Losses to electronic gambling machines in Greater Dandenong exceed $110 million annually, while losses to other forms of gambling bring total losses of approximately $200 million to residents each year – one of the highest levels in Victoria. The detrimental effects of these gambling losses impact all of the community, and cause increased financial pressures, family stress and dissolution, legal and workplace problems, and more. Free, confidential advice and assistance in relation to gambling problems is available from Gamblers Help on 1800 156 789. Further information about gambling in Greater Dandenong is set out below.
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Introduction
Gambling Losses
Gambling Machines
Further Statistics about Gambling Losses
Social, Financial and Economic Effects of Gaming
The EGM Gambling Industry
EGM Gambling Machine Caps
The City of Greater Dandenong Electronic Gambling Machine Policy and Strategy
Review of gambling related issues
Local Assistance for People with Gambling-related Problems
Further information and Internet Sites
In Victoria, the Gaming Machine Control Act permitting the introduction of electronic gambling machines (EGMs), was proclaimed in 1991, and in June 1992 the first gambling machines commenced operation. In the succeeding nine years, the number of gambling machines in Victoria increased to nearly 30,000, while in Greater Dandenong their number rose to a peak of 1,184 in 2000, before declining to its present level of 989. In the meantime, EGM gambling losses reached $116 million by June 2008.
Council has responded to widespread concerns about the destructive social effects of gambling by monitoring local trends, and through efforts to reduce some of the socially detrimental consequences of gambling within the city.
The information presented here includes a brief account of the recent developments in the gambling industry within Victoria and Greater Dandenong, as well as an outline of Council’s response to gambling.
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In 2008/2009, $121 million was lost to electronic gambling machines in the 16 gaming venues throughout Greater Dandenong - a sum equivalent to $1159 per adult in this city, and representing the second highest rate of EGM gambling losses per adult in Victoria (outside the CBD).
Based on national trends, estimated gambling losses in Greater Dandenong, though other forms of legal gambling, reached approximately $90 million in 2008/9, bringing total gambling losses to residents of this city to over $200 million.
Since the introduction of electronic gambling machines in Victoria in 1992/3, $1.73 million (2009 figure) has been lost to gambling machines within Greater Dandenong - equivalent to $33,000 per household.
After a brief period of decline, losses to EGMs have risen in Greater Dandenong as well as throughout Victoria. Annual EGM gambling losses within Greater Dandenong rose seven-fold in the eight years from 1992/3 to their peak of $111 million in 2001/2. However, with the introduction of caps in February 2001 and imposition of smoking bans in gaming venues in October 2002, losses declined to $97 million in 2003/4. In the year to June 2009 however, gambling losses rose to $121 million - an increase of over $4 million or 4.4 per cent.
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It is notable that the least affluent localities generally experience the highest gambling losses. In 2008/9, EGM gambling losses in Boroondara - the wealthiest locality in Victoria - stood at $152 per adult. In contrast, losses in City of Greater Dandenong - the least affluent locality in metropolitan Melbourne – were nearly eight times higher, at $1189 per adult. Thus the residents of a community with one of the highest levels of gaming losses are also among the least able to bear such financial losses.
Where gambling losses are considered in terms of average weekly income in the localities where they are incurred, this disparity becomes even more stark. Average gambling losses per adult in Boroondara were the equivalent of just over one working day's income for the average resident of that city, while losses in Greater Dandenong were equivalent to the income earned in nearly sixteen days by the average resident.
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According to calculations by Melbourne economist Dr James Doughney, based upon research by the Victorian Casino and Gaming Authority and estimates provided by the gambling industry, 80% of gambling losses are borne by approximately 8% of the adult population. In Greater Dandenong this would mean that, while most residents are not markedly affected by gambling losses, just over 8,000 residents experience average EGM gambling losses of approximately $9,900 per year.
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The number of electronic gambling machines (EGMs) in Greater Dandenong rose from 140 in 1992, to a peak of 1,184 in 2001, representing 12.8 machines per 1000 adults. The reduction in EGM numbers required under the State Government caps initiative has resulted in the removal of 195 machines, leaving 989 EGMs in 2009, or 9.5 machines per 1000 adults - still substantially higher than the Victorian level of 6.5 machines per 1000 adults, and Boroondara's 1.6 per 1000 adults.
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Detailed and up-to-date statistical information is available on the Greater Dandenong website, about gambling losses, machine and venue numbers, in each Victorian municipality.
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The effects of gambling upon individuals, families and communities are various, and may include social, financial and economic consequences.
Gambling losses may entail a marked reduction in material standard of living for many gamblers and their families, while sustained EGM gambling losses may lead to severe social, financial, work, family, legal and other difficulties, including family violence and breakdown, poverty, loss of employment and crime.
Local and overseas research indicates that between 2 and 4 percent of adults have a serious gambling problem, leading to persistent losses which result in family, work, personal and other problems. In addition, however, a larger number of gamblers experience sustained losses which may not lead to a crisis but cause them and their families to endure a poorer standard of living and quality of life. As many as one in seven families in this city experience persistent family, social and financial problems as a consequence of gambling losses, often leading to family violence and dissolution. It has become clear that the main victims of gambling are the children and other dependents of excessive gamblers. Such difficulties may be expected to be more prevalent in less affluent localities such as Greater Dandenong, where most families cannot afford to persistently lose money through gambling.
Moreover, while EGM gambling may provide employment to areas where the venues are situated, economists maintain that the overall effect of the EGM gambling industry upon employment is negative, since the gambling industry merely diverts funds from other industries and replaces the jobs lost in other industries with fewer jobs in the gambling industry.
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Under the Gaming Machine Control Act, the regulation and conduct of EGM gambling in Victoria involves three levels of control and participation in that industry: EGM gambling venues, EGM gambling operators and the State Government.
EGM gambling venues include hotels and clubs, which obtain their EGM gambling machines from EGM gambling operators.
Under Victorian legislation, two EGM gambling operators – Tabcorp and Tattersalls – hold licenses to function as EGM gambling machine operators. Among their roles are to purchase EGM gambling machines, provide them to venues and maintain the EGM gambling machines.
On behalf of the Victorian Government, the Victorian Office of Gaming Regulation conducts inspections of machines, venues and EGM gambling operations, and maintains a scrutiny of electronic EGM gambling throughout the state.
Of all the money which players wager on EGM gambling activities, the law stipulates that a minimum of 87% must be returned to players. All money retained by the EGM gambling machines represents player losses. This money is distributed in the following way:
- Government: 33%
- EGM Gambling Operators, Tattersalls and Tabcorp: 33%
- Venues: Clubs – 33%; Hotels: 25% with the remaining 8.3% to the Community Support Fund
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An important State Government initiative, announced in February 2001, was the imposition of limits - called caps - upon the number of EGM gambling machines within each of five geographic areas.
One of these areas was the City of Greater Dandenong, to which three adjacent suburbs were added: Mulgrave (3170), Doveton (3177) and Hallam (3803). This area was then named ‘Greater Dandenong plus’. The four other areas were ‘Darebin plus’, ‘Maribyrnong plus’, the Shire of Bass Coast and the Rural City of LaTrobe.
The caps imposed by the State Government set a limit of 11.7 machines per 1000 adults within these five areas, initially to be phased in over five years from February 2001, later reduced by decision of the VCGA to three years. This step resulted in a loss of 406 machines altogether by February 2004, representing 7% of the total number of machines within the five areas, or 1.3% of all EGM gambling machines throughout Victoria. Within ‘Greater Dandenong plus’, a reduction of 147 machines (or 8.7%) from 1,687 in February 2001 to 1,540 in February 2004, was required
By August 2004, the number of machines in Greater Dandenong plus had indeed declined from 1,687 to 1,540 – a reduction of 147 or 8.7%, precisely as required. Gambling machine numbers fell by 106 or 8% within Greater Dandenong. There is little evidence that such a modest decline in the number of electronic gambling machines within Greater Dandenong, is likely to have contributed to any fall in EGM gambling losses.
Recent Caps:
In 2005, the State Government conducted an enquiry into the Gambling Machine Caps initiative, with a view to considering the setting of limits upon gambling machine numbers in other localities and introducing further reductions EGM numbers in existing capped areas.
By December 2006, the State Government announced the introduction of caps – or limits upon gambling machine numbers – in fifteen areas in addition to the five localities where caps already applied. In these areas, the number of gambling machines may not exceed 10 machines per 1000 adults, or their existing ratio of EGMs to adults – whichever is the lower. The government further stipulated that any reductions in gambling machine numbers required to achieve this level, would have to be completed by December 2007.
For Greater Dandenong this step resulted in the removal of 89 machines by December 2007, bringing its total to 989. By contrast, if the density of EGMs in Greater Dandenong were to have been reduced to the metropolitan average, this would require the removal of nearly 400 machines.
In addition, some of the existing capped areas were altered. For Greater Dandenong, the capped area will become the full municipality of Greater Dandenong. portions of Casey [Hampton Park & Doveton] and of Monash [Mulgrave], formerly included in the capped area ‘Greater Dandenong plus’, will be combined with other suburbs in those municipalities to become separate capped areas.
In 2009, the Victorian Government announced a cap of 10 EGMs per 1000 adults in all areas not already capped, except for Docklands, Southbank and Melbourne CBD. This incentive had no direct effect on Greater Dandenong, which remained capped at 989 machines.
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In response to a growing realization of the social implications of the high, and escalating, gambling losses in Greater Dandenong, a Gambling Policy was adopted by Council in 2005, and revised in 2009. The main lines of approach set out in this policy were informed by the practical experience of council in responding to gambling-related issues. Its principal features include:
Research on the effects of gambling, and monitoring of local and regional trends
Locally, Council has conducted consultations and other research into local EGM gambling patterns as well as the personal and social effects of EGM gambling. Information about gambling trends is regularly updated and supplied to interested community groups and other organizations, on request, and a user-friendly database giving ready access to information about gambling losses, venues, and machines, in each Victorian municipality, is maintained on the Greater Dandenong website.
Publicity to raise awareness of the issue and of sources of support
Council has endeavored to keep the community informed of trends in gambling losses, and other industry developments, as well as social effects of gambling and sources of assistance for individuals or families affected by gambling-related problems. Information is provided to the community and local organizations through press releases, 2nd City News, the Council internet site, and other means.
Advocacy for reduced numbers of gaming venues and machines in the region and other measures to reduce gambling losses.
Council is involved in efforts advocate to the State Government for measures which may reduce EGM gambling-related problems.
Among its recent activities was the preparation of a submission to the State Government Regional Electronic Gaming Machine Review, urging an extension of capped areas and further reduction in gambling machine numbers in Greater Dandenong and elsewhere. in 2006, council made a submission to the review of gaming machine licences, recommending a range of measures to reduce gambling losses. Council has also presented submissions to the post-2012 industry review and the 2009 Productivity Commission inquiry into the gambling industry.
Council also maintains an active and regular participation in the Local Government Working Group on Gaming, which seeks to provide information, organize collaborative efforts and participate in advocacy, in relation to EGM gambling issues of common interest to municipal governments throughout Victoria. As a member of this organization, Greater Dandenong has participated in the development of a joint approach by councils to the gambling machine caps and gambling licence inquires; has been involved in discussions with the Victorian Commission for Gaming Regulation aimed at improving the process of hearings to decide on gambling license applications; and has contributed to other efforts to advocate for measures to reduce the level of gambling losses and gambling-related harm in the community.
Guidelines for loccation of gambling venues or machines
This policy also sets out the guidelines Council will follows in assessing applications for more gaming machines or new venues. This is to ensure that they do not contribute to the already substantial and adverse consequenses experienced by the community, and that they are located in areas that minimise their detriment to the health and wellbeing of Greater Dandenong's residents.
In particular, the policy is intended to deter or resist applications for gambling venues and machines in areas of acute disadvantage. This includes localities with high numbers of gambling machines; near area where people routinely congregate; and precincts where activities are focused around childre, young people and families.
Download Greater Dandenong Gambling Policy
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in 2009, Council prepared a document summarising the available evidence about the distribution and growth of EGM (electronic gambling machine) losses, distribution of gambling machines, measurement of the extent of gambling-related problems and other issues
Download 'Gambling Related Issues' document (PDF - 952kb)
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Assistance for people experiencing personal, family, work, financial or other problems related to gambling is available from Gambler’s Help- a state wide service which provides counselling, financial counselling and community education throughout Victoria.
Locally, people can contact Gambler’s Help Southern- a free and confidential service for gamblers, their families and others affected by gambling For information about services or to make a counselling and financial counselling appointment, call the intake number on 9575 5353 Monday to Friday, from 9.30am to 4.30pm. In the City of Greater Dandenong, Gambler’s Help workers are located at the Greater Dandenong Community Health Service in Dandenong and Springvale.
Online information can be obtained by visiting www.ghsouthern.org.au. Information includes service information, self-help resources, materials for families and friends, personal stories, newsletters, statistics and research and materials in community languages.
For 24 hour, 7 day support and information, people can call Gambler’s Help Telephone Counselling Services - free call on 1800 156 789
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Further information concerning Council policy or activities in relation to EGM gambling may be obtained by contacting Council’s Social Planning Unit on 9239 5300.
A variety of information is available on the internet concerning gambling in Australia and elsewhere. A few sites of particular relevance to developments in Victoria, and to research about gambling, are listed below:
The Victorian Commission for Gambling Regulation
The Victorian Commission for Gambling Regulation is an independent body, established under state legislation, and responsible for overseeing the EGM gambling and gambling industry within Victoria, commissioning research about EGM gambling and its social and economic effects, and reporting trends in EGM gambling and gambling government and the community.
www.vcgr.vic.gov.au
(For further information about EGM gambling losses on VCGR site, click on 'Gambling and Statistics'. For infromation about gambling venues and EGM numbers, click on 'Industry Participants'.
Victorian Local Governance Association
From the home page, select 'Library' from the list on the left-hand side of the screen, then click on 'Gambling' from the list of library topics. This site provides a range of information supplied by councils, concerning council policies, research and other information.
www.vlga.org.au
Problem Gambling Victoria
Provides information about services for people who are experiencing personal, family, financial, work or other problems as a consequence of gambling.
www.problemgambling.vic.gov.au
Ontario Problem Research Centre
Provides links to a range of international research about the nature of gambling, its effects upon individuals, families and communities, as well as government policies and practices in this field.
www.gamblingresearch.org
Australian Gaming Council
a range of news, information and links relevant to the Australian gaming industry and conditions.
www.austgamingcouncil.org.au
Department of Justice
Includesa range of information about laws, reviews and governments project relating to gambling in Victoria, as well as details concerning licence hearings and findings.
www.justice.vic.gov.au click on 'gaming and racing' in menu
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