Video summary
The Australian gambling landscape is characterized by massive financial losses estimated at $34 billion annually, with poker machines accounting for half of this figure and online wagering contributing another seven billion dollars. Despite the 2019 Murphy Report recommending a national regulator to address these issues effectively, the current system relies on the under-resourced Northern Territory due to historical constitutional constraints, creating an uneven regulatory environment compared to well-managed jurisdictions like Nordic countries or Germany. While other nations enforce strict deposit limits and ban advertising, Australia's approach has been criticized as insufficient, particularly given that operators use predatory inducements such as free flights and catering to hook new punters in a cycle where existing players inevitably exhaust their funds.
The debate extends beyond economics into the realm of sports integrity and public health, with critics arguing that restricting gambling advertisements will not collapse children's sport but rather protect its intrinsic joy from being reduced to financial calculus. Evidence from Western Australia and Spain suggests that sporting participation can thrive even without poker machine subsidies or online wagering ads, yet political compromise has stalled significant reforms due to a complex ecosystem of vested interests. Broadcasters claim existential threats from lost revenue, while sporting codes depend on gambling money for grassroots funding, leading politicians to fear electoral backlash in marginal seats rather than implementing necessary protections against the "nanny state" accusations often leveled at regulators.
The human cost of this regulatory failure is severe and difficult to quantify accurately due to data collection shortcomings that obscure direct links between gambling and bankruptcies or suicides. Nevertheless, studies indicate that a significant percentage of completed suicides in Victoria are associated with gambling habits, with rates potentially even higher in New South Wales and Queensland, affecting over a million Australians facing serious trouble related to their own or loved ones' behaviors. Although the proposed reforms by the Murphy Report appear reasonable—including reduced advertising and better oversight—the government has treated these requests as unreasonable demands from outsiders, delaying meaningful action for years while industry representatives held regular consultations with ministers instead of including reform advocates in the process. Ultimately, despite public support for stricter measures like banning ads and removing inducements, political hesitation continues to prioritize short-term interests over addressing a crisis that hijacks brain reward systems without visible physical markers, perpetuating victim-blaming under the guise of responsible gambling initiatives.
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In the spirit of ANU's motto, first to
know the nature of things, we
acknowledge the traditional custodians
of country throughout Australia
and their connections to land, sea, and
waterways, which were never ceded.
We pay our respects to their elders past
and present and extend our respect to
Aboriginal and Torres Strait Islander
peoples listening today.
>> Oh, can I tell you? Democracy sausages
are my favorite [music] meal.
>> They are delulu with no solulu.
>> Forget about what you've been told by
the hate media.
>> I'm optimistic they have [music] the
right idea.
>> Google it, mate.
>> Oh, such a sycophant you've ever seen.
>> This is Democracy Manifest.
>> Welcome to Democracy [music] Sausage.
I'm Mark Kenny, director of the
Australian Studies Institute at ANU.
>> And I'm Dr. Maria Tetflager from the
School of Politics and International
Relations.
>> Now, gambling is central to Australian
life and language. It's a fair bet you
will have used terms like that originate
from gambling, just like I did then.
They're sprinkled through the Australian
idiom. Currently, the federal parliament
is grappling with a package of reforms
and a deal seems to be imminent, a
political deal anyway.
It would restrict gambling advertising
and ban inducements, perhaps. That's
That's the way it seemed, but these
changes fell well short of what seemed
to [snorts] be widespread community
expectations.
And the question is, why? I mean, why
would a government be on the wrong side
of this?
Joining us this week to discuss this is
Dr. Or Associate Professor Charles
Livingstone, head of the Gambling and
Social Determinants Unit at Monash
University. Welcome to you, Charles.
>> Thank you. Welcome to you, too. Nice to
see you.
>> You've been in this in this sphere of of
policy for a long time. I wonder if we
could start by having you clarify
something pretty basic, really, about
the Murphy report because the Murphy
report is
is 3 years old now, I think. Um It was
done by Peter Murphy, a Labor MP. She
was the the chair of the parliamentary
inquiry.
She's no longer with us, sadly,
but it was
seen to be a groundbreaking report and
it addressed itself to
particular things. So, I wonder if we
could just get you to sort of frame up
our discussion in terms of the Murphy
report.
>> So, the Murphy report
was tasked with looking at the
implications of the growth of online
wagering in Australia, at the regulation
of online wagering operators, and
originally looking at
the consequences in terms of problem
gambling and the impacts that it had on
so-called problem gamblers.
After they had had a few submissions and
some hearings, they changed their
language and started using the term
people affected by gambling, adversely
affected by gambling, rather than the
concept of problem gambling,
because they had learned and adopted the
view that calling people problem
gamblers was a very stigmatizing term,
one which had been seized upon
by the gambling industry and used to
stigmatize people and to,
I guess, put them in their place so that
they didn't become
political advocates or advocates for
their own cause. And it was very
successful for a very long time. It's
part of the whole responsible gambling
paradigm, which has shaped Australian
policy and regulation, even now, even
though it is starting to fall into
disrepair because people are starting to
see through it. But, so, they they had a
bit of a
a
a Damascene conversion on the on the
road to their inquiry, but they were
essentially tasked with looking at
online wagering. Now, I mean, the Prime
Minister is right in one respect when he
says that the biggest problems in
Australia with gambling are attributable
to poker machines. They are, as you
know, ubiquitous in almost every state
and territory but WA.
Uh, they are responsible for well over
half the revenue
that is lost on gambling every year in
Australia.
Uh, and they're certainly responsible
for well over half of the problems that
arise from gambling.
>> And how much money is that?
>> How much money? Well, they the total
that's been in Australia at the moment
is in the range of 34 billion per year
lost.
And about half of that uh,
somewhere around 17 billion is
attributable to pokies. Another six or
seven billion, it's hard to know because
there's a bit of lag in the in the data,
but it's about seven billion a year
going into online wagering at the
moment. And the rest is sort of between
casinos and other forms of
gambling.
>> So, it's really important this this
distinction about online wagering and
particularly how it relates to
advertising cuz this is the sort of
exploding part of the gambling market,
isn't it? And anyone who watches sport
knows this whether they're interested in
gambling or not because you are
absolutely peppered with in many cases
these sort of
blokey kind of pseudo funny
ads that run
and and of course there are, you know,
again sort of pseudo information spots
where people are almost
posing as sports broadcasters, but
they're telling what they're actually
telling you is, you know, the odds for
this and that relating to the event
you're about to watch.
>> Yeah.
>> So, it's it's that's what the
parliamentary inquiry was particularly
concerned with this whole
technologically enabled as I say kind of
explosion of wagering and the and the
vast cultural reach that that
technological enabling brings about.
>> Yeah, and because it's sort of And this
is a global phenomenon, by the way. It's
always gambling, particularly wagering,
attaches itself to
uh sport wherever it's,
you know, stuck its head up. And that
includes from, you know, the deepest
um most remote parts of sub-Saharan
Africa all the way through to Europe,
the United States now in particular, and
of course Australia. So, whatever the
dominant sport is in [clears throat] a
particular area, gambling will have
latched onto it, will be pouring money
into it, and will be promoting itself on
the back of it.
>> Uh it hasn't exactly always been a
benign partnership, has it? I mean, for
a start, it's it's uh I mean, the
gambling companies will say that they uh
provide a line of funding to a lot of
sports, but it's also been associated
with quite a lot of corruption over the
years. Uh it's it's it's, you know,
basically um
besmirched and debauched a lot of uh
sporting competition. And indeed, I
would argue corrupted strongly the the
the sort of almost like the kind of
threshold experience of sport as is
happening with with kids nowadays who,
as as as as has been widely noted, are
as likely to tell you the odds relating
to a particular match coming up as as as
to discuss you know, positions on the on
the field or who's in and who's out.
>> Yeah, but I mean, it probably even goes
deeper than that. I mean, it's it's sort
of like a cultural like taking over all
the activity. It's like certainly true
what you say. Kids are much more likely
to tell you the odds of a particular
game or the odds of who's going to kick
the first goal or whatever.
>> The same game multi or some such thing.
>> Yes, they'll also talk about that. And
but but, you know, more importantly,
they see it through that lens now. So,
instead of seeing it as a
um an activity which is, you know, at
its best um athletic enjoyable for its
own sake fun, you know, basis for an
outing with the family or at least with
your dad or your mom or whoever follows
it.
And now it's it's it's I think it's been
reduced to a simple calculus, which is
about, you know, the odds of this and
the punters are saying this and Kane
Cornes on the AFL
promo site is is arguing that the best
bet this weekend is this one. And if it
comes quite a different way of
understanding the world when it's viewed
through this lens. And I would argue
that it's expanding, that view
is rapidly expanding into everything
else. Um
particularly with the advent of new
forms of gambling which enable you to
take a position on almost everything.
>> That is so depressing that the intrinsic
joy of a game is being stripped away by
a profit moting from rapacious interests
that really don't care about the sport
or the communities that they affect. I
think one of the things I'd really like
to kind of um understand before we kind
of go on to talk about the downstream
effects is um the the Murphy um report,
um you know, in terms of what it was
asking for. Like how how ambitious uh
was it compared to um what we might see
around the world?
So so our listeners can kind of
understand like what the government's
response to it then is, like how that
fits in a pecking order.
>> Okay, so I mean, I think the best way to
describe the Murphy recommendations is
that they were reasonably modest, but
well thought through and would have made
a significant difference had they all
been implemented or were they all to be
implemented.
Now, I mean, some of them are pretty
basic. One of them, for example, was to
institute a national regulator
for online wagering. Now, most countries
already have a national regulator for
their online wagering. They couldn't
conceive of doing it in any other way.
The United States, of course, is
different, but uh you know, apart from
that, I think if you look at any other
country where online wagering or online
gambling at all has taken off, there is
a single national regulator who's would
staffed, well resourced, uh and is
capable of administering the activity
with reasonable diligence. That's never
been the case in Australia. The on- The
online wagering operators are generally
regulated by the Northern Territory.
>> Yeah, yeah, explain that cuz I mean
there's that's a pretty I've heard this
before, but it's a pretty odd sort of
statement, isn't it? There There's not
so many areas where you would of policy
where you would say it's run from the
Northern Territory.
>> might be some favorable settings there.
>> Sounds like there might be some
favorable settings there. What are
those?
>> Well, it's a low tax jurisdiction. They
I think the maximum tax anyone pays in
the Northern Territory for an online
wagering company is in the tens of
millions. This by turning over
thousands of millions every year.
Uh and they've always set it up like
that. And many people, including me,
would argue that it's a very uh
very low regulation environment. They
don't
uh
they don't operate uh like a detective
or a a hawk pursuing its prey. They are
very laid-back. And I think Four Corners
um a few months ago did a very good
piece on it, Steve Cannane, about the um
the way in which it's it's an outfit
which is run by amateurs. There are, you
know, part-time commissioners who work
once a month.
They don't have any full-time staff.
And they're running a business which
turns over, you know, 70 billion a year
or more.
Uh and what And what we've got is we've
got a bunch of part-time people
operating something which in my view
they don't understand.
Uh and they have no resources, no
capacity to actually properly regulate
it. Now, the reason this has come about,
of course, is because of the
Commonwealth has generally sat back and
let the states regulate gambling,
although there is no doubt the
Commonwealth, were they to have wished,
certainly regulate online gambling
because it has the uh
the constitutional jurisdiction to do so
with the telephony powers and so on. Um
but even more bizarre is the fact that
the framework of regulation for online
wagering is within a federal act, the
Interactive Gambling Act of 2001. But
for some reason the Commonwealth has
abrogated its responsibility to regulate
this to the
>> This presumably is is is partly the the
a function of of the fact that gambling
used to be largely restricted to horse
racing or at least, you know, and dog
racing, I guess. Um and and and so the
you know, the state jockey clubs or
whatever it was
basically controlled those industries.
It's always been We're always being told
about how many people are employed in
those industries as a sort of a defense
of of all of that
a defense of any criticism of, you know,
the culture of that, whether it be in
relation to you know, dogs being injured
and and so forth or or just the gambling
harms. But so that that was the mindset
with which the Commonwealth kind of just
allowed this to grow and be in the in
the
purview of the states, in this case a
territory, which I you know, it just
seems completely bizarre.
>> And of course, as as you alluded to, the
Northern Territory, you know, taxes at a
very low rate, provides minimal
interference in terms of regulatory
requirements. Uh and just lets it go.
Let's it rip.
Uh so, you know, why would you bother
regulating? Why would you bother
registering or or licensing yourself in
another state when they'll do it for a
pittance?
>> Yeah. So so where where where where does
it get Where's Where's the um gold
standard then you know, around the
world?
>> Uh probably in the Nordic countries now
where
I mean, they're moving away from their
monopolies, their state-run monopolies,
although there are still some in some
countries, including Norway, but they
they have, you know, well
empowered regulators with
you know, hundreds of staff who
constantly oversee
the business of these entities. they
require them to present regular reports,
they require them to present data from
their transactions with customers.
In some countries, those are um made
available to researchers through what's
called a data vault. They've been de-
de-identified and people who want to
do the research can look at the pattern
of transactions and so on. Things like
inducements have been banned, things
like promotions by notable personalities
have been prohibited. A very large
number of countries have prohibited any
advertising
uh including internet-based advertising.
Uh and they mostly have pre-commitment
systems. That is a maximum amount that
you can lose. In Germany, the maximum
amount you can deposit into an online
wagering account or an online gambling
account is 1,000 euros a month.
Now, you know, Germany Germany is I mean
it it it it it it is a well-regulated
economy, I guess you could say, but it's
one where people are very proud of their
ability to do pretty much what they
like. But the for the Germans, 1,000
euros a month is as much as anyone
should should should lose in a
transaction. I mean, in Switzerland, you
know, the home of
um anonymous bank accounts, if you turn
up at the casino too often, they have
they are required by law
to approach you and ask you for a
uh a report from your accountant or your
bank as to your about your ability to
meet uh these sorts of debts and that it
is not going to impoverish your bank.
That's Switzerland.
So, I mean, people understand that
gambling is not just another commodity.
It is something
that has the capacity to destroy people
and that needs to be properly properly
surveilled and regulated. And that in
Australia appears to be anathema to
government.
>> And do these countries use like do they
provide consumer protections uh for uh
for for people's interactions with these
companies?
>> Well, they are certainly required to uh
be open and fair and honest about what
they're doing, where your money's going,
how much you can withdraw at any one
time,
what their requirements are for turning
over amounts, how quickly you can
withdraw it if you wish, how quickly you
can terminate your account, and usually
that's pretty quickly. So, if you, you
know, get in touch and say I want to
cancel my account and you can do that
with a button in many countries, then
that's it.
They have to give back and stop taking
money off you and stop
getting in touch with you and promoting
their products.
>> What's the relationship between these
companies and I suppose the sporting
codes in in these places? Is that nexus
still there? Because that's the the
argument that we're hearing now, well,
we can't touch the gambling companies
because, you know, children's sport will
fall over or Channel 9 will collapse or
whatever.
>> Yeah, well, I mean, can I just approach
that from a slightly different angle,
which is that
whatever the problems of broadcast
media,
they were well emerging before the
growth of gambling,
particularly online gambling, and if the
government really wanted to deal with
that, they could.
Um, but I mean, it's it's, you know,
it's been overtaken by technological
advances. It's struggling to find a
market beyond
people my age or older and it struggles
to produce content that is at all
appealing to many people. So,
you know, what have they got? They got
the sporting broadcast. So, they say,
"Well, if we lose that, we lose the
revenue from Nestle and we're all going
to go to put."
Uh, that seems at the best disingenuous
and for the Prime Minister and the
government to say that's the reason they
don't want to introduce restrictions on
advertising is
the biggest cop-out I've ever seen.
Um,
as to the distribution of resources to
children's sport, I think
no one would suggest that um, sporting
efforts in WA are any less
than in the other states. In fact, you
know, the survey of of recreational
activities and its club memberships by
the ABS regularly reports that there's
more participation in junior sport in WA
where there's no basically no gambling
money going into it. And I include in
that, of course, the money that comes
from poker machines, which is a large
part of the subsidies to local sporting
activities. So, I mean, the AFL has
always been able to find money to
support its feeder organizations, its
local clubs, and so on.
Uh the NRL similarly, um cricket
similarly,
uh and the same argument was made when
tobacco sponsorship was ended that you
know, the universe was going to end and
that would all collapse in a gigantic
black hole of sporting
abyss. So, I think
it's it's a nonsense, to put it mildly.
Both of those arguments about TV and
sport collapsing are complete nonsense.
>> [laughter]
>> Do they sponsor sport in Europe? Yes,
they do.
>> Yeah, life goes on, it turns out.
>> [laughter]
>> And the same the same criticisms are
made and the same comments are made
about when they can't advertise anymore
and how terrible the results are going
to be. But, they've done it and as far
as one can I mean, Spain.
The Spanish had exactly this argument
not long ago. They forbade
uh the advertising of online wagering
and participation in sport grew.
>> Oh, it's like people might be enjoying
the intrinsic value and joy of the game.
>> Yeah, it's like like the sport itself
might have something to it. It might be
interesting and and enlivening and you
might actually feel good participating
in it and watching it.
>> It might be it might be fun just to get
off the couch and go and play or just go
and watch a live game.
>> Yeah.
>> So, I mean, you know, there's there's
there's no evidence of that at all.
And I think the other argument that the
the the bookies always come up with is
if you regulate it too much, then people
will just go to these illegal
um offshore sites where there's no
consumer protections at all and all the
rest of it. And once again, there is no
evidence of that occurring anywhere
where such restrictions have been put in
place.
>> And and also, it's a red herring in the
sense that um, the real key to this,
which the Murphy inquiry understood, uh,
and which is at the center of this whole
public debate that's happening at the
moment, much as the government would
like to make it about some other things,
is advertising, right?
>> Yeah.
>> And advertising is the way in which the
industry thrives and grows. It needs a
constant, you know, flow of new marks,
new people to to impoverish, as it were,
or to or to or to, you know, take
profits from. Murphy report was called
you win some, you lose more, um,
which was, you know, a hint to,
uh, the the the the proposition that it
was examining.
It seemed like Labor wanted to go there.
I mean, certainly it seemed like there
was a majority support within the Labor
caucus for,
you know, for proceeding with the Murphy
inquiry's recommendations, the the sort
of most central of which I guess was
the, um, was the three-year phased-in
ban on online advertising,
uh, or advertising for online gambling,
I should say. Um, and yet the government
stopped short of that, and we saw last
week Luke Bateman, a former NRL player,
uh, talking about some of the
inducements that he was, um, given, uh,
some of which were, if if it was true,
were plainly criminal acts.
>> Yeah.
>> And
and so now it seems like the political
machine, you know, the the the the
government and the opposition are kind
of they they they've sort of seized on
this and decided they can focus on
clamping down on inducements. The line
between inducements and promotions is is
a is a is a blurry one, I guess it's
fair to say, but pretty clear that, you
know, offering problem gamblers
um you know, a couple of bags of cocaine
is uh outside the law, uh but you know,
they've been these companies have been
flying people, flying big gamblers to to
sporting events, providing them with
catering. Another allegation suggests
providing with escorts. Um and and all
of that it just gives you a sense of how
much money they must be making out of
these people if it's if they're still a
a profit in it after you've paid for
their flights and given them all of
that, there's still a profit to be made
from gouging them. Drugs are expensive.
>> Yeah,
>> [laughter]
>> I'm sure that's right.
Um but uh yeah, I'm just wondering
are we seeing sort of a a bit of a kind
of a you know, a pea and thimble trick
here with, you know, going to
inducements without really going any
further on gambling advertising. I mean,
you know, they've got they've got some
changes, but they're not very much.
>> Yeah, I mean, the advertising changes
are unlikely to have a huge impact on
how many ads there are on TV and how
rarely children will have access to
them, but particularly online, I I would
argue.
Um but I mean, Murphy was pretty clear
the Murphy committee was very clear
about wanting to get rid of all
inducements immediately. They didn't
phase them out, they wanted them to be
gone with as quickly as possible
because they heard lots and lots of
evidence, more mundane perhaps than Mr.
Bateman's evidence and Tim Costello's
statement last week, but you know, what
it boiled down to is that for most
people an inducement might be something
like you haven't had a bet for a while,
I just put 100 bucks in your account,
you put 100 bucks in and away you go for
the weekend, you'll have a great time.
Now, for people struggling with their
habit who don't want to gamble much, who
haven't canceled their account, who
haven't pushed the bet stop button, uh
but who want to cut back, that is, you
know, it is a red rag to a bull, so to
speak. It is going to of course it's
going to make make want to go. So, it's
a it's a it's a hook. It gets them on
the hook.
And it keeps them there for as long as
possible.
And as you say, the industry needs to
attract new punters because the ones
that it's had for a while have run out
of money.
They have spent everything. They've lost
their house. They've lost their family.
They've lost their partner.
Um they've lost their health and
well-being. Some of them
um kill themselves because
>> Some of them have have have have done
that. Some of them have and before doing
that have embezzled their employer or
their clients or whatever. I mean, we've
seen stories of this. People whose whose
kind of lives have effectively collapsed
uh as a result of their addiction to
gambling.
Um look, let's take a quick break and
come back. So, I want to talk to you
about that addiction question uh and
then and then some other aspects of of
this of this policy challenge.
Welcome back. I'm talking We're talking
with Professor uh Charles Livingstone,
head of the Gambling and Social
Determinants Unit at Monash University,
talking about all aspects of uh this
sort of gambling policy challenge that
is before
uh the Parliament at the moment.
We were just talking before the break,
Charles, about addiction.
>> [snorts]
>> Um have you done any work or read
anything in relation to attitudes about
gambling addiction? Because I I I I
wonder whether there is the level of
public understanding of gambling
gambling addiction that there is about
other forms of addiction to, you know,
substances, for example. Do Do people
take gambling addiction as seriously or
do some people take the view that, "Oh,
well, it's your it's your choice and you
got into it and you want to keep punting
and that's your right and
you know, why should we give you any
sympathy?"
>> Well, I think you know, that's the
unfortunately the answer is a bit
complex. I think I think you're right to
a certain people
take a more sympathetic view of someone
who's addicted to a substance, alcohol,
illicit drugs, whatever, than they would
to someone who is addicted to gambling.
But I don't think people understand the
mechanism of addiction particularly well
at the best of times, and certainly when
it's a non-material addiction, when it's
something
that doesn't come with a a needle or a
glass um
to dispense it for you.
Um and of course, the reason for this is
partly because the industry has been
enormously
big on individual responsibility.
I mean, you know, lots of industries in
our community take the view that, you
know, that it's not the fast food that's
causing you obese become obese, it's the
fact that your parents encourage you to
eat it when you're a kid, or that you
can't stop now. And it's the same logic
which carries over to poker machine
gambling, for example. People who use
poker machines, and I've spoken to most
more of them than I have online
wagering, but poker machine users are
constantly telling me that their friends
and relatives, until I get a sense of
just how deep the addiction is.
I'm constantly telling them, "Well,
can't you just stop? Can't you just not
go to the club?" etc.
Um and
what the addiction does is it basically
hijacks your brain's reward system. So,
you end up becoming addicted to the
neurochemicals that flow when you're in
the midst of gambling. And you're not
gambling to make money, you know you're
not going to make any money, you're
gambling to get into that state.
Uh it's a means to an end, it's not an
end in itself, and people just don't
understand that. But I think the whole
responsible gambling mantra has been
incredibly persuasive
in terms of the broader community in
terms of making it the responsibility of
those individuals who've been caught up
in it.
Uh that have
you know, that have that have blamed the
victim for the problems that they
encounter.
So,
people who are addicted to it
struggle enormously with it, and they
also feel like they can't get any help
or a sympathetic hearing
from the authorities. They don't You
know, I mean, only far fewer than 10% of
the people who have a serious gambling
addiction ever reach out for help from
the gamblers help services, for example,
which are free and which the government
touts as being its solution to this
problem.
The governments are not big on
prevention because I know that would
interfere with the flow of funds and
they don't want to interfere with that
for some reason.
>> Yeah, and what you're describing is um a
really kind of pernicious sort of uh
cycle, right?
Um you know, the the idea of um
self-control and individual agency is is
very strong in our Anglo-Celtic
um culture and um you know, I can can
see how uh you know, the average person
who doesn't really understand exactly
how, you know, brain chemistry is
operating is is looking at someone and
just sort of saying, "Well, you haven't
[snorts] taken a substance that is like
interfering with your mental processes."
But actually, what this addiction is in
many ways is really even more pernicious
cuz it's your own, you know, it's your
own brain chemistry. And and and so the
addiction is is really banal. And so I
found it kind of interesting and there's
no criminal elements, like there's no,
you know, there's no drug dealer selling
you stuff, right? Or or or whatever. And
so what it's really kind of interesting
is that we we we are talking about a
profound addiction,
um you know, that we've just discussed
like how terrible it is. Um and uh we're
talking about the interests arrayed,
which are all legal and heavily embedded
into our systems of power and our and
our and our cultural elites and in terms
of, you know, sporting and so on and so
forth. Um and so I think this I think we
should actually talk more about the idea
that the the government and the
opposition are talking about predatory
inducements. That like that the idea
that an inducement to someone who has an
addiction isn't predatory. Like an an
inducement to this kind of person is a
problem, no matter no matter what it is.
And and you were describing before the
the you know the you know sending a
hundred bucks to someone who's trying to
stop. Like that that's that's predatory.
It doesn't have to be a bag of cocaine
to be predatory. It's just that that is
sort of um
>> No, they find this works. And obviously
the admission is right there, isn't it?
In the in the act that they're going to
make more out of it than you are.
>> Yeah, exactly.
>> They're not giving you a hundred bucks.
>> Right.
>> you a hundred bucks so they can scalp a
hundred fifty or two hundred or five
hundred.
>> Exactly. But for from a political
perspective, um and then I'll let you
talk, Charles. Like this this is our
guns debate. You know, like this is a
problem that is obvious.
>> Mhm.
>> pernicious There is really no good
coming out of this. Like the the point
about like you know, we've we've covered
the evidence around the sort of
so-called social benefits from this.
It's a thirty-four billion dollar
industry. I think you said seven billion
dollars is coming out of online
wagering, seventeen billion out of
pokies. You know, like I don't really
understand how some community programs
make up for the thirty-four billion
dollars missing from the average
Australian families like, you know, life
choices about how they choose to live
their life, look after their children,
look after their retirement, blah blah
blah. You know, and but the fact that we
we can't talk about this
>> cultural blind spot, yeah.
>> Yes, it's a cultural blind spot. And I
think we we need to kind of reckon with
this. And it's not predatory inducement.
It's pervasive and banal. And that's the
problem.
>> Yeah, I mean the banal end of this
picture is where it really matters. And
you know, I I I know a guy from the UK
who had a very big gambling habit. He
he had a company which was doing well,
and he managed to destroy that with his
gambling. And during the course of his
gambling, one of the operators with whom
he was betting flew him out to the
Melbourne Cup for a week.
Um so he could bet more while he was
here. And of course that was at the one
end, the end of that
you know, we've heard about from the
inquiry last week. But, you know, the
real thing is that somebody who bets 100
bucks a week, who's an ordinary worker,
can be induced to keep doing that
regularly and increase it and increase
it and increase it
until it becomes an intolerable burden
for for them and their family, more
importantly in many ways,
and the broader community. And, that's
what they're doing. Yes, I agree with
you. Any inducement in this circumstance
is predatory. And, that's what
the Murphy inquiry found. They wanted to
get rid of all of them.
Because all the people They didn't hear,
you know, they didn't hear about the
high rollers getting,
you know, five-star rooms at the casino
or something. What they heard about was
people who were getting, you know,
little kicks in every now and then to
keep them on the hook, basically, until
they'd exhausted everything they could.
And, as soon as that happened, they were
gone. They just kicked them on and got
the next one. And, that's what the
advertising and the promotion is all
about. They have to have a steady flow
of new punters to replace the ones that
have
burnt out, that have lost everything,
that haven't got any more to plunder.
>> It seems completely puzzling to me that
the kind of the moral dimension of this,
which is front and center in so many
other policy spheres that governments
deal with,
is is kind of side-stepped all the time.
>> Yeah.
>> So, even this focus we see now that this
we we we I mean, by the time some people
are listening to this, this may have
been kind of you know, come out into the
open. But, as we're recording this, the
story is that the Prime Minister's come
back from a period of of leave.
Parliament's back sitting. He's had a
meeting direct one-on-one with Angus
Taylor.
It's discussed a number of things, but
this gambling thing is is is front and
center of it. And, out of that
discussion, there is
going to be this crackdown on so-called
predatory inducements and perhaps some
tightening of the advertising ban that
they had proposed already, which was a
limited advertising ban, nowhere near
what the Murphy report had had proposed.
Uh and it it it's uh
it it's it's kind of I mean Angus Taylor
was lent on famously the reports show by
John Howard no less, who was saying he
wanted to see an end to this gambling
advertising. He wanted to see an opt-in
rather than opt-out. So you had to
opt-in to actually be subject to
this advertising onslaught,
uh which seems to me to be a perfectly
good idea. That was ignored. So I guess
my question is what what on earth is
going on here? Is this a function of the
relationship, the powerful relationship
that exists between the gambling peak
bodies and those companies and our
senior politicians? Because it wouldn't
take much political courage it seems to
me given public support for greater
restrictions here for uh for the
government for the parliament to take
the moral course which was advocated by
Peter Murphy and his committee.
>> Yeah, maybe but I think you know, we
call it the ecosystem these days. So the
gambling industry has an ecosystem. If
it was just the bookies trying to get
these things protected it would probably
be less effective. But what we've got is
they've pulled in everybody and their
donkey to make up a pack of vested
interests all howling for their right to
make a lot of money off people who bet,
who wager, and who've been trapped into
it you might argue.
Who've become addicted. So it's
obviously the broadcasters who claim
that if this is an existential in
substantial threat to them that you
know, if the gambling ads stop they're
going to
fall over and they won't be able to fund
newsrooms anymore.
Not that they've been funding them to a
great extent lately anyway, but and
the sporting codes are saying, you know,
we need this money otherwise the kiddies
won't have footy's anymore or footy
jumpers.
Uh and all the other members of the
ecosystem right the way down to
um the people who are
you know, running a junior footy club
and who once a year get a, you know, a
box of jerseys
from the AFL or whoever. So,
mobilizing that group or those groups of
people is really quite straightforward
because they all have
a share of the action.
And it's a brave politician who takes on
Any politician could take on the
gambling industry without too much fear.
I don't doubt that. But taking on the
commercial broadcasters,
the major sporting codes,
local community organizations, and all
the rest of them is probably a step too
far for someone like Mr. Albanese. And
the second point I
is that he was there when Julia Gillard
tried to regulate the poker machine
industry back in 2010.
When Wilkie became the balance of power
person, he said, "We want a
pre-commitment system on poker
machines." And Gillard said, "Yeah,
sure. Okay."
Now, I was on a committee
that the government set up to debate
this and work out how it could be done.
Of course, the industry was there in its
full glory making sure that nothing
would ever happen and they did that very
effectively.
And they did it effectively by using
that ecosystem power
to join together
uh to demonstrate to the government of
the day that they would do whatever they
had to do
to bring them undone. And in the case of
the poker machine businesses,
particularly in New South Wales with
Clubs New South Wales,
they ran uh marginal seat campaigns.
They had all the infrastructure in
place, all the money they ever wanted.
They said they could have up access to
at least $20 if they wanted. In the end,
they only spent about three
to run seat campaign seat by seat,
particularly on
um politicians sitting in marginal
seats. Uh
and you know, Peter Garrett has
recounted what that meant to him. You
know, he turns up at meetings and the
whole place was flooded with people
chanting uh that he should be thrown out
of office because he was destroying
their local community club. Now, you
know, of course it wouldn't have had any
other effect at all, but
what it demonstrated, and I think
Albanese took quite great note of this,
was the power of these entities, when
combined, in pursuit of the maintenance
of their vested interest. And that's
exactly what's happened here. Now,
it so happens also that he's a big fan
of rugby league, and Mr. V'landys has no
doubt had a few quiet words to him in
the chairman's box at the football from
time to time about how this would be a
destructive
um
attack on, you know, grassroots
Australian sport, etc., etc. And he's
quite happy to take that advice, it
would seem.
Um but the thing that really annoys most
of us who have been trying to see reform
put in place
is that we know, from experience here
and overseas, that introduction of
reasonable regulation, yes, it would
mean the money wasn't quite so prolific,
but it's not going to stop. People are
still going to bet. I mean, if you can't
advertise, well, you know, everybody in
Australia knows how to put on a bet. I
don't doubt that you'd be able to find
one if you wanted to.
>> Yeah, and this is this sophistry where,
you know, as I said before, the PM and
and others say, you know, people should
be allowed to put on a bet on the
weekend. There's no one There's not even
on the table for debate. That's that's
that that right is not being infringed
in any way in in the in the Murphy
report or anywhere else.
>> Well, that's him fighting that campaign.
>> Yeah, precisely.
>> From the past.
>> So, what we've got is we've we've I
mean, he he remembers that very well, I
have no doubt.
>> Yeah.
>> And he he, you know, he saw the caucus
went nuts
because, you know, they rolled Gillard
on it in the end.
I mean, if the problem if the problem
was so bad that Peter slipper was the
answer for it, which it was in the end,
it must have been pretty diabolical in
that caucus room.
>> Pretty crazy question if Peter Slipper
[laughter] was the answer.
>> That's right.
Exactly. Exactly.
>> But and how cheap, $3 million
in an industry of this size?
>> It's a surrounding error. It's a
pittance.
And you know, they could they could
mobilize as much money at any time that
they wanted. The gambling industry could
throw hundreds of millions of dollars at
this and barely notice it.
>> Yeah.
>> And that's what he's terrified of. You
know, I know what it takes, you know how
elections are running these days. I
mean, all it takes is a few percentage
points off your off your margin and
you're gone. And no member of parliament
wants to be in that position. So
>> Well, well, I wonder whether whether the
there's an element here also of them
thinking, I mean, this I'm not
constructing any of this, I'm building
on it. An element of
of of the new politics happening here as
well. One of the things that I've seen
referenced a few times in reports and
I've had said to me,
um
and I understand the PM used this
terminology in his talk to caucus
yesterday as we record this,
was this idea that they were worried
about being described as
being part of the nanny state
>> Yeah.
>> by One Nation. Now, is One Nation
even if has our politics sunk to such a
low level that even if there was an
agreement between
you know, a broad consensus across the
labor and coalition parties that they
are worried about that campaign being
run through the vehicle of One Nation?
>> Well, if that's the case then, you know,
it's a bit like Peter Slipper dilemma.
You've got
you know, if he's in such a dilemma as
that you worry about One Nation accusing
you of being a nanny state, then maybe
you should have a look at where your
politics is sitting. It's just
It's ludicrous. It is a ludicrous
proposition and I don't think
you know, the 70% 80% according to an
ANU a couple of years ago, 80% of the
population of Australia would like to
see ads banned.
>> Yes.
>> So it's gambling ads. They want them
banned. I mean, that's a pretty high
rate of approval.
And it's hard to see how you could lose
any political skin by taking ads off
the sporting broadcasts or off the
internet. I can't see any parent voting
against that. So I mean
>> Yeah. I mean, the political cover is
there just in the last 24 hours from
John Howard coming in. Why Why Why
doesn't the PM just stand up and say,
"Well, I'm standing with John Howard.
We're going to be toughening these
restrictions, and we're going to be
moving towards a phased ban on gambling
advertising on television?"
>> Well, that that's probably an answer
more in your sphere, Mark, than mine. I
mean, you know,
>> Yeah. Well,
I think we can all do the math on it,
really. I I [laughter] I you've just
been um explaining it extremely well.
What What's going to be
Let's assume that
we are going for uh in the greatest
Australian tradition,
a lot of noise and fury resulting in
huge mediocrity in our policy response.
Yeah. Um
what's going to be the campaign going
forward? This issue won't go away, will
it?
>> No, it's not going to go away. And I
mean, no one who's cared about it so far
is going to stop caring about it because
of these reforms. I mean,
meeting meeting watch um the Murphy
committee proposed
would have made a lot of people much
happier. I don't doubt that for a
second. Certainly, not having
advertising being constantly bombarded
on our young people would have made a
difference. Not having inducements
permitted would have made a difference.
Having a national regulator take a role
of properly regulating this pernicious
industry, as you so well described it,
would also be a major step forward, and
so on.
But none of that's happened. So, I mean,
you know, what Murphy proposed was
probably the bare minimum
that most people engaged in this
issue would regard as reasonable. The
bare minimum.
And um
you know, it's been treated by the
government as if it was a bunch of
unreasonable requests from a
you know, a bunch of naive political
outsiders.
>> Yeah, or or sort of fundamentalist
Puritans or whatever.
>> Yes.
>> Yeah.
>> Exactly.
>> Yes.
>> And and you know, in comparison to areas
where the government's very quick to
act,
it's quite remarkable. I spent, you
know, 3 and 1/2 years or something
before they even made their pitiful
announcement about
the moderation of gambling advertising.
And in the meantime,
people like me, I mean, I might be an
annoyance and
um inconsequential to the scheme of
things as far as the government's
concerned, but people like me who have
been working in this area, and even Tim
Costello, who've been working in this
area for decades,
were simply not able to see the
minister. Even as they were meeting
regularly with representatives of the
gambling industry, the NRL, the AFL,
etc., etc., etc.,
chewing out how they were going to
resolve these issues from a political
perspective, but people who were
arguing for reform were shut out of the
whole process. I mean, the the
consultation was farcical.
>> And in that time, um Charles, do we know
how many people may have gone bankrupt
in the last 3 and 1/2 years?
>> Because of gambling deaths.
Yeah, I can't tell you those data
because we don't collect them properly.
Nor do we properly collect the number of
suicides attributable to gambling. A
colleague
from the University of Melbourne did a
study with the Coroner's Court in
Victoria, and it was published a couple
of years ago, and that demonstrated that
at least 4.2% of completed suicides in
Victoria were
closely associated with gambling. And
that was a very conservative estimate.
If you talk to them quietly, they would
say it's at least twice that. So, we're
we're looking at something like 8 or 9%
maybe 10% of completed suicides
in our jurisdiction, Victoria, could be
attributable to gambling. And more in
New South Wales because it's a bigger
gambling place and ditto with
Queensland. So,
you know, this is a hefty chunk of the
burden of of mortality associated with
um you know, that that extreme response
to a gambling problem.
And for every one of those, there would
be many, many more who have experienced
huge problems. I mean, at any one time,
there are seriously at least a million
people in Australia who are in serious
trouble either because of their gambling
or because of the gambling of a loved
one.
>> Yeah, it's a staggering figure.
>> At least.
>> Uh Charles Livingstone, thanks so much
for your time. It's been terrific. We
listen to you. We've been listening to
you and learning a great deal from you.
It's been a a really interesting
discussion about a a pretty depressing
area of of policy
failure, I think it's fair to say, uh
ongoing
uh and uh we at Democracy Sausage very
much appreciate you being on board to to
discuss it and uh keep up the good
fight.
>> Well, thank you very much for that and
um
uh I I can assure you that whatever the
package is, it's not going to be the end
of the matter.
>> No, I think I think that's that's sadly
true or it is not sadly true in that
regard. I mean, that's good that it's
not going to be the end of the matter
because this does definitely need to be
continued a continued focus of
researchers and of people who are
looking to drive much needed change. But
um
uh yes, it's certainly in in political
terms, they're they're looking to close
this issue down and move on. Such is the
nature of the the beast.
Um thank you, Charles. Uh we had also
hoped to have Samantha Thomas on,
Professor of Public Health at Deakin
University, um who's also done some
fantastic uh work in this space and
testified to the um to the Murphy much
much uh referred to Murphy inquiry. Uh
but unfortunately, due to some technical
challenges, we we ended up not being
able to talk to her, but we hopefully
will do so again at some point, and we
thank her for for being available.
Uh that's that's it for Democracy
Sausage this week, Myriam.
>> Thank you, Mark. Thank you, Charles.
>> Indeed. Thanks, all. Talk to you again
next week. Bye for now.
>> [music]