DEFINITION - Gambling

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1 Gaming in Australia DEFINITION - Gambling To stake or risk money, or anything of value, on the outcome of something involving chance Macquarie Dictionary DEFINITION - Gaming Legal forms of gambling, other than Racing and Sports Betting DEFINITION - Wagering Legal forms of gambling on Racing and Sports Betting AGC AGC GMDC

2 Why do people visit Clubs/Casinos? Gambling To Gamble To Win Excitement Social Interaction Incentives Escape What are your chances of winning? Attention/ Personal recognition Challenge and Risk Taking You ve got Buckley s! Winning Powerball 55 million to one Winning Oz Lotto 45 million to one Winning Lotto 8 million to one Winning 6 from 38 pools 2.7 million to one Being killed by lightning 1.6 million to one Winning $2 Scratchie 960,000 to one Winning $2 lottery 200,000 to one Winning $5 lottery 160,000 to one Being murdered in NSW 57,000 to one RTP% - Other Forms of Gambling Pools 50% Lottery 60% Lotto 60% Inst. Lottery 60% Keno 76% TAB 84% On-course Tote 84% Bingo/Minor gaming 90% Gaming Machines 85%+ GMDC

3 Snapshot of Gaming in Australia New South Wales Mix of Video reel and Draw Poker in Pubs (30) 73,000 Machines (total) in 1,300 Clubs 210 MTGMs (2,177 stations) in 70 Clubs 23,500 Machines in 1,730 Hotels 30 Draw Poker machines in Hotels 1,500 Machines in The Star Casino Total No. of Machines in NSW : 98,000 * Approx no s New South Wales - CMS LAB protocol (X series) All machines connected to the CMS Clubs - December 2001 Hotels - January 2002 CMS (Centralised Monitoring System) $35.35 per month (+GST).. indexed 3% each year : July 1 CMS is run by DMS (Data Monitoring Services) - Maxgaming All machines have a GMIC (Gaming Machine Interface Card) New South Wales State-wide Jackpot Maxgaming hold two state-wide licenses Clubs Hotels Clubs and Hotels may run fraternal links within a strategic alliance with Maxgaming Jackpot configuration Venue negotiation with Maxgaming Reasons - Collection and integrity of duty returns Assessment and billing of duty GMDC

4 The Star Casino Sydney Harbour Casino opened in September 1995 Star City opened in November 1997 Merged with Tabcorp in April m patrons visit the casino annually 1,500 machines in Star City Casino 210 tables (200 licensed at any one time) $82.2m duty paid $643m gross gaming revenue $11.3m allocated to the Responsible Gambling Levy Perth Burswood Casino Darwin MGM Grand Australian Casinos Alice Springs Lasseters Casino Adelaide Casino Adelaide Cairns Reef Casino Townsville Breakwater Casino Canberra Casino A.C.T. Melbourne Crown Casino Treasury Casino Gold Coast Launceston Launceston Country Club Hobart Wrest Point Casino Sydney Star City Brisbane Jupiters Victoria Tasmania 1992 : Introduction by TabCorp and Tattersall s *13,750 (13,669) Machines in 265 TabCorp venues *13,750 (13,493) Machines in 255 Tattersall s venues 2,500 Machines in Crown Casino (350 tables) Total No. of Machines in VIC : 30,000 The above numbers are ceilings until > : Introduction of EGMs into Casinos 1997 : Introduction of EGMs into Clubs/Hotels 2,397 Machines in 102 Clubs/ Pubs 668 Machines in Wrest Point Casino (23 tables) 512 Machines in Launceston Casino (17 tables) Total No. of Machines in TAS : 3,577 * Announcement of cancellation of duopoly GMDC

5 Queensland 1985 : Introduction of EGMs into Casinos 1992 : Introduction of EGMs into Clubs/Hotels 18,673 Machines in 764 Hotels 23,063 Machines in 560 Clubs 400 Machines in Jupiters Casino (Townsville) (24 tables) 533 Machines in Reef Casino (Cairns) (43 tables) 1,328 Machines in Jupiters Casino (106 tables) 1,332 Machines in Treasury Casino (111 tables) Total No. of Machines in QLD : 45,329 South Australia 1985 : Adelaide Casino opened 1994 : Introduction of EGMs into Clubs/Hotels 12,722 Machines in 567 Clubs/ Pubs 995 Machines in SkyCity (Adelaide) Casino (99 tables) No BACCs coin only Total No. of Machines in SA : 13,717 Australian Capital Territory 1976 : Poker Machines launched in Clubs only 1987 : Draw Poker Machines launched into Hotels 1992 : Casino opened 47 Tables No EGMs permitted in Casino 5,077 Machines in 68 Clubs 82 Machines in 13 Hotels (AADs only) Total No. of Machines in ACT : 5,159 Western Australia 1985 : Introduction of EGMs into Casino Machine Type : Skill games - Keno/ Bingo 1,750 Machines in Burswood Casino (182 tables) Total No. of Machines in WA : 1,750 GMDC

6 Northern Territory 1982 : Introduction of EGMs into Casinos 690 Machines in 68 Clubs/ Pubs 298 Machines in Lasseters Casino (18 tables) 550 Machines in Sky City Casino (Darwin) (25 tables) Clubs : Up to 45 machines Hotels : Up to 23 machines Total No. of Machines in NT : 1,538 Australia Approximate no s 185,000 Machines in 6,000 Clubs/ Pubs 12,200 Machines in 12 Casinos Total No. of Machines : 197,200 EGM brands in Australia Aristocrat, IGT, Konami, Stargames (Shufflemaster), Williams (e-bet) Global (Milwell), AGT, Voyager, Bally REGULATORS STATE REGULATOR ATF (Testers) NSW OLGR LAB, GLA, BMM QLD QOGR QOGR WA ORG WAR & GL SA OLGC GLA Vic. VCGA BMM & TST Tas TGC LAB & TST NT QOGR GLA ACT GRC LAB Casinos CCA LAB/GLA/BMM Gaming Technologies Association GTA (AGMMA) The Manufacturer s voice There are 8 regulators in Australia 8 different regulations and specifications Standardisation requirement National standards - messages - software AIM : Build a machine to one standard GMDC

7 Caps Clubs Hotels Casino State ANTI - GAMING NSW ,192 Special interest groups Victoria ,000 Queensland N/A 43,920 South Australia N/A Western Australia N/A N/A 1500 N/A Tasmania N/A 2,500 ACT N/A 5,200 Northern Territory N/A N/A Political (Nick Xenophon SA, Andrew Wilkie - TAS) Government (appeasing special interest groups) PRO - GAMING Club Associations AHA Casino s Sporting groups Charities Government (taxes) POLITICS 2010 Productivity Commission Self Exclusion Access to Cash ATM restrictions, Removal of ATMs, Withdrawal Limits Note Acceptors Bet Limits EGM Design Payment Methods Messaging to Players Information to Players Clocks Pre Commitment and Loyalty The Timetable Implement cash credit limits in QLD Commence broad development of standards and design features Commence design of proto-type full commitment system for future trial Proposed New EGM s to have Dynamic notice of actual cost of play activated immediately Internal bank for wins over $300 for future activation Implement simple warnings on EGM s using compatible monitoring systems Proposed New EGM s to have capability for dynamic warnings of potentially harmful play (not activated) Capability to operate $1 bet limit (not activated) Consistency with agreed central monitoring protocols Proposed Implement partial pre-commitment in jurisdictions with compatible monitoring systems Trial of full pre-commitment GMDC

8 Timelines Activate internal bank for wins over $300 for all egms supporting this Activate dynamic warnings of potentially harmful play for EGM Upgraded Monitoring system to be operational in all jurisdictions Full pre-commitment to be operational in all jurisdictions subject to trial outcomes and with limited expectations All EGM s to (exemptions for small venues) be capable of facilitating pre commitment Provide dynamic notice of actual cost of play Provide dynamic warnings of potentially harmful play Have an internal bank for wins over $300 Operate at a $1 bet limit All jurisdictions to Impose cash/credit input limits All exemptions for small venues end Assess effectiveness of all harm minimisation measures to see if they should be modified or removed THREATS TO GAMING (Slots) Government legislation Impact of Harm minimization* Impact from problem gambling Other forms of Gambling Racing - Lotteries - Instant Lotteries - Keno - Lotto - Tables - Fixed odds bets - Internet GAME TYPES - Chance, Skill * Impact of Harm minimisation Reduction of gaming trading hours Reduction of machines (over 450 by 10%) Advertising restrictions CDSE (Community Development and Support Expenditure) Taxation increase (from 17% to 40%) Smoking bans PIDs (Player Information Displays) SIAs (Social Impact Assessments) Entitlements RESPONSIBLE GAMBLING (NSW) Each venue must have an arrangement with a problem gambling counselling service - AHA Clubs NSW Betsafe Wesley Mission Penalty : 100 penalty units Player Information Brochures must be available in English and upon request, Arabic, Chinese, Korean, Turkish and Vietnamese GMDC

9 RESPONSIBLE GAMBLING (NSW) Machine : Each machine must display the following Gambling warning notice Problem gambling notice Chance of winning notice RESPONSIBLE GAMBLING (NSW) Venue : Each machine must display the following Gambling warning notice Problem gambling notice Chance of winning notice Bluegum CDSE The Community Development and Support Expenditure (CDSE) scheme is a statewide initiative that recognises clubs significant financial support for projects and services that contribute to the wellbeing of their communities. Clubs that earn over $1 million annually in gaming machine revenue provide funding for community projects and services, and in turn receive dollar-for-dollar gaming tax deductions. In 2001, clubs reported CDSE expenditure of over $60 million across New South Wales. The scheme was introduced in 1998 by the NSW Government and allows clubs to claim a tax deduction of up to 1.5% on gaming machine revenue over $1 million for monies spent on community support. GMDC

10 Reasons for Expenditure in EGMs Improved Entertainment Value Enhanced graphics Integrated sound effects Extensive game library Bonus systems Hyperlink More links Higher interactivity- touch screen Membership/loyalty driven play Larger denomination range of games Technology upgrades (TITO) TITO Must run on a System Cost of printer installation BACC upgrade Licence GMDC

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