UNCC 100

Topic: Poker Machines: Hitting it big or a big hit?

If an individual believes in a religion, any sort of Gambling is deemed wrong and illegal. However, in the realistic world we humans are never perfect, be it religion, values, personality and culture. This essay is regarding a sector of Gambling: Poker Machines and would look into 3 perspectives (Hotel Industry, State Government & Social Service Organizations) which discusses the approaches and reforms made by the perspectives that supports common good to the community. This leads to the questions, would the Poker Machines help the economy just because the State Government receives taxes from Industry and in turn funneled to run community projects and resources that benefit the community, Poker Machines help the Hotel industry in revenue and that justifies employment, or would the community suffer and social services are needed at the expense of tax.

The term 'Pokies - Poker Machines' is part of the Australian culture, statics show Australia is ranked 10th in the world for 'number of people per gaming machine' and ranked 6th in the world for 'number of machines by country'. That is 1 poker machine to every 108 individuals, located in RSLs, Hotels and Casinos and the total sum is 200,000 poker machines (Gaming Technologies Association, 2010). There is a correlation between common good and social justice when assessing the perspectives approach and reforms suggested in regards to the hotel industry, state government and social service organizations. The reason for this is social justice is a moral assessment of the way in which wealth, jobs, opportunities are distributed among different individuals or social class and it relates to common good as common good is when there is a common set of ideals or concept that appeals to most members of a community. For example, if the government wants to reform the number of poker machines in NSW, the government would have to look into social justice and see if the reform would affect oppression, privilege, social construct and lived experience towards its citizens. Review the information gathered and apply changes that would be best for the community as a whole, that is common good.

From the perspective of the Hotel Industry the key issues are, the industry is against the reform of mandatory pre-commitment suggested by Productivity Commission. Instances, a licence for an individual to play the slot machine, pre-set spending limitation on smart licence card, a maximum limit of cash on a slot machine and ATM withdrawal limit within 200m of the premise. The Australian Hotel Association (AHA) that represents the interests of hotels throughout Australia claims that if there is limit on a smart licence card, it not only breaches privacy issues and limits personal freedom but could also harm problem gamblers getting another card by other means. Data suggest that 28% of the hotels revenue comes from slot machines (Australian Hotels Association, 2011). If there is a reform on maximum cash limit on slot machines, 100,000 older gaming machines operating in Australia's hotels have to be decommissioned and that would cost $25,000 to replace one machine which equals to a total of $5 billion. In addition, if the reform is inplace, the revenue would decrease and hotels would have to increase prices of food (71%), beverage (76%) and reduce number of staff (89%), community support (81%) and capex (85%). The relation of ATMs within a 200m radius is inconclusive, shockingly having the limit would hinder an individuals accessibility to an ATM as only 35% of gamblers withdraw cash from ATMS within the 200m radius as compared 70% of patrons withdrawing for food, drinks and spending money outside the club. In all, there are no links with AHA's report and common good as the report by the group is detrimental towards the industry. AHA states that 99% of the population are not considered to be problem gamblers and blamed the government for not focusing on education, information and prevention rather than the strategy to limit users as gamblers would always find a way.

From the perspective of Social Service Organisations the key issues are of great interest to common good. A key example, the scheme Stop the Loss Coalition founded by groups GetUp, UnitingCare, Anglicare, the Gambling Impact Society, PokieACT and Free Yourself Program came up with (Stop the Loss Coalition, 2013) & (The Australia Institute, 2013). The scheme believes that poker machines are destroying individuals, families, losing their homes, jobs, relationships and creating social problems. The organisations report states that according to Productivity Commisions, the gambling industries revenue in 2008 to 2009 was $19 billion, on the other hand, the social cost affecting poker machines individuals amounts to $4.7 billion per year. The organisation refers their claims from (Australian Government Productivity Commission, 2010), of the $19 billion of revenue 62.2% comes from poker machines and according to the findings 600,000 Australians play the poker machines at least weekly. Of the 600,000 individuals, 115,000 are viewed as 'problem gamblers' and 280,00 are viewed as 'moderate risk'. Shockingly 15% of the regular players (95,000) who are 'problem gamblers' share 40% of the revenue gained through poker machines which calculates to be $4.727 billion.
From the organisations point of view based on the data, proposes $1 bet limits which the loss rates are about $120/hour as compared to $1200/her without reform. The paper also argues that $25,000 to replace one machine is greatly exaggerated as Deutsche Banks report suggested the cost of reform ranges from $400 million to $5 billion and AHA focused on the almost exclusively upper bound number. The organisations used an example of cars, there is always scrape value and therefore a realistic cost of reforms would be around the $350million to $2.5billion from software and mechanical upgrades. In all, the report promotes common good as it restricts losses on poker machines by both problem gamblers and general population, this shows the proposition is of best interest as a whole to the community. Social organisations also raised concerns that poker machines causes losses but it affects those with socioeconomic disadvantage and other vulnerabilities. According to (Parliament Flagpost, 2012) suggest that individuals with higher education, higher average wage and lower unemployment in the region (Year 12/wage $836 per week/unemployment 3.2%) would lose 5.4 times less than individuals without (without Year12/wage $426 per week/unemployment 8.2%). The findings then correlates that with less losses, premises gain less revenue and inreturn less machines are in place.

From the perspective of the State Government, there are two beliefs regarding key issues. On one hand, the government receives significant revenue $5 billion in 2008 to 2009, amounting to 10% of all state tax revenue (Australian Government Productivity Commission, 2010) and on the other the Government is also a stakeholder in the reform towards poker machines. This would lead to conflict of interest as a Government that should keep its citizens from harm and is allowing gambling due to revenues gained. The government is created by votes, votes are controlled by lobby groups and citizens, therefore, inorder for a running party to win, deals have to be made. For example, days after former minister Helen Coonan resigned from her join, she joined the board at Crown Casinos, by doing so she has connections that would lead to deals that would help the Casinos (Australian Broadcasting Corporation, 2011). To further support such a finding, Edward Camilleri chief executive of Revesby Workers Club openly stated that there was a breach of trust between government and labor supporters. The governments resolution to reform is best described in (Griffiths, 2009), governments have interest in revenue potential from gambling and ministers are faced with dual task of processing benefits and containing harm caused to the community. The government plays a subtle way in reforms as strongly enforcing regulations would decrease revenue and any absence of reform would see the government failing it's people by protecting the weak and vulnerable. Therefore the government is drawn to self-regulation where the industry regulates its own conflicts rather than the government having an interest at heart.

The Hotel Industries arguments brought forward by the Australia Hotel Association claims that hotels in Australia employ 188,862 people, support $75 million worth of community work yearly and spends $72 million to train staff. Having reforms would affect the industries revenue, statistics show that 28% of a hotels revenue comes from poker machines and this would impact increased prices of food and beverages at hotels, reduce number of staff and community support. If the hotel industry is denying all aspects of reform and not compromising, there is no way common good can be served towards the community. According to Australian Broadcasting Corporation (2011), it is known that the machine is always against the player as Poker Machines are programmed to return the player 85% to 90% of the amount gambled and not amount inserted. In regards to the recommendation of a licensed smart card it is of common good to the community as a person could limit his or her expenditure and it'll result in less consequences suffered by problem gamblers. In the long run, a punter might find other means to attain another card, but hotels could always perform random identification checks like what is performed in buses or clubs/pubs serving alcohol and the government could impose such a ruling that if a premise is caught with an individual with falsified card a hefty fine is imposed.

In comparison, the Social Service Organisations perspectives are more suited towards common good, as the views and reforms put forward are of best interest to benefit the majority of individuals for the better good. For example, the proposal brought forward by Stop the Loss Coalition has a philosophy that aims to research and create new solutions to poker machines without deceitful agenda as the research staff is open to views and priorities. If the reform is approved, it would lead to human flourishing as the community as a whole is able to live peacefully with individuals and as from a religion background, one would not feel guilt. From the propositions, the study showed proper facts that the AHA report was misleading on several factors. One such fact is the actual estimation of Deutsche Banks accounts stating a software change would cost between $400 million to $5 billion was not clear and AHA chose to take the unrealistic higher value and deemed the machines as write offs instead of listing the machines as suitable for software change which cost 5-6 times less. The AHA chose not to be involved in the contribution of troubled gamblers addictions just for monetary greed by having machines on the premises for revenue gain, the AHA then explained the government should be responsible to such issues and should look into education and prevention. In all, the Stop the Loss Coalition commissioned paper is relevant to common good and would lead to the better of human flourishing.

The issue of State Government is partially linked to the common good because it is of the policies in place and ongoing review of reports that the government wants to kurb to help the community in general, however, the government may also be detrimental as it receives revenue from taxing the gambling industry. Although the government claims the taxes are used to help the community in the expenditure of education, prevention campaigns and other methods.
The amount earned from tax and the amount spent to help problem gamblers almost tie off.

In conclusion, the tip of the problem is us as individuals. Humans must be better stewards of our money, closing down or opposing to poker machines isn’t going to fix the issues. Even when knowing X amount put in, you'll receive 90% back, individuals still try to hit it big especially in not well to do communities. We humans have very different personalities, as referred to (Parliament Flagpost, 2012) there is only 1 plausible way, that is education and educating individuals at an early stage (Parliament Flagpost, 2012). For example, if a norm is allowed and perceived as a common and acceptable recreation. Prospectors, would see there is chance to make cash and capitalize. Even though humanities core values are not to make use of valuable individuals, but when money is involved, greed takes the best of us. Once these prospectors become big organisations, they would have the buying power of votes to insert or replace governments that allow them to achieve their goals, greed. The government as a justice figure, does play a role for the common good as they are overseers of the community but are bound to a certain extent as they attain revenue from poker machines and private 'deals' with the industry, however, this only happens when there is a loud cry of reform when majority or citizens are opposing or when there is a group of sensible down to earth ministers. In the long run, reforms or not is a touchy topic as governments can keep patching mistakes after another but evil will always prevail. A rotten apple spoils the whole basket, no ones perfect. However, if people of masses gather together and have the same core values, the government will have to change and reform poker machines as a whole.

References

Australian Government Productivity Commission (2010). Gambling. Retrieved from: http://www.pc.gov.au/__data/assets/pdf_file/0005/95684/02-overview.pdf

Gaming Technologies Association (2010). World Count 2010. Retrieved from: http://www.gamingta.com/pdf/World_Count_2010.pdf

The Age National (2011). Poker machine count puts Australia in big time. Retrieved from: http://www.theage.com.au/national/poker-machine-count-puts-australia-in-big-time- 20111001-1l2vl.html

Australian Hotels Association (2011). The Australian hotel industry. Retrieved from: http://aha.org.au/wp-content/uploads/2011/04/Submission-Gambling-Reform-Cmte- 310111.pdf

Stop the Loss Coalition (2013). Factsheet. Retrieved from: http://www.stoptheloss.org.au/

The Australia Institute (2013). Rubbery Figures. Retrieved from: http://www.stoptheloss.org.au/

Parliament Flagpost (2012). Socioeconomic dimensions of pokie machines losses. Retrieved from: http://parliamentflagpost.blogspot.com.au/2012/08/socioeconomic-dimensions-of-pokie.html

Australian Broadcasting Corporation (2011). Coonan offered position on Crown Board. Retrieved from: http://www.abc.net.au/news/2011-08-26/coonan-offered-position-on-casino-board/2856858

The Australian (2011). Breach of trust on pokies will cost votes: club boss. Retrieved from: http://www.theaustralian.com.au/national-affairs/breach-of-trust-on-pokies-will-cost-votes- club-boss/story-fn59niix-1226147325740
Griffiths, M.D. (2009). Addiction. The Authors. Journal compilation 104:5, 697. Retrieved from: http://web.ebscohost.com.ezproxy1.acu.edu.au/ehost/pdfviewer/pdfviewer?sid=b4395a24- 6fe6-4833-b27b-429ff4a5926d%40sessionmgr13&vid=4&hid=10

Australian Broadcasting Corporation (2011). Poker machine maths. Retrieved from: http://www.abc.net.au/unleashed/2733166.html