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The Productivity Commission Draft Report on Gambling

The Productivity Commission reported that the gambling industry did possess ‘special’ characteristics in its ‘ability simultaneously to provide entertainment that is harmless to many people … while being a source of great distress … to a significant minority’, and in that ‘the benefits which many derive form gambling ... are in part derived from the financial losses of others, and the consequent suffering of some’.

The commission also found that there was some evidence that in Victoria ‘gaming machines are more densely located in lower income areas’ and that this ‘can concentrate the social costs in communities that are less equipped to bear them’.

About 2.3% of the adult population have significant or intense gambling problems, and each problem gambler potentially affects 5–10 others. Counselling services for these people are not well coordinated and in some areas not well funded.

The Geelong Catholic Social Justice Committee made a submission to the Commission, arguing that the gambling industry ought to be regarded as ‘hazardous’ and access to it, particularly to poker machines, regulated accordingly. We also argued that by having a vested interest in the industry, the Victorian Government was compromising its role as guardian of the common good.

The Commission acknowledges the ‘special’ character of the industry but does not call for a strict curtailment of the use of poker machines, preferring instead to recommend measures to minimise social costs while promoting what it sees as positive benefits.

Our members report increasing distress at the numbers of victims of gambling turning to the Society of St Vincent de Paul for relief. As its name implies, the Productivity Commission’s function is to do research designed to promote the productivity of industry, not to discourage it. One would not expect them therefore to recommend drastic curtailment of the gambling industry. Our committee’s function, however, is to promote justice and the common good. Our members’ experience of meeting calls for relief from the consequences of gaming in particular compels us to call for fuller recognition of the hazardous nature of this industry and tighter regulation of its operations. We will be making a further submission to the Commission to this effect.

Michael Leahy

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