Review of the Registered Clubs Industry in NSW - Clubs NSW

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3 Understanding the social contributions of the registered clubs industry ASC also presented data from recent Social Impact Assessments (SIA) in Fairfield and Campbelltown. ASC argued that this data showed that over time, in areas with a high density of gaming machines, gaming profits have increased more than the number of adults in the population or the number of gaming machines in the area. 60 IPART notes it is uncertain whether higher levels of gaming machines in an area lead to higher per capita levels of expenditure on gaming machines or the other way around. ASC’s finding should be considered within the context of the current regulatory environment for the operation of gaming machines which places strict requirements on venues seeking additional gaming machines (see Box 11.3 in Chapter 11 for further information). In addition to considering stakeholder views, IPART attempted to assess the impacts of gambling in clubs by considering the following questions: What are the benefits and costs of gambling? Does gambling in clubs lead to a net increase in gambling in society? Is gambling in clubs any more or less likely to lead to problem gambling in society than gambling elsewhere? What are the benefits and costs of gambling? The Government’s policy approach has been to seek a balance between the benefits for the majority of those in the community who participate in gambling as an enjoyable and harmless pastime and the costs for those for whom gambling causes significant problems. 61 The clubs industry can play an important role in supporting this approach. As IPART’s 2004 report Gambling: Promoting a Culture of Responsibility discussed, many people in NSW regard gambling as an enjoyable social or recreational activity. For example, they may see it as a way to pass the time in a pleasant social environment, a source of excitement or a way to relax. The gambling industry in NSW also employs a sizeable number of people, and makes a significant contribution to NSW Government revenue. As discussed in Chapter 6, it is also an important source of revenue that supports many other contributions made by clubs. However, when people spend more time and money on gambling than they can afford, it can result in harm to them, their families and the wider community. All Australian jurisdictions have adopted the following definition of problem gambling: Problem gambling is characterised by difficulties in limiting money and/or time spent on gambling which leads to adverse consequences for the gambler, others, or for the community. 62 60 Australia Street Company submission, 2 April 2008, p 5. 61 Gambling Legislation Amendment (Responsible Gambling) Bill 1999 – second reading speech. 62 Gambling Research Australia, Problem Gambling and Harm: Towards a National Definition, 2005. 60 IPART Review of the Registered Clubs Industry in NSW
3 Understanding the social contributions of the registered clubs industry OLGR recently completed its five-year statutory review of the Gaming Machines Act. This review has reinforced the Government’s commitment to the policy approach noted above. The review found that reducing the harm that can be associated with gambling on gaming machines and the enforcement of the responsible conduct of gambling across the industry remain appropriate objectives for the Gaming Machines Act. IPART notes the following measures that address these objectives: The Gaming Machines Act places limits on the number of gaming machines in NSW. It caps the number of approved gaming machines in hotels and clubs at 104,000 (25,980 of which can be in hotels and 78,020 in registered clubs). It also sets venue-level caps on gaming machine numbers (30 for hotels and 450 for most registered clubs). A club must also forfeit one gaming machine entitlement for every two or three gaming machine entitlements it sells or transfers between premises. The review recommends that given the reduction over time in the overall number of gaming machines in NSW 63 , the state-wide cap should be reduced to the current level of entitlements (99,000) and the legislation should be amended to allow for a mechanism for the automatic reduction of the cap over time. Hotels and registered clubs seeking additional gaming machines, or seeking to install gaming machines in a new hotel or new club, must submit a local impact assessment (LIA). These assessments are necessary to assess the impact of additional gaming machines on communities. Some venues seeking to increase their gaming machine numbers significantly may also be required to enter into a community contract to provide for amenities required by the local community, such as sporting, educational or cultural facilities. Through the Responsible Gambling Fund, the Government is providing $31 million over the next four years for a state-wide network of 50-plus counselling and support services. 64 Given the implementation of these measures, IPART considers that government support intended to facilitate a sustainable clubs industry, which may include encouraging the establishment of new clubs, should not lead to an overall increase in the community’s access to gaming machines. Although there are costs associated with the operation of gaming machines, the Government’s integrated policy framework seeks to ensure that these costs do not exceed the benefits provided by the industry. Nevertheless, given IPART’s finding on the reliance of clubs on gaming machine revenue (see Chapter 6), IPART considers it important to consider the costs associated with this form of revenue. 63 A total of 3,860 entitlements have been forfeited since the commencement of the Gaming Machines Act in April 2002; see OLGR, Report on the Five-Year Statutory Review of the Gaming Machines Act 2001, December 2007, p 16. 64 OLGR, Report on the Five-Year Statutory Review of the Gaming Machines Act 2001, December 2007, p 26. Review of the Registered Clubs Industry in NSW IPART 61
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Independent Pricing and Regulatory
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Contents 6 Strengthening the financ
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Executive Summary Executive Summary
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Executive Summary estimated the val
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Executive Summary Therefore, IPART
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Executive Summary However, IPART al
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Page 27 and 28: 1 Introduction 1 Introduction Over
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Page 33 and 34: 1 Introduction 1.3 The structure of
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8 Establishing a Club Viability Pan
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10 Helping clubs better understand
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11 Making it easier for clubs to am
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12 Making it easier for new clubs t
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13 Removing unnecessary regulatory
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14 A framework for a management pla
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A Terms of reference A Terms of ref
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A Terms of reference The proc
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B Terms of reference checklist Term
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C List of submitters, roundtable pa
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D Gambling expenditure and problem
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E IPART’s methodology for recordi
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F ACG’s approach to measuring the
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G ClubsNSW - steps to establishing
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Glossary and Abbreviations Glossary
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Review of the Registered Clubs Industry in NSW - Clubs NSW

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