Researchers from Central Queensland University, armed with funding resources from the Gambling Research Australia partnership, recently released the findings of the Second National Study of Interactive Gambling.

The study included over 15 000 respondents from across the country and revealed that 17.5% of respondents had placed a remote bet during the last 2 years. Another significant revelation was that this figure translated to a two-year rise of 8.1%, following a decline in the overall gambling participation rate from 64.3% in 2010 to 56.9% in 2019.

Drilling Down

In an official press release, Professor Nerilee Hing, from the Experimental Gambling Research Laboratory at Central Queensland University, explained that 10.1% of respondents had placed a remote lottery wager over the land last two years and that 5.9% had engaged in remote race betting. Other forms of sportsbetting accounted for 5.8% of bets over the same period.

Hing’s statement read,

“This growth in online gambling has been driven by faster internet speeds, the convenience of betting on smartphone apps, extensive advertising and inducements and new betting options like multi-bets. New online activities have also been introduced including e-sports, fantasy sports, skin gambling and loot boxes.”

Archetypes

The survey paints a picture of the typical online punter in Australia as someone who engages in various forms of gambling and is more likely than not a young male, engaged in a relationship, with an above-average education level. It was further revealed that 9.1% of participants had experienced some form of gambling harm and 6% reported they had been harmed by another individual’s gambling.

Moving Forward

Gambling Research Australia is a collaborative effort between the federal, state, and territorial governments, who have advised that the study represents ‘the first national study to examine the negative consequences of gambling for gamblers, their family, and friends.’

The organization stated that it intends to use the findings ‘to further inform online gambling policy and consumer protection measures’ while authorities across various jurisdictions create safeguards for consumers.

In an official statement, Gambling Research Australia said,

“The intent of the national framework is to bring Australian consumer protection measures up to date, to ensure they reflect best practice nationally and are consistent across jurisdictions. The national framework consists of ten consumer protection measures that aim to reduce gambling harm.”​

The Wyndham council has adopted an updated gaming policy that specifies the distance from social housing that pokie venues can be established. The policy, which the council recently voted to adopt, seeks to shift the concentration of electronic gaming machines away from areas and communities likely to fall prey to problem gambling.

The policy states that pokie venues may not be set up within 400 metres walking distance or clear sightline of social housing, shopping complexes or centres, and services utilised by individuals suffering from gambling-related harms, like financial counselling services.

The gaming policy is set to form part of the council’s planning scheme, following approval from the Minister for Planning.

The policy further seeks to limit the placement of electronic gambling machines in growth areas subject to Precinct Structure Plans, until they are “sufficiently established to overcome any significant uncertainties related to adjoining land uses, proximity to sensitive uses and potential for social and economic impacts on the emerging local community.”

Cr Josh Gilligan said that the approval of policy demonstrates that the council is embracing “the strongest possible planning scheme controls possible to mitigate the risk of new pokies in growth areas, such as Tarneit and Truganina.”

The council received six submissions after advertising the draft policy for public comment last year. Four supporting submissions came from the Brimbank council, Hobsons Bay Council, the Victorian Local Governance Association, and the Alliance for Gambling Reform.

Two objecting submissions came from the operators of a Tarneit hotel which currently has 65 pokies machines and two businesses that had their sights set on constructing a 70 pokie facility on Woods Road.

Cr Jennie Barrera explained that Wyndham already has 903 electronic gambling machines, which earned $61 million in the 2020-21 financial year.

“While gambling can be an ordinary past-time for some, it is associated with addiction and harmful outcomes for others. Substantial research now indicates that gambling addiction doubles the risk of a person missing a mortgage repayment, leads to higher levels of unemployment, higher levels of family violence and poorer long-term health outcomes,” Barrera said.​

The pandemic-precipitated 2020 lockdown resulted in intriguing spikes in the purchases of certain goods in Australia, like office furniture for example. With fresh lockdowns in 2021, spending is still on the rise, but the cash seems to be flowing more towards gadgets and pokies than desk recliners.

While pragmatism may have influenced a lot of spending with the first round of lockdowns, over a year later, boredom has seen an increasing number of people reach into their pockets to spend on entertainment and diversions.

According to data collected for Consumer Spending by the Consultancy firm Accenture and analytics firm, Illion, Melbourne and Sydney have recorded a 329% increase in online gambling spending when compared to average spending habits. This figure far surpasses the previous lockdown’s gambling spend increase of 215%.

While online gambling has experienced a phenomenal increase in popularity, it is far from the only industry to see a boom in lockdown-generated interest. Spending on home delivery increased by 203% in 2021, as compared to only 132% for the initial lockdown period.

Andrew Charlton, the MD at Accenture, explained that the observed increase in online gambling spending cannot be solely attributed to the lockdowns. He elaborated that the increased outflow of money continued following the 2020 lockdown to enough of an extent for it to be identified as a continuing, long-term change in consumer behaviour.

This indicates that many stuck with online gambling after the first lockdown, as opposed to treating it as a passing fascination.

Simon Bligh, the CEO of Illion, expressed his belief that the lack of entertainment options during lockdowns has driven many individuals towards online gambling. He added that there is a lot of disposable income floating around in both Sydney and Melbourne, so it follows that spending on things like pokies, sports betting and others would increase.​

A recent report by a gambler at Perth’s Crown Casino revealed that he was approached by a loan shark after he had lost a few bets

The stranger’s illicit offer was a $10,000 loan, conditional on the promise that the player would refund him once he had won the money back. After accepting the offer, the player, unfortunately, was not able to repay the loan amount and now he is facing harassment and death threats. Demands for the money were accompanied by the grim promise that he would end up with “concrete boots”.

This story and others like it came to light as numerous submissions were made to the Perth Casino Royal Commission.

The commission is tasked with determining if Crown Perth should hold a casino gaming licence amid allegations of money laundering levelled at the casino. The commission has taken testimony from current and previous Crown employees and members of the Gaming and Wagering Commission (GWC), Western Australia’s casino watchdog.

Aside from the loan shark issue, electronic gaming machine limits and an inappropriate relationship between counselling services and the casino were raised as areas of concern.

Gamblers in Peril

Financial Counselling Australia (FCA) has identified a number of loan sharking incidents in or around the casino, stating that these criminal individuals appear to operate with “relative impunity”.

One story relayed by the organisation was that of a gentleman who sought out their help, describing how he owed $100 000 to “friends”.

It turns out that these so-called friends were loan sharks who charged him a 50 per cent interest rate on his borrowed amount. The player described being terrorised by the money-lending rogues, saying that he dreaded going to the police as he feared reprisals against his family.

A financial counsellor in attendance at the inquiry stated that Crown was deliberately allowing these predatory practices to continue.

“They would see someone approaching people. There are cameras everywhere. The casino should be a safe place for people to gamble,” they advised.

The FCA director of policy and campaigns, Lauren Levin, named loan sharking as one of the organisation’s priorities.

“Casinos are not allowed to provide credit. That’s been banned for a long time. Turning a blind eye to those who are providing credit to customers is a form of willful blindness,” she said.

A Criminal History

When quizzed by the commission about the issue, Brian Lee, the Crown Perth general manager of security and surveillance, defended the venue’s efforts. He advised that the casino had instituted measures to eliminate suspected loan sharks from the property.

“Most of the time [the ban is] a minimum of two years before they can write to me to ask for revocation. In most instances, the vast majority if not all, that’s extended past the two-year period,” he said.

When asked about a particular individual accused of Loan Sharking, that the commission identified as Patron S, he relayed that due to police concerns and its own evidence, Crown had banned Patron S in 2020.

It was revealed, however, that this patron’s undesirable behaviour had been reported to relevant authorities 11 years earlier. A customer complaint dated 2009 detailed how Patron S was stalking the casino’s VIP Pearl Room and this account was verified by a second witness.

It was revealed that Crown’s security and surveillance team had around 18 different notifications regarding Patron S and loan sharking from 2013-2015.

Oversight Needed

In its submission, the FCA recommended that casinos should be involved in the national self-exclusion register, due to be launched in 2022.

The FCA’s Lauren Levin additionally suggested a reform of the existing casino regulation system, that she called a “lame duck”.

“It doesn’t have the tools, it doesn’t have the regulation, it doesn’t have the desire. The time for self-regulation is over, the most important change we want to see is a single national gambling regulator with new legislation that has consumer protection at its core.”

“By having a national regulator, you get rid of that conflict of interest and the regulator will be able to do its job,” she said.

Help Needed

Western Australia’s only dedicated problem gambler counselling service, Centrecare, reported a 25 per cent increase in requests for help over the past year.

The service advised the inquiry that a public awareness campaign to address the stigma of gambling addiction and endorse support services would be of immeasurable value.

In his comments, Centrecare director Tony Pietropiccolo said, “Gambling harm is real [and] it creates problems not just for the individual but for their families and their partners. It’s a community issue because the consequences are significant.”

A large portion of the casino’s revenue is derived from problem gamblers making use of its 2,500 electronic gaming machines.

Pietropiccolo proposed a system that would allow for the pre-programming of machines with a maximum total bet amount per player.

“I think that is possibly the most effective way of allowing people to have access to what some people consider as entertainment [while still controlling] the impact of those machines on their lives,” he offered.

Conflict of Interest

Centrecare currently draws all the funding for its counselling service from voluntary contributions from Crown and other industry bodies via their WA Problem Gambling Support Services Committee memberships. The committee was first created in 1995 and operates within the GWC.

The Alliance for Gambling Reform relayed its concerns about this arrangement to the inquiry in a formal submission, an excerpt of which reads,

“We note the distress and the anger … caused amongst people with lived experience of gambling harm, that the organisations primarily responsible for causing the harm are also directly involved in consideration of the funding and provision of services to ‘support’ them. We do not believe that this is an appropriate membership of the committee.”

There have been many calls for support services to rather be backed by gambling taxes and for the committee to be operated beyond the mandate of the Gaming and Wagering Commission.​

CashtoCode has signed an agreement with Epay that will see it offer its services in Australia. The deal enables the payments platform to target its offering at online betting brands with Australian licences for online sports betting and skill games.

Australia currently has over 25 licensed online wagering, lottery, and skill-based businesses that CashtoCode anticipates will need cash deposit facilities for their payment portfolios.

Jens Bader, the CEO and Co-Founder of the provider said,

“Australia offers a fantastic business opportunity for online wagering and betting brands. It is a thriving market and one we’re keen to play a part in.”

Epay holds the largest private network of prepaid terminals in Australia and provides mobile top-ups, payment services, and bill payments via a range of retail venues throughout the country.

Thanks to this new arrangement, Australian users will be able to top up numerous online wallet accounts with cash or via in-store deposits at an Epay national affiliate such as BP, Shell, Coles, Woolworths, IGA, and WHSmiths, as well as several smaller convenience stores.

Bader concluded his statement, saying,

“We’ve seen in Europe and our other international markets that cash can be a great payment option for customers that are keen to control their payment speed, or simply prefer it for privacy reasons. We expect to see the same situation in Australia and believe that many Australian operators are looking to diversify their payment options for players.”

CashtoCode has recently cemented a series of agreements to expand its reach. The provider has managed to enter the Asia-Pacific region, a selection of African countries and the lucrative Latin American market.​