Study reveals how states are hooked on gambling addicts

THE poker machine industry escapes tough regulation because state governments are addicted to the billions sucked in every year from people with gambling problems, a study has found.

Almost half the $10 billion lost on poker machines nationally is spent by NSW gamblers, and some states take about half their total gambling revenue from people with an addiction or the risk of one, the study found.

Its authors, Charles Livingstone of Monash University and Richard Woolley from the University of Western Sydney, are scathing about the states' regulation of the national poker machine industry.

"It would be a major advance if governments simply admitted that they're in it for the money, because money can be replaced," Dr Livingstone and Dr Woolley said. "What can't be replaced is the self-respect, mental health and peace of mind of those who continue to be harmed."

Their criticisms come as anti-gambling activists warn that they will intensify their campaign against poker machines when they meet the Prime Minister, Kevin Rudd, next month.

The chief executive of World Vision, Tim Costello, and the South Australian senator-elect Nick Xenophon will urge Mr Rudd to intervene because they say state governments are "hopelessly addicted" to poker machine taxes.

In their report, published in the journal International Gambling Studies last month, Dr Livingstone and Dr Woolley said state governments needed to accept less gambling revenue if they were serious about curbing the number of addicts.

"The electronic gaming machine industry's most problematic consumers are their best customers," they wrote.

"Serious attempts to reduce harm should estimate the extent of revenue decline if those attempts succeed, since reducing problem and at-risk gambling must reduce revenue … and budgetary modelling would be a sign of policy intent.

"The core issue of policy is the nexus between problem gamblers, private profits and public revenues, but current arrangements are legitimated by and hide behind the figure of the 'recreational gambler' and their rights to 'enjoy' unsafe [gambling machine] characteristics."

Dr Livingstone said state governments continued to trumpet the success of programs that helped problem gamblers but failed to tackle the cause of the problem.

"Electronic gaming machines have been scientifically developed to attract gamblers, reconfigure their agency and maximise their expenditure … but they can be changed, as recently occurred in Norway and Japan."

Mr Costello said he and other activists would urge Mr Rudd to take strong action because the states were not willing to act.

"We'll tell the Federal Government they can no longer trust the states and their ridiculous arguments that there will be less money for hospitals and schools if there are less pokies," he said.

"It's going to have to be Kevin Rudd's responsibility to remove ATMs from venues and introducing measures like smartcards which limit the amount of money players can lose on machines.

"And then, of course, rewarding those states that manage to wean themselves off poker machine revenue."

Mr Xenophon, who gained almost 15 per cent of the Senate vote in South Australia, said state governments had become "hopelessly compromised" because of their collective reliance on about $4 billion in poker machine revenue each year.

"We desperately need regulation at a national level, where the Commonwealth is at arms length from the gambling industry," he said.

During the election campaign last year Mr Rudd expressed concern about the impact of problem gambling on Australian communities and recognised the states' increased reliance on gambling revenue.

He promised to discuss the matter with experts, including Mr Costello, if he became prime minister.

Dr Livingstone said the Rudd Government needed to examine the Commonwealth grants formula to reward or punish states.

Mr Costello said he and other activists would urge Mr Rudd to take strong action because the states were not willing to act.

"We'll tell the Federal Government they can no longer trust the states and their ridiculous arguments that there will be less money for hospitals and schools if there are less pokies," he said.

"It's going to have to be Kevin Rudd's responsibility to remove ATMs from venues and introducing measures like smartcards which limit the amount of money players can lose on machines.

"And then, of course, rewarding those states that manage to wean themselves off poker machine revenue."

Mr Xenophon, who gained almost 15 per cent of the Senate vote in South Australia, said state governments had become "hopelessly compromised" because of their collective reliance on about $4 billion in poker machine revenue each year.

"We desperately need regulation at a national level, where the Commonwealth is at arms length from the gambling industry," he said.

During the election campaign last year Mr Rudd expressed concern about the impact of problem gambling on Australian communities and recognised the states' increased reliance on gambling revenue.

He promised to discuss the matter with experts, including Mr Costello, if he became prime minister.

Dr Livingstone said the Rudd Government needed to examine the Commonwealth grants formula to reward or punish states.

News Added: 02 January, 2008

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