Echo Issue Outline: copyright Echo Education Services
First published in The Echo news digest and newspaper sources index.
Is gambling creating major problems in Victoria?
. . .Outline by J M McInerney
It was reported on September 17, 1995, that the Victorian Government had decided not to proceed with a series of graphic television advertisements intended to educate the public about the dangers of excessive or compulsive gambling.
A number of community groups strongly criticised this decision and claimed that damage was being done to many Victorians as a result of gambling.
These critics argued that the Government had an obligation to attempt to minimise such damage.
The Government's response was to suggest that it was not its role to `lecture' the electorate and further that the harm supposedly attributable to gambling within Victoria was exaggerated.
Background
Using figures supplied for Victoria in 1993/94, it would appear that currently some 41 per cent of Victorians participate in Tattslotto each week, 14 per cent in instant scratch it and other lotteries, 6 per cent gamble on poker machines and 6 per cent gamble via the TAB on and off course facilities, 1 per cent gamble with bookmakers and the same percentage gamble either at the Crown casino or at bingo.
The amount of money that those who participate in these activities spend per week does not reflect participation rates. The most money is spent with bookmakers, an average of $165 a week per participant. The next largest amount is gambled at the Casino, an average per participant of $89 a week. Those who gamble via poker machines spend an average of $29 a week. While the 41 per cent of people who take part in Tattslotto every week spend on average $8.
Those who are concerned about the level of gambling in Victoria stress that averages do not indicate the amount gambled by that minority of people who gamble in much larger sums.
Those who believe that gambling does not represent a significant social problem stress that that form of gambling which is most popular, Tattslotto, costs the average participant only $8 a week.
Gambling has become a more prominent activity in Victoria since the election of the Kennett Government.
There are two main reasons for this.
One was the Government's decision to allow the Crown Casino project to go ahead in Melbourne. The other was its decision to allow the introduction of poker machines into Victoria.
A number of steps were taken to reduce or nullify any social damage which critics feared the introduction of poker machines, in particular, might cause.
Under the Gaming Machine Control Act (1991) 1 per cent of gaming machine turnover is to be directed to the Community Support Fund.
Currently the fund is growing at a rate of $1 million a week.
One of the reasons for establishing the fund was to help problem gamblers and their families. The first area designated within the act to which funds should be directed is to a Research and Development Fund to study the social impact of gambling.
Critics have maintained that only a token amount has been directed toward such research and development.
It has also been claimed that insufficient funds have been directed toward the provision of support for families in crisis or toward programs for the prevention of compulsive gambling or for the rehabilitation of compulsive gamblers.
The Victorian Council on Problem Gambling, which was to produce the series of television advertisements which have been denied funding, claims that its educative and rehabilitative efforts have been significantly impeded by this decision.
The Government, on the other hand, stresses that the decision is only provisional and that a radio and print media campaign is to go ahead.
Arguments suggesting gambling is creating major problems in Victoria
Those who believe that gambling is creating significant problems for Victoria point to both social and economic problems which they claim are attributable to gambling.
One major social concern is that too many Victorians are spending more money than either they or their families can afford on gambling.
Those who have this concern stress the amount of money that is being gathered simply in taxes from gambling. One of The Herald Sun's managing editors, Andrew Bolt, has noted that in 1994 the Victorian Government raised $900 million in gambling taxes.
Andrew Bolt went on to claim, `The State Government last year raised $900 million in gambling taxes. Add to that the profit margin for the gambling operators and you have a lot of Victorians losing a lot of money indeed. Some, no doubt, are losing more than their families can afford.'
The Victorian Council for Problem Gambling has estimated that some 120,000 Victorians are problem gamblers, while up to one million people, that is family members and other dependents, are affected by compulsive gamblers.
This view has also been put by Mr Leigh Barrett of the Consumer Advocacy and Financial Counselling Association who has claimed that growing numbers of people are having financial problems related to gambling.
Some welfare groups have claimed that the number of people seeking their help because of gambling related financial difficulties has risen by 400 per cent.
It has further been suggested that gambling tends to become an addiction among the most vulnerable, especially those suffering from mental conditions such as depression.
Another claim is that those being most adversely effected by gambling are those with the lowest available incomes who can least afford to lose but who most need to win.
Mr Bronwyn Pike, social justice and responsibility spokesperson for the Uniting Church, has claimed that gambling was having an impact beyond `the critical end' among the poor.
Ms Pike has also claimed that many families are gambling away the money they would otherwise have spent on small family luxuries.
Ms Pike has condemned gambling as `a regressive form of taxation'.
It has also been argued that too little of the moneys raised through gambling taxes is being used to address the problems created by gambling.
The Herald Sun in its editorial of September 19, noted that in the budget just released the Victorian Government had undertaken to spend only $6.6 million on services to assist problem gamblers.
According to this line of argument, given that gambling taxes contribute some $900 million to state coffers, it is not appropriate that significantly less than one per cent of this revenue is being directed toward the social problems created by gambling.
It has also been claimed that gambling is having a damaging effect on at least some sections of the Victorian economy.
There are those who claim that the amount of consumer spending being diverted into gambling is reducing what can be spent on retail goods and other recreational activities and so is damaging sections of both the retail and leisure industries.
Referring specifically to the impact of the Crown Casino on the retail trade in Melbourne, Mr Ron Tomlinson, the executive director of the Retail Traders Association, has said, `Retailers have to live with challenges, but it's hard to take on the casino when Victorians in the last few years have taken to gambling like ducks to water.'
Arguments suggesting gambling is not creating major problems in Victoria
There are three main arguments offered to suggest that Victoria does not have significant problems resulting from gambling.
The first of these arguments is that the number of people who could be described as compulsive gamblers is very small.
The Victorian Government accepts estimates suggesting that only one per cent of Victorians are problem gamblers.
This figure has been publicly cited by Mr Michael John, the Victorian Minister for Community Services.
According to this line of argument any condition which directly affects only one person in a hundred cannot be viewed as a major problem.
The second argument offered is that despite a recent increase in the number of forms of gambling available in this state the total number of Victorians gambling is unlikely to increase.
According to this line of argument, if more people in Victoria are now attending the Casino or playing poker machines, then the end result of this will be that these people do not spend as much money betting on horses or greyhounds.
Those who hold this view point to Tabcorp's most recent figures which show that wagering on horses and dogs was down six per cent on predicted figures and 1.7 per cent below the previous year's result.
According to this line of argument the vast majority of those who gamble approach the activity responsibly, seeing it as no more than a recreational activity for which they budget, as they would any other recreational pursuit.
Following from this view is the assertion that it is inappropriate for the Victorian Government or any other body to attempt to educate Victorians about the dangers of gambling, because, as responsible adults, Victorians should be able to make these decisions for themselves.
This is the position put by the Victorian Community Services Minister, Mr Michael Johns, who has argued, `I don't think we should be in the business of dictating people's morals. We don't want to be in the business of lecturing people not to gamble.'
Thirdly there are those who argue that economically, far from gambling being a problem, it has been a major advantage to Victoria.
According to this line of argument gambling has been of economic advantage to Victoria in two ways.
Taxes on gambling are contributing to state revenue. Gambling taxes are currently add some $900 million to state funds. It has been claimed that taxes on gambling actually account for some 13 per cent of state revenue.
Thus, it has been maintained, gambling has helped the Victorian Government to bring the state budget into surplus and has provided funds which can be used for socially productive purposes.
Referring only to the Community Support Fund, which is generated by a special tax on gambling, $59.4 million has been allocated to sport and recreation, $25.9 million to community services, $16.3 million to youth affairs, $15.1 million to the arts and $7.6 million to tourism.
It has also been claimed that some developments associated with gambling, most particularly the Crown Casino, have been of major economic benefit in themselves.
The manager of Crown Casino, Mr Lloyd Williams, has claimed, `We're creating an attraction which is going to bring people back to the city. The flow-on effect for retailers will be huge.'
Further implications
It is not certain what the further implications of this issue will be.
There are those who are calling for the Community Services Fund to be independently administered because they believe that it is not being appropriately distributed and that a greater proportion of it should go to determining the problems created by gambling and then attempting to address them.
Following from this there are those who believe there is a potential conflict of interest in a Government which raises some 13 per cent of its revenue from taxes on gambling then being in a position to veto advertising intended to discourage gambling.
More fundamentally there has been criticism of gambling as a major source of Government revenue.
Some community leaders have suggested that certain activities, because of the harm they are claimed intrinsically to cause, should not be given Government encouragement and then used as a source of government revenue. This argument has been applied to gambling.
It is unlikely, however, that this argument will be acted upon as it would ultimately require that a significant proportion of the electorate adopted this attitude.
Currently the view within the Government appears to be that the majority of Victorians accept gambling as a legitimate recreational activity and as a legitimate source of taxation revenue.
The Minister for Community Services, Mr Michael John, has claimed, `Australians traditionally and historically have always loved to have a bet and have a punt.'
Unless a greater percentage of available funds is to be spent investigating such problems as may be associated with gambling and bringing them to the attention of the general public it seems unlikely that a significant shift in community attitudes will occur.
Sources
The Age
16/9/95 page 9 news item by Sushila Das, `Warning on gambling, mentally ill'
17/9/95 page 2 news item by Sue Hewitt, `Anti-gambling ads "axed"'
19/9/95 page 5 news item by Nicole Brady and Kendall Hill, `Rejected TV ads too anti-gambling: John'
19/9/95 page 11 editorial, `High stakes'
25/9/95 page 10 comment by Michael Gawenda, `The wages of sin, or just state revenue?'
The Australian
19/9/95 page 5 news item by Michelle Coffey, `Church accuses Kennett of double standard on aid for gambling addicts'
24/9/95 page 7 news item by Sue Hewitt, Jake Niall Karin Derkley, `Salvos urge overhaul of fund management'
The Herald Sun
16/9/95 page 2 graph, `Weekly gambling (what we spent 1993/94)'
19/9/95 page 11 news item by Terry Brown, `Labor anger over gambling ad ban'
19/9/95 page 12 editorial, `It all points to gambling'
20/9/95 page 13 comment by Andrew Bolt, `A sad ban on morality'
23/9/95 page 20 news item by Kristin Owen, `Fund no support to our gamblers'
23/9/95 page 20 news item by Jim Tennison, `Casino brings hope, gloom'
Quotes
`The State Government last year raised $900 million in gambling taxes. Add to that the profit margin for the gambling operators and you have a lot of Victorians losing a lot of money indeed. Some, no doubt, are losing more than their families can afford'
Andrew Bolt, Herald Sun managing editor
`We're creating an attraction which is going to bring people back to the city. The flow-on effect for retailers will be huge'
Lloyd Williams, manager of Crown Casino