Queensland risks a significant increase in gambling-related problems as a result of its drive to clear red tape around its gambling industry, new research commissioned by the Anglican church says.
Though poker machine spending in the state hit record highs last year, the Newman government has slashed gambling regulations it said were “strangling” the state’s pubs and clubs.
Among the changes was an increase in the number of pokies allowed to operate in a single venue to 300, permitting machines to accept $100 and $50 notes, up from the previous $20-note limit, and allowing pokie operators to pay winnings of up to $5,000 in cash rather than cheque.
A regional quota system intended to keep pokies from clustering in the state’s south-east has been removed, and Queensland clubs and hotels have been permitted to use “ticket-in, ticket-out” (Tito) technology as an alternative to cash.
According to gambling machine manufacturer, IGT, the Tito feature decreases the amount of cash actually handed to players and has been shown to “result in longer periods of gaming machine operation”.
A review of these measures by Monash University public health researchers Dr Charles Livingstone and Louise Francis has warned they “are likely to increase EGM [poker machine] gambling revenue” and “reduce a number of protections which have had some beneficial effects from a harm minimisation perspective”.
“On scrutiny, a number of these changes appear to be less focused on reducing regulatory burden and more aligned to liberalising the operation of gambling markets and increasing gambling revenue,” the report, commissioned by the Anglican Church Southern Queensland, said.
It highlighted the removal of the regional quota system as particularly concerning, warning that machines would be moved to “high-demand” areas – usually the state’s poorest – where the machines are most profitable.
“In our view it is likely that the removal of the regions will lead to a significant increase of machines in vulnerable and disadvantaged communities leading to increased participation, high loss rates and increased problem gambling,” the authors said, drawing on evidence from past research.
Queensland pubs and clubs operate nearly 43,000 poker machines, around one-quarter of Australia’s total. Statistics show that August saw the highest spend in the state’s history, breaking the $200m metered-win mark for the first time.
The cash-strapped state raised gambling taxes in 2012 to help close a budget shortfall, and will net an additional 3.6% in taxes from the industry this year. The deregulation drive was sought by the state’s pub and club lobbies in order to make the increased taxation “revenue-neutral”, according to a government discussion paper.
The Productivity Commission estimates that more than 40% of revenue drawn from pokies comes from problem gamblers.
A spokesman for the Queensland attorney general, Jarrod Bleijie, said the minister would “read the report carefully when he is provided with a copy”.
“The vast majority of people who have a punt do so responsibly and the government takes responsible gambling more seriously than any other state,” he said.
“Queensland has one of the lowest bet limits and cash input limits in the country and the government commits around $5m for problem gambling assistance, which includes help centres and 24/7 phone and internet services.”
Queensland has also granted two licences for “megacasinos” in Cairns and the Gold Coast, to kickstart what premier Campbell Newman has called the state’s “faded and jaded” tourism industry.
