Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

Last week the Productivity Commission released its draft report on gambling in Australia. It is a report that focused on the effects of electronic gaming machines in our community. It is a comprehensive report providing information and a policy framework for government, parliament and citizens. I have spoken many times about the problems caused by electronic gaming machines: damage to individuals, to families, to the overall wellbeing and fabric of our community, and, in particular, to my electorate. I have spoken about the losses incurred by those who have sought treatment in my community.

It is interesting to note that one of the key points in the commission’s report is that some 85 per cent of problem gamblers do not seek help. These losses are often catastrophic for families and individuals. I have also talked about the effect of the design of machines and the potential effect on players of many on the features of electronic gaming machines. It is interesting to note that the commission’s report says:

Such problematic conditioning effects do not require malign intentions or deliberative actions by suppliers, but may simply reflect the fact that, in a process similar to biological evolution, gambling products with more pronounced conditioning effects will tend to become commercially successful.

That is in section 3.9 of the report. There is an acknowledgment by the commission that many of the design features by virtue of their success might have a detrimental effect on players. I have also certainly spoken of the need for a consumer protection approach to regulation in this area, away from, if you like, just treating the harm caused.

In one of my previous contributions I commented on the maximum bet rates and referred to losses when I should have referred to the amounts wagered so I will take this opportunity to correct that record. The figure provided by the commission on the average cost of playing a machine at the maximum bet rate is $1,020 per hour in South Australia. It is $1,200 in some states. That is a massive figure—a disturbing figure. One of the most important recommendations by the commission is to reduce the loss rate to an average of $120 per hour of play. That intervention would limit the financial losses made by problem gamblers and would have little effect on recreational gamblers. It is a recommendation that should be embraced by the industry and, indeed, by state governments. I notice that the Victorian state government and the Tasmanian state government have some commitments on the books to lower the maximum bet limit from $10 to $5.

The second main recommendation of the report is that a universal pre-commitment system should be put in place by 2016. The system would be enabled by new technologies. This would give players a mechanism to control and, hopefully, eliminate excess or problem gambling. It would give consumers the tools of restraint that they need to protect themselves. It would, in fact, give those who have little control over their addiction to these machines at least a fighting chance to restrict their losses and also to restrict their addiction.

The commission also made a number of findings about the policy framework. The most notable of these is that public health and consumer policy frameworks provide the best basis for coherent gambling policies, emphasising the importance of policies that address the gambling environment as well as gambling behaviours. That is a terribly important point. As I have said before, moving towards a consumer protection model would help a lot of people. The commission also outlines the fact that a 10 per cent reduction in harm-related problem gambling could yield around $450 million annually for the community.

The potential gains for the community in this area are great. I would certainly encourage all members of this House to have a good look at the report. It does potentially map out a way forward for both the industry and the state governments. (Time expired)