21 Feb, 2012

Australia Proposes First Regulatory Package to Curb Problem Gambling

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The Australian Government on 17 February released the draft National Gambling Reform Bills 2012 which will deliver long-lasting reforms to help the five million Australians affected by problem gambling. This is the first time the Commonwealth has taken national action to help problem gamblers and their families. The package is designed to “deliver the most significant and far reaching national reforms to tackle problem gambling ever seen in this country.”

The Bills put into action the reform package the Government announced on 21 January 2012, including implementing pre-commitment technology and dynamic warnings on poker machines and introducing a $250 daily ATM withdrawal limit in pokies venues.

The Bills build on the Australian Government’s work on pre-commitment technology through the Council of Australian Government’s Select Council on Gaming Reform. At this forum in May 2011, state and territory gaming ministers agreed to support the required infrastructure for pre-commitment technology in all jurisdictions.

These Bills give a clear timeline for the implementation of pre-commitment in pokies venues across Australia. From Feb 20, the Department of Families, Housing, Community Services and Indigenous Affairs and the Treasury will begin formal consultations with industry groups, manufacturers, community groups and the states and territories on the draft Bills. Following the consultations, the Bills will be introduced into the parliament in the current session.

The draft legislation is available at www.fahcsia.gov.au

Key Points of the draft legislation:

Object of this Act

(1)          The object of this Act is to reduce the harm caused by gaming machines:

(a)          to problem gamblers, and those at risk of becoming problem gamblers; and

(b)          to the families and communities of problem gamblers, and those at risk of becoming problem gamblers.

(2)          This object is to be achieved by allowing users of gaming machines to limit that harm by:

(a)          providing for precommitment for gaming machines by:

(i)           allowing users of gaming machines who wish to do so, to set limits for a State or Territory on the amount that they are prepared to lose during a period using, as registered users, gaming machines that are located in that State or Territory; and

(ii)          preventing users from continuing to use, as registered users, gaming machines that are located in that State or Territory once those limits have been reached; and

(iii)         allowing users to retain control over whether to impose limits on the amount that they are prepared to lose during a period using gaming machines that are located in a State or Territory; and

(b)          ensuring that warnings are provided electronically on the potential for harm from, and the cost of, using gaming machines; and

(c)          limiting the amount of cash users of gaming machines can access from automatic teller machines on premises containing gaming machines (other than casinos); and

(d)          ensuring that the privacy of users of gaming machines is protected; and

(e)          ensuring that new gaming machines that are manufactured or imported are capable of providing for precommitment.

The first reform requires gaming machines to have a precommitment system that complies with the requirements of this Act. A precommitment system allows a user of a gaming machine, who wishes to do so, to register and set a limit (called a loss limit) for a State or Territory on the amount that he or she is prepared to lose during a period (called a limit period) using, as a registered user, any gaming machine that is located in that State or Territory.

If a person registers and uses a gaming machine as a registered user, then, once the person’s net losses during a limit period reach the person’s loss limit, the person is prevented from using gaming machines located in the State or Territory as a registered user for the rest of the person’s limit period.

The second reform requires warnings to be provided by gaming machines relating to the use of gaming machines.

The third reform limits the amount of cash that can be withdrawn from an automatic teller machine that is on gaming machine premises (other than a casino).

This Act provides civil penalty provisions in relation to gaming machines and automatic teller machines that do not comply with the requirements of this Act.

This Act ensures the privacy of users of gaming machines by including offences to protect, from unauthorised disclosure or use, any information that is obtained from precommitment systems, or otherwise obtained under this Act.

This Act also requires gaming machines that are manufactured or imported to be capable of providing for precommitment.

A supervisory levy is imposed on those who hold a licence to operate a gaming machine. The supervisory levy rate is imposed as a nil rate by the National Gambling Reform (Related Matters) Act 2012, unless the regulations prescribe another rate.

A gaming machine regulation levy is payable if a person makes a gaming machine available for use at any time during a levy period. However, the gaming machine regulation levy is not payable in certain cases related to constitutional corporations and gaming machines that comply with the requirements of Parts 2 and 3 of Chapter 2 (precommitment systems and dynamic warnings).

This Act deals with the liability for, and collection and recovery of, the supervisory and gaming machine regulation levies.

This Act is enforced by the Regulator. The Regulator and authorised persons have a number of powers to investigate and monitor compliance with this Act. The Regulator also has a number of options for enforcing this Act, including applying for civil penalty orders, giving infringement and compliance notices, and seeking injunctions and enforceable undertakings. The powers under this Act may be delegated to employees of the public service of a State or Territory, or a body established for a public purpose by or under a law of a State or Territory.