|
Current Issues
Gambling Policy and Regulation
E-Brief: Online Only issued March 2001; updated September 2001
Dr Kim Jackson, Analysis
and Policy
Social Policy Group
Introduction
Gambling policy in Australia has traditionally been the responsibility
of the States rather than the Commonwealth. State and territory governments
regulate and provide gambling services and rely heavily on the ensuing
revenue. However, recent developments have seen the Commonwealth take
a more active role in this area. Public concern over the impact of gambling
on Australian society prompted the Commonwealth to institute an inquiry
by the Productivity Commission and its conclusions have fuelled further
debate.
In addition, the rapid adoption of new communications technologies by
gambling industries has attracted Commonwealth interest, as this is an
area which falls within its constitutional responsibilities. The development
of online gambling has significant implications for regulatory mechanisms,
revenue collection and community welfare. This has prompted the Federal
Parliament to pass legislation prohibiting Australian Internet gambling
sites from providing services to Australians.
This brief provides annotated links to documents and sites on the Internet
of relevance to these developments.
Commonwealth Policy and
Legislation
On the 16 December 1999 the Prime Minister, the Honourable John Howard
MP, released a statement
announcing Commonwealth support for a national approach to problem gambling.
This would involve the establishment of a council of Commonwealth, State
and Territory ministers to focus on the following:
- stopping the further expansion of gambling in Australia;
- the impact of problem gambling on families and communities;
- Internet gambling; and
- consumer protection.
The full text of the Prime Minister's press conference
on this subject is also available.
On the 19 May 2000 the Minister for Communications, Information Technology
and the Arts, Senator Richard Alston, and the Minister for Family and
Community Services, Senator Jocelyn Newman announced
that the Commonwealth was examining legislation to impose a 12-month moratorium
on the introduction of new interactive gambling services. On the 17 August
2000 the Government introduced the Interactive Gambling (Moratorium) Bill
2000. The Bill and related documents can be obtained from this
page. A Bills
Digest prepared by the Parliamentary Library is also available. The
purpose of the Bill was to prohibit for one year those interactive gambling
services that were not being provided before 19 May 2000. The Bill passed
the Senate on the 6 December 2000 after receiving the support of a number
of Democrat and independent senators. The Interactive
Gambling (Moratorium) Act 2000 was assented to on the 21 December.
On 27 March 2001 Senator
Alston announced that the Government would introduce legislation to
prohibit Australian gambling services from providing online gambling to
Australian residents. Other press releases from the Minister on the subject
of interactive gambling can be obtained from this
page.
The Interactive Gambling Bill 2001 was introduced on 5 April 2001 and
was assented to on 11 July 2001. The Bill and related documents can be
obtained here,
and the Bills Digest can be accessed from this page.
The Interactive Gambling
Act 2001:
- prohibits interactive gambling services from being provided to customers
in Australia; and
- prohibits Australian-based interactive gambling services from being
provided to customers in designated countries; and
- establishes a complaints-based system to deal with Internet gambling
services where the relevant content (prohibited Internet gambling content)
is available for access by customers in Australia; and
- prohibits the advertising of interactive gambling services.
The National Office for the
Information Economy (NOIE) maintains a detailed page
on interactive gambling, including a summary of the legislation with
other links and documents.
Major Inquiries
The Productivity Commission
Inquiry
On the 26 August 1998 the Commonwealth Treasurer, the Honourable Peter
Costello MP, directed the Productivity Commission to report on the performance
of the gambling industries and their economic and social impacts across
Australia, including their impact on the retail, tourism and entertainment
industries, and on Commonwealth and State/Territory Budgets. The Terms
of Reference for the Inquiry can be obtained here.
The inquiry was undertaken by Gary Banks, Chairman of the Productivity
Commission, and Robert Fitzgerald, who was President of the Australian
Council of Social Services from 1993 to 1997.
The final report was submitted on the 26 November 1999. The Productivity
Commission has an index
page providing access to the final
report and many related documents. Of particular interest are:
Senate
Select Committee Report on Online Gambling
On the 31 May 1999 the Senate Select Committee on Information Technologies
announced that it would inquire into:
- the nature, extent and impact of online gambling in Australia;
- the feasibility of controlling access to online gambling, especially
by minors;
- the adequacy of State and Territory regulations in relation to online
gambling; and
- the need for federal legislation.
The Committee reported on the 16 March 2000. The report, Netbets A
review of online gambling in Australia can be obtained from this
page. It recommended that:
- Federal, State and Territory governments work together to develop
uniform and strict regulatory controls on online gambling with a particular
focus on consumer protection;
- pending the implementation of these consumer protection policies no
further online gambling licences be granted; and
- State and Territory governments contribute a fixed percentage of their
gambling revenue to a national education campaign on gambling and to
agencies that assist and rehabilitate problem gamblers.
The report also recommended many specific measures to protect consumers
and assist problem gamblers.
The NOIE Inquiry
On 7 July 2000, Senator the Hon. Richard Alston, Minister for Communications,
Information Technology and the Arts, announced that the Government would
conduct a study into the feasibility and consequences of banning interactive
gambling. This inquiry was undertaken by the National Office for the Information
Economy (NOIE). Its report was released on 27 March 2001, with the following
major conclusions:
- there are several technical methods that could potentially be used
to implement a ban on interactive gambling based on Internet content
control, but none would be 100 per cent effective in preventing Australians'
access to interactive gambling services.
- Implementing a ban on domestic interactive gambling service providers
would require legislative change only.
- A ban via financial controls is not practical.
- Economic modelling commissioned for the study indicates that a ban
may have modest or small economic benefits for Australia in terms of
restricting access to a harmful activity and possible aggregate benefits
for State and Territory taxation revenue.
The full report can be obtained from here (pdf
file).
State and Territory Regulatory Authorities and Policies
Australian Capital Territory
The ACT Racing and
Gambling Commission is an independent statutory authority responsible
for controlling and regulating all gaming, racing and betting activities
in the ACT to ensure they are conducted honestly, with integrity and free
from criminal influence. It has a comprehensive website with pages on
legislation, interactive gambling, problem gambling, a gaming industry
Code of Conduct, the casino, gaming machines and other forms of betting.
New South Wales
The NSW Department of Gaming and
Racing is responsible for the proper conduct and balanced development
of the gaming, racing, liquor and charity industries in NSW. Its website
has pages on responsible gambling, legislation and other matters.
The NSW Casino Control
Authority licenses and supervises the operations of the casino.
Northern Territory
The Racing and Gaming Authority administers gambling legislation in the
NT. The NT Gaming Machine Commission is responsible for licensing gaming
machines. Neither body has a website, although information on their operations
is available from the Annual Report of the
Authority.
Queensland
The Queensland Office of Gaming
Regulation regulates machine gaming, casinos, art unions, lotteries
and keno in Queensland. It has a comprehensive website pages dealing with
topical issues, legislation, statistics, information on interactive gambling
and other policy matters.
South Australia
The Gaming Supervisory
Authority is responsible for ensuring that there is effective supervision
of the operations of casino and gaming machine licensees in SA. It is
the function of the Office of the Liquor
and Gaming Commissioner to provide the supervision of licencees.
Tasmania
The Tasmanian
Gaming Commission regulates and controls gaming in Tasmania. It is
an independent statutory authority but receives operational support from
the Gaming Operations Branch of the Tasmanian Department of Treasury and
Finance.
Victoria
The Victorian
Casino and Gaming Authority regulates and monitors Victoria's gambling
activities. It has a comprehensive website with sections for legislation
and policy, research, frequently asked questions, media releases, licensing
and other matters.
On 1 March 2000 the Minister for Gaming released for public comment Responsible Gaming: A Consultation
Paper. The paper outlines proposed legislation and seeks input into
the process of regulating the industry.
Western Australia
The Office of Racing, Gaming
and Liquor administers WA legislation dealing with these areas and
carries out many of the operational functions of the Gaming
Commission, including the provision of licensing, inspection and audit
functions in respect of both casino and permitted gaming services.
Other Reports and Papers
Australia
The Australian Institute of Criminology (AIC) paper, Internet Gambling
(June 1998) examines the policy options concerning this issue. Papers
for the Conference on "Gambling, Technology and Society: Regulatory
Challenges for the 21st Century" (May 1998) convened by
the AIC in conjunction with the Australian Institute for Gambling Research
are also available from this page. They
include discussions of policy options, legal issues and responses, State
views and technical measures.
International
The Report
on Gaming Legislation and Regulation in British Columbia (January
1999) has much useful information on the regulatory situation in Canada.
It has chapters on the legal framework, recent developments, social policy
and emerging issues.
The US National Gambling Impact
Study Commission website provides access to the Final Report and Recommendations
of the Commission (June 1999) and other research reports on gambling in
the United States.
Gambling on the Internet
is a report presented to the 1999 Conference of the International Association
of Gambling Regulators. It consists of two parts: 'The Legal Perspective'
by Thomas N. Auriemma of the New Jersey Division of Gaming Enforcement,
and 'The Regulatory Perspective' by Bill Lahey of the Victorian Casino
and Gaming Authority.
In the United Kingdom an independent review body was established to design
a new regulatory structure for the gambling industry. The Gambling Review page contains
the Final Report and links to other documents.
Australian Gambling Statistics
The major sources for Australian gambling statistics are the Tasmanian
Gaming Commission and the Australian Bureau of Statistics. The former
organisation, in conjunction with the Centre for Regional Economic Analysis
at the University of Tasmania, produces the annual Australian Gambling
Statistics. This data is not directly available online, although figures
derived from the series can be obtained from the following:
- Appendix
S of the Productivity Commission Final Report, which gives turnover,
per capita expenditure and revenue for each state and territory for
selected years from 1972-73 to 1997-98.
The Australian Bureau of Statistics' site contains a large range of information
on Australian gambling. This is in the form of press releases, some articles,
and the main features (or summaries) of their statistical series publications.
They include:
Research Sites
Australia
The Australian Institute
for Gambling Research contains fact sheets, news, links and a review
of regulatory structures. The Institute is based at the University of
Western Sydney.
An Australian bibliography on gambling compiled by J. Morrison, R. Lynch
and A.J. Veal is available from this
page.
The Problem
Gambling Research Program of the School of the Social Work, University
of Melbourne investigates the effects of problem gambling on individuals
and their families as well as their relationship to community support
services.
International
The European Association for the Study
of Gambling provides information on European studies of gambling and
related subjects.
The Institute for the Study
of Gambling and Commercial Gaming at the University of Nevada, Reno
is an academic body which aims to broaden the understanding of gambling
and the commercial gaming industry.
The National Center for Responsible Gaming
is a US site devoted to funding research on problem and underage gambling.
Problemgambling.Com
has news, feature articles and other resources relating to problem gambling.
The National Opinion Research Center (NORC) is a non-profit corporation
affiliated with the University of Chicago. It has conducted a Gambling Impact and Behaviour
Study.
Interest Groups
Australia
The two hundred and ninety submissions
to the Productivity Commission inquiry into Australia's Gambling Industries
constitute the most exhaustive set of views from individuals and public
interest groups on this subject.
The Australian Medical Association, Victoria has a page on gambling issues. This
looks at problem gambling from a public health perspective.
The Public Health Association of Australia has a page detailing its policies
regarding gambling and health.
The Financial and Consumer Rights Council has a gambling page with links
to a number of useful studies and articles. The Council is a Victorian
non-profit organisation which works to ensure that people have access
to fair treatment as consumers in the market place.
International
The International Association of Gaming Regulators
site provides access to occasional papers and news stories. Their membership
list contains links to most of the gambling regulatory bodies in the world.
The National Coalition
Against Legalized Gambling is a US site providing Internet resources
for anti-gambling campaigners.
The American Gaming Association
represents the commercial casino entertainment industry.
The Interactive Gaming Council
is a forum for the Internet gaming industry.
News and Media
Lottery Insider
has an archive of Internet gaming news.
The Rolling Good Times has a
large database of gambling news stories, particularly with regard to interactive
gambling.
Showhand is an online magazine
reporting on the gaming industry in Australia and Asia.
Gamblink.com has an archive
of news stories and press releases.
For copyright reasons some linked items are only available to
Members of Parliament.
|
