Saturday 16 July 2016

Opening the Gambling "Can of Worms " !

Andrew Wilkie has long been an anti gambling advocate and it seems that Nick Xenophon has teamed up with him to use their Senate powers to impose gambling restrictions on Australia.  In their sights are poker machines and the more recent intrusion of International bookmakers advertising their services during live broadcast sporting events.

The plan is to restrict the maximum bet on each roll of the symbols - to just one dollar, and to programme the machines so that the loss to the person playing it can not exceed $ 120 per hour.  It is hoped that these restrictions will save compulsive gamblers from catastrophic losses and  reduce the lure that induces some people to pursue illusionary mega jackpots.

One of the problems seems to be that this move is in the Federal sphere and poker machines are very much a state issue.  For many years New South Wales was the only state that licensed poker machines and even now the rules that apply vary state to state. 
 Taxation is a form of state revenue and severe restrictions will have an affect on state finances.  Any such measure will have resistance from state Treasurers and the club industries.

It is estimated that the mechanical conversion of poker machines to fit this new format would involve an outlay of $ 1.5 billion and many contend that it would not stop compulsive gamblers wasting their money.  The vast majority of people wager below that one dollar limit.

The plan to place restrictions on bookmakers advertising their services during live sport may get a better reception, specially as it proposes a complete ban at times when television is providing dedicated children viewing.   A lot of people have reservations on the wisdom of allowing bets to be placed on specific outcomes within the course of live games.  This opens the door to match fixing and provides an entry to profitable criminal activity.

There is no doubt that Andrew Wilkie and Nick Xenophon are good hearted and believe that their proposals are needed to fix a blight on society, but interfering with recreational gambling frees a particularly malevolent genie from imprisonment in a very large bottle.

Gambling is an emotive issue that has long caused discord.  Originally, the idea of holding a state lottery in New South Wales faced stiff opposition from church groups.   It only finally got the nod when the profits were dedicated to funding the hospital system, and at that time the only legal way to place a bet was to attend a race meeting and place a wager directly with a bookmaker.

For many decades the gambling dollar was serviced by totally illegal SP bookmakers who held court in the back bar of local pubs.  This was an open secret.   The police made regular raids but only minor people ever faced courts.  Eventually, the state succumbed to the tax bonanza to be made from making betting legal and so came the era of the TAB.

This move to restrict gambling comes at an awkward time.  Sydney is about to get a major waterfront building which will house one of the worlds high roller Casinos.   Our existing Casino at Darling Harbour has poker machines and is exempt from the liquor licensing lockout laws that have tamed Kings Cross.  It seems certain that this same poker machine exemption will apply to Casinos because any gambling limitation would be laughable to the very notion of Casino philosophy.

What happens in the advertising world and with the licensing of television is a Federal matter and comes within the scope of Messrs Wilkie and Xenophon.     They open a very different Pandora's box if they venture into state issues, particularly state finances and the giant club industry which is the main form of entertainment for a wide section of the community.    In the past, this have proved to be an area where angels - and legislators - fear to tread !

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