH FINDINGS: ACT CLUBS

5.1 THE CHANGING STRUCTURE AND CHARACTERISTICS OF ACT CLUBS

5.2 EGM TURNOVER TRENDS

5.3 INTERVIEWS WITH CLUB MANAGERS

5.3.1 Characteristics of the sample

5.3.2 Shutdown impacts

5.3.3 Maximum bet

5.3.4 Restrictions on cash payment of winnings

5.3.5 Club managers’ support for the three measures

5.3.6 Efficacy of the three measures – club managers

SUMMARY: EFFECTS OF THE THREE MEASURE ON CLUBS

5.4

–  –  –

6 CLUB PATRONS

PROBLEM GAMBLING

6.1 6.2 PATRONS’ EGM GAMBLING PATTERNS

6.3 EFFECTS OF THE 3-HOUR SHUTDOWN: CLUB PATRONS

6.4 EFFECTS OF THE MAXIMUM BET - CLUB PATRONS

6.5 EFFECTS OF CASH PAYMENT RESTRICTIONS – CLUB PATRONS

6.6 CLUB PATRONS’ SUPPORT FOR THE THREE MEASURES

6.7 EFFICACY OF THE THREE MEASURES – CLUB PATRONS

6.7.1 Additional comments – club patrons

6.8 EFFECT OF THE MEASURES ON PROBLEM GAMBLING

6.8.1 Effects of the 3-hour shutdown on problem gambling

6.8.2 Effect of the maximum bet on problem gambling

6.8.3 Effect of cash payment restrictions on problem gambling

SUMMARY OF INTERVIEWS WITH GAMBLERS

6.9 7 IMPACT ON THE ACT COMMUNITY

7.1 EFFECT OF THE 3-HOUR SHUTDOWN

7.2 EFFECT OF THE $10 MAXIMUM BET

7.3 EFFECT OF CASH PAYMENT RESTRICTIONS

7.4 OTHER COMMUNITY EFFECTS

7.5 SUMMARY – COMMUNITY EFFECTS

8 CONCLUSIONS AND FUTURE DIRECTIONS

8.1 THE 3-HOUR SHUTDOWN

8.2 THE MAXIMUM BET

8.3 RESTRICTIONS ON CASH PAYMENT OF WINNINGS

REFERENCES

APPENDIX A: COMMUNITY ADVISORY GROUP

APPENDIX B: LETTERS AND CONSENT FORMS

APPENDIX C: CONSENT FORM – SUPPORT AGENCIES, COMMUNITY REPRESENTATIVES.................. 141 APPENDIX D: LETTER OF INTRODUCTION/INFORMATION FOR CLUB PATRONS

APPENDIX E: LIST OF LICENSED CLUB PREMISES

APPENDIX F: INTERVIEW SCHEDULE - CLUB MANAGERS

APPENDIX G: INTERVIEW SCHEDULE - CLUB PATRONS

APPENDIX H INTERVIEW GUIDE – COMMUNITY SUPPORT AGENCIES

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 4 Review of the ACT Government’s Harm Minimisation Measures List of Figures FIGURE 1: IMPACT OF HARM MINIMISATION MEASURES

FIGURE 2: REAL PER CAPITA EXPENDITURE (OR LOSS) ON GAMING AND RACING IN THE ACT, 1992-93 TO 2002-03.





FIGURE 3: EXPENDITURE ON DIFFERENT FORMS OF GAMBLING AS A PROPORTION OF TOTAL GAMBLING

EXPENDITURE IN THE ACT (2002-3).

FIGURE 4: CLUB MANAGER INTERVIEWS - FLOW CHART

FIGURE 5: CLUB PATRON INTERVIEWS - FLOW CHART

FIGURE 6: TOTAL NUMBER OF EGMS IN ACT CLUBS, JULY 2000 TO FEBRUARY 2004

FIGURE 7: NOMINAL MONTHLY EGM TURNOVER, ALL ACT CLUBS - JULY 2000 TO FEBRUARY 2004 ($'000)

FIGURE 8: NOMINAL MONTHLY EGM TURNOVER, SMALL ACT CLUBS - JULY 2000 TO FEBRUARY 2004 ($'000)

FIGURE 9: NOMINAL MONTHLY EGM TURNOVER, MEDIUM ACT CLUBS - JULY 2000 TO FEBRUARY 2004 ($'000)

FIGURE 10: NOMINAL MONTHLY EGM TURNOVER, MEDIUM-LARGE ACT CLUBS - JULY 2000 TO FEBRUARY 2004 ($'000)

FIGURE 11: NOMINAL MONTHLY EGM TURNOVER, LARGE ACT CLUBS - JULY 2000 TO FEBRUARY 2004 ($’000)

FIGURE 12: NOMINAL MONTHLY EGM TURNOVER BY NUMBER OF EGMS - JULY 2000 TO FEBRUARY

2004 ($'000 LOG SCALE)

FIGURE 13: NOMINAL MONTHLY EGM TURNOVER, ACT CLUBS PREVIOUSLY TRADING 24 HOURS WITH

155 OR FEWER MACHINES - JULY 2000 TO FEBRUARY 2004 ('000)

FIGURE 14: NOMINAL MONTHLY EGM TURNOVER, ACT CLUBS PREVIOUSLY TRADING 24 HOURS WITH

MORE THAN 155 MACHINES - JULY 2000 TO FEBRUARY 2004 ('000)

–  –  –

List of Tables

TABLE 1: EXPENDITURE ON DIFFERENT FORMS OF GAMBLING AS A PROPORTION OF TOTAL GAMBLING

EXPENDITURE IN ACT, 1992-93 TO 2002-03

TABLE 2: ACT GAMBLING EXPENDITURE AS A PERCENTAGE OF HDI, 1992-93 TO 2002-03

TABLE 3: OBJECTIVES OF RESPONSIBLE GAMBLING POLICIES AND PROGRAMS IN AUSTRALIA.................36 TABLE 4: POSSIBLE HARM MINIMISATION MEASURES

TABLE 5: SUMMARY OF HARM MINIMISATION MEASURES IN AUSTRALIAN JURISDICTIONS.

TABLE 6: RESEARCH METHODS USED IN THIS STUDY

TABLE 7: PROFILE OF ACT CLUBS, 2004

TABLE 8: LOCATION OF CLUBS SAMPLED TO RECRUIT PATRONS

TABLE 9: PROFILE OF CLUB PATRONS INTERVIEWED

TABLE 10: DENOMINATION OF EGMS BY STAKE TYPE AND NUMBER, JULY 2001 TO FEBRUARY 2004.

ALL ACT CLUBS

TABLE 11: AVERAGE NUMBER OF TRADING HOURS AND EGM HOURS, ALL ACT LICENSED CLUBS AND

SHUTDOWN CLUBS.

TABLE 12: IMPACTS OF THE 3-HOUR SHUTDOWN

TABLE 13: IMPACTS OF THE CASH PAYMENT RESTRICTIONS.

TABLE 14: CLUB MANAGERS’ LEVEL OF SUPPORT FOR ALL MEASURES.

TABLE 15: CLUB MANAGERS’ VIEWS ON THE EFFICACY OF THE THREE MEASURES

TABLE 16: FREQUENCY OF PLAY OF EGM PLAYERS

TABLE 17. PATRONS’ LEVEL OF SUPPORT FOR ALL THREE MEASURES.

TABLE 18. CLUB PATRONS’ VIEWS ON THE EFFICACY OF THE THREE MEASURES

TABLE 19. PERCEIVED EFFECT OF THE MEASURES ON PROBLEM GAMBLING, SELF-IDENTIFIED PROBLEM

GAMBLERS.

TABLE 20: LICENSED CLUBS AND NUMBER OF EGMS, MARCH 2004

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 6 Review of the ACT Government’s Harm Minimisation Measures Acknowledgements This report has been commissioned by the ACT Gambling and Racing Commission (the Commission). The authors extend thanks to the Commission and to members of the Community Advisory Group for their advice and collaboration with this research.

In particular the authors acknowledge advice and assistance by ClubsACT and by Phil Collins and Greg Jones at the Commission during the conduct of research. Thanks also go to the ACT club managers and members of the Canberra community who participated in the research and shared their views.

Within ANU, David Marshall and Lorraine Murphy provided research support and advice. Leah Dunn and Mary Cormick facilitated efficient administration of the project; Jin Kwee Ho provided information technology support.

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 7 Review of the ACT Government’s Harm Minimisation Measures Definition of terms ‘At risk’ gambler A recreational gambler who is ‘at risk’ of developing a gambling problem.

Break in play Research has suggested that ‘breaks in play’ to interrupt continuous, repetitive gambling can encourage gamblers to think again before continuing. Some harm minimisation strategies such as the 3-hour shutdown of gaming venues have been introduced to require gamblers to take a break from gambling machines.

Cashing out Gamblers playing gaming machines can ‘cash out’ or ‘hit collect’ to end the game and take out all credits and/or winnings. In the ACT this term refers to ‘cashing out’ credits before winnings exceed $1,000. This action avoids the policy requirement to take winnings above $1,000 as either a cheque or electronic funds transfer.

Chasing Research shows that some gamblers chase losses: that is, after a win they risk their winnings to recover losses from previous gambling sessions.

EFT Electronic funds transfer.

EGMs Electronic gaming machines, also commonly called poker machines or pokies.

Gambling In the context of legalised commercial gambling, staking money on uncertain events approved by legislation. The major forms of commercial gambling in Australia are wagering (racing and sports) and gaming (casinos, gaming machines, keno and lotteries).1 Gambling down Gambling down or ‘playing off’ winnings or credits on an EGM. In the context of ACT policy the term is used to describe playing off credits over $1,000 in the hope of either reducing credits to below $1,000 so that all winnings can be collected in cash, or achieving a larger win.

Club patron A person who attends a licensed ACT club. For the purposes of this study club patrons are restricted to club members or invited guests of a club member.

Problem gambling The Productivity Commission’s 1999 inquiry into Australian gambling found that anybody who gambles regularly has the potential to develop problems. Excessive 1 Productivity Commission 1999. Australia’s Gambling Industries. Final Report No. 10. Ausinfo, Canberra. Vol.1, p.x.

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 8 Review of the ACT Government’s Harm Minimisation Measures gambling can lead to significant problems which may harm relationships, finances, work, physical health and mental health.2 Problem gambling can cause harm to individual gamblers, families and communities.

Recreational and regular gamblers Most Australian gambling participation surveys define a regular gambler as an adult who has gambled at least weekly or 52 times per year, in gambling activities other than lottery games or instant scratch tickets.3 Regular gamblers are thus differentiated from ‘occasional’ or irregular gamblers who gamble less frequently. Many studies also refer to regular and occasional gamblers as ‘recreational’ gamblers to differentiate them from problem gamblers. That is the definition used in this study.

Shutdown club For the purpose of this study, an ACT club trading for 24 hours a day on any day of the week in the period leading up to the implementation of the 3-hour shutdown on 14 September 2004.

Turnover The cumulative amount of money staked or wagered by gamblers, including recycled winnings.4 2 ACT Gambling and Racing Commission, What is Problem Gambling? ACT Gambling and Racing Commission website, accessed 22 July 2004. http://www.gamblingandracing.act.gov.au/ 3 Productivity Commission 1999. op.cit.; McMillen, J., H. Masterman-Smith and K. Tremayne 2001a.

Survey of the Nature and Extent of Gambling and Problem Gambling in the ACT. Report to the ACT Gambling and Racing Commission. Australian Institute for Gambling Research, UWS.

4 Productivity Commission 1999, op.cit. p.xiii © J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 9 Review of the ACT Government’s Harm Minimisation Measures

–  –  –

Although the structure and operations of ACT clubs have undergone Impacts on ACT significant changes during the reference period July 2000 to February clubs 2004, we found no evidence to suggest that these changes have occurred as a result of the three measures under review.

5 Two clubs could not be contacted throughout the period of research.

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 10 Review of the ACT Government’s Harm Minimisation Measures

–  –  –

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 11 Review of the ACT Government’s Harm Minimisation Measures

–  –  –

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 12 Review of the ACT Government’s Harm Minimisation Measures

–  –  –

© J. McMillen and S. Pitt –Centre for Gambling Research, ANU - March 2005 13 Review of the ACT Government’s Harm Minimisation Measures

–  –  –



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