I rise to speak in favour of the Gambling Legislation Amendment (Pre-commitment and Carded Play) Bill 2024, and from the outset I would like to thank the Minister for Casino, Gaming and Liquor Regulation in the other place and his team for their efforts in bringing this important piece of legislation to this house. I trust that these changes will make a positive impact for Victorians. I would also like to take note of the excellent contribution from the member for Eureka. Each time that she gets up and speaks on these changes that we make with regard to gambling she lets us see into the harms that gambling has wreaked on her family, and I am very happy that she can share that with the rest of Victorians and us here in the chamber, giving us insight into these problems that we are actually trying to deal with with this bill here today.
This government is serious about reducing gambling harm, and we are proud to build on our legacy of taking strong and decisive action to protect Victorians. In July 2023 the then Premier, alongside the then Minister for Casino, Gaming and Liquor Regulation, introduced significant reforms to minimise the impacts of gambling on our community. The numbers presented in that media release unfortunately continue to paint a clear picture of the harm that gambling causes for so many. It was stated that an estimated 330,000 Victorians experience harm as a result of gambling each year, costing Victorians around $7 billion annually and leading to significant financial distress, mental health concerns and relationship issues. Just recently the figures are that $3.03 billion has been lost on electronic gaming machines themselves. That is why it continues to be an imperative that we step up to protect Victorians.
This Labor government introduced the Victorian Gambling and Casino Control Commission, an independent, strong and fair regulator of Victoria’s gambling industry. This commission operates to ensure that gambling operators act in good faith and take the necessary measures to minimise gambling harm. It also seeks to keep criminal influences away from the gambling industry as well as stopping those vulnerable to gambling harm from being unfairly targeted and exploited. By establishing the VGCCC we have made a bold statement that the gambling industry will be regulated strongly, with enhanced oversight and management, and that those who engage in wrongful behaviour will be held accountable. We have also identified that the introduction of carded play at Crown Casino on electronic gaming machines, also known as poker machines, is a prudent measure to help protect players. Carded play means that users can keep track of just how much they are gambling with and, quite frankly, how much money they are losing.
Twenty-two years ago I had the experience of working in Crown. As a uni student I worked in the hospitality industry serving drinks to the punters in that venue. We had good working conditions, but I did see in front of my eyes the harm and the dangers associated with electronic gaming machines and gambling in general. Back then it was more like the wild west. You did not have to be carded, and you were not being tracked in what sort of gambling you were doing. I am very happy that Crown has already introduced carded play, and I did pop down there to have a look to see, and it seems a simple and an easy process. On the concerns that have been raised by the other side about it being problematic, it was very easy for them to show me what they do to sign up. These changes stand alongside the mandatory closure period of 4 am to 10 am for gaming areas in all Victorian hotels and clubs, which came into effect on 30 August last year. This again is another measure to help stop users from losing control and to keep track of time. There were reports of many of the venues staggering their opening hours so that a punter could move from one venue to the other. This ensures that all venues are closed from 4 am to 10 am.
This bill progresses the Allan Labor government’s remaining commitments to addressing the risks and harms related to gambling. As technology advances, this opens up a potential to use this as an opportunity to further protect gamblers while simultaneously presenting a risk that gambling may become even more perverse and harmful. Account-based play regulations mean that in order to operate a gambling machine a patron must insert a player card into the machine. This personal card gives players information about their gambling habits and history as well as giving them an opportunity to set limits on how much they are willing to lose. This process is also known as precommitment, an important measure which can balance personal choice and freedom with responsibility such that people can still have fun whilst maintaining the safeguard mechanism necessary such that the enjoyment does not turn into an addiction or intrusive habit. Furthermore, this bill will pave the way in reducing the spin rate of electronic gaming machines. A spin rate of 2.14 seconds, which is the current setting, means that for one round of a pokies game it takes the machine 2.14 seconds to complete the spin. By increasing the time of this spin rate to above 3 seconds we are slowing the play speed of games, thus slowing the rate gamblers can lose money on these machines. Researchers indicated that faster play is correlated with higher stakes, longer periods of play and, on occasion, impaired self-control abilities when playing. It is critical that we take action to slow down the rate of play, and that is exactly what this bill intends to do.
We recognise that these reforms are broad ranging and complicated. As such, the implementation of these changes cannot be done in an instant, and we must take the necessary steps to ensure that they are effective and efficient. The new act will enable the new Minister for Casino, Gaming and Liquor Regulation to conduct pilots to learn from how it can be practically implemented. For example, across a three-month period around 40 venues across the state will be trialled for carded play. This process is crucial as we can access the harm minimisation effectiveness of these policies through the pilot stage. This in-depth analysis will provide the flexibility to strengthen or make any changes that may be necessary. Victoria was the first state in Australia to introduce carded play and precommitment for electronic gaming machines. Another benefit of this is that it provides a further deterrent against money laundering by mandating the venue operators verify identity before cashing out wins of $2000 or more. The evidence is overwhelming to support our changes. Although the proportion of the population which uses pokies is decreasing, the number of gamblers who face harm has increased. The Productivity Commission reported that almost 70 per cent of EGM users spend more than their limit, a shocking and worrying statistic which further elucidates the importance for change.
We also know that the legislative reform alone is not enough. Whilst we expect that most will follow the new rules and regulations, there are some bad-faith actors who try to circumvent the rule of law. That is why this bill created new offences to support the new reforms. Once it has been established an offence will be created to penalise venue operators who allow uncarded play or issue cards to someone whose identity has not been properly verified. Additionally, the minister will have the power to instruct a loyalty scheme provider or venue operator to supply information about the gambling habits of players and the implementation of the precommitment. Much like the aforementioned VGCCC, this is about providing oversight over whether users are being treated fairly and vulnerable users are not being preyed upon.
In drafting this bill the government established a community advisory committee, talked to people with lived experience of gambling harm and listened to working groups and advocates, so this bill also considers the role of community clubs, RSLs and hospitality venues in the state of our economy. They make contributions to grassroots sporting and other organisations and donate to charities as well as look after our veterans. I would like to give a shout-out to the team at the Waverley RSL: president Neil Slaughter; vice-president Geoff Dare OAM; secretary Grantley Woods; treasurer Ken Vickery; committee members Tim Day, Rhonda Reid, Rex Hirst, Brendan Mahon and Gary Brogden; welfare officer Filidea Di Bianco; and general manager Justin Cleverley. I would also like to thank the great team for the work that they do in the provision of welfare services to support former and serving members of the Australian Defence Force.
