Analysis of EGM licensing decisions by the gambling regulator, Victoria, Australia

Abstract

Gambling expansion is commonly justified in public discourse by claims of community benefit, increased employment and capital investment. Compared to other jurisdictions, the Electronic Gambling Machine (EGM) license process in Victoria, Australia, is relatively transparent and amenable to analysis. This article describes research that assessed factors relevant to EGM license decisions made by Victoria’s gambling regulator between 2007 and 2014. During the period under review, the regulator granted 144 of 154 applications, finding that approving these applications would not be detrimental to relevant communities. Most commonly cited factors supporting approvals were commitments to undertake capital works, contribute to community purposes and increase employment. The regulator overwhelmingly agreed that supportive factors would balance harms, such as problem gambling, high levels of expenditure or socio-economic disadvantage. This research demonstrates the difficulty of balancing apparently quantifiable benefits against less readily measurable gambling-related harms in regulatory decision-making. The study found that harms were poorly conceived and understood inadequately and supportive factors frequently overstated. This process may lead to unnecessarily high levels of community harm, contradicting the purposes of the relevant legislation. The article suggests that better, more consistently applied principles are required to ensure the more rigorous scrutiny of supportive factors and improved understanding of gambling harms.

Keywords:

• Gambling regulation
• electronic gambling machines
• Australia
• social benefits
• social harm

Acknowledgements

The authors wish to thank the Municipal Association of Victoria for its support of this project.

The authors are grateful to the Victorian Commission for Gambling and Liquor Regulation for publishing these reports on its website.

Notes

1. Richmond Football Club Ltd v. Victorian Commission for Gambling Regulation (2010) (para. 53). Wantirna Club Decision, April 2010, increase 77 to 87 EGMs approved.

2. The Bay & Bridge Hotel Pty Ltd v. Victorian Commission for Gambling Regulation (2012) (para. 87). The Bay and Bridge Hotel Decision February 2012, 29 EGMs approved.

3. Rhetro Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2012) (paras. 35 and 36). Birallee Tavern Decision, July 2012, increase 24 to 30 EGMS approved.

4. Bright Newbay Hotel Pty Ltd v. Victorian Commission for Gambling Regulation (2010) (para. 65). New Bay Hotel Decision, April 2010, 50 EGMs approved.

5. Trio Taverns Pty Ltd. v. Victorian Commission for Gambling Regulation (2011) (para. 28). The Dick Whittington Tavern Decision, December 2011, increase 29 to 40 EGMs approved.

6. Benmara Pty Ltd v. Victorian Commission for Gambling Regulation (2009) (para. 40). Bridge Inn Hotel Decision, July 2009, 40 EGMs approved.

7. Maryborough Highland Society Inc. v. Victorian Commission for Gambling Regulation (2012) (para. 88). Maryborough Highland Society Decision, February 2012, 65 EGMs approved.

8. Morwell Bowling Club and Recreation Centre Inc. v. Victorian Commission for Gambling Regulation (2012) [para 32]. Morwell Bowling Club Decision, January 2012, increase 62 to 69 EGMs approved.

9. Bridele Hotel Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2013) (para. 43). Cardinia Park Hotel Decision, June 2013, 40 EGMs approved.

10. Casa D’Abruzzo Club v. Victorian Commission for Gambling and Liquor Regulation (2012) (para. 49). Casa D’Abruzzo Decision, July 2012, increase 60 to 75 EGMs approved.

11. Lordhaven Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2014) (paras. 44 and 45). Albion Hotel (Dandenong) Decision March 2014 increase 24 to 30 EGMs approved.

12. Ferntree Gully Bowling Club Inc. v. Victorian Commission for Gambling Regulation (2012) (para. 29). Ferntree Gully Bowling Club Decision, December 2012, increase 28 to 34 EGMs approved.

13. Phillip Island RSL v. Victorian Commission for Gambling and Liquor Regulation (2013) (para. 43). Phillip Island RSL Decision, March 2013, increase 53 to 58 EGMs approved.

14. Springvale RSL v. Victorian Commission for Gambling and Liquor Regulation (2012) (para. 61). Springvale RSL Decision, April 2012, increase 44 to 55 EGMs approved.

15. Ferntree Gully Bowling Club Inc. v. Victorian Commission for Gambling Regulation (2012) (para. 34).

Ferntree Gully Bowling Club Decision, December 2012, increase 28 to 34 EGMs approved.

16. Branbeau Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2013) (para. 17). The Family Hotel Decision, June 2013, increase 20 to 28 EGMs approved.

17. Jayeesar Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2012) (para. 26). Robin Hood Hotel (Ballarat) Decision June 2012, 20 EGMs approved.

18. Bendigo Stadium Ltd v. Victorian Commission for Gambling Regulation (2011) (para. 15). Bendigo Stadium Decision, September 2011, increase 75 to 105 EGMs approved.

19. Bells South Melbourne Pty Ltd v. Victorian Commission for Gambling Regulation (2009) (paras. 68 and 69]. Bells Hotel Decision, July 2009, 40 EGMs approved.

20. Bridele Hotel Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2013) (para. 40). Cardinia Park Hotel Decision, June 2013, 40 EGMs approved.

21. Bakers Arms Hotel Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2013). Braybrook Hotel Decision, October 2013, increase 31 to 50 EGMs refused.

22. Rankindi Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2014) (para. 36). Baxter Tavern Decision, May 2014, increase 30 to 45 EGMs approved.

23. Maryborough Highland Society Inc. v. Victorian Commission for Gambling Regulation (2012) (para. 79). Castlemaine Sports & Community Club Decision, February 2012, 65 EGMs approved.

24. Bridele Hotel Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2013) (para. 29). Cardinia Park Hotel Decision, June 2013, 40 EGMs approved.

25. Bentleigh RSL Sub-branch Inc. v. Victorian Commission for Gambling and Liquor Regulation (2013) (para. 43). Bentleigh RSL Decision, July 2013, increase 75 to 80 EGMs approved.

26. Box Hill Golf Club Inc. v. Victorian Commission for Gambling Regulation (2011). Box Hill Golf Club Decision, August 2011, increase 34 to 39 EGMs approved.

27. Benmara Pty Ltd v. Victorian Commission for Gambling Regulation (2008) (para. 53). Bridge Inn Hotel Decision, March 2008, 60 EGMs refused.

28. Mansfield Golf Club Inc. v. Victorian Commission for Gambling Regulation (2012) (paras. 70 and 74). Mansfield Golf Club Decision, February 2012, increase 29 to 40 EGMs approved.

29. Italian Sports Club Inc. v. Victorian Commission for Gambling Regulation (2012) (para. 64). The Italian Sports Club Decision, July 2011, increase 57 to 70 EGMs approved.

30. Kingfish Victoria Pty Ltd v. Victorian Commission for Gambling and Liquor Regulation (2013) (para. 39). The Golden Fleece Hotel Decision, August 2012, 25 EGMs approved.