Best Practice in Gambling Regulation: Land Based Casino Focus

Transcription

1 Best Practice in Gambling Regulation: Land Based Casino Focus Graeme Ramsay Problem Gambling Foundation of NZ Mark Henley Australian Churches Gambling Taskforce Both also GAPHAI

2 GAPHAI Gambling and Public Health Alliance International Recognises that gambling is a risky activity for many regular consumers Based on Understanding that degree of risk is located along a continuum, from low risk to very high risk, (also called problem gambling, pathalogical gambling etc) Predicated on belief that society, though Governments, has a responsibility to act to protect all actual and potential consumers

3 This Session focus on land based Casinos Regulation from a public health perspective says that gambling regulation, internationally is patchy, and that best (or even good) applied gambling regulation needs greater debate, documentation and transparency. 4 sections 1. Overview of good regulation 2. Shortcomings of gambling regulation 3. Case Study Samoa and (terrestrial) casinos 4. Some Directions for better regulation

4 Regulation of Gambling Regulation of gambling is essential as it is a product that provides degrees of risk to consumers (individual and in aggregate) Most current gambling activity is currently regulated (some Internet based gambling is barely regulated), though the extent and practice of regulation varies considerably.

5 Gambling Trends Casino Growth focused on emerging economies, rather than established economies (eg Pacific, Asia, Balkans, Caribbean ) Globalisation of gambling, particularly through on-line, interactive and internet gambling) Rise and rise of sports betting

6 Recent Gambling Developments European Union Green paper on On-line interactive gambling Australian Productivity Commission report and subsequent debate about introduction of mandatory player budgeting (precommitment) for egm gambling And SO much more

7 Aspects of Gambling Regulation Keeping Organised Crime out of gambling involvement, including prevention / detection of money laundering focus is on Casinos Ensuring correct level of taxation is paid all gambling Fairness of the event on which gambling occurs all gambling, focus on wagering Consumer Protection: financial all gambling Consumer Protection: harm minimisation all gambling Industry Policy, eg competition policy

8 Role of Regulation (Overview) Support Economic Development Advance Consumer Protection Meaning: Societal institutions that build trust Independent Checks and Balances To Enable Workable, safe trade-offs between competing interests; Balancing risks and return

9 Note Broader Context Regulation is widely applied Pharmaceuticals Air Craft design and flight control Motor Vehicles Building standards Essential service Telecommunications Finance and Banking Etc etc

10 OECD Principles of Good Regulation* a. Building a Regulatory Management System b. Improving the Quality of New Regulations c. Upgrading the Quality of Existing Regulations * OECD Report to Ministers on Regulatory Reform, 1997

11 a. Building a Regulatory Management System 1. Adopt Regulatory reform policy at highest levels 2. Explicit standards for regulatory quality and decision making 3. Build Regulatory Management Capacities

12 b. Building a Regulatory Management System 1. Regulatory Impact Analysis 2. Systematic Public Consultation procedures with interested parties 3. Using Alternatives to regulation 4. Improving regulatory Coordination

13 c. Upgrading the Quality of Existing Regulations 1. Reviewing and Updating existing regulations 2. Reducing red tape and government formalities

14 Good Regulation Principles Applied to Gambling Worth asking how well these principles, now 15 years old, are applied to gambling? I suggest that these principles are better applied to some other industries and products, than gambling

15 Shortcomings of Gambling Regulation? For debate A 1. Adopt regulatory reform at highest political levels

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18 Shortcomings of Gambling Regulation? For debate B2. Systematic public consultation with affected interests (particularly public at large)

19 Mandatory Pre-commitment 80 Should Pokies players be required to set limits? States, March 2011, % yes no not sure NSW Q'land Vic SA WA Tas ACT All

20 Shortcomings of Gambling Regulation? For debate B 1 Regulatory Impact Analysis

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22 Shortcomings of Gambling Regulation? For debate B4. Improving Regulatory Coordination.

23 A Challenge What advice could we give to a national government, about best practice gambling regulation, where that national government is from a small nation, that has been asked, by a large casino company, to build a casino on it s shores?

24 Consider Samoa

25 The Promise Destination for cruise ships More money coming into Samoa More Jobs for Samoan People International recognition sophistication

26 The Risks Local Citizens gamble more, social risk Small local businesses crowded out Risk for other harmful activities to increase: drugs, prostitution Money actually leaves the country, (net position) Poverty increases Bribery, kickbacks, corruption Divided Communities

27 What has Happened so far?

28 20/10 /2010 Gambling bill passed in Samoa SAMOA -- A gambling bill passed its third reading last week in the Samoan parliament, Radio New Zealand reported. This reading allows for casinos in hotels where only foreign passport holders may gamble, the report explained. An opposition MP stated he thinks gambling for all at casinos is now inevitable because the government won't make enough from foreign gamblers,

29 22/6/2012 Two casinos have been approved by the government of Samoa. One is expected to be on the main island of Upolu and the other on the beautiful Savaii. A $ million resort at Sasina village on Savaii has also been approved. But the Chief Executive officer of the South Pacific Development group says he had no idea the government was going to put a casino on Savaii.

30 9/07/2012 APIA, Samoa (RNZI) --- Samoa s National Council of Churches has warned the Prime Minister Tuilaepa Sa ilele Malielegaoi, about the planned casinos, saying the move will drive Samoa into further poverty He says the love of money and the casino will only drive people further into poverty. He predicts that people will save money to play in the casinos instead of feeding their families, leading to addiction and crime. The Reverend Le aupepe, a deacon of the Catholic Church, says he fears the perils of gambling will shake Samoa s Christian foundation. Last year, the prime minister said only overseas visitors would be allowed into the casinos.

31 Better Regulatory Practice (even if it is too late) Consider some of the OECD 9 aspects of good regulation

32 Build Regulatory Management Capacities 1. Adopt Regulatory reform policy at highest levels Government political leadership needs to set agreed national policy objectives International (multilateral) government agreement needed re gambling policy and regulatory structures 2. Explicit standards for reg ry quality & decis n making Independent Regulator needs to be set up before any formal negotiations begin, with citizen interests and international expertise included Public reporting and transparency in all negotiation 3. Build Regulatory Management Capacities Funded training for potential regulatory staff, O/S

33 2. Building a Regulatory Management System 1. Regulatory Impact Analysis Start tight re Consumer protection, (always easier to loosen than tighten regulation) Keep locals out of Casino, if approved, eg South Korea, Singapore, Egypt Funded research to be public policy focussed 2. Systematic Public Consultation procedures with interested parties Crucial that this occurs, it will take time and heated debate, but once a casino built, no going backwards Reduce asymmetry in regulatory and policy devbate

34 2. Building a Regulatory Management System 3. Using Alternatives to regulation Direct engagement between Casino and all citizen interests to directly negotiate in or out, as well as terms and conditions. Government as enabler. NB negotiated settlements in Energy regulation 4. Improving regulatory Coordination Needed multilaterally, eg EU, UN, G20, CHOGM, ASEAN etc

35 c. Upgrading the Quality of Existing Regulations 1. Reviewing and Updating existing regulations Independent review, public reporting to citizens 2. Reducing red tape and government formalities Not relevant in new application.

36 Priorities for Gambling Regulatory Reform International coordination and cooperation, regulators and governments (at multilateral level) Transparency: regular, open reporting to Citizens a responsibility for gambling providers, governments and regulators Government funding for citizen engagement in policy and regulatory process Precautionary Principle: Establish regulatory, public health and help structures well ahead of any decision to liberalise gambling

37 Thankyou Don t forget GAPHAI Keep citizens at forefront of regulation and policy Mark Henley jmhenley@intyernode.on.net

38 THANKYOU Mark Henley