Review of the Registered Clubs Industry in NSW - Clubs NSW

3 Understanding the social contributions of the registered
clubs industry
As noted in Chapter 2, the clubs industry in NSW has had a strong association with
gaming machines over the last 50 years. A range of stakeholders provided
information on the costs associated with the operation of gaming machines by clubs.
In its submission, the Responsible Gambling Fund argued that, given 87 per cent of
registered clubs in NSW operate gaming machines, the industry needs to give greater
priority to harm minimisation measures targeted at problem gambling. 53 It also
noted that 95 per cent of problem gamblers and 87 per cent of moderate risk
gamblers indicate that gaming machines are their preferred form of gambling. 54 In
addition, it argued that in assessing the economic flow-on effects of the industry,
attention must be given to negative economic flow-on effects from excessive or
problem gambling. 55
The Wesley Community Legal Service commented that some clubs appear to be
’mini-casinos‘ with a large central and prominent gaming area surrounded by a ring
of satellite activities, such as bars, restaurants and TABs, and that gaming machines
facilitate the transfer of money from gaming machine players to gaming machine
venues. 56 It also argued that many economic studies have tended to underestimate
the costs to the community of problem gambling and overstate the benefits (for
example, the Productivity Commission’s 1999 estimates).
NCOSS argued that any management plan for the clubs industry must incorporate a
stronger, more strategic focus on harm minimisation and effective regulation that
protects communities and is proportionate to the significant profits that the clubs
industry reaps from gaming. 57
GIS argued that while IPART will review the social and employment contributions of
clubs, there is a significant absence in this review of the social costs of clubs due to
the negative effects of problem gambling. 58
Australia Street Company (ASC) presented the results of various studies into the
relationship between the density of gaming machines and per capita expenditure on
gaming machines. ASC argued that these studies show a direct and positive
relationship between the density of gaming machines and the level of gaming
machine expenditure in local government areas. It also noted that while there is not
evidence to show a direct correlation between access to gaming machines and the
incidence of problem gambling, this does not necessarily mean that there is not one. 59
53 Responsible Gambling Fund submission, 27 July 2007, p 3.
54 Responsible Gambling Fund submission, 27 July 2007, p 2.
55 Responsible Gambling Fund submission, 27 July 2007, p 3.
56 Wesley Community Legal Service submission, 27 July 2007, p 1.
57 NCOSS submission, 27 July 2007, pp 7-9.
58 GIS submission, 21 July 2007, p 2.
59 Australia Street Company submission, 2 April 2008, p 4.
Review of the Registered Clubs Industry in NSW IPART 59