Senate Inquiry into Gaming Machines

22 September 2008

Family First Senator Steve Fielding has introduced 2 bills into Federal Parliament seeking to dramatically restrict the gaming machine industry in Australia. When introducing the first Bill in February 2008, Senator Fielding "declared war on poker machines" with "a bold new plan that will see pokies phased out of pubs and clubs and restricted to racetracks and casinos."

The first Tax Bill seeks to impose a tax rate of 30% on gross poker machine revenue, making poker machines uneconomic. Poker machines would be restricted to casinos and racing venues.

The second Bill introduced in June is somewhat more modest. It introduces a number of restrictions on gaming venue operators including:

  • ATM withdrawal limit in gambling venues of $100 a day
  • Pre-commitment smart cards restricting fortnightly expenditure to $1000, required for all bets over $1.
  • Machine limits, including banning free spins, banning multiple line betting, a 5 second delay between spins, limiting note acceptors to denominations of not more than $20
  • Betting limits for cash up to $1 per spin, and requiring a smart card for bets over $1.
  • A prize limit of $1000 on cash bets.

On 25 June 2008, the Senate referred Senator Fieldings' Bills to a Committee, which is due to report on 10th November 2008. The principal issue for consideration is whether the Bills can cut rates of excessive gambling to allow people to play gaming machines with reduced harm.

30 written submissions were made to the Senate Committee in relation to the first Tax Bill. 17 written submissions were made in relation to the subsequent Bill with specific restrictions. Oral submissions were made on 11th and 12th September. Submissions can be divided into those made by the gaming industry and those made by the anti-gambling lobby.

It is likely that the Senate Committee will not support Senator Fieldings' Bills. The Productivity Commission will soon commence a fresh review of the gambling industry, and it is expected that the Senate Committee will recommend that Senator Fieldings' proposals will be put off until after the Productivity Commission finalises its report.

Information relating to Senate Committee inquiries, can be located on the Internet at http://www.aph.gov.au/senate/committee/wit_sub/index.htm

To register your interest in the Productivity Commission inquiry, go to http://www.pc.gov.au/projects/inquiry/problem-gambling

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