Research Paper no.14 2001-2002
Gambling: An Australian Tradition on the Up!
Geoff Winter
Statistics Group
14 May 2002
Contents
Introduction
Background
Turnover
Expenditure
Revenues
Conclusion
Further reading
Chronology
Glossary
Endnotes
List of Tables
Table 1. Turnover: All Forms
of Gambling, Australia, 1972-73 to 1999-2000
Table 2. Selected Indicators: All Forms of
Gambling, Australia, 1972-73 to 1999-2000
Table 3. Gambling Turnover: Per Head,
1999-2000
Table 4. Government Revenue: All Forms of
Gambling, Australia, 1972-73 to 1999-2000
Table 5. Government Revenue: States and
Territories, Australia, 1972-73 to 1999-2000
Table 6. Government Revenue: Australia, 1972-73
to 1999-2000
Introduction
Gambling has been an inherent part of Australian
culture from the beginning of European settlement.(1) In
the beginning it was mainly horse-racing, then lotteries, then
'poker machines' in New South Wales in the 1950s and now, with
legalised gambling facilities and opportunities having expanded
greatly over the past 30-odd years, all known forms of gambling
seem to be available. This has led to substantial increases in
amounts wagered and net losses and has produced massive revenues
for governments. This paper concentrates only on the financial
aspects of gambling, showing that turnover, expenditure (losses)
and revenues have increased substantially in real terms, especially
for gaming activities. It does not discuss the political economy of
gambling development which is quite complex,(2) nor does
it address the social issues arising from gambling, whether illegal
or legal.(3) Sources for further reading, a chronology
showing how the facilities and opportunities for legalised gambling
have expanded, and a glossary explaining all the terms used in this
paper are provided at the end of the paper.
Background
Control of gambling has generally been under
State (and Territory) government jurisdiction in Australia. These
governments have legislated to permit various forms of gambling in
return for regulation and revenue-raising. The more 'traditional'
forms of gambling in Australia have often also been conducted, but
not exclusively, by governments, for example, on horse-racing
through the various Totalisator Agency Boards (TABs) and lotteries
through various commissions. Increasingly governments' role has
been one of regulation only as previously publicly-owned bodies
such as the TABs have been privatised. However, the revenues
continue to come in, generally increasing year by year, sometimes
to an alarming extent in the view of many commentators and
policy-makers. Revenues are only proportions of the amounts people
spend on gambling, and are again heavily regulated. Generally they
derive from the various proportions of
turnover, i.e. for the purposes of this
brief the amounts people originally 'wager' or bet or 'invest', and
not from proportions of how much they 'gamble' or lose (which for
the purposes of this brief is defined as
expenditure). (See the Glossary for the
definitions of these terms.)
Turnover
Turnover on gambling activities, i.e. the amount
people actually bet, has risen dramatically in recent years. In
1972-73, the first year for which fully comprehensive figures were
available, Australians gambled almost $3.7 billion, mostly on
racing (see Table 1). Even then almost half of all gambling was on
gaming ('poker') machines, which was the single biggest form of
gambling throughout the country even though they existed only in
New South Wales. By then the other traditional form of gambling in
Australia-lotteries-had been swamped in turnover terms by gaming
machines and racing, and the first casino in Australia had only
just opened in Tasmania. The changing patterns in Australian
gambling can be seen from Table 1 and the Chronology.
Table 1. Turnover: All Forms of Gambling, Australia, 1972-73 to
1999-2000
($ millions)
|
Racing
|
|
Gaming
|
Sports
betting
|
Total
all
gambling
|
|
TAB
|
On-
course
book-
maker
|
On-
course
total-
isator
|
Off-
course
book-
maker
|
Total
|
|
Lotteries
|
Lotto,
Tatts-
lotto
|
Instant -
lotteries
money,
'scratchies'
|
Pools
|
Casino
|
Minor
gaming
|
Keno
|
Gaming
machines
|
Inter-
active
gaming
|
Total
|
|
1972-73
|
973.8
|
942.1
|
172.2
|
39.1
|
2
127.2
|
|
116.1
|
12.1
|
|
|
9.8
|
3.5
|
|
1
419.5
|
|
1
561.0
|
|
3
688.3
|
|
1973-74
|
1
145.7
|
1
101.8
|
190.2
|
43.1
|
2
480.8
|
|
124.0
|
35.9
|
|
|
29.1
|
10.6
|
|
1
694.5
|
|
1
894.1
|
|
4
372.9
|
|
1974-75
|
1
456.4
|
1
384.5
|
235.4
|
35.5
|
3
111.8
|
|
151.0
|
74.1
|
|
4.8
|
31.0
|
14.8
|
|
2
396.7
|
|
2
672.4
|
|
5
784.1
|
|
1975-76
|
1
609.2
|
1
556.2
|
267.7
|
8.1
|
3
441.3
|
|
163.6
|
124.2
|
|
24.5
|
34.4
|
20.5
|
|
2
780.5
|
|
3
147.8
|
|
6
589.1
|
|
1976-77
|
1
740.1
|
1
717.6
|
285.2
|
8.3
|
3
751.2
|
|
177.5
|
188.7
|
|
28.0
|
38.6
|
28.0
|
|
3
094.4
|
|
3
555.2
|
|
7
306.4
|
|
1977-78
|
1
899.2
|
1
827.2
|
341.3
|
7.7
|
4
075.4
|
|
184.8
|
237.1
|
|
33.4
|
40.6
|
47.8
|
|
3
325.3
|
|
3
869.0
|
|
7
944.3
|
|
1978-79
|
2
025.8
|
1
969.6
|
376.2
|
33.4
|
4
405.0
|
|
193.0
|
288.7
|
19.5
|
46.8
|
48.3
|
75.0
|
|
3
664.3
|
|
4
335.6
|
|
8
740.6
|
|
1979-80
|
2
212.4
|
2
159.0
|
446.4
|
31.2
|
4
849.0
|
|
188.6
|
409.6
|
21.0
|
57.9
|
80.0
|
97.3
|
|
4
098.3
|
|
4
952.7
|
|
9
801.7
|
|
1980-81
|
2
447.6
|
2
271.9
|
479.4
|
39.6
|
5
238.6
|
|
192.9
|
526.6
|
17.1
|
43.7
|
87.2
|
120.3
|
|
4
725.3
|
|
5
712.9
|
|
10
951.5
|
|
1981-82
|
2
711.2
|
2
461.0
|
553.7
|
37.5
|
5
763.5
|
|
176.9
|
663.0
|
90.0
|
28.5
|
126.4
|
138.9
|
|
5
046.5
|
|
6
270.3
|
|
12
033.8
|
|
1982-83
|
2
957.5
|
2
484.3
|
621.6
|
37.1
|
6
100.5
|
|
146.0
|
732.1
|
262.2
|
37.8
|
146.9
|
150.3
|
|
5
056.1
|
|
6
531.4
|
|
12
631.8
|
|
1983-84
|
3
367.4
|
2
636.5
|
706.4
|
44.7
|
6
755.0
|
|
140.6
|
862.6
|
285.1
|
36.0
|
179.9
|
186.3
|
|
5
332.7
|
|
7
023.3
|
|
13
778.3
|
|
1984-85
|
3
700.9
|
2
648.0
|
745.0
|
51.6
|
7
145.4
|
|
134.0
|
1
002.1
|
368.9
|
34.2
|
204.6
|
193.7
|
|
5
712.2
|
|
7
649.7
|
|
14
795.2
|
|
1985-86
|
4
263.5
|
2
920.1
|
838.1
|
8.9
|
8
030.6
|
|
141.2
|
1
011.6
|
375.2
|
60.9
|
722.4
|
217.7
|
|
6
035.3
|
|
8
564.3
|
|
16
594.8
|
|
1986-87
|
4
633.7
|
3
017.8
|
888.9
|
9.7
|
8
550.0
|
|
143.9
|
1
170.1
|
389.9
|
50.6
|
1
286.6
|
230.3
|
|
6
787.6
|
|
10
058.9
|
|
18
608.9
|
|
1987-88
|
5
318.1
|
2
936.5
|
998.8
|
11.4
|
9
264.7
|
|
142.6
|
1
300.5
|
420.7
|
39.2
|
1
573.6
|
246.8
|
|
7
644.0
|
|
11
367.4
|
|
20
632.1
|
|
1988-89
|
6
262.0
|
3
015.8
|
1
068.6
|
9.8
|
10
356.2
|
|
151.6
|
1
405.9
|
467.8
|
28.8
|
2
187.4
|
293.9
|
|
9
789.0
|
|
14
324.4
|
|
24
680.6
|
|
1989-90
|
6
959.9
|
2
975.1
|
1
109.4
|
9.7
|
11
054.2
|
|
173.9
|
1
614.9
|
569.8
|
26.3
|
2
948.0
|
347.1
|
|
10
753.1
|
|
16
433.0
|
|
27
487.2
|
|
1990-91
|
7
392.6
|
2
690.1
|
1
155.3
|
8.2
|
11
246.2
|
|
175.9
|
1
781.8
|
621.6
|
22.0
|
2
721.1
|
630.9
|
|
12
552.7
|
|
18
506.1
|
|
29
752.3
|
|
1991-92
|
7
646.4
|
2
287.5
|
1
100.7
|
7.9
|
11
042.4
|
|
162.7
|
1
880.6
|
650.1
|
20.7
|
2
894.8
|
658.0
|
128.8
|
13
987.4
|
|
20
383.1
|
|
31
425.5
|
|
1992-93
|
7
934.1
|
1
946.8
|
1
061.1
|
6.0
|
10
948.0
|
|
174.0
|
1
825.1
|
652.0
|
21.2
|
3
216.2
|
685.2
|
236.5
|
19
169.4
|
|
25
979.5
|
|
36
927.5
|
|
1993-94
|
8
382.4
|
1
864.5
|
999.5
|
5.1
|
11
251.4
|
|
168.2
|
1
958.9
|
636.2
|
29.7
|
4
491.4
|
682.3
|
334.2
|
29
259.7
|
|
37
560.5
|
|
48
811.9
|
|
1994-95
|
8
561.4
|
2
020.4
|
964.6
|
4.6
|
11
551.1
|
|
147.1
|
2
149.9
|
600.2
|
18.4
|
8
313.1
|
647.1
|
473.3
|
37
849.3
|
|
50
198.4
|
108.4
|
61
857.9
|
|
1995-96
|
8
726.2
|
1
839.0
|
949.9
|
3.5
|
11
518.7
|
|
163.6
|
2
269.1
|
559.8
|
19.7
|
12
066.1
|
640.0
|
504.0
|
44
663.4
|
|
60
885.8
|
143.5
|
72
548.0
|
|
1996-97
|
8
866.1
|
1
601.7
|
912.0
|
3.0
|
11
382.9
|
|
161.0
|
2
200.7
|
551.3
|
15.9
|
15
043.6
|
500.8
|
519.1
|
49
809.9
|
|
68
802.4
|
216.3
|
80
401.5
|
|
1997-98
|
8
987.0
|
1
619.9
|
891.3
|
1.8
|
11
500.0
|
|
161.9
|
2
316.4
|
585.1
|
15.3
|
23
640.1
|
653.9
|
701.3
|
57
676.2
|
|
85
750.2
|
351.5
|
97
601.6
|
|
1998-99
|
9
417.3
|
1
497.9
|
800.3
|
1.7
|
11
717.2
|
|
175.5
|
2
443.9
|
602.9
|
16.0
|
20
350.1
|
701.9
|
724.3
|
66
036.0
|
|
91
053.2
|
461.4
|
103
231.7
|
|
1999-2000
|
9
677.9
|
1
310.4
|
652.6
|
1.1
|
11
642.0
|
|
144.2
|
2
468.3
|
632.4
|
16.5
|
22
646.7
|
689.9
|
722.9
|
74
139.5
|
105.7
|
101
566.0
|
655.8
|
113
863.7
|
Source:
Australian Gambling Statistics, various (Tasmanian Gaming
Commission).
Table 2. Selected Indicators: All Forms of
Gambling, Australia, 1972-73 to 1999-2000
|
Year
|
Total
Racing
|
|
Total
Gaming
|
|
Total All
Gambling (a)
|
|
Turnover
|
|
Expenditure
|
|
Turnover
|
|
Expenditure
|
|
Turnover
|
|
Expenditure
(b)
|
|
Actual
|
Real
(c)
|
|
Actual
|
Real(c)
|
Real (c)
per
head (d)
|
|
Actual
|
Real
(c)
|
|
Actual
|
Real(b)
|
Real (c)
per
head (d)
|
|
Actual
|
Real
(c)
|
|
Actual
|
Proportion
of HDI (e)
|
Real(c)
|
Real (c)
per
head (d)
|
|
($m.)
|
($m.)
|
|
($m.)
|
($m.)
|
($
p.a.)
|
|
($m.)
|
($m.)
|
|
($m.)
|
($m.)
|
($p.a.)
|
|
($m.)
|
($m.)
|
|
($m.)
|
(%)
|
($m.)
|
($p.a.)
|
|
1972-73
|
2
127.2
|
12
892.4
|
|
227.8
|
1
380.3
|
155.33
|
|
1
561.0
|
9
460.7
|
|
236.1
|
1
431.0
|
161.05
|
|
3
688.3
|
22
353.1
|
|
463.9
|
1.55
|
2
811.3
|
316.38
|
|
1973-74
|
2
480.8
|
13
337.6
|
|
265.3
|
1
426.5
|
157.38
|
|
1
894.1
|
10
183.5
|
|
291.3
|
1
565.9
|
172.76
|
|
4
372.9
|
23
510.4
|
|
556.6
|
1.51
|
2
992.4
|
330.14
|
|
1974-75
|
3
111.8
|
14
366.4
|
|
343.4
|
1
585.2
|
171.59
|
|
2
672.4
|
12
338.0
|
|
413.7
|
1
910.1
|
206.75
|
|
5
784.1
|
26
704.4
|
|
757.1
|
1.74
|
3
495.3
|
378.34
|
|
1975-76
|
3
441.3
|
14
072.4
|
|
379.5
|
1
551.7
|
165.18
|
|
3
147.8
|
12
872.5
|
|
504.1
|
2
061.5
|
219.45
|
|
6
589.1
|
26
944.8
|
|
883.6
|
1.72
|
3
613.3
|
384.63
|
|
1976-77
|
3
751.2
|
13
479.6
|
|
412.2
|
1
481.3
|
155.01
|
|
3
555.2
|
12
775.2
|
|
582.9
|
2
094.8
|
219.21
|
|
7
306.4
|
26
254.8
|
|
995.2
|
1.71
|
3
576.1
|
374.22
|
|
1977-78
|
4
075.4
|
13
374.0
|
|
455.7
|
1
495.4
|
153.63
|
|
3
869.0
|
12
696.7
|
|
648.4
|
2
127.9
|
218.61
|
|
7
944.3
|
26
070.7
|
|
1
104.1
|
1.72
|
3
623.3
|
372.25
|
|
1978-79
|
4
405.0
|
13
360.2
|
|
490.1
|
1
486.5
|
149.87
|
|
4
335.6
|
13
149.6
|
|
746.3
|
2
263.4
|
228.20
|
|
8
740.6
|
26
509.8
|
|
1
236.4
|
1.70
|
3
749.8
|
378.06
|
|
1979-80
|
4
849.0
|
13
345.7
|
|
539.3
|
1
484.2
|
146.79
|
|
4
952.7
|
13
631.0
|
|
872.5
|
2
401.4
|
237.49
|
|
9
801.7
|
26
976.7
|
|
1
411.8
|
1.75
|
3
885.6
|
384.28
|
|
1980-81
|
5
238.6
|
13
191.1
|
|
587.5
|
1
479.3
|
143.29
|
|
5
712.9
|
14
385.4
|
|
1
005.1
|
2
530.8
|
245.15
|
|
10
951.5
|
27
576.6
|
|
1
592.5
|
1.73
|
4
010.1
|
388.44
|
|
1981-82
|
5
763.5
|
13
133.8
|
|
649.9
|
1
481.0
|
140.26
|
|
6
270.3
|
14
288.6
|
|
1
131.5
|
2
578.5
|
244.20
|
|
12
033.8
|
27
422.3
|
|
1
781.5
|
1.71
|
4
059.5
|
384.46
|
|
1982-83
|
6
100.5
|
12
467.8
|
|
695.8
|
1
422.1
|
131.88
|
|
6
531.4
|
13
348.5
|
|
1
228.7
|
2
511.1
|
232.87
|
|
12
631.8
|
25
816.3
|
|
1
924.5
|
1.68
|
3
933.1
|
364.75
|
|
1983-84
|
6
755.0
|
12
938.7
|
|
792.6
|
1
518.2
|
138.34
|
|
7
023.3
|
13
452.6
|
|
1
348.2
|
2
582.3
|
235.30
|
|
13
778.3
|
26
391.2
|
|
2
140.8
|
1.66
|
4
100.5
|
373.64
|
|
1984-85
|
7
145.4
|
13
122.2
|
|
874.0
|
1
605.1
|
143.75
|
|
7
649.7
|
14
048.4
|
|
1
487.1
|
2
730.9
|
244.59
|
|
14
795.2
|
27
170.6
|
|
2
361.1
|
1.68
|
4
336.0
|
388.34
|
|
1985-86
|
8
030.6
|
13
604.9
|
|
991.5
|
1
679.7
|
147.65
|
|
8
564.3
|
14
509.0
|
|
1
681.2
|
2
848.1
|
250.35
|
|
16
594.8
|
28
114.0
|
|
2
672.6
|
1.73
|
4
527.8
|
398.00
|
|
1986-87
|
8
550.0
|
13
240.3
|
|
1
064.6
|
1
648.5
|
142.06
|
|
10
058.9
|
15
577.0
|
|
1
968.2
|
3
047.9
|
262.65
|
|
18
608.9
|
28
817.3
|
|
3
032.7
|
1.81
|
4
696.4
|
404.71
|
|
1987-88
|
9
264.7
|
13
371.1
|
|
1
194.3
|
1
723.7
|
145.47
|
|
11
367.4
|
16
405.6
|
|
2
184.0
|
3
151.9
|
266.02
|
|
20
632.1
|
29
776.7
|
|
3
378.3
|
1.82
|
4
875.6
|
411.49
|
|
1988-89
|
10
356.2
|
13
929.4
|
|
1
365.3
|
1
836.4
|
151.58
|
|
14
324.4
|
19
266.8
|
|
2
637.0
|
3
546.9
|
292.78
|
|
24
680.6
|
33
196.2
|
|
4
002.3
|
1.93
|
5
383.2
|
444.36
|
|
1989-90
|
11
054.2
|
13
766.9
|
|
1
469.3
|
1
829.8
|
147.82
|
|
16
433.0
|
20
465.7
|
|
2
962.6
|
3
689.7
|
298.07
|
|
27
487.2
|
34
232.6
|
|
4
431.9
|
1.91
|
5
519.5
|
445.89
|
|
1990-91
|
11
246.2
|
13
301.1
|
|
1
533.6
|
1
813.8
|
143.87
|
|
18
506.1
|
21
887.4
|
|
3
482.8
|
4
119.1
|
326.73
|
|
29
752.3
|
35
188.5
|
|
5
016.3
|
2.06
|
5
932.9
|
470.60
|
|
1991-92
|
11
042.4
|
12
816.5
|
|
1
548.5
|
1
797.3
|
140.31
|
|
20
383.1
|
23
657.9
|
|
3
755.1
|
4
358.4
|
340.25
|
|
31
425.5
|
36
474.4
|
|
5
303.6
|
2.08
|
6
155.7
|
480.56
|
|
1992-93
|
10
948.0
|
12
581.1
|
|
1
532.4
|
1
761.0
|
135.56
|
|
25
979.5
|
29
855.0
|
|
4
459.0
|
5
124.1
|
394.45
|
|
36
927.5
|
42
436.1
|
|
5
991.3
|
2.27
|
6
885.1
|
530.01
|
|
1993-94
|
11
251.4
|
12
701.2
|
|
1
600.1
|
1
806.3
|
137.29
|
|
37
560.5
|
42
400.3
|
|
5
369.8
|
6
061.7
|
460.75
|
|
48
811.9
|
55
101.5
|
|
6
969.8
|
2.53
|
7
867.9
|
598.05
|
|
1994-95
|
11
551.1
|
12
635.2
|
|
1
625.1
|
1
777.6
|
133.32
|
|
50
198.4
|
54
909.5
|
|
6
577.5
|
7
194.8
|
539.63
|
|
61
857.9
|
67
663.3
|
|
8
214.1
|
2.78
|
8
985.0
|
673.89
|
|
1995-96
|
11
518.7
|
12
091.8
|
|
1
636.1
|
1
717.5
|
126.94
|
|
60
885.8
|
63
915.5
|
|
7
933.6
|
8
328.4
|
615.55
|
|
72
548.0
|
76
158.0
|
|
9
582.7
|
3.02
|
10
059.5
|
743.50
|
|
1996-97
|
11
382.9
|
11
796.0
|
|
1
660.0
|
1
720.3
|
125.26
|
|
68
802.4
|
71
299.1
|
|
8
360.2
|
8
663.5
|
630.85
|
|
80
401.5
|
83
319.1
|
|
10
036.4
|
3.00
|
10
400.6
|
757.35
|
|
1997-98
|
11
500.0
|
11
917.3
|
|
1
642.1
|
1
701.7
|
122.21
|
|
85
750.2
|
88
861.9
|
|
9
677.9
|
10
029.1
|
720.28
|
|
97
601.6
|
101
143.4
|
|
11
344.8
|
3.28
|
11
756.4
|
844.33
|
|
1998-99
|
11
717.2
|
11
998.4
|
|
1
708.6
|
1
749.6
|
123.95
|
|
91
053.2
|
93
238.5
|
|
10
705.1
|
10
962.0
|
776.65
|
|
103
231.7
|
105
709.3
|
|
12
436.2
|
3.43
|
12
734.7
|
902.24
|
|
1999-2000
|
11
642.0
|
11
642.0
|
|
1
699.9
|
1
699.9
|
118.70
|
|
101
566.0
|
101
566.0
|
|
11
600.2
|
11
600.2
|
810.04
|
|
113
863.7
|
113
863.7
|
|
13
341.6
|
3.50
|
13
341.6
|
931.64
|
(a) Includes Sports
betting. (b) Understated from 1995-96 as sports betting licence
holders in the ACT are not required to provide expenditure
information. (c) 1999-2000 prices, using the Consumer Price Index,
1989-90 = 100.0. (d) Aged 18 years and over. (e) Household
Disposable Income.
Source:
Australian Gambling Statistics, various (Tasmanian Gaming
Commission).
By 1999-2000 Australians were wagering or
'investing' almost $114 billion, over 30 times as much as in
1972-73. In real terms turnover overall had risen by a factor of
more than five (see Table 2). Gaming machines by 1999-2000
contributed around 65 per cent of all gambling turnover, existing
as separately identifiable facilities in all states and territories
except Western Australia, where they exist only in the Casino and
are included under Casino turnover. This situation no doubt
contributed to the fact that WA had the lowest amount 'invested'
per head of the population in 1999-2000: just over $2100 compared
with the national average of almost $8000 and well over
$10 000 in Victoria and the Northern Territory (see Table 3).
Table 3 also shows how 'little' is invested on lotteries now
compared with other forms of gambling-only about $10 per head
nationally compared with well over $1500 per head in casinos and
well over $5000 per head on gaming machines.
Table 3. Gambling Turnover: Per Head(a),
1999-2000
($)
|
Form of
gambling
|
NSW
|
Vic.
|
Qld
|
SA
|
WA
|
Tas.
|
NT
|
ACT
|
Australia
|
|
TAB
|
778.04
|
716.33
|
580.44
|
540.43
|
584.74
|
558.25
|
504.23
|
479.11
|
675.81
|
|
Total
racing
|
940.59
|
843.72
|
656.37
|
648.62
|
753.72
|
618.76
|
1
362.57
|
579.01
|
812.96
|
|
Lotteries
|
25.04
|
3.60
|
1.49
|
..
|
..
|
3.79
|
14.54
|
11.42
|
10.07
|
|
Casino
|
592.38
|
2
961.67
|
2
219.52
|
267.82
|
988.20
|
2
618.09
|
4
487.96
|
388.34
|
1
581.38
|
|
Gaming
machines
|
8
006.19
|
6
224.84
|
2
415.11
|
3
615.14
|
..
|
1
695.73
|
2
096.13
|
6
842.66
|
5
177.16
|
|
Total
gaming
|
8
962.12
|
9
413.07
|
5
034.18
|
4
173.16
|
1
348.64
|
4
709.81
|
7
630.85
|
7
406.24
|
7
092.32
|
|
Total
sports betting
|
29.95
|
20.43
|
5.08
|
4.90
|
9.79
|
5.07
|
1
780.57
|
705.26
|
45.79
|
|
Total
all gambling
|
9
932.65
|
10
277.23
|
5
695.63
|
4
826.68
|
2
112.15
|
5
333.65
|
10
773.99
|
8
690.51
|
7
951.07
|
-
- Aged 18 years and over.
Source: Australian Gambling
Statistics, various (Tasmanian Gaming Commission).
Expenditure
In 1972-73, Australians lost almost $500
million, which was about 1.55 per cent of household disposable
income (HDI, see Table 2). By 1999-2000 they were losing over $13
billion, or over $900 per head-almost three times as much as in
1972-73 in real terms and equivalent to about 3.5 per cent of HDI.
Clearly the increased losses are associated with the increased
availability of gaming activities as opposed to racing, which in
1972-73 contributed almost half of all losses on a per head basis
in real terms but by 1999-2000 was contributing only about one
eighth of all losses. Although loss rates have not been the same
for all forms of gambling and tax rates have not been the same for
all states and territories (for example, rates ranged from 0 per
cent to 50 per cent on varying bases and for different venues for
poker machine taxes in 1999-2000), overall expenditure has been
much the same every year, with losses in the range of 11-17 per
cent of turnover.
Revenues
Gambling activities have always provided
substantial revenues to governments in Australia, in the form of
specific licence fees and gambling taxes. Table 4 shows from where
the revenues have been derived. Clearly the contribution from
racing has declined significantly in recent years, both nominally
and in proportion to the total. They were over half of all revenues
in 1972-73 and by 1999-2000 were just over 10 per cent; revenue
from gaming has increased dramatically.
Table 4. Government Revenue: All Forms of
Gambling, Australia,
1972-73 to 1999-2000
($ millions)
|
Year
|
Racing
|
|
Gaming
|
Sports
betting
(b)
|
Total
gambling
|
|
TAB
|
All
book-makers
|
On
course total-isator
|
Total
|
|
Casino
|
Minor
gaming
|
Total(a)
|
|
1972-73
|
56.7
|
16.4
|
13.9
|
87.0
|
|
..
|
..
|
81.4
|
|
168.4
|
|
1973-74
|
70.5
|
19.5
|
15.7
|
105.7
|
|
..
|
..
|
99.5
|
|
205.2
|
|
1974-75
|
91.9
|
24.4
|
19.0
|
135.2
|
|
..
|
..
|
141.8
|
|
277.0
|
|
1975-76
|
109.2
|
29.9
|
22.8
|
161.9
|
|
..
|
..
|
176.0
|
|
337.9
|
|
1976-77
|
122.6
|
32.9
|
24.0
|
179.5
|
|
..
|
..
|
211.5
|
|
390.9
|
|
1977-78
|
133.4
|
31.2
|
29.0
|
193.6
|
|
..
|
..
|
238.9
|
|
432.5
|
|
1978-79
|
141.0
|
33.7
|
31.5
|
206.1
|
|
..
|
..
|
274.4
|
|
480.5
|
|
1979-80
|
154.1
|
36.6
|
36.7
|
227.4
|
|
..
|
..
|
335.6
|
|
563.0
|
|
1980-81
|
167.6
|
38.3
|
38.8
|
244.8
|
|
..
|
..
|
384.0
|
|
628.8
|
|
1981-82
|
180.3
|
37.1
|
43.8
|
261.2
|
|
..
|
..
|
453.3
|
|
714.4
|
|
1982-83
|
192.8
|
37.7
|
54.2
|
284.7
|
|
..
|
..
|
524.7
|
|
809.4
|
|
1983-84
|
217.7
|
39.6
|
66.0
|
323.3
|
|
..
|
..
|
603.3
|
|
926.6
|
|
1984-85
|
241.9
|
39.7
|
73.4
|
355.0
|
|
..
|
..
|
684.2
|
|
1 039.3
|
|
1985-86
|
277.4
|
43.1
|
81.4
|
401.9
|
|
..
|
..
|
740.7
|
|
1 142.6
|
|
1986-87
|
301.1
|
44.5
|
87.2
|
432.8
|
|
..
|
..
|
820.9
|
|
1 253.7
|
|
1987-88
|
342.7
|
42.1
|
101.7
|
486.4
|
|
56.3
|
11.4
|
922.8
|
|
1 409.3
|
|
1988-89
|
401.5
|
40.7
|
105.0
|
547.2
|
|
70.7
|
12.4
|
977.5
|
|
1 524.7
|
|
1989-90
|
449.0
|
39.4
|
116.4
|
604.8
|
|
80.3
|
14.5
|
1 202.2
|
|
1 806.9
|
|
1990-91
|
468.1
|
35.4
|
120.4
|
623.7
|
|
95.1
|
16.9
|
1 309.0
|
|
1 933.3
|
|
1991-92
|
483.2
|
29.1
|
114.4
|
626.7
|
|
98.4
|
18.1
|
1 379.0
|
|
2 005.7
|
|
1992-93
|
513.8
|
24.1
|
111.8
|
649.8
|
|
116.1
|
17.8
|
1 541.5
|
|
2 191.3
|
|
1993-94
|
529.5
|
23.0
|
111.1
|
663.6
|
|
151.0
|
16.3
|
1 850.7
|
|
2 514.3
|
|
1994-95
|
513.1
|
24.8
|
99.4
|
637.3
|
|
225.2
|
14.9
|
2 237.2
|
3.7
|
2 878.3
|
|
1995-96
|
522.6
|
22.6
|
78.5
|
623.8
|
|
353.9
|
14.8
|
2 610.9
|
3.1
|
3 237.8
|
|
1996-97
|
524.4
|
17.7
|
70.3
|
612.3
|
|
390.9
|
11.8
|
2 810.4
|
3.2
|
3 425.9
|
|
1997-98
|
490.7
|
18.1
|
61.3
|
570.0
|
|
459.7
|
8.4
|
3 217.3
|
4.0
|
3 791.4
|
|
1998-99
|
431.2
|
15.6
|
38.2
|
485.0
|
|
439.5
|
8.2
|
3 593.1
|
5.7
|
4 083.8
|
|
1999-2000
|
408.6
|
13.8
|
33.5
|
455.9
|
|
455.2
|
7.4
|
3 936.1
|
7.9
|
4 399.8
|
(a) Includes lotteries; lotto;
instant lotteries; pools, gaming machines; keno and interactive
gaming data for which are not available separately. (b) Sports
betting commenced in 1994-95.
.. not available; included in
total.
Source: Australian Gambling
Statistics, various (Tasmanian Gaming Commission).
Table 5 below shows revenue derived in each
State and Territory.
Table 5. Government Revenue: States and
Territories, Australia,
1972-73 to 1999-2000
($ millions)
|
Year
|
NSW
|
Vic.
|
Qld
|
SA
|
WA
|
Tas.
|
NT
|
ACT
|
Australia
|
|
1972-73
|
98.5
|
37.5
|
15.8
|
6.6
|
8.1
|
1.9
|
0.0
|
0.1
|
168.4
|
|
1973-74
|
114.0
|
50.7
|
19.2
|
7.9
|
10.0
|
3.2
|
0.0
|
0.2
|
205.2
|
|
1974-75
|
151.8
|
73.0
|
25.0
|
10.8
|
12.5
|
3.7
|
0.0
|
0.2
|
277.0
|
|
1975-76
|
181.7
|
95.2
|
28.5
|
13.3
|
15.1
|
3.8
|
0.0
|
0.3
|
337.9
|
|
1976-77
|
200.5
|
120.1
|
31.6
|
15.0
|
17.6
|
5.7
|
0.0
|
0.6
|
390.9
|
|
1977-78
|
217.6
|
138.8
|
32.5
|
17.3
|
18.7
|
6.7
|
0.0
|
1.0
|
432.5
|
|
1978-79
|
239.1
|
151.1
|
35.9
|
23.8
|
20.3
|
8.3
|
0.8
|
1.1
|
480.5
|
|
1979-80
|
288.4
|
175.0
|
38.9
|
26.0
|
21.6
|
9.9
|
1.9
|
1.2
|
563.0
|
|
1980-81
|
333.3
|
185.7
|
42.9
|
25.3
|
24.6
|
11.9
|
2.6
|
2.5
|
628.8
|
|
1981-82
|
366.0
|
210.6
|
56.2
|
27.9
|
28.2
|
16.9
|
3.7
|
5.0
|
714.4
|
|
1982-83
|
427.6
|
218.8
|
65.9
|
30.6
|
36.5
|
17.9
|
4.4
|
7.6
|
809.4
|
|
1983-84
|
478.6
|
253.7
|
71.8
|
38.6
|
48.7
|
20.7
|
5.5
|
8.9
|
926.6
|
|
1984-85
|
501.5
|
292.7
|
105.8
|
44.6
|
57.1
|
22.4
|
4.7
|
10.5
|
1 039.3
|
|
1985-86
|
556.2
|
302.8
|
117.7
|
59.7
|
64.6
|
23.3
|
6.0
|
12.3
|
1 142.6
|
|
1986-87
|
597.7
|
340.5
|
126.8
|
72.4
|
71.5
|
25.7
|
6.1
|
13.0
|
1 253.7
|
|
1987-88
|
665.9
|
374.1
|
112.9
|
83.6
|
119.5
|
28.4
|
9.2
|
15.7
|
1 409.3
|
|
1988-89
|
726.6
|
397.2
|
126.9
|
100.6
|
111.7
|
30.6
|
12.3
|
19.0
|
1 524.7
|
|
1989-90
|
812.3
|
463.9
|
208.0
|
114.7
|
138.0
|
34.8
|
11.5
|
23.8
|
1 806.9
|
|
1990-91
|
856.1
|
482.3
|
235.7
|
126.0
|
153.4
|
38.3
|
14.3
|
27.1
|
1 933.3
|
|
1991-92
|
871.3
|
496.6
|
267.5
|
127.8
|
156.2
|
41.3
|
13.9
|
31.1
|
2 005.7
|
|
1992-93
|
918.3
|
581.3
|
290.7
|
133.3
|
173.5
|
42.2
|
13.3
|
38.7
|
2 191.3
|
|
1993-94
|
1 010.3
|
744.6
|
335.7
|
131.8
|
186.0
|
45.0
|
13.5
|
47.4
|
2 514.3
|
|
1994-95
|
1 082.0
|
905.2
|
385.3
|
182.0
|
206.1
|
50.0
|
16.0
|
51.7
|
2 878.3
|
|
1995-96
|
1 189.3
|
1 051.3
|
416.7
|
225.8
|
229.3
|
52.1
|
20.2
|
53.0
|
3 237.8
|
|
1996-97
|
1 237.9
|
1 157.2
|
445.0
|
248.9
|
205.1
|
60.7
|
24.8
|
46.4
|
3 425.9
|
|
1997-98
|
1 350.1
|
1 296.4
|
502.7
|
284.1
|
216.9
|
62.6
|
28.3
|
50.3
|
3 791.4
|
|
1998-99
|
1 407.1
|
1 407.9
|
589.7
|
317.1
|
209.0
|
67.3
|
31.2
|
54.5
|
4 083.8
|
|
1999-2000
|
1 544.6
|
1 520.1
|
611.4
|
342.4
|
209.2
|
73.5
|
36.4
|
62.1
|
4 399.8
|
Source: Australian Gambling
Statistics, various (Tasmanian Gaming Commission).
Table 6 shows that revenues have risen
significantly in real terms, increasing by a factor of over four
from 1972-73 to 1999-2000. However, despite much public comment
suggesting that governments have become increasingly reliant on
gambling revenues, the proportions of State and Territory
governments' own taxation revenues derived from gambling has not
increased substantially. In 1972-73 the proportion was 9.4 per
cent, rising and falling until it reached a low point of 8.2 per
cent in 1988-89, then rising to a high of 11.8 per cent in
1999-2000. Thus it may be that the increasing gambling revenues has
'allowed' governments to reduce some other taxes, i.e. adjust the
mix of taxation, rather than to increase revenues substantially
overall. However, this may not necessarily be good policy, as
arguably gambling is the most regressive form of taxation.
Table 6. Government Revenue:
Australia,
1972-73 to 1999-2000
|
|
Actual
Amount
|
Proportion
of all
State
govt. own
taxation
revenues
|
Real -
1999-2000
prices using
CPI (1989-90=100.0)
|
|
Year
|
($ m.)
|
(%)
|
($ m.)
|
|
1972-73
|
168.4
|
9.4
|
1 020.6
|
|
1973-74
|
205.2
|
9.2
|
1 103.2
|
|
1974-75
|
277.0
|
9.8
|
1 278.8
|
|
1975-76
|
337.9
|
9.6
|
1 381.7
|
|
1976-77
|
390.9
|
9.7
|
1 404.8
|
|
1977-78
|
432.5
|
10.0
|
1 419.4
|
|
1978-79
|
480.5
|
10.2
|
1 457.3
|
|
1979-80
|
563.0
|
10.0
|
1 549.5
|
|
1980-81
|
628.8
|
9.7
|
1 583.5
|
|
1981-82
|
714.4
|
9.4
|
1 628.1
|
|
1982-83
|
809.4
|
9.6
|
1 654.3
|
|
1983-84
|
926.6
|
9.9
|
1 774.8
|
|
1984-85
|
1 039.3
|
9.8
|
1 908.5
|
|
1985-86
|
1 142.6
|
9.8
|
1 935.7
|
|
1986-87
|
1 253.7
|
9.4
|
1 941.5
|
|
1987-88
|
1 409.3
|
8.9
|
2 033.9
|
|
1988-89
|
1 524.7
|
8.2
|
2 050.8
|
|
1989-90
|
1 806.9
|
9.1
|
2 250.4
|
|
1990-91
|
1 933.3
|
9.2
|
2 286.5
|
|
1991-92
|
2 005.7
|
8.9
|
2 328.0
|
|
1992-93
|
2 191.3
|
8.6
|
2 518.2
|
|
1993-94
|
2 514.3
|
9.4
|
2 838.3
|
|
1994-95
|
2 878.3
|
10.8
|
3 148.4
|
|
1995-96
|
3 237.8
|
11.3
|
3 398.9
|
|
1996-97
|
3 425.9
|
11.1
|
3 550.3
|
|
1997-98
|
3 791.4
|
11.7
|
3 928.9
|
|
1998-99
|
4 083.8
|
11.5
|
4 181.8
|
|
1999-2000
|
4 399.8
|
11.8
|
4 399.8
|
Source: Australian Gambling
Statistics, various (Tasmanian Gaming Commission),
Government Financial Estimates, Australia, various (ABS
5501.0).
Conclusion
Australians have always been gamblers, and it
appears that, over the last three decades, they have been
increasingly so. As social norms have changed and it became
increasingly difficult or futile to prevent gambling activities,
such as casinos and sports betting, legislation has been extended
or amended to allow some forms of gambling which had been illegal
to become legal. This in turn has allowed proper regulation of the
industry and therefore opportunities for revenue raising by
governments (see Further reading below). Many different forms of
legalised gambling have been introduced, including some which have
become possible because of new technology (see Chronology).
Increased access to continuous and repetitive forms of gambling,
leading to relatively quick and high betting turnover and losses,
has meant that the 'mix' of and access to gambling activities has
consequently changed. By 1999-2000 gambling turnover (the amount
wagered or bet or 'invested') was almost $8000 each year-over $150
each week-for every adult Australian, resulting in expenditure, the
amount 'gambled' (losses), of over $900 each year, about $18 per
week for every adult. As this equates to about 3.5 per cent of
household disposable income, about one dollar in every thirty is
spent on gambling. By way of comparison, more is spent gambling
than is spent on sporting activities or cultural and entertainment
activities.(4) As many people do not gamble at all, this
means that a very substantial amount is gambled and lost each year
by those who do gamble.
Further reading
This paper has not dealt with any aspects of
policy on gambling or the regulation of the industry. Discussion of
these matters can be found in:
Gambling Policy and Regulation, a
Department of the Parliamentary Library E-Brief, published in
September 2001, available at
http://www.aph.gov.au/library/intguide/SP/gambling_e-brief.htm
Wide-ranging discussions of all aspects of
gambling, including its social impact, are available in the
Productivity Commission's Australia's Gambling Industries,
Report No. 10, AusInfo, Canberra, November 1999, available at
http://www.pc.gov.au/inquiry/gambling/finalreport/index.html
and Australian Institute for Gambling Research,
Australian Gambling: Comparative History and Analysis,
Victorian Casino and Gaming Authority, Melbourne, October 1999,
available at
http://www.gambling.vcga.vic.gov.au/domino/web_notes/vcga/austGamblingCompHistory.nsf/
Further statistical information can be found in
Australian Gambling Statistics, Tasmanian Gaming
Commission (latest edition 1999-2000).
Additional information can be found in
Australian Institute for Gambling Research, Fact Sheets,
available at http://www.aigr.uws.edu.au
Chronology
The amount of legalised gambling depends on the
availability of the various forms of gambling. The list below shows
the history of those forms of gambling in Australia from
1972-73.
|
1972-73
|
First casino in Australia opened, in Tas.
Minor gaming introduced in SA
|
|
1973-74
|
Lotto introduced in SA
Minor gaming introduced in Tas.
|
|
1974-75
|
Pools introduced in Vic.
|
|
|
TAB introduced in Tas.
|
|
1975-76
|
Pools introduced in NSW, Qld, Tas.
|
|
1976-77
|
Lotteries introduced in ACT
Lotto introduced in ACT
Gaming machines introduced in ACT
|
|
1977-78
|
Minor gaming introduced in Vic.
Off-course bookmakers phased out in Tas.
|
|
1978-79
|
Instant lotteries introduced in SA
Lotto introduced in WA, NT
On-course bookmakers introduced in NT
Off-course bookmakers introduced in NT
Lotteries introduced in NT
Pools introduced in NT
Minor gaming introduced in NT
|
|
1979-80
|
Lotto introduced in NSW
Pools introduced in ACT
On-course totalisator introduced in NT
Instant lotteries introduced in NT
First casino opened in NT
|
|
1980-81
|
Pools introduced in SA
Lotteries re-introduced in Tas.
|
|
1981-82
|
Lotto introduced in Qld
Instant lotteries introduced in Vic.,Tas., ACT
|
|
1982-83
|
Instant lotteries introduced in NSW, WA
|
|
1984-85
|
Instant lotteries introduced in Qld
Pools introduced in WA
|
|
1985-86
|
First casino opened in Qld, SA, WA
TAB introduced in NT
|
|
1988-89
|
Minor gaming introduced in WA
|
|
1989-90
|
Lotteries phased out in SA
|
|
1990-91
|
Gaming machines introduced in Vic., NT
Off-course bookmakers phased out in NT
Minor gaming introduced in Qld
Minor gaming phased out in NT
|
|
1991-92
|
Gaming machines introduced in Qld
Keno introduced in NSW, SA
|
|
1992-93
|
Lotteries phased out in WA
Casino opened in ACT
|
|
1993-94
|
Keno introduced in Vic.
|
|
1994-95
|
Casino opened in Vic.
Gaming machines introduced in SA
Keno introduced in Tas.
Sports betting introduced in NSW, Vic., SA, WA, Tas., NT
|
|
1995-96
|
Casino opened in NSW
Minor gaming phased out in Vic.
Sports betting introduced in Qld, ACT
|
|
1996-97
|
Gaming machines introduced in Tas.
|
|
1997-98
|
Keno introduced in Qld
|
|
1998-99
|
Interactive gambling introduced in NT
|
|
1999-2000
|
Interactive gambling introduced in Qld, Tas.
|
Glossary
Several of the terms used in this paper have
meanings additional to or different from their normally accepted
usages. This glossary explains the meanings of all the terms used
in this paper.
|
ABS
|
Australian Bureau of Statistics.
|
|
Casino
|
The amounts wagered on all activities conducted
in casinos, whether also conducted elsewhere (such as gaming
machines) or not. Turnover figures include casino 'handle'-the
amount of money exchanged for gaming chips-and because of the
nature of some casino activities, such as table games, the total
amount 'wagered' can be difficult to determine.
|
|
Expenditure
|
The net amount lost
from gambling, i.e. the amount wagered
less any amount won. The amount actually
'gambled' as distinct from 'invested'.
|
|
Gambling
|
The lawful placement of a wager or bet on the
outcome of a future uncertain event. The statistics presented in
this paper are for legalised, regulated gambling for which accurate
figures are available; there may be other forms of gambling which
are not represented in the figures in this paper.
|
|
Gaming
|
All forms of gambling other than Racing and
Sports betting.
|
|
Gaming machines
|
Also known as poker machines. These are machines
which display combinations of playing cards or other symbols when
operated by players, with certain prescribed combinations being
winners. Data for machines operating in casinos are included under
Casinos.
|
|
HDI
|
Household disposable income-total net income,
whether in cash or in kind, after deduction of taxes, which is
available to households for spending.
|
|
Instant lotteries
|
Also includes 'instant money', 'scratchies'.
Purchasing of tickets where the player scratches off a coating to
check whether the ticket is a winner. Prizes are paid according to
set returns after costs, taxes and profits.
|
|
Interactive gaming
|
Any type of gambling activity conducted from a
computer terminal.
|
|
Keno
|
A game where the player matches 20 different
numbers they have selected against the 20 different numbers out of
80 randomly selected by a ball-drawing device or computer system.
Where games are conducted in casinos, turnover and expenditure
figures, etc., are included under Casinos.
|
|
Lotteries
|
Purchasing of tickets in a draw for which prizes
are awarded, after deductions for costs, taxes and profits to the
operator. Usually prizes are known beforehand and draws take place
on fixed dates, so operators carry any loss incurred if all tickets
are not sold.
|
|
Lotto
|
Also includes Tattslotto, Gold Lotto, X-Lotto,
Powerball, depending on the jurisdiction. A game where the player
purchases six different numbers out of a total of 40 or 45 numbered
from 1 to 40 or 45, eight of which will be drawn from a ball device
containing all of the 40 or 45 individually-numbered balls. Prizes
are paid according to how many of the eight numbers the player has
purchased.
|
|
Minor gaming
|
The collective name given to raffles, bingo,
lucky envelopes, etc.
|
|
Off-course bookmaker
|
Wagering on racing (horses, greyhounds) away
from the track with bookmakers, i.e. people who are licenced to
accept bets, at odds set by the bookmaker.
|
|
On-course bookmaker
|
Wagering on racing (horses, greyhounds) at the
track on the day of the racing with bookmakers, i.e. people who are
licenced to accept bets, at odds set by the bookmaker.
|
|
On-course totalisator
|
Wagering on racing (horses, greyhounds) at the
track on the day of the racing where players purchase 'units' in a
pool (the 'totalisator') and winnings are paid in proportion to the
units wagered, less deductions for costs, taxes and profits to the
operator.
|
|
Per head
|
Calculations on the basis of the mean resident
population aged 18 years and over.
|
|
Pools
|
A numbers game based on soccer matches in
Australia and the United Kingdom, where players select six of the
usually 38 pre-selected matches. The results are ranked according
to a formula with the winners being those who have selected the six
highest-ranked matches.
|
|
Racing
|
Betting on the outcomes of horse and greyhound
races, and in recent times some other specified sporting events
where the betting is conducted with the same operators as those who
operate on horse and greyhound races.
|
|
Real (amounts)
|
Actual amounts deflated by the Consumer Price
Index (CPI), eight capital cities, base 1989-90 = 100.0, in order
to have the effects of inflation removed.
|
|
Sports betting
|
Wagering on all types of local, national or
international sporting activities, other than established horse and
greyhound racing, whether on-course, off-course, in person, by
telephone or via computer terminal.
|
|
TAB
|
Totalisator Agency Board. Wagering on racing
(horses, greyhounds) at outlets away from the track, where players
purchase 'units' in a continuously increasing and instantly
totalled 'pool' (the totalisator) and winnings are paid in
proportion to the units wagered, less deductions for costs, taxes
and profits to the operator.
|
|
Turnover
|
The total amount wagered, bet or 'invested' by
people purchasing gambling products, i.e. gamblers or players,
excluding commissions, etc. incurred at the point of purchase.
Normally this amount would be total expenditure but not in the
context of this paper.
|
|
Wager(ing)
|
Paying, providing or putting up money, or
betting, for the purpose of increasing the amount by correctly
predicting the outcome or result of an event on which gambling is
allowed. In this paper it is not distinguished as one of the two
categories of gambling, the other category being 'gaming'.
|
Endnotes
-
- See for example Australian Institute for Gambling Research,
Australian Gambling: Comparative History and
Analysis, Victorian Casino and Gaming Authority,
Melbourne, October 1999.
- ibid.
- ibid. and Productivity Commission, Australia's Gambling
Industries, Report No. 10, AusInfo, Canberra, November 1999.
- Household Expenditure Survey, Australia, Detailed
Expenditure Items, 1998-99 (Catalogue No. 6535.0), ABS,
Canberra, September 2000.