The long-awaited Social and Economic Impact Study into Gambling in Tasmania was made public yesterday. The report came from the South Australian Centre for Economics Studies and revealed that total gambling expenditure in Tasmania has increased 133% over 25 years, with most growth in the electronic gaming machines in pubs and clubs. The gaming machines are the highest contributor to gambling expenditure at 38.1% of total spending followed by casino gambling at 34.7%. Lotteries accounted for 17.2% of expenditure.

The study found that the rate of problem gambling was 0.54% of the adult population, a slight fall from the 2005 figures of 0.73%. Tasmania’s decision to become the first state to ban automatic teller machines (ATMs) in hotels and clubs was applauded but the report stated that gambling taxes remained an important source of revenue for the government. Claiming not to be over reliant on gaming machine revenue, the government appears to be ready to allocate more funding for harm minimisation programmes.

Tasmanian spending on gambling reached $A287 million (US$276.3 million) in 2005-06 with the government receiving over $A84.3 million (US$81.2 million) – 11.5% of state revenue - in gambling taxes. Tasmania has the lowest concentration of gaming machines per capita and gambling expenditure per capita of any state in Australia. Tasmania has relatively high participation in all forms of casino gambling at an average expenditure of $270, above the national average of $187 per adult.

The report says, “On balance, claims that the gambling industry has significantly contributed to economic growth in the aggregate economy is not substantiated, while equally the claims that spending on gambling has impacted on traditional areas of spending (i.e. retail) is equally not able to be substantiated. This is not to conclude that some businesses in some localities may not have been adversely affected.”

In conclusion the researchers state, “It is generally acknowledged that the social impacts of the gambling sector are characterised by small benefits experienced by the vast majority of those engaged in gambling, and significant costs for a small minority of gamblers (problem gamblers) and those around them. The challenge facing policy makers is to devise measures which reduce the extent of harm resulting from problem gambling, whilst having the smallest possible impact on the ability of those who are not problem gamblers to enjoy gambling.” (E-07.24.08)

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