Gambling

Betting's influence pervades both society and government

Most forms of betting are lawful here, and Australians seem to be obsessed with all of them.  It has been estimated that they spend more per capita on gambling than any other nation on earth.  In 2009-10, in the state of Victoria alone, almost $1,000 was lost for every man, woman and child.

The number one culprits are the "pokies".  These are the Australian version of the slot machine, or one-armed bandit - so called because the symbols on the reels are often those of a deck of cards, reminiscent of a game of poker.  They account for the majority of the money lost nationally, and have the strongest association with problem gambling.

It is difficult to overstate the degree to which parts of Australian society have become dependent on gambling.  Sporting clubs all over the country, from the professional level down, rely on income generated from battalions of pokies stationed in purpose-built clubhouses.  The Returned and Services League (the Australian veterans association) is also in on the act.  Meanwhile, many pubs have built large annexes or turned over significant space to dedicated rooms, all filled with the clicks and chirrups of the omniscient machines.  These things matter in a vast country where these bodies are often the focus of social life in the community.

Believe it or not, this is probably a sports club

Meanwhile, professional sporting bodies, such as the Australian Football League and the National Rugby League, are becoming increasingly interested in the possible revenue accruing from a newer kid on the block - sports gambling.  The TV companies are, it seems, only too willing to help.  Live sports broadcasts are peppered with news-style announcements of the latest betting movements on the game.  Young fans, many of whose parents are already supporting their favourite teams with varying quantities of pokie revenue, are exposed to a barrage of advertising suggesting that they will only extract the full relish from the contest if there's money on it.

With the advent of the internet and smart phones meaning that punters can now drop thousands of dollars in the comfort of their own home, or even on the train to work, many Australians do accept that their country has a gambling problem.  However, the nation's constitutional arrangements mean that Australia is uniquely poorly placed to deal with it.  For its state governments, which are responsible for licensing and regulating gaming, are among those most addicted to the revenue it generates.

Under the constitution, the states have conceded the vast majority of their tax-raising powers to the federal government.  This leaves them reliant on a few sources of revenue, of which the duty paid on gambling is one of the most important.  On average, each state relies on gaming for around 10% of its income.  This in turn this makes them particularly susceptible to the powerful lobbies of the clubs, sporting bodies and betting companies, even when their governments recognise the damage that betting causes.  

Although the federal government has no specific power over gambling, it could partially regulate it under its other powers.  However, this would be messy and would probably leave loopholes.  The best option may be for the Federal and State government to negotiate any changes to the law.  However, this means that desirable changes could be watered down via the gambling lobby's influence at State level.

Matters have come to a head because the minority federal government is relying on support from independent MPs, one of whom - Andrew Wilkie - is demanding reform of the pokies laws.  In particular, he wants gamblers to have to commit to a maximum loss before playing certain machines, which will then cut them off when it's reached, and restrictions on cashpoints in gambling locations.

These may seem like fairly minor reforms, but they're being fought tooth and nail by the various lobby groups, who don't appear to be embarrassed about running apparently inconsistent arguments.  For example, it's difficult to see how they can confidently assert both that club revenues will drop by 40% (potentially driving them out of business) and that problem gamblers are unlikely to be helped, but they have done.

In the meantime it's estimated that 2% of Australians are problem gamblers, and that their problems each affect another 5 to 10 people.  If this is so, then between 12% and 22% of Australians suffer as a result of gambling.  Enough to demand some action, you'd think.


For an excellent article incorporating a personal and statistical take on the social and societal problems of gambling in Australia see http://thefailedestate.blogspot.com/2011/09/waiting-for-feature.html