A GUIDE TO AUSTRALASIA S GAMBLING INDUSTRIES CHAPTER ONE. Facts, Figures and Statistics. Australia s Gambling Environment

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1 A GUIDE TO AUSTRALASIA S GAMBLING INDUSTRIES Facts, Figures and Statistics CHAPTER ONE Australia s Gambling Environment 2014/2015

2 A Guide to Australasia s Gambling Industries Published and Prepared by the Australasian Gaming Council (AGC). Level 1/1 Little Collins Street Melbourne 3000 Victoria Australia info@austgamingcouncil.org.au DISCLAIMER Whilst a great deal of care has been taken in the preparation of this publication, it is nevertheless necessary to caution users with regard to its accuracy. The information contained in this publication has been obtained from external sources and has not been independently verified by the Australasian Gaming Council ( the Council ). The Council expressly disclaims all and any liability (including all liability from or attributable to any neglect or wrongful act or omission) to any persons in respect of anything done or omitted to be done by any person in reliance whether in whole or in part upon any material in this publication. The Australasian Gaming Council welcomes comments and suggestions on this publication. Please contact info@austgamingcouncil.org.au This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1986.

3 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Chapter 1 Australia s Gambling Environment GAMBLING IN AUSTRALIA... 2 DEFINITIONS... 2 FORMS OF GAMBLING IN AUSTRALIA... 3 GAMING IN AUSTRALIA... 4 CASINO GAMING... 4 ELECTRONIC GAMING MACHINES (GAMING MACHINES/EGMS/POKER MACHINES/POKIES)... 6 KENO LOTTERIES, LOTTO AND INSTANT LOTTERIES ONLINE/INTERACTIVE GAMING/GAMBLING RACING AND WAGERING IN AUSTRALIA RACING WAGERING BETTING EXCHANGES BOOKMAKERS SPORTS BETTING TOTALISATOR AGENCY BOARD (TAB/TOTE) LICENCE AND EXCLUSIVITY ARRANGEMENTS CASINOS KENO LOTTERIES WAGERING

4 GAMBLING IN AUSTRALIA Definitions Gambling Chapter 1 Australia s Gambling Environment Gambling is the placement of a wager or bet on the outcome of a future uncertain event. Gambling in this document refers to gaming and wagering activities that are legally provided in Australia. 1 Gaming Gaming refers to all legal forms of gambling other than wagering (i.e. race and sports betting), such as lotteries, Electronic Gaming Machines (EGMs), casino games, keno, poker and minor gaming (which is the collective name given to raffles, bingo and lucky envelopes etc ). 2 Interactive Gambling/Gaming Interactive gambling is a term used to describe gambling activities conducted via the internet. In Australia the Interactive Gambling Act 2001 (Cth) strictly prohibits the offer of gaming activities (e.g. casino games, poker machines) via the internet to Australians. An exception is made for the provision of wagering activities on racing and sports. The term via the internet should be understood to include the provision of gambling services via sundry internet connected devices. Lotteries/Instant Lotteries Lotteries are conducted in Australia by both government and commercial operators. There are three components to a lottery the purchase of a ticket, the draw and a prize. Lottery prizes are based on the total amounts wagered after deduction of a set percentage by the operator to cover costs. Lottery tickets are sold at various outlets around Australia such as newsagents. The same operators may also conduct lotto, pools and instant lottery. 3 Instant lotteries, also known as scratch cards or scratchies operate in the same manner as lotteries. Prizes, which are revealed by the player scratching the ticket, are paid on a set return to player based on the number of tickets in any set, the cost to purchase the tickets and the percentage retained by the operator to cover costs. 4 Race betting Comprises legal betting with bookmakers and totalisators, both on and off-course, where bets are placed on the outcome of local, national or international horse and/or greyhound races. 5 Sports betting Sports betting is wagering on approved types of local, national or international sporting activities (other than forms of horse and/or greyhound racing), whether on or off-course in person, via telephone or via the internet. 6 Wagering Wagering refers to all legal forms of gambling on racing and sporting events. 7 1 Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 2 Ibid 3 Ibid 4 Ibid 5 Ibid 6 Ibid 7 Ibid 2

5 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Forms of gambling in Australia Table 1-1 Forms of gambling in Australia by state/territory Gambling Form ACT NSW NT QLD SA TAS VIC WA Betting exchange Australia s only betting exchange (Betfair) is licensed in Tasmania but may be accessed throughout the Australian states/territories. Casino gaming Football pools Gaming machines (Hotels and Clubs only) (Casino only) Keno (Casino only) Lotteries Minor gaming Online/Interactive gambling Interactive gambling in Australia is governed by the Interactive Gambling Act 2001 (Cth). The Act prohibits the offer of interactive gaming (online casinos, EGMs etc ) to Australian residents but makes and exception for wagering in the form of race and sports betting. Lotteries may also offer ticket sales online. Racing and betting Sports betting Source: Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 3

6 GAMING IN AUSTRALIA Casino Gaming Chapter 1 Australia s Gambling Environment Thirteen casinos operated throughout Australia in the period many offering both gaming opportunities and a number of other amenities including: tourism and accommodation facilities; cultural and entertainment facilities including theatres and showrooms; recreational facilities such as games arcades, pools and gyms; business facilities such as conference and meeting venues; and dining and retail outlets. The provision of gaming at Australian casinos is highly regulated. Comprehensive rules and fixed odds (approved by the relevant jurisdictional regulatory authorities) are in place. Bets at casinos are placed on various table games, electronic gaming machines (which are available at all casinos in Australia with the exception of Casino Canberra in the ACT) and Keno. Some of the table games available at casinos in Australia include Baccarat, Roulette, Blackjack, Sic Bo, Pai Gow, Poker and Big Wheel. Casinos may also provide outlets for wagering and sports betting. Table 1-2 Number of casinos in Australia by state/territory ( ) Location Property Name Number of casinos Australian Capital Territory Canberra Casino Canberra 1 New South Wales 8 Sydney The Star 1 Northern Territory Darwin SKYCITY Darwin 1 Alice Springs Lasseters Casino 1 2 Queensland 9 Brisbane Treasury Casino and Hotel 1 Cairns Reef Casino 1 Gold Coast Jupiters Gold Coast 1 Townsville Jupiters Townsville 1 4 South Australia Adelaide Adelaide Casino 1 Tasmania Hobart Wrest Point Casino 1 Launceston Country Club Casino 1 2 Victoria Melbourne Crown Melbourne 1 Western Australia Perth Crown Perth 1 Total 13 Source: Allen Consulting Group (2009) Casinos and the Australian Economy, Report to the Australasian Casino Association - with updates by the AGC. 8 In July 2014 Crown Resorts was granted a licence to operate a VIP-only restricted gaming facility (without electronic gaming machines) at Barangaroo, Sydney, New South Wales from November 15, In October 2013, an Expression of Interest (EOI) for an Integrated Resort Development was released as part of the Queen's Wharf Brisbane offer to market, with a casino licence also on offer to the successful proponent. At the same time two additional casino licences were released through a separate tender process seeking other Integrated Resort Developments in Queensland. 4

7 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Table 1-3 Estimated number of table games and EGMs at casinos in Australia ( ) Please note that figures in the following table are a snapshot, current only for the period stated. Location Venue Tables MTGMs/FATGs 10 EGMs Australian Capital Territory Casino Canberra 39 Nil New South Wales The Star ,500 Northern Territory SKYCITY Darwin Lasseters ,050 Queensland 12 Jupiters Gold Coast ,467 Treasury Brisbane ,373 Jupiters Townsville Reef Casino Cairns ,671 South Australia Adelaide Casino Tasmania Wrest Point Country Club ,173 Victoria Crown Melbourne ,500 Western Australia Crown Perth ,200 Total 1,531 13,084 Source: Productivity Commission (2010) Gambling, Report no. 50, Canberra with updates by the AGC. 10 Please note a total figure for Multi-Terminal Gaming Machines (MTGMs) and Fully Automated Table Games (FATGs), is not provided as these figures are only included where separate information is made available. MTGM s/fatg s may be included in other totals provided. 11 SKYCITY Entertainment Group Ltd (2014) Annual Report Year Ended June Figures refer to operational rather than approved numbers, sourced from the Queensland Office of Liquor and Gaming Regulation. 13 SKYCITY Entertainment Group Ltd. (2014) Annual Report: Year Ended June On 1 January 2014, the concept of a gaming machine entitlement was extended to include the gaming machine operations of the Adelaide Casino. The casino licensee was granted 995 non-transferable gaming machine entitlements equivalent to the maximum number of gaming machines which could be operated at the Casino on 31 December In January 2014, the South Australian Government implemented reforms that will allow the Adelaide casino to increase the number of gaming machines that can be operated from 995 to 1,500 machines. To allow for the operation of any additional gaming machines, the casino will be required to purchase additional entitlements through the Approved Trading Scheme. 15 Tasmanian Government Department of Treasury and Finance (2014) Gaming and Wagering Industry Data. 16 Crown Resorts Limited (2014) Annual Report Note: On 3rd November 2014, the VCGLR amended the Melbourne Casino Licence to permit Crown Melbourne to operate 540 table games and 2,628 gaming machines. 17 Crown Resorts Limited (2014) Annual Report Note: In December 2012 Crown Perth received approval for 500 additional gaming machines (to be phased in at 100 machines per year over five years) and 100 additional tables (to be phased in at 25 tables per year over four years), which will eventually take the total number of gaming machines to 2,500 and the total number of tables to 320 in 2018 and 2017 respectively. 5

8 Chapter 1 Australia s Gambling Environment Electronic Gaming Machines (Gaming Machines/EGMs/Poker Machines/Pokies) All states and territories in Australia have Electronic Gaming Machines (also known as gaming machines, EGMs, poker machines or pokies ) available at licensed venues (with the exception of Western Australia which allows EGMs only at the casino and the ACT where Casino Canberra is not licensed to provide EGMs). Gaming machines can be defined as a device designed for the playing of a game of chance that pays out money or tokens or registers a right to an amount of money to be paid. 18 Gamblers place bets on an EGM by selecting the lines to be played, the bet per line and then pushing a button that places machine reels in motion. Prizes are paid out according to the position of symbols displayed when the machine reels halt. All game results are determined by a Random Number Generator (RNG). The style of game and game characteristics may vary somewhat between jurisdictions but are determined by state/territory government legislation and regulations. Restrictions (including EGM caps) apply throughout Australian jurisdictions regarding the number of EGMs that may be made available whether on a state-wide, industry, regional and/or venue basis. Caps vary according to the jurisdiction. Many have been accompanied by forfeiture requirements upon redistribution and/or other arrangements. Table 1-4 State-wide EGM caps Location Clubs/Hotels Casino(s) Cap arrangements Australian Capital Territory 5,024 Nil Source: Productivity Commission (2010) Gambling, Report no. 50, Canberra - with updates by the AGC. The maximum number of EGMs allowed in the ACT (all licensed premises) is capped at 5,024. Amendments to the Gaming Machine Act 2004 commenced in September 2012 that provide a target for the maximum number of gaming machines in the Territory of 4, New South Wales 97,500 1,500 A state-wide cap of 99,000 machines in total with 1,500 EGMs permitted at The Star casino. Northern Territory 1, No cap Queensland 44,705 South Australia 12,086 Limited by ratio Limited by formula Tasmania 2,500 No cap Victoria 27,500 regional/municipal caps also apply 2,500 A state-wide cap of 1,190 EGMs applied for clubs and hotels until 31 December From 1 January 2015 the cap is removed. No cap is applicable to casinos. A state-wide cap of 20, EGMs for hotels (with an effective cap of 19,310) and 24, EGMs for clubs applies. Casinos are limited by ratio of 12 gaming machines per table game. Declines to a hotel/club cap of 12,086 EGMs are to be achieved through forfeiture requirements. The Adelaide Casino has a cap of 1,500 EGMs. A state-wide cap of 3,680 for all gaming machines, with a cap of 2,500 applicable to clubs and hotels applies. 23 A cap of 27,500 in clubs and hotels, split between the two venue types. An additional 2,628 machines are permitted at Crown casino. Further regional and municipal caps also apply 24 Western Australia N/A 2,500 2,000 EGMs are permitted at the casino rising to 2,500 (100 per year) by Adapted from the Gaming Machines Act 2001 (NSW) 19 ACT Gambling and Racing Commission (2014) Annual Report From 1 January 2015 a cap on EGM numbers in NT Hotels and Clubs no longer applies. However any increase of EGMs will incur a one-off fee of $10,000 per approved machine (clubs) while hotels will pay $50,000 per EGM. 21 The effective state-wide cap for hotels is 19,310. On 8 May 2001 the Queensland Government introduced a state-wide cap on the total number of gaming machines in hotels. The scheme allows the re-allocation of gaming machine authorities that become available within the cap as a result of a hotel closing, a reduction in the number of approved gaming machines or the surrender or cancellation of the gaming machine licence. 22 The club gaming machine reallocation scheme commenced from 30 November 2009, capping club EGM numbers at 24, The state-wide cap does not include gaming machines operated on vessels operated by the Trans-Tasman-Line (TT Line Ferries which operate 46 EGMs) % of Victorian gaming machines must be located in regional areas (outside Melbourne). From 2012 the maximum density of gaming machines in all municipal areas is capped at a maximum of 10 entitlements per 1,000 adults. There are exceptions for Melbourne CBD, Southbank and Docklands. 6

9 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Table 1-5 EGM cap arrangements in club venues Location Year legalised Cap arrangements Australian Capital Territory 1976 No venue cap. New South Wales 1956 Northern Territory 1996 Clubs must abide by a Gaming Machine Threshold (GMT) applicable at each venue and application must be made to increase any threshold and/or increase the threshold beyond 450 EGMs. Multi Terminal Gaming Machines (MTGM) are restricted to 15% of the EGM stock at any venue. 45 machines per venue. From 1 July 2015 this will increase to 55 machines per venue Queensland machines per venue. 25 South Australia machines per venue. Tasmania machines per venue. Victoria machines per venue. Western Australia N/A Not applicable Source: Productivity Commission (2010) Gambling, Report no. 50, Canberra - with updates by the AGC. Table 1-6 EGM cap arrangements in hotel venues Location Year legalised Cap arrangements Australian Capital Territory 1988 Taverns in the ACT are allowed a maximum of 2 Class B (draw poker) gaming machines. Hotels with 12 or more units of accommodation are allowed a maximum of 10 Class B gaming machines, while hotels with less than 12 units of accommodation are allowed a maximum of 2 Class B gaming machines. New South Wales machines per venue. Northern Territory machines per venue. From 1 July 2015 this will increase to 20 machines per venue. Queensland machines per venue. South Australia machines per venue 26 Tasmania machines per venue. Victoria machines per venue. Western Australia N/A Not applicable Source: Productivity Commission (2010) Gambling, Report no. 50, Canberra - with updates by the AGC. 25 From 14 March 2014 clubs can apply for up to 300 gaming machines at a single premise, an increase of 20 gaming machines. 26 As of February 2005 profit organisations (i.e. hotels) have been allocated a reduction in gaming machine entitlements. Venues licensed for 28 or more machines receive eight less than the approved number; venues approved for between 21 and 27 machines receive 20 entitlements and venues licensed for less than 20 machines received entitlements equivalent to their approved number. An entitlement trading system is in place, allowing venues to trade up to their original licensed capacity, if the entitlements are available. 7

10 Chapter 1 Australia s Gambling Environment Table 1-7 Estimated number of venues with EGMs in Australia by state/territory ( ) Location Hotels Clubs Casino(s) Total Australian Capital Territory New South Wales 1,604 1, , Northern Territory Queensland ,234 South Australia Tasmania Victoria Western Australia N/A N/A 1 1 Total 3,202 2, , Table 1-8 Estimated number of EGMs in Australia by venue type ( ) Location Hotels Clubs Casino(s) Other Total Australian Capital Territory 68 4,906 N/A 4, New South Wales 23,381 70,297 1,500 95, Northern Territory ,050 2,231 Queensland 34 19,231 23,566 3,671 46,468 South Australia 35 10,163 1, , , Tasmania 39 2, , , Victoria 43 13,445 12,915 2, ,860 Western Australia N/A N/A 2, ,200 Total 68, ,853 13,084 1, ,054 Source: ACT Gambling and Racing Commission, Northern Territory Department of Business, NSW Independent Liquor and Gaming Authority, Queensland Government Office of Liquor Gaming and Racing, Government of South Australia Consumer and Business Services, Tasmanian Department of Treasury and Finance, Victorian Commission for Gambling and Liquor Regulation, Crown Resorts Limited. 27 NSW Office of Liquor and Gaming Regulation figure is current at 30 June Please note that this figure refers to live gaming machine licences as expressed in Government of South Australia, Consumer and Business Services, Gaming Machine Licence Statistics Quarter The total has been expanded to include 37 Special Circumstances licences not counted in previous columns. 29 The total venues for Tasmania includes 2 Trans-Tasman Line Ferries equipped with EGMs. 30 Total includes 2 Trans-Tasman line ferries equipped with EGMs (Tas) and 37 Special Circumstances Licences (SA). 31 ACT Gambling and Racing Commission (2014) Annual Report Number of allocated gaming machines as at 30 June NSW Independent Liquor and Gaming Authority (2015) Annual Report NT Department of Business (2014) NT Licencing Commission Annual Report. 34 Queensland Office of Liquor and Gaming Regulation. Figures for Hotels and Clubs operational EGMs as at June Government of South Australia, Consumer and Business Services(2014) Gaming Machine Licence Statistics Quarter Figures for Hotels, Clubs and Other live gaming machines as at June SKYCITY Entertainment Group Ltd. (2014) Annual Report: Note. On 1 January 2014 the concept of a gaming machine entitlement was extended to include the gaming machine operations of the Adelaide Casino. The casino licensee was granted 995 non-transferable gaming machine entitlements equivalent to the maximum number of gaming machines which could be operated at the casino on 31 December In January 2014, the South Australian Government implemented reforms that will allow the Adelaide casino increased the number of gaming machines that can be operated from 995 to 1,500 machines. To allow for the operation of any additional gaming machines, the casino will be required to purchase additional entitlements through the Approved Trading Scheme. 37 This figure refers to live EGMs designated as Special Circumstances as at June In South Australia certain licensed premises may hold a Special Circumstances Licence and are authorised to operate gaming machines under the Gaming Machines Act The Special Circumstances licence is a diverse type of licence covering a wide variety of premises. 38 Please note this figure has been expanded to include the 1,155 EGMs denoted as Special Circumstances. 39 Tasmanian Gaming Commission (2014) Annual Report Figures for Hotels and Clubs EGMs as at 30 June Tasmanian Government Department of Treasury and Finance (2015) Gaming and Wagering Industry Data. 41 This figure refers to the 46 EGMs available on Tasmania s Trans-Tasman Line Ferries. 42 Please note this total has been expanded to include the 46 EGMs available on Tasmania s Trans-Tasman Line Ferries. 43 Victorian Commission of Gambling, Liquor and Racing (2014) EGM Venue Level Expenditure Figures for Hotels and Clubs EGMs as at 30 June Crown Resorts Limited (2014) Annual Report Note. On 3 rd November 2014, the VCGLR amended the Melbourne Casino Licence to permit Crown Melbourne to operate 2,628 EGMs. 45.Crown Resorts Limited (2014) Annual Report Figures as at 30 June Please note: In December 2012 Crown Perth received approval for 500 additional gaming machines (to be phased in at 100 machines per year over five years) and 100 additional tables (to be phased in at 25 tables per year over four years), which will eventually take the total number of gaming machines to 2,500 in

11 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Figure 1-1 Estimated EGM distribution in Australia by venue type and state/territory ( ) EGM distribution by venue type EGM distribution by state/territory Source: ACT Gambling and Racing Commission, Northern Territory Department of Business, NSW Independent Liquor and Gaming Authority, Queensland Government Office of Liquor Gaming and Racing, Government of South Australia Consumer and Business Services, Tasmanian Department of Treasury and Finance, Victorian Commission for Gambling and Liquor Regulation, Crown Resorts Limited. Figure 1-2 Estimated EGMs per 1,000 adults (18+) in Australia by state/territory ( ) Source: ABS Australian Demographic Statistics, June Quarter 2014 and data collated by the AGC. 9

12 Chapter 1 Australia s Gambling Environment Figure 1-3 Estimated Hotel and Club EGMs per 1,000 adults (18+) in Australia by state/territory ( ) Source: ABS Australian Demographic Statistics, June Quarter 2014 and data collated by the AGC. Figure 1-4 Estimated EGMs (Hotel and Club Only) per 1,000 adults (18+) compared with estimated EGMs (All Venues) per 1,000 adults (18+) in Australia by state/territory ( ) Source: ABS Australian Demographic Statistics, June Quarter 2014 and data collated by the AGC. 10

13 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Keno Keno is a game where a player wagers that their chosen numbers match any of the 20 numbers randomly selected, via a computer system or a ball draw device, from a group of 80 numbers. Keno has a fixed pay scale. The pay-out for each wager is established by rules and is independent of the total wagers made on the game. 46 A computerised Keno system operates in clubs/hotels throughout most Australian jurisdictions and is also available at most casinos. Keno games may also be offered via lottery providers (such as SA Lotteries) or online (e.g. ACTTAB). In most states, Keno is linked between licensed venues within a particular jurisdiction, enabling the operator to offer large jackpot prizes. Table 1-9 Estimated number of Keno outlets (venues) in Australia by state/territory ( ) Location Keno Outlets Australian Capital Territory New South Wales 1,803 Northern Territory 70 Queensland 983 South Australia 570 Tasmania 164 Victoria 641 Western Australia 1 Total 4,285 Source: Crown Perth, SA Lotteries, SKYCITY Darwin, Tasmanian Government Department of Treasury and Finance, Tabcorp Holdings Limited Figure 1-5 Estimated Keno outlet distribution (venues) in Australia by state/territory Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics (29 th edition). 47 Keno is also available to ACTTAB account holders online. 11

14 Lotteries, Lotto and Instant Lotteries Chapter 1 Australia s Gambling Environment Lotteries are conducted in Australia by both government and commercial operators although over recent years there has been a trend towards the privatisation of previously state run lottery operations. There are three components to a lottery; the purchase of a ticket, the draw and the prize. A person whose ticket is selected in a lottery wins a prize based on the total amounts wagered after deduction of a set percentage by the operator to cover costs. Lottery operators may also conduct lotto, pools and instant lottery. 48 Lotto players select any six numbers from 1-45 in anticipation that their chosen numbers will be among eight subsequently drawn at random. Players win when their selected numbers match those randomly drawn in a set combination. There are a variety of lotto games available in Australia, some common product titles including Tattslotto, Gold Lotto, Lotto, X-Lotto or Powerball (depending on the jurisdiction). Instant lotteries are also known as scratch tickets or scratchies. Prizes in the instant lottery are paid on a set return to player based on the number of tickets in a set, the cost to purchase a ticket and a set percentage retained by the operator to cover costs. Lottery, lotto and instant lottery tickets are commonly sold through newsagents and convenience outlets. More recently, lottery products have also been made available online and via mobile applications. Tatts group reports that in the period the Tatts Lotteries app was live in all markets and downloaded on some 332,000 devices. 49 Although lottery licensing regimes are state-based, Australia has a number of lottery games that may also be operated as a bloc - where games are conducted nationally, pooling entries and winnings. Lottery providers in Australia Tatts Group Pty Ltd is the largest lottery operator in Australia with licences in Queensland (to 2072) 50, New South Wales (to 2050) 51, Victoria (to 2018), Tasmania (to 2015) the Northern Territory (to 2032) and in the ACT. 52 From December 2012 Tatts has also secured exclusive management rights for a 40 year period for SA Lotteries (which was previously operated by the South Australian state government). 53 The lottery in Western Australia, operated by the state government through Lotterywest, is currently the only remaining government operated lottery structure in Australia. Table 1-10 Lottery and instant lottery providers in Australia by state/territory ( ) Location Australian Capital Territory New South Wales Northern Territory Queensland South Australia Tasmania 54 Victoria 55 Western Australia Licensee Tatts Tatts (NSW Lotteries) Tatts Tatts (Golden Casket) Tatts (SA Lotteries) Tatts/Intralot Tatts/Intralot Lotterywest 48 Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 49 Tatts Group (2015) Annual Report The Tatts Group has managed the Golden Casket Lottery Corporation from 2007 in Queensland. 51 Ownership of NSW Lotteries was transferred to the Tatts Group on 1 April Tatts Group Ltd (2013) Annual Report SA Lotteries (2013) Annual Report Please note that there is a split of scratch tickets and lottery ticket sales between Intralot and Tatts. Retailers are able to offer both Intralot and Tatts products. 55 Intralot Australia Pty Ltd surrendered its Category 2 Public Lottery Licence in Victoria on 31 January Tatts is now the sole lottery provider in Victoria. 12

15 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Lottery Outlets in Australia Tattsgroup reports that in the period there were some 3,902 establishments providing lottery products in their network Australia wide. 56 Lottery outlets in Western Australia for the year comprised some 500 outlets Tatts Group (2015) Half Year Profits Media Release. 57 Lottery West (2015) Annual Report

16 Chapter 1 Australia s Gambling Environment Online/Interactive Gaming/Gambling Interactive gambling (also commonly termed Internet or on-line gambling) can be defined as gambling on activities conducted via the Internet and is governed in Australia by the Interactive Gambling Act 2001 which is Commonwealth, rather than state/territory, legislation. Interactive gambling is a broad term and can include various forms of remote gambling generally conducted via digital means (such as digital television or mobile gambling platforms). The Interactive Gambling Act 2001 (Cth) prohibits the offer of interactive gambling services to Australians however it contains an exception for wagering in the form of racing, sports-betting and lotteries. A number of lottery providers, licensed wagering providers and bookmakers now offer access to their products via the internet. The provision of internet casino gaming (such as poker, blackjack and roulette) and online EGM gaming to Australians remains strictly prohibited. The Australian Federal Government Department of Broadband, Communications and the Digital Economy (now the Department of Communications) undertook a review of the Interactive Gambling Act 2001 in A report is available from the Department of Communications at: eractive_gambling_act_

17 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Racing and Wagering in Australia Racing Legal betting occurs in Australia on horse and greyhound races with bookmakers and totalisators, both at race courses and off-course. 58 Betting on the outcome of horse races was one of the first legal gambling activities in Australia. By the mid 1800 s horse racing was a popular recreational activity and the first Melbourne Cup was run in Today the Australian thoroughbred racing industry is second in size only to that of the United States with 386 race clubs, 368 race tracks and 19,511 races in the 2013/14 year. 59 Table 1-11 International Group One Races by Top Ten Countries ( ) Location Races United States 111 Australia 72 Argentina 44 Great Britain 33 South Africa 33 Brazil 29 France 27 Japan 23 New Zealand 22 Chile 18 Source: Australian Racing Board (2014) 2013/14 Australian Racing Fact Book. Table 1-12 International Flat Races by Top Ten Countries ( ) Location Races United States 42,975 Australia 19,098 Japan 15,992 Great Britain 6,396 Argentina 5,525 Chile 4,892 France 4,887 Brazil 3,967 South Africa 3,809 Canada 3,675 Source: Australian Racing Board (2014) 2013/14 Australian Racing Fact Book. 58 Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 59 Australian Racing Board (2014) 2013/14 Australian Racing Fact Book. 15

18 Chapter 1 Australia s Gambling Environment Thoroughbred Racing Table 1-13 Number of thoroughbred race clubs, tracks, meetings and races in Australia by state/territory ( ) Location Clubs Racetracks Meetings Races Australian Capital Territory New South Wales ,512 Northern Territory Queensland ,787 South Australia ,417 Tasmania Victoria ,307 Western Australia ,264 Total ,725 19,511 Source: Australian Racing Board (2014) 2013/14 Australian Racing Fact Book. Figure 1-7 Thoroughbred prize money ($ millions) in Australia by state/territory ( to ) Source: Australian Racing Board (2007, 2008, 2009, 2010, 2011, 2012, 2013 and ) Australian Racing Fact Book. 16

19 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Harness Racing Table 1-14 Number of harness racing clubs, tracks, meetings and races in Australia by state/territory ( ) 60 Location Clubs 61 Racetracks Meetings Races Australian Capital Territory 1 1 N/A N/A 62 New South Wales ,093 Northern Territory N/A N/A N/A N/A Queensland ,533 South Australia ,308 Tasmania Victoria ,825 Western Australia ,335 Total ,846 14,861 Source: Harness Racing Australia Annual On-Line National Stakemoney Statistics 2013/14, Australian Harness Racing, Harness Racing New South Wales, Racing Queensland, Racing and Wagering Western Australia Figure 1-8 Harness racing total stakemoney in Australia by state/territory ( to ) 63 Source: Harness Racing Australia Annual On-Line National Stakemoney Statistics 2013/ Statistics published by Harness Racing Australia note that while information has previously been published on a clubs basis in recent times there has been far greater incidence of clubs racing at tracks other than their own and statistics are published on a tracks basis for the period. Club numbers provided are drawn from the Australian Harness Racing website and should be understood as approximate only. 62 While Canberra does have a harness racing track, statistics are not provided by Harness Racing Australia regarding the number of meetings and races for the period. 63 Please note that during the 2006/2007 and 2007/2007 periods harness racing was at times either restricted or suspended owing to an equine Influenza outbreak. 17

20 Chapter 1 Australia s Gambling Environment Greyhound Racing Table 1-15 Number of greyhound racing clubs, tracks, meetings and races in Australia by state/territory (2013) 64 Location Clubs Racetracks Meetings Races Australian Capital Territory New South Wales ,298 13,225 Northern Territory Queensland ,128 South Australia ,964 Tasmania ,636 Victoria ,015 11,789 Western Australia ,650 Total ,766 40,114 Source: Greyhounds Australasia, Australasian Racing Statistics, Racing and Wagering Western Australia, Greyhoundraces.com.au Figure 1-9 Greyhound racing stakemoney paid in Australia by state/territory Source: Greyhounds Australasia, Australasian Racing Statistics Of these three racing types thoroughbred racing is the most popular (providing 59.29% of wagering turnover), followed by greyhound racing (12.75% of wagering turnover) and harness racing (9.68% of wagering turnover) Australian Racing Board (2014) 2013/14 Australian Racing Fact Book. 18

21 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Wagering Betting Exchanges Betting exchanges offer a market place for gamblers to trade wagers and bet against each other rather than against a bookmaker. The betting exchange then matches participant wagers and earns revenue by charging a commission on net winning positions on a particular market. Betfair is the only licensed betting exchange in Australia (licensed in Tasmania) and operates nationally. Betfair extracts a commission (between 2.6% and 6.5% of profit on Australian and New Zealand Racing and between 2% and 5% on other markets). 66 Bookmakers On-course bookmakers Wagering with bookmakers at a racetrack on horse and greyhound racing allows a player to wager any amount above a set minimum and receive the odds at the time of making the wager. Those odds stand, irrespective of whether the bookmaker alters the odds at a later time. These alterations to odds are calculated to reflect weight of betting on different race competitors. Bookmakers are licensed in each jurisdiction. 67 Off-course bookmakers Similarly to on-course wagering, wagering via off-course bookmakers allows a player to wager any amount above a set minimum and receive the odds at the time of making the wager. Those odds stand, irrespective of whether the bookmaker alters the odds at a later time. Bookmakers are licensed in each jurisdiction. 68 Table 1-16 Number of bookmakers in Australia ( to ) Location Australian Capital Territory New South Wales Northern Territory Queensland South Australia Tasmania N/A N/A N/A Victoria Western Australia N/A N/A N/A N/A Total Source: Australian Racing Board (2007, 2008, 2009, 2010, 2011, 2012, 2013 & 2014) Australian Racing Fact Book Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 68 Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 19

22 Chapter 1 Australia s Gambling Environment Figure 1-10 Distribution of bookmakers in Australia by state/territory ( ) Source: Australian Racing Board (2014) Australian Racing Fact Book 2013/14. Sports betting Sports betting refers to wagering on all types of local, national or international sporting activities (other than the established forms of horse and greyhound racing), whether on or off-course, in person, by telephone or via the internet. Bets may be laid on a variety of sporting events domestically and/or overseas. 69 Online sports-betting is an area of significant growth in the Australian gambling environment which has experienced an ongoing shift of wagering spend from traditional offline betting channels (i.e. retail or TAB outlets, on-course bookmakers and with bookmakers over the phone) to online channels (internet, mobile, tablet). 70 A number of online sports betting providers in Australia are based in the Northern Territory. In December 1992, the Northern Territory approved Australia s first sports bookmaker, Centrebet in Alice Springs. Centrebet commenced the provision of internet wagering in August Today the Northern Territory hosts a number of sports bookmakers in Darwin and Alice Springs with corporate bookmakers allowed to trade 24/7. Table 1-17 NT licensed bookmakers (operating 24/7) and/or internet 71 Bet365 Betchoice / Unibet Centrebet Club All Sports CrownBet Luxbet NT TAB Sportsbetting.com.au Sportsbet Sportingbet Tom Waterhouse NT Pty Ltd Weather Lottery Source: Northern Territory Government, Department of Business Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 70 Australian Wagering Council (AWC)

23 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Totalisator Agency Board (TAB/Tote) The term TAB or Tote commonly refers to the wagering totalisators that are licensed in each Australian state/territory. TAB s were first established in Australia between 1961 and 1985 and now offer a range of wagering products including fixed odds betting on races and sports as well as pari-mutuel wagering. 72 Pari-mutuel wagering is where a player makes a unit wager (a unit being any multiple of 50 cents or one dollar, depending on the jurisdiction) with monies then being placed into a pool for each bet type on each race. The prices change as the amount of money on each runner is invested. The more money on a runner, the shorter the price, or odds, it will be. After the deduction of tax and operating costs the remainder of pool is shared by those customers who have selected winners, place getters or correct combinations in the case of multiple-bet types (such as Trifectas and Quinellas). Dividends (winnings) are paid to players in multiples of the unit wagered. Fixed Odds wagering means that the price of the runner when the bet is placed is the price the consumer receives, regardless of whether that price should later change or not. Wagering is conducted Australia-wide at TAB retail outlets which may be stand alone or located within a club, hotel, casino or on-course. More recently TAB customers can also bet on account using internet and telephone services including self-service terminals and applications created for mobile devices. The two major wagering operators in Australia are Tabcorp (which has a licence to operate the totalisators in the ACT, NSW and Victoria) and the Tatts Group (through ownership of UniTAB now UTAB - which operates the Queensland, South Australian, Northern Territory and Tasmanian TABs). In Western Australia the TAB is operated by a government-owned organisation. 73 There are three TAB pools, the Victorian TAB pool (known as the Super TAB, to which Tasmania, the Australian Capital Territory and Western Australia are parties), the New South Wales Pool and the Queensland Pool (to which South Australia and the Northern Territory are parties). Each jurisdiction retains deductions from wagers made in that particular jurisdiction. International pooling parties in Super TAB are New Zealand, Singapore and South Africa. The Super TAB pool is the largest of Australia s three pari-mutuel betting pools. 74 Table 1-18 Estimated number of TAB retail outlets in Australia by state/territory ( ) Location Total Australian Capital Territory 53 New South Wales 2,232 Northern Territory 50 Queensland South Australia Tasmania 127 Victoria 615 Western Australia 327 Total 4,535 Source: ACTTAB (2014) Annual Report , R WWA (2014) Annual Report 2014, Tab.com.au Venue Locator, NT Department of Business (2014) NT Licencing Commission Annual Report, Tasmanian Department of Treasury and Finance (2015) Gaming and Wagering Industry Data. 72 Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics to (30 th edition). 73 In July 2013 a Future Options Feasibility Study of ACTTAB recommended that the government not retain ownership and that ACTTAB be sold by way of a trade sale. 74 Tabcorp Holdings Limited (2012) Victorian TAB enters into new pooling arrangements with RWWA, Media Release 3 August Estimates taken from (2014) Note: The Tatts Group Ltd (2014) Annual Report 2014 cites wagering product availability through a network of over 1,350 retailers and race tracks in Queensland, Northern Territory, Tasmania and South Australia. 76 South Australian Independent Gambling Authority (2015) Annual Report

24 Chapter 1 Australia s Gambling Environment Figure 1-11 Estimated distribution of TAB outlets in Australia by state/territory ( ) Source: ACTTAB (2014) Annual Report , R WWA (2014) Annual Report 2014, Tab.com.au Venue Locator, NT Department of Business (2014) NT Licencing Commission Annual Report, Tasmanian Department of Treasury and Finance (2015) Gaming and Wagering Industry Data. 22

25 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council LICENCE AND EXCLUSIVITY ARRANGEMENTS Casinos Table 1-19 Casino licence/exclusivity arrangements in Australia by state/territory Location Casino Duration Australian Capital Territory New South Wales 77 Northern Territory Casino Canberra The Star SKYCITY Darwin A 99-year lease on licence with exclusivity until The casino licence was originally awarded in 1994 to Sydney Harbour Casino Pty Ltd. The 99-year licence included a 12 year exclusivity right to operate the only casino in New South Wales from the time the temporary casino opened. In late 2007 the exclusivity arrangement was extended for another 12 years until The licence term was set in 2006 for a 20 year period until 2026 subject to extension for a further 5 year. Exclusivity is until Lasseters Casino Southern NT division exclusivity until 2018 Queensland 79 South Australia Treasury Casino Brisbane Jupiters Casino Townsville Reef Casino Cairns Jupiters Casino Gold Coast Adelaide Casino 75-year licence awarded in The casino has a 10 year regional casino gaming exclusivity agreement (within a 60 kilometre radius) which expired in Exclusivity within a 400 km radius granted in 1986 for 15 years (with the exception of Cairns which was only excluded for five years) licence provided for a ten-year exclusivity period for casino gaming within a 120 kilometre radius. 80 Licence awarded in perpetuity. The casino had a 10 year regional casino gaming exclusivity agreement which expired in Exclusivity until 30 June 2035 (extended from 2015 in 2013) The current licence term is until 2085 unless terminated earlier. 81 Tasmania Country Club Casino Wrest Point Casino The Deed of Agreement between the Crown and Federal Hotels Pty Ltd provides exclusive rights for the Federal Group to operate table gaming, gaming machines and keno throughout the state until 30 June Victoria Western Australia Crown Melbourne Crown Perth The casino licence commenced in Exclusivity rights have been negotiated by variance to the original agreement until The State must not grant another licence to a casino and hotel of similar size and standard as Crown Perth within a 100km radius of Crown Perth. Source: Productivity Commission (2010) Gambling, Canberra - with updates by the AGC. 77 In November 2013 the NSW Government announced that another casino will operate from 2019 (after the exclusivity period for The Star has expired). The second casino will operate at Barangaroo from November 2019 but will provide VIP table games only at a proposed $1.3 billion hotel complex run by Crown Resorts Ltd. 78 SKYCITY Entertainment Group Ltd (2013) Full Year Results Presentation. 79 In October 2013 the Queensland Government announced the potential release of another three casino licences in the state, provided they formed part of an integrated hotel and resort development. 80 Cairns Casino Agreement Act 1993 (QLD) 81 SKYCITY Entertainment Group (2011) Annual Report and SKYCITY Entertainment Group Ltd (2013) Full Year Results Presentation. 23

26 Chapter 1 Australia s Gambling Environment Keno Table 1-20 Keno licence/exclusivity arrangements in Australia by state/territory Location Licensee Duration Australian Capital Territory ACTTAB (Tabcorp Holdings Ltd) Tabcorp ACT Pty Ltd (a member of the Tabcorp Holdings Limited group) acquired the business of ACTTAB on 14 October The business will continue to trade under the ACTTAB name. New South Wales Northern Territory Queensland South Australia Tasmania Victoria ClubKeno Holdings Pty Ltd and Tabcorp Holdings Ltd SKYCITY and Lasseters Tabcorp Holdings Ltd SA Lotteries (Tatts Ltd) Federal Group Tabcorp Holdings Ltd Tabcorp Holdings Ltd was granted a 50 year approval for the offer of Keno. ClubKeno Holdings Pty Limited (a subsidiary of ClubsNSW) and Keno (NSW) Pty Limited (a subsidiary of Tabcorp Holdings), as joint licensees, hold the current licence for the game of Keno in NSW, which expires in (North SKYCITY) until 2015 (South Lasseters) until 2018 Licenced until 2047 (extended from 2022 in 2013). From December 2012 Tatts has exclusive management rights to SA lotteries for a 40 year period. The Deed of Agreement between the Crown and Federal Hotels Pty Ltd provides exclusive rights for the Federal Group to operate table gaming, gaming machines and Keno throughout the state until 30 June Licence and exclusivity for 10 years commencing in April Western Australia Crown Perth Operates in casino only. 83 Source: NT Licensing Commission (2011) Annual Report 2010/11,Tabcorp Holdings Ltd (2013) Annual Report 2012/13, Tasmanian Department of Treasury and Finance (2012), Tatts Group Ltd (2013) Annual Report 2012/13 with updates by the AGC

27 A Guide to Australasia s Gambling Industries 2014/15 Australasian Gaming Council Lotteries Table 1-21 Lottery licence/exclusivity arrangements in Australia by state/territory Location Licensee Duration Australian Capital Territory New South Wales Northern Territory Queensland South Australia Tasmania Victoria Western Australia Tatts Tatts Tatts Golden Casket Lottery Corporation (operated by Tatts) SA Lotteries (operated by Tatts) Tatts/Intralot Tatts (Intralot see notes) LotteryWest No exclusivity. No fixed term on licence expiry. 40 year licence/exclusivity until No exclusivity. Authorised until Exclusivity until Licensed until From December 2012 Tatts has exclusive management rights to SA lotteries for a 40 year period. Tatts is licenced until 2015 in Tasmania. Intralot is licenced until In 2008 ten year licences were awarded to both Intralot (scratchies) and Tatts (lottery products) until Intralot surrendered the Category 2 Public Lottery Licence (scratchies) on 31 January No fixed term government owned/operated Source: Tatts Group Ltd (2013) Annual Report 2012/13 with updates by the AGC. 25