FACT SHEET ABOUT THE PROPOSED $1 ... - Club Victoria Inc.
FACT SHEET ABOUT THE PROPOSED $1 MAXIMUM BET/$500 MAXIMUM JACKPOT On 14 October, the Australian Greens released a “compromise” policy for poker machine reform: restricting all machines to a $1 maximum bet per spin with a $500 maximum jackpot and a $20 maximum cash input, while ditching mandatory pre-commitment. The Greens released this proposal without meeting with industry stakeholders, and is yet another example of public policy by press release. It has the same fundamental flaw as the Government’s proposal: a policy announcement without consultation, without trials or evidence as to its effectiveness and without a cost benefit analysis. It is unsurprising then, that just like mandatory pre-commitment, this proposal will not help problem gamblers, but will hurt an industry that provides tens of thousands of jobs for Australians, and supports local communities, sports groups and charities. Will a $1 maximum bet/$500 maximum jackpot help problem gamblers Similar to the proposal to introduce mandatory pre-commitment, this policy has not been the subject of a trial in any Australian jurisdiction or a full cost benefit analysis. There has been almost no empirical research into maximum jackpots and little research into maximum bets, and the findings have not been conclusive: 1. “It is not clear whether there is any evidence that [maximum bets] work in practice, or whether problem gamblers would alter their behaviour in the face of such modifications.” 1 2. “Proposals to increase or reduce bet limits are not supported at this stage, particularly in the absence of any significant research on bet and prize limits and problem gambling.” 2 3. ...“found no evidence supporting the contention that [$20 maximum cash inputs] would effectively reduce problem gambling.” 3 There are no maximum spend or win limits for any other type of gambling, including TAB, lotteries, casino table games or internet gambling. Like mandatory pre-commitment, this solution does not prevent problem gamblers from switching to other forms of gambling. What the Productivity Commission said about $1 maximum bet and $500 maximum jackpot The Productivity Commission found: “Immediately implementing a much lower maximum bet limit for all existing gaming machines would not be feasible for regulators and gaming machine manufacturers and not cost effective for venues… Many existing EGMs would need to be replaced and others retrofitted with new software/hardware… There is only a limited capacity for gaming machine manufacturers to re-design existing games to be compatible with such a bet limit.” (Productivity Commission Report p11.29) 1 Dr Paul Delfabbro - Australasian Gambling Review June 2007 – a report prepared for the Independent Gambling Authority of South Australia, p154 2 NSW Government (2007) Report on the five year statutory review of the Gaming Machines Act 2001, p33 3 A Blaszczynski et al., “The Assessment of the Impact of the Reconfiguration on Electronic Gaming Machines as Harm Minimisation Strategies for Problem Gamblers” University of Sydney, 2001, p9. Authorised by W Krelle, Clubs Australia, Level 8, 51 Druitt St, Sydney 2000