"Addiction to gambling tax: its a losing bet"

Today's Sydney Morning Herald reports that the dependence on many Australian states on gambling taxes to support the state budget must end or many states will be unable to deal with the budgetary stress caused by an aging population.

The Australian Productivity Commission, authors of the seminal inquiry into gambling in Australia "Australia's Gambling Industries", has found that as most gambling revenue is contributed by those under 55, as the proportion over 55 increases gambling revenue will decrease while the need for more government services to support older Australians will increase. This pressure would mean that additional revenue from other sources would be neccessary such as increased GST or income tax.

The article also contains a number of interesting statistics:

State governments have come to rely heavily on gambling taxes. Research by CommSec shows average per capita spending on gambling has doubled in the past decade to $15.50 a week.
Most of this is spent on poker machines, casinos and lotteries, which are heavily taxed by the states. Betting on racing averaged just $2 a week.
Gambling accounts for 3.4 per cent of the average weekly household budget, up from just over 2 per cent 12 years ago. But it may have hit saturation point. The commission notes it has plateaued at 3.4 per cent since 1998-99, suggesting any new forms of gambling will only cannibalise existing gaming revenue.

The commission also noted that all other things being equal, and rates of gambling tax not increasing, States will continue to be dependent on gambling revenue as it will remain similar to current proportions of state revenue (more than 15% in Victoria) but this would leave the state with a deficit.

States need to realise that gambling is not going to be the cash cow it has been to date. They also need to realise that they need more regular gamblers and less problem gamblers as a problem gambler will eventually be a non-gambler as they will either run out of money or seek help.

We need to have gambling operators and governments realise that there is a better way to deliver gambling. A way that gives players an informed choice, more control and supports them rather than trying to milk them for every dollar.

Only when real 'responsible and informed gambling' is available will gambling truly be an entertainment medium and not simply a dangerous and potentially harmful pursuit.

GG