New Gambling Council Announced - Usual and not so usual suspects

On Monday, a public holiday here in Victoria, the State Government announced the makeup of the Government's new Responsible Gambling Ministerial Advisory Council. The official press release is available here.

The members and their organisations are as follows:

INDUSTRY REPRESENTATIVES

John Bresnan - National Corporate Affairs Manager, Australian Leisure & Hospitality (ALH)
Leon Wiegard - President, Clubs Victoria
Brian Daley - State President, Victorian Branch of the Australian Labor Party (Currently in Government) and Secretary, Victorian Branch of the Liquor, Hospitality and Miscellaneous Union
Bill Horman - General Manager, Community Affairs, Crown Casino
Mohan Jesudason - Executive General Manager - Gaming, Tabcorp
Scott Clarebrough - General Manager - Commercial Operations, Tattersall's
Robert Nason - CEO, Racing Victoria
Vicki Flannery - Executive Director, Australian Gaming Council
Geoff Rankin - CEO, Australian Leisure & Hospitality (ALH)

COMMUNITY REPRESENTATIVES

Mike Hill - Chairman, Communities Against Pokies Problems
Andrew Rowe - Chief Executive, Victorian Local Governance Association
John Dalziel - Communications Director, The Salvation Army Australia Southern Territory, Salvation Army representative on the InterChurch Gambling Taskforce
Mark Zirnsak - Social Justice Officer, Uniting Church, Uniting Church Representative on the InterChurch Gambling Taskforce
Julie Smith - Research Fellow at Australian National University - National Centre for Epidemiology and Population Health - author of "Gambling taxation — public equity in the gambling industry?"
Cath Smith - Chief Executive, Victorian Council of Social Service (VCOSS)
Phong Nguyen - Director, Springvale IndoChinese Mutual Assistance Association (SICMAA)
Alan Bliss - Victorian President, CPA Australia
Eddie Chapman - Executive Officer, Council of Gambler's Help Services

Its an interesting lineup. The recently taken-over ALH with two representatives is a surprise especially as they haven't been very vocal in the debate thus far. The AHA Victorian Branch is not represented even though they are responsible for the self-exclusion program. The contribution of Brian Daley will be interesting considering he is the president of the Victorian Labour Party.

On the community side, Alan Bliss is a notable inclusion. CPA Australia have only recently made a partnership with the State Government in regards to gambling (see here) and it is not clear what their contribution will be. Also the inclusion of Julie Smith has to be in relation to the research agenda that will need to be carried out considering this panel replaced the Gambling Research Panel.

The Age published an article on the panel here.

Of course the proof will be in the pudding, and we should wait to see how the panel proceeds before rushing to judgement.

GG

Merry Christmas to all

A very merry christmas and happy holidays to you all.

GG is taking a break over the next few days and will be back on the 29th of December before a break over New Year.

GG

Former Gaming Minister Richard Face gambles and loses

Richard Face, former minister for gaming in the New South Wales government may spend this christmas in jail after being found guilty of making false and misleading statements to the NSW Independent Commission Against Corruption, commonly referred to as ICAC.

ICAC conducted an inquiry into Mr Face's conduct, and their report published in June this year (2004) found that Face had lied about using materials from his parliamentary office to setup a consultancy, that he would operate on his departure from the parliament in March 2003.

The report (available here) recommended that Face be prosecuted for his actions, and as the Sydney Morning Herald reports was found guilty and will be sentenced today.

The case revolves around a letter that Face sent to the inquiry denying the claims made against him in order to try and prevent the inquiry proceeding, however when it did proceed he later admitted using his office for his own personal advantage.

His laywer claimed that Face panicked and therefore should be treated leniently. The prosecutor asked for a jail term saying that since Face had 14 days to respond to the inquiry and had sought advice during this time, he should receive a jail sentence as Face was a public figure in a position of responsibility and an example should be made.

The NSW Opposition have also raised concern that the head and deputy head of the NSW Department of Gaming and Racing were also in attendance at court.

Among those in court were the head of the Department of Gaming and Racing, Ken Brown, and his deputy, Darrell Loewenthal. Mr Brown declined to comment about his attendance.
But the deputy Opposition leader, Barry O'Farrell, said it was "highly inappropriate" for the senior public servants to attend and asked for Face's successor as Gaming Minister, Grant McBride, to explain. The minister's spokesman would make no comment.
"Given that the Face-ICAC saga commenced because of the blurring of lines between public and private duty, the presence of the DG [director-general] and deputy DG of a government department at the proceedings suggest that the lessons have not been learnt," Mr O'Farrell said.

It is important that gaming regulation is seen as being independent and fair especially in an issue that faces so much scrutiny.
Some of these concerns are noted in this Crikey article from February 2003

How can the public have faith in the regulation of gaming when a minister behaves in this way seemingly with the support of the senior public servants reponsible for regulation of gaming?

Gambling can be a grubby business. Sometimes you can't wash it off your Face.

GG

UPDATE: Face was convicted, fined $2000 and placed on a good behaviour bond. Magistrate Pat O'Shane said jail was only required to protect the public and would not be necessary in this case. However she remarked that given his 30 years of public service it was a "substantial penalty" to have a conviction recorded against his name. More.

Gambling is no 'free lunch'

Bill Kearney, author of the book “Comped”, a fictional story based on his real life experiences in North American casinos wrote this article for the Philadephia Daily News. It presents another angle on why everything has its costs and consequences when it comes to gambling.

PHILADELPHIA DAILY NEWS
Posted on Tue, Dec. 21, 2004

Gambling's 'free lunch' can be mighty expensive

By BILL KEARNEY

IF I WERE to ask you what's the gaming capital of the world, the odds would be in favor of you answering Las Vegas.Close, but no cigar.Here's the bottom line from the Nevada Gaming Control Board and the New Jersey Casino Control Commission:In 2003, Las Vegas had 36 million visitors, while Atlantic City had 32 million. But Las Vegas casino winnings were just $4.3 billion, while Atlantic City's was actually $4.5 billion.Although Las Vegas' non-casino revenue was $5.6 billion, Atlantic City's was a mere $400 million - but let's not forget that Atlantic City has only 12 casinos.And one other thing that contributed to Las Vegas' big lead in that last category - more than 75 percent of the visitors to Las Vegas fly in from all over the country and stay an average of three to four days.That's nice for the town's economy but not much time to pick up the habit, not like those visitors to Atlantic City who are within a tank-of-gas drive. It's an old story, location, location, location, or should I say, if you build them, they will come.Now that you know why Atlantic City is the gambling capital of the world, I know you're intelligent enough to figure out that it's not just the location that makes the same people go back week after week.So what is it then, surely not the entertainment, restaurants or hotel rooms, if they're only bringing in a modest $400 million? No, it can only be the comps, free booze, credit - and 24/7 gambling, along with the other items that the casinos throughout the country have learned how to use to seduce their prey.

Just the other day I got into a heated conversation with a crew of seniors from my gym.The topic was casino gambling. They said they frequent the casinos of Atlantic City and thought it's a good idea that it is being legalized here in Pennsylvania. One after another, they filled me in on all the benefits, from property tax cuts, less gas for for all those trips they won't have to make down to the shore and less wear and tear on their automobiles, all the way down to the toll money they'll save.When I brought up the increase of gambling addiction that leads to embezzlement, bankruptcies, family problems, domestic violence and other social ills, one of the seniors stood up, looked me in the eye and hit me with a historic line from their great generation."Don't give me that addiction crap," he said. "Your generation's always passing the buck, looking for excuses. If only you learned there's no free lunch in this world."As I stood there, stifled, I picture him and his crew waiting like cattle in front of the trough with their comp slips in hand at the brand-new casino buffet that's coming here.

Bill Kearney is the author of "Comped." E-mail ianscottpress@hotmail.com.

Too often people don't realise the true costs of gambling. Its true – there is no such thing as a free lunch.

GG

Is education funding a good enough reason for legalising casinos?

A debate seems to be raging in Jamaica about whether to introduce casinos. An article in yesterday's Jamaica Gleaner, available here (Thanks to Christine McKay for sending me this article), has a leading educator in the Carribean nation suggesting that casinos are the solution to meeting the island's future education funding requirements.

Dr Ralph Thompson, a member of the National Council of Education believes that the benefit of gambling would outweigh any costs:

Dr. Thompson argued that the benefits from casino gambling would outweigh any perceived drawbacks, saying the Govern-ment had an obligation to exhibit leadership in putting it in place regardless of whatever political fallout it may cause.

DECISION

The prominent educator said he was flabbergasted as to why such a logical decision had not yet been made, adding that it was better to gamble on casinos rather than to gamble on the future education of children.

Is it really worthwhile introducing casinos for a percieved 'good cause' despite the potential impacts or is this just an opinion that doesn't fully consider the consequences of legalised gambling upon communities.

Nonetheless it is a debate that needs to happen in every jurisdiction before gambling can proceed. Unfortunately it often does not occur. This is because usually government and industry are for gambling, service providers are usually neutral and there is a small group usually led by churches that are opposed. The anti-gambling lobby usually develops after legalised gambling is introduced, when people begin to suffer from the harmful impacts of gambling. However by then it is too late and if is difficult, if not impossible to go back.

If your community is considering gambling develop you opinion before they are introduced. It is then that the opinion of the community has the greatest impact.

GG

For us to know and you NOT to find out - Victoria's Gambling Research to be selectively published

Victoria's Gambling Research Panel, disbanded a few months ago, had a reputation for conducting quality independent research which was published regardless of its outcomes. The new Ministerial Advisory Council which will assume the research responsibilities of the GRP, not only will have significant industry membership and is expected to be wary of conducting research with the potential to deliver outcomes negative to government and the gaming industry, but revelations presented in today's Age suggest that regardless of the results the research results do not have to be published.

The article available here expresses the concerns of anti-gambling groups such as CAPP and Interchurch Gambling Task Force at the decision.

My main concern is that if as quoted in the article, Minister for Gaming, John Pandazopoulos says research is going to continue to be published that the government opposed an amendment to have all produced reports tabled in parliament.

Is it possible that some of the research could now be on 'gaming studies' type research rather than community benefit research. By this I mean research into strategies to increase demand, spend etc. with the idea that this is in the public interest due to the revenues obtained? Maybe this is a stretch but the issue is that it opens up the new MAC to questions before it is even established.

Why is the government becoming so sensitive about gambling research? Do they have something to hide?

GG

A Pill for problem gamblers and problem gambling without gambling

An interesting article in the Kansas City Star brings to light news of a drug to treat problem gambling and a new account of Shaffer's research (mentioned in the previous post Problem Gambling - Its all in your brain . . . and your genes).

The article available here initially focuses on Californian company, Somaxon Pharmaceuticals Inc. licensing of the drug nalmefene hydrochloride for use in controlling impulse disorders, but the company is specifically focusing on gambling.

“Everybody knows that gambling in this country has undergone spectacular growth,” said Cohen. “Problem gambling is a significant illness and public health problem. There is no effective treatment for these people.
“We're reluctant to refer to anything as a magic bullet. But we think it has great promise. We know from phase two studies the drug had a significant effect compared to the placebo.”

The article then moves to discussing what Shaffer calls "my career's work".

The main point that got my interest in this discussion of the research was the following paragraph.

Shaffer expects to make waves among professional colleagues who believe addiction doesn't occur without a physical stimulant.

Is exposure to poker machines a physical stimulant or can you get 'addicted' to poker machines without ever going near one. I doubt this would be possible but others may know better than me (maybe Shaffer's professional colleagues?)

Maybe this is just an issue with the reporting, as some have suggested in the comments and in other forums. The problem is whilst I am sure that there is value in the research it is easy for this types of statements to be used by those willing to pursue an argument that nothing is wrong with gaming machines or their operation, it is just that some people are predisposed to developing problems.

If this was true what would we do about it? Genetically screen people and say they can't gamble? Hand out pills at the casinos and gaming venues? Its a slippery slope.

Its also the kind of argument that releases venues from duty of care as it suggests that the onus is on the individual to have known they were susceptible to the 'addiction', and to have done everything neccessary to prevent it developing.

Yes, I am a cynic when it comes to industry research, but I think with good reason. Too many times has material been presented which was flawed or constructed to present a particular point of view. (See ACIL research and presentation to the Australian Productivity Commission as an example.)

I personally don't think you can be addicted to a product that doesn't exist or isn't available, although you may be more likely to become addicted to substances or behaviours than others. I believe that governments and operators do have a duty to protect the community from substances, products and behaviours that are potentially harmful to the community - a role they fill in many cases, however not for gambling.

It is time that we all acknowledge that the product is harmful and something needs to be done. Why the harm occurs is due to the range of factors but the machines and their operation definitely plays a role, despite Shaffer's research and industry statements.

GG

Community Attitudes to Gambling: Bloggers Speak Out

As community perceptions seem to be moving more and more towards the position that something needs to be done about the effect that poker machines are having on the community, opinions have been appearing in the blogosphere (the world of weblogs) in blogs that aren't specifically about problem gambling.

Mallrat, sent me this link Bloodsucker awards to a post on 'its' blog which apart from being outraged at the impact on the community examines the policies of the various political parties on the issue.

The Coober Pedy News is discussing on their blog their communities campaign to stop poker machines coming to the outback town. Pokies voted out mentions that 800 people have signed a petition against the introduction of pokies, a significant proportion considering that their are only 904 people that voted in the last election.

Gary Sauer-Thompson in his blog, Public Opinion discusses last years Four Corners report on Tattersalls. A great cartoon is presented with this article.

He also expresses surprise at how little is done to minimise the harm from gambling.

Also the blog Coporate Engagement mentions the AAGM class action that has just been launched in a post titled Generous Pokies.

The views from the blogosphere make interesting reading, and as there is a large online support community for those negatively affected by their own or someone elses gambling it is just a matter of time before blogs on this subject become more common on the web. (Currently mailing lists and discussion boards are the tools of choice among this group.)

One example is Getting Past Gambling which is a blog which is updated almost daily with advice for problem gamblers as well as being the front page for a yahoo groups discussion board/mailing list which has about 50 members. For those concerned about their gambling who are looking to talk online with others about their recovery, this is a good place to start.

The internet can be a valuable tool for both opinion and support. Hopefully GuruBlog also fits this role.

GG

A$100m for 'pain and trouble' - Not problem gamblers but Tattersall's trustees

Sometimes when my 21 month year old daughter cries or shouts for no reason other than to get my wife or my attention, I say to my wife as if she is talking "Its just so hard to be a baby, Mum. Just eating, sleeping, playing all day - its just so hard." Its in fun as my wife and I are running around madly trying to prepare her food or her bath or something for her while she just shouts for immediate action.

However after reading the front page of today's Herald-Sun my daughter may have a lot in common with the trustees of Tattersall's who have claimed in an affidavit lodged with the Supreme Court that they should be paid $100 million dollars for the pain and trouble of being trustees for the estate. Note that these are the same trustees that don't actually run the company - that is the role of Tattersall's CEO, Duncan Fischer and his executive management team. These are also the same trustees which currently earn more than a million dollars a year plus director's fees, superannuation and two free cars.

The article which is available here details some of the claims that the trustees have made. Apart from detailing some of the business dealings carried out by the trustees, it leads to a second article also published in the Herald-Sun today which uncovers the unethical use of the Tattersall's charitable donations for business purposes.

The "Strategy for Tatts Charity" shows that Tatts have not been selfless with their donations but rather have seen their sponsorship and charitable giving as another strategic tool to manipulate community and business support for their business.

It is interesting that at a time where gamblers are considering going to the courts to reclaim monies lost to the the harm from gambling, the operators are also going to the courts claiming that they are also experiencing harm.

If it is so harmful then why are they in the gambling business?

GG

Action Against Gaming Machines Class Action Story on Today Tonight

A story on the class action challenging the fairness of poker machines appeared on Today Tonight last night. A pdf of the story is available here.

GG

Responsible Gambling in three acts

I read today an interesting presentation by William Eadington of University of Nevada, Reno's Institute for the Study of Gambling and Commercial Gambling as presented at Midwest Conference on Problem Gambling and Substance Abuse 2004 held in Missouri, USA.

The presentation titled "Trends in Gambling and Responsible Gaming in the United States and Elsewhere" (and available here) presents an analysis of the responses to problem gambling by the key stakeholders.

He examines the reaction of the various 'actors' in his play which examines how gambling is handled by the community.

An interesting slide in his presentation concerns what Eadington call sub-plots. These include the following:

• The consumer is not a major player
• The Helping Services are getting bumped by higher priorities in the fiscal desperation
• The problem gambler is like the homeless derelict that many of us try to ignore as we walk through the city streets - Throw him a dollar from time to time , but easier to walk by, shake one's head and go to work.

This slide is very true on a number of levels. These issues are sub-plots - they aren't in the main game when it comes to legalised gambling and thus are treated as side effects rather than critical factors to be considered in the debate.

The consumer clearly is not a major player basically because their appetite for the product overshadows all other factors. This is especially true in Australia where the question is not whether a venue will make money, but how much will they make. Put a poker machine anywhere and you will find gamblers drawn to it.

Help services are often seen by governments and gambling operators as a neccessary evil. They would rather not have them but someone needs to handle the problem gamblers, so they exist. It is interesting to note that the original gaming act and policy under which gaming machines and the casino was legalised in Victoria did not include the provision of help services.

And problem gamblers are those unfortunate people that are either predisposed to getting a problem or can't control their gambling because of other issues in their lives - or at least that is the message that we are delivered. As long as YOU stay in control YOU will be okay, its got nothing to do with the machines or industry practices.

Until these issues stop being subplots and become key issues, either "Denial" or "Lip Service" will be the stages where the debate in Australia remains.

GG

Bonusing and Loyalty systems - Ethical use of technology?

I received an email two days ago on a listserv asking about whether the laws around promotion are so lax that they allow players who are losing to be targeted. The question was raised from a quote from an article published in the Wall Street Journal on November 28. The author of the email presented the following quote from the article.

If a gambler uses a "Total Rewards" frequent-gambler card, the slot machine begins to record his every move. The job can keep as many as four dispatchers busy.
In one effort rolled out first in East Chicago this fall, Harrah's has been dispatching "luck ambassadors" to give nominal gifts to big losers -- people who are losing more than expected as tracked by the boat's central computer system and Harrah's loyalty cards. Harrah's has learned that gamblers are more likely to play longer and make a return trip if they receive a small goody.

The author also asked if this was true. The following is some of my response:

Bonusing and loyalty systems are considered marketing systems and not'gaming' systems. This means that they do not fall under the jurisdiction of the regulator in most jurisdictions unless they have a role in determining jackpot outcome or, in some jurisdictions, if the system allows cashback directly to the machine.

Even if they do come under the jurisdiction of the regulator the emphasis is on whether they are fair which is defined as they do what they are supposed to do. The ethics of the practice are not assessed as the operation of these elements is still considered marketing.

There are a few reasons why the system is operated in this way:
1. It does keep the players either at the machine, in the venue or coming back - the way any loyalty system should.
2. Any payments, prizes etc. to players are tax deductible in many jurisdictions as they are considered a business/marketing cost(especially in North America)
3. You get to know a great deal about your players and can cater/market to them accordingly
4. You can selectively reward players according to a range of criteria.

What this also means is that like the J-Lo's mother case, casinos can set up personal progressives targeting certain players or classes ofplayers to ensure that they have a greater chance of hitting jackpots. I'm sure the casino in question knew exactly what they were doing when it hit. Again prizes/rewards from these systems are considered marketing not gaming so they do not have to be or even imply that they are random (which they are not.)

Some of the listserv's Australian members asked whether this is possible here, and the answer is yes. Crown Casino in Melbourne and Star City in Sydney use an Acres Bonusing System. The Acres system has personal progressives as a element. Acres' own promotional material says the following about Personal Progressives:

An exciting carded bonus promotion that gives players their very own progressive jackpot that only they can win!

I'll leave the ethics of the argument to others, but we need to realise that the gambling industry is a business with the aim to make money. That is their primary objective.

GG

Why you shouldn't blow up the pokies - You go to jail

I missed this article in The Age on November 30.

Blow up the pokies gambler jailed
A gambler who started a $A16.8 million blaze at a British motorway service station after he lost $A480 on a slot machine has been jailed for three-and-a-half years.

Jason New, 31, showed no emotion as his sentence was read out at a Manchester court.

New, of Blackpool, used an 85 pence ($A2) lighter to set fire to a pokie machine at a services centre on a motorway near Rochdale in a bid to get his cash back.

The blaze tore through the shopping and restaurant areas and took 74 firefighters almost four hours to control.

At an earlier hearing, the court heard how New went to the station with two friends to play the fruit machines.

He became aggrieved and angry when he lost STG200 ($A480) on one of the machines and started kicking it, saying it owed him money.

New, who has sole care of his four-year-old daughter, bought a lighter from the services shop and set fire to the machine, causing damage that ran into millions.

There are much better ways to do something about gambling.

GG

Update: "Pokies addicts to sue for loss"

The Herald-Sun today published an article on the class action mentioned yesterday.

GG

Australian First: Class Action forming to challenge the fairness of poker machines

In an Australian first, a class action is being formed to sue governments, operators and manufacturers for damages to compensate players for the harmful affects of poker machines by proving that poker machines are 'unfair'.

NOTE: I, OR GAMBLER'S HELP SOUTHERN DO NOT HAVE ANY POSITION OR COMMENT ON THIS ACTION AT THIS TIME

Action Against Gaming Machines (AAGM) have set up a website, http://www.epost.net.au/aagm, presenting their case and asking people to sign up to join the class action.

It will be interesting to watch how this progresses.

GG

Problem Gambling - Its all in your brain . . . and your genes

At the recently held 5th annual National Center for Responsible Gaming Conference on Gambling and Addiction, researcher, Dr Howard Shaffer of Harvard Medical School presented a paper that suggests gambling and other addictions are caused by an underlying syndrome which affects the brain and is present in our genes.

The NCRG is the gaming industry's research body which has been criticised over its objectivitiy in recent months. The following comes from an description of Shaffer's presentation to the conference on the NCRG website:

To this point, addictions to drugs, alcohol, gambling and other substances have been treated as separate and distinct disorders. According to the research, this current view of separate addictions might be similar to the view espoused during the early days of AIDS diagnosis, when rare diseases were not yet recognized as opportunistic infections associated with an underlying immune deficiency syndrome.

A syndrome is defined as a cluster of symptoms and signs related to an abnormal underlying condition. Not all symptoms or signs are present in every expression of the syndrome, and some manifestations of a syndrome have unique signs and symptoms.

In their review, the Harvard researchers cited multiple studies showing shared neurobiological causes, shared psychosocial causes and shared experiences across different addictions that point to the validity of the syndrome model. The research also indicates that addiction to any particular object is due in large part to exposure, access and the capacity to produce a predictable and sought after shift in the mental state.

For example, many studies have shown that psychoactive drugs (e.g., alcohol, cocaine, heroin) and behaviors (e.g., gambling, shopping) cause similar neurological reactions. In fact, according to the study, neurobiological reward activity represents the most well-known evidence that supports an addiction syndrome.

There is also evidence suggesting substantial genetic and environmental commonality across addictive behaviors. For example, pathological gambling shares a common genetic vulnerability with alcohol dependence. Additional studies have indicated that individuals are frequently dependent on multiple substances, again indicating a general addictive tendency. These further findings suggest that the genetic link to addiction does not account for vulnerability to a specific object of addition, but instead a general and increased risk for addiction.

Dr. Shaffer noted that the causes of addiction include personal vulnerabilities, object exposure and object interaction. More specifically, throughout their lives, people encounter and accumulate specific combinations of neurobiological and psychosocial elements that can influence their behavior and contribute to their susceptibility to addiction. Some elements increase the likelihood of addiction, while other factors, such as support networks or religious beliefs, are protective and reduce the chance of addition. At the same time, individuals are exposed to and have access to different objects of addiction. Exposure increases the chances for interaction, which can lead to problems for at-risk individuals.

Looking at addiction as a syndrome has many important implications for treatment. About 80 to 90 percent of individuals entering recovery from addiction will relapse during the first year after treatment. This circumstance might be due in part to the current standard use of focused, object-specific treatment approaches. By shifting to a syndrome approach, the most effective addiction treatments might include both object-specific and addiction-general treatments. The syndrome model further encourages clinicians to recognize that patients develop new risk factors during treatment that can interfere with recovery efforts, and it requires clinicians to develop multidimensional treatment plans that account for the many relationships among the multiple influences and consequences of addiction.

Whilst this hypothesis may be valid, it is also very convenient for the industry as it places the fault for gambling problems on the individual. Basically it says that you have an underlying syndrome and you should have prevented your exposure to gambling or you wouldn't have a problem. It also says that gambling is fine for everyone else that doesn't have the syndrome.

Another session at the conference, took this even further. “Is Addiction a Brain Disease: What Genetics and Brain Scans Are Telling Us About Gambling and Substance Use Disorders” blames the functioning of the brain as actually playing a part in the poor decision making of problem gamblers. In this except the presenters also blame genetics for vulnerability to problem gambling behaviour.

Kosofsky and Gasic noted that brain scans show that whether a person is addicted to drugs or pathological gambling, the addiction actually changes the shape of the brain, and that this change occurs early in exposure to the substance or activity and is long lasting. Gasic also noted that, in particularly vulnerable populations, long-term drug use can actually cause permanent damage to the brain, which may also be true of pathological gambling.

While the common neurological responses of all addictions are clear, Gasic said the level of vulnerability to addiction is where genetics plays a role. In fact, he said, brain scans show that there are indeed populations that are more susceptible to addiction than others. Studies of twins and families have shown that the brain of a child of an alcoholic and that of a non-alcoholic, even before exposure to alcohol use, develop differently. Yet, both researchers noted that while a genetic predisposition for addiction exists, environment and behavior still play a key role in determining susceptibility to addiction.

Industry seems to be moving to a certain position that problem gambling is a medical problem that is not caused by the machines but by an underlying condition that is not managed by the individual. This seems to be exemplified by this statement:

Finally, Kosofsky and Gasic noted that researchers and clinicians must stop treating each addiction as unique and must begin to adopt the syndrome model. According to the researchers, addiction is both a brain disease and a behavior that individuals can somewhat control. Just as in diseases like diabetes or asthma, the disease can be managed through proper treatments and individual responsibility.

This is an interesting approach from the industry and selected researchers. I would be interested in your opinions on this, as I am still dissecting it and as I am not a psychologist or affected gambler, it is difficult to get a clear position although I am naturally suspicious of the industry.

GG

AFL & Cricket Australia tempted by gambling dollars

Last week I discussed the issues the American NBA faces when debating its involvement or affilliation with gambling. However the question of whether to capture a slice of the growing gambling dollar is a question that is being faced by Victoria's two biggest sports - namely australian rules football and cricket.

Today's Herald-Sun details how the AFL and Cricket Australia have confirmed that they are discussing potential involvement in various gambling operations.

Basically their reasoning for this seems to be that since others are making money out of betting on our sport we want our share too.

The AFL's general manager of commercial operations Gillon McLachlan has confirmed the approaches from the gambling industry, but said it was premature to provide detail.

"I don't think it's any secret that a number of industry participants have said they're going to approach various sporting bodies about a formal relationship," he said last night.

"We're one of those and, yes, I can confirm we have been approached by various parties. That's about as much as I'd like to say at this stage; we haven't briefed the clubs yet. Sports betting is a growth market worldwide and we think it's reasonable for our industry to receive its fair share of the revenue created by the game."

It should be noted that this is the opposite of most sports in the US where gambling on sports can be seen as jeopardising the integrity of the game. Also AFL clubs already benefit from gambling through owning or operating gaming venues, and the AFL benefits directly through its involvement in the Tipstar football tipping competition run through Tattersall's outlets. One club is even the recipient of government funds to educate young people about responsible gambling (whilst operating two gaming venues.)

It would seem that apart from benefiting substantially already from gambling they want more regardless of the messages this has on the community. The AFL seems to accept that gambling is a profitable part of their business and they should encourage it. There have already been cases where senior players have accumulated gambling debts but the AFL continues to present a paradoxical message to players and the public alike.

Cricket Australia have been analysing the gambling issue for some time due to the claims of fixed matches etc that have affected the sport in recent years. It is surprising then that they would consider direct involvement with gambling. This is especially true when some have claimed on Victorian radio that the game that Cricket Australia Chief Executive James Sutherland and Tabcorb Managing Director Matthew Slatter was fixed, claiming that Australian bowler, Michael Kasprowicz 22 run over was no accident.

While it is doubtful that this match was actually fixed, its raises some of this issues that sports can face if they encourage gambling, let alone to potential consequences for gamblers who lose control gambing more than they can afford.

Many people are passionate about their favorite sports and teams. When gambling becomes involved, especially when it is sanctioned by the sports governing body, a dangerous cocktail which is excessively consumed can cause widespread damage to individuals, families and communities.

The AFL and Cricket Australia need to very carefully consider their involvement in gambling as it could damage not only their sports but their fans who they say are their lifeblood. Why then infect the population with more sanctioned gambling.

GG

Why Trump Casinos went bankrupt?

This is from The Onion

Just for laughs,
GG

Tabcorp teaching the world to practice responsible gambling the Victorian way

Consistently, especially over the last six months, Victoria has been held up internationally as how not to operate poker machines. Most in Victoria, including government, operators, services and action groups at least agree that more needs to be done, even if they don't agree on what that is.

It then seems pretty bold that this week Tabcorp will be presenting to an International Conference on Gaming Industry & Public Welfare to be held in China this week on "Strong Social Responsibility - A Imperative to the Success of Tabcorp". (An abstract of the paper to be presented is available here.)

The message of the paper, and the industry more and more seems to be that doing what is required by the law means responsible gambling. Responsible gambling however is so much more. It means acknowledging that the product you provide and profit from has consequences and sharing the responsibility for those consequences.

To put it simply gaming operators in Victoria, Tabcorp included, have not and are not doing enough to reduce the incidence and prevalence of problem gambling.

Also I think despite the messages put out by Tabcorp in recent weeks, this is a pretty firm sign that Tabcorp have more than just their eye on Macau.

GG

Victorian problem gambling leads to new class of criminal

Today's Herald-Sun reveals not only the growing problem of crime, especially of the white-collar variety, linked to gambling but also the fact that many legal professionals are concerned that there is a new class of criminal developing fuelled by gambling problems.

People don't realise that problem gambling doesn't just affect the gambler it affects their family, friends, work colleagues, employers and wider community. Like casting a pebble into a pond the ripples move onward and outward affecting those around them.

The Heart Research Centre example presented in the article is no exception. This person's problem gambling has not only affected her family, friends and workplace it has affected the ability of the Heart Research Centre to carry out its work to find cures to life threatening illnesses. We of course will never know what direct impact this will have but some negative affect is guaranteed.

Government claims to have the toughest responsible gambling measures in Australia. This is questionable at best given the opinions of many experts in the field and even if it is the toughest that may be only because it is compared to equally weak and ineffective legislation elsewhere.

The assessment of whether actions to respond to problem gambling is effective needs to be conducted by an independent body without a vested interest - as despite the damming evidence to the contrary government and the gambling industry do not seem to be able to see the forest for the trees when it comes to problem gambling and its impact on the community.

There have been many changes in gambling policy this year, however we just seem to be going nowhere fast.

GG

The NBA's gambling conumdrum: Atlantic City, the Maloofs and the Maverick Mark Cuban

The National Basketball Association (NBA) is the world's greatest showcase for basketball. Players throughout the US and internationally aspire to join a league which attracts a massive fan base as well as massive investment and profits from this extremely professional sport. However it faces a major issue in how to handle gambling.

In the past the NBA has been wary of associating itself with gambling. For many years Las Vegas has tried to get an NBA franchise, however for the first time there is actually a chance that it may happen. The Las Vegas Review-Journal reported in October on efforts by Las Vegas to attract a team with the mayor, Oscar Goodman saying it will happen within 2 1/2 years and various current NBA team owners supporting the move.

However there are even close connections that currently exist between gambling interests and the NBA. Owners of the Sacramento Kings, the Maloof family also own the Palms Hotel-Casino, in Las Vegas , which is currently one of the most popular casinos in Vegas especially with young people and celebrities.


On top of that, the NBA-owned and operated WNBA (Womens National Basketball Association) actually has a team owned, and carrying the name of a casino. The Mohegan Sun casino in Connecticut is the home of the WNBA's Connecticut Sun who were defeated by the Seattle Storm (featuring Australia and the worlds best woman basketballer, Lauren Jackson) for the WNBA championship.

On the other hand the NBA and its commissioner David Stern have been against gambling on the outcomes of games for many years. This can be demonstrated by its recent support with the NFL and gambling addiction services to oppose gambling on professional sports in Atlantic City casinos, the main gambling mecca on the east coast of the USA.

So if their position on gambling was confusing at best already, Mark Cuban's recent revelations would be even more worrying. Cuban, the outspoken owner of the NBA's Dallas Mavericks, has proposed a gambling hedge fund which would allow investors to provide money to high rollers which would then gamble on professional sports. Cuban details his plan on his blog, Blog Maverick His plan, unfortunately for some, actually does make some sense (see this comment on blog maverick) although many can judge for themselves as many have on his blog.

Chris Isidore, the sports business columnist on CNN-Money points out that it would be difficult for the NBA to do anything to stop Cuban if he proceeded with the venture. He also says that it cleary points out the hypocrisy of the NBA on the gambling issue.

Professional sports need to ensure the integrity of their competitions. They need to take a firm stance on whether they will support gambling like many Australian sports or oppose it like the majority of US sports. They do however need to realise that their decision has consequences beyond their sport and they will be contributing to those effects and should have a responsibility to alleviate any negative consequences.

GG

Updates: Fielder Sues and Victoria ID Fraud gambler sentenced

Just some updates on previous posts.

On October 21, I posted "Fall from grace: Baseball's "Big Daddy" Strikes Out Big" about former Detroit Major League Baseballer, Cecil Fielder's struggle with gambling. Today the Associated Press reports (republished here by the US ABC News) that Fielder has sued the reporter and paper which first published the story. The libel suit demands $25 million in damages and fees for defamation and slander.

I will not be making any more comment on this case.

Another more recent post was on November 26, " Gambling in the Southern States - Action on various fronts". The Herald-Sun reports that Huey Nguyen who claimed his crimes were to feed his compulsive gambling was sentenced to a maximum of five years jail with a non-parole period of three years.

GG

Gambling the silent epidemic among international students

The significant impacts that gambling is having on international students attending Australian schools and universities is finally bubbling to the surface despite limited focus on the issue by gambling regulators, governments or educational institutions.

News.com.au report on an Asian student gambling plague which they say is exemplified by a 17-year-old student from China losing $40,000 whilst gambling underage at Adelaide's Sky City Casino.

Whilst the issue of an underage gambler losing this much unhindered is a serious concern, what is even more pressing is that gambling amongst foreign students is a growing problem.

Students are tempted to gambling for a number of reasons. These include access to large amounts of money which have been set aside for tuition, accommodation and other living expenses or is required under their visa conditions; limited ability to earn money legally as the number of hours a foreign student can work is limited by visa conditions; greater accessibility and acceptance of gambling when compared to their home countries; and the range of factors that make gambling attractive to all players such as the ability to escape stress, loneliness etc. - factors which are highly likely amongst foreign students who may have difficulty making friends or coping in an alien environment.

Students also unfortunately in many cases are easily tempted by gambling and like many in the 18-25 age bracket can lose control more easily, losing a great deal of money in the process.

Unfortunately many universities have been slow to pick up on this problem. This is mainly due to the lack of detailed research in this area and universities needing to protect their image in order to attract students, an issue noted in the News.com.au article.

However one group that has picked up on the trend is the gaming industry in Victoria. In the past few months applications for new gaming venues have been sought for hotels that in the past have traditionally been favorites with students due to their close location with universities. The Racecourse Hotel which is directly opposite Monash University's Caulfield campus and the Glenferrie Hotel which is about 200m from Swinburne University of Technology's Hawthorn Campus have been popular drinking holes for students for many years yet despite their being a general reduction of machines in inner suburban locations in favour of the growing outer suburbs and operators at the limit of the cap, these venues are applying to get machines. It should be noted that these are old pubs which have been in their locations long before poker machines were introduced in Victoria. So why apply for a gaming licence now? Could it be that they know that the student population is a growing untapped market? After all if it was for the general population these venues would have applied for machines long ago and the gaming operators would have been encouraging them to do so.

I think it is fairly safe to put two and two together in this case and see that to put it simply these venues will make money mainly due to their proximity to the university campuses. I think it is also not a big leap to say that this will only further exacerbate this growing problem of gambling among students, particularly those from overseas.

Poker machine gambling has negatively affected the lives of so many Australians, now we have started to impact those from beyond our shores.

GG

Dickerson shares his wisdom on responding to problem gambling

Mark Dickerson, a leading Australian researcher into gambling recently gave the conference summation presentation at the Insight Nova Scotia International Problem Gambling Conference held by the Nova Scotia Gaming Foundation in Halifax, Nova Scotia, Canada.

His presentation (available here) is a valuable dissection of the issues that need to be faced before an effective response to problem gambling can be developed.

There are some key points that he makes which are good advice to all in this field.

He emphasises that it is the process of selling gambling ie how it is presented rather than the fact that it is gambling or gaming machines which is the issue. Therefore he emphasises that the process of gambling in unethical and this is especially true with gaming machines but if other products were presented to consumers in this way they would also potentially be harmful.

He also advises that we need to avoid the politicisation of the gambling debate. This is difficult but we need to try and be objective and come up with solutions to the issue which are based on sensible, open debate that respects all and sundry regardless of their views which allow the community to get the greatest benefit. There may be winners and losers but it should not be at either extremity of the debate. This also means that total prohibition or total market freedom is not acceptable despite this being the views of various stakeholders.

He goes on to discuss some of the other key themes - that of consumer protection and the public health model applied to gambling impacts. These are two of the major areas of activity within the gambling service, action and research community worldwide. He gives his opinions on these areas which may upset some in the field although personally I believe that they are fairly accurate.

Dickerson has valuable knowledge in this area and has shared it in this presentation. It would be wise for those interested or employed in this area to listen even if they don't agree.

GG