Gaming Machines

Adjourned debate on motion of Hon. F. Pangallo:

That the regulations made under the Gaming Machines Act 1992 concerning prescribed day, made on 6 December 2018 and laid on the table of this council on 12 February 2019, be disallowed.

(Continued from 13 November 2019.)

The Hon. T.T. NGO (22:15): I rise to speak today about the disallowance motion regarding regulations under the Gaming Machines Act 1992. The regulations that are the subject of the disallowance motion have the effect of extending the prescribed day for the purposes of section 53A of the Gaming Machines Act 1992, providing an extension of time before which certain prohibitions regarding the operation of electronic gaming machines (pokies) and cashless gaming systems on licensed venues take effect. This date has been extended from 31 December 2018 to 31 December 2020.

Under the current act, if a licensee is found to have provided a gaming machine on premises not capable of displaying on-screen messaging after 31 December 2020, the commissioner can take disciplinary action. Under the government's reforms currently before the Legislative Council, the December 2020 date will no longer apply, and it is only where a gaming machine is connected to an account-based cashless gaming system that the on-screen messaging requirements apply or if the commissioner prescribed messaging through the codes.

As part of the statutes amendment bill, the government has enshrined in legislation the requirement for gaming machines operated in connection with an account-based cashless system to be capable of displaying on-screen messages of a kind prescribed by the commissioner in the code of practice and be operated in connection with a precommitment system prescribed by regulations. This will undoubtedly be a good thing; however, if the current reforms fail, after December 2020 all licensees will be captured.

This change to extend the prescribed day was necessary to ensure that gaming machines without on-screen capabilities are lawfully able to continue to operate and that the Casino continues to offer voluntary precommitment as part of its cashless gaming system after 31 December 2018. Whilst this effectively maintains the status quo for a further two years to 31 December 2020, it will be an interim measure until the passage of the government's gambling reform bills.

It is important to note that each gaming machine and automated table game currently at the Adelaide Casino already displays dynamic on-screen messages, and through the cashless system, approved by the Independent Gambling Authority and operated by the Casino, offers players access to voluntary precommitment features. The Australian Hotels Association and Clubs SA have indicated that cashless gaming systems are not proposed to be operated in hotels and clubs in the foreseeable future. The opposition will be opposing this motion on the grounds set out above.

The Hon. R.I. LUCAS (Treasurer) (22:19): I rise on behalf of the government to speak to the motion. From 31 December 2018 it will be an offence under the Gaming Machines Act 1992 and the Casino Act 1997 to operate an electronic gaming machine which is not capable of displaying on-screen messages—i.e. dynamic responsible gambling messages delivered directly to the player's screen—unless the Governor prescribes a later date by regulation before 31 December 2018.

Further, there will be no legislative requirement for a licensee, when operating a cashless gaming system, to offer voluntary precommitment on any of their gaming machines or automated table games at the Casino in compliance with the voluntary precommitment code set out in the regulations.

These harm minimisation measures were introduced by the former government in 2013 in advance of commonwealth measures which proposed, amongst other harm minimisation measures, the rollout of a national precommitment scheme and the mandatory use of dynamic warning messages on all gaming machines operating in Australia on 31 December 2018.

Additionally, ahead of the measures contemplated by the commonwealth, transitional regulations were made under both the Gaming Machines Act and the Casino Act to ensure that any cashless gaming system implemented by hotels, clubs and/or the Casino in the period up to and including 31 December 2018 had to be operated in connection with the precommitment system that was in compliance with the voluntary precommitment code set out in the Gaming Machines Regulations 2005 and the Casino Regulations 2013.

The commonwealth legislation which was intended to address problem gambling associated with electronic gaming machines was subsequently repealed on 31 March 2014, significantly winding back gambling reforms at a national level, with a shift in emphasis to encouraging responsible gambling rather than mandating prescriptive controls. This included the repeal of legislation which would have established a national precommitment scheme and mandated dynamic on-screen messaging on electronic gaming machines.

Currently, each gaming machine and automated table game currently operated at the Adelaide Casino already displays dynamic on-screen messages and, through the cashless gaming system approved by the Independent Gambling Authority and operated at the Casino, offers players access to voluntary precommitment features.

To ensure that gaming machines without on-screen messaging capabilities are lawfully able to continue to operate and that the Casino continues to offer voluntary precommitment as part of its cashless gaming system after 31 December 2018, regulations have been provided to parliament to prescribe by regulation a later date of 31 December 2020 as the prescribed date.

While this effectively maintains the current status quo for a further two years to 31 December 2020, it will be an interim measure until the passage of the government's gambling reform bills, currently in the Legislative Council. As part of the statutes amendment bill the government has enshrined in legislation the requirement for gaming machines operated in connection with an account-based cashless gaming system to be capable of displaying on-screen messages of a kind prescribed by the commissioner in the codes of practice and be operated in connection with the precommitment system prescribed by the regulations.

Furthermore, the proposed provisions under the Gambling Administration Bill governing the prescription of coded of practice allows the commissioner to prescribe messaging which is to be visible to persons, when operating a gaming machine, on the screen or on the screen of third-party equipment. Under proposed new provisions before the parliament, if a gaming machine is not capable of displaying on-screen when being operated in connection with an account-based cashless gaming system, the commissioner can still take the same disciplinary action but it will be done under part 5 of the Gambling Administration Act 1995 or prosecuted through the court, where the same maximum penalty of $35,000 applies.

If the commissioner requires messaging using his powers to prescribe codes of practice, and they fail to do so, it can either be dealt with as a breach of the code, where a monetary expiation penalty can be applied, or the same disciplinary provisions in part 5 of the Gambling Administration Act 1995 applied. Essentially, if the current reforms fail, after December 2020 all licensees are captured. Under the reforms the December 2020 date no longer applies and it is only where they provide a gaming machine connected to an account-based cashless gaming system that the on-screen messaging requirements apply or if the commissioner prescribes messaging through the codes.

This change was made based on submissions put forward by industry, particularly the AHA. I also understand that Professor O'Neil from SACES, the South Australian Centre for Economic Studies, also recently alluded that there is limited evidence that on-screen messaging provides much in the way of harm minimisation. Accordingly, the government opposes the disallowance motion.

The Hon. T.A. FRANKS (22:24): Yet again, the Greens rise to support this SA-Best motion, put here this time by the Hon. Frank Pangallo, to address the cosy collusion of the old parties when it comes to gambling. We are pleased that these things are not being swept under the carpet and look forward to a further debate next week. With that, we will support the disallowance.

The Hon. F. PANGALLO (22:24): I wish to thank all the members for their contributions, and I thank the Hon. Tammy Franks. It should not surprise me, actually, that Labor and the Liberals have jumped in together; their opposition is no shock. I can only ask: just where is their social conscience or sense of social justice? This regulation is to allow the operators of gaming machines an extension, to December 2020, on certain prohibitions regarding gaming machines and cashless systems to take effect. The offences in question are a failure to display on-screen messages, unless of course it is changed by the regulation. Also, there is no requirement for holders of licences who operate cashless gaming systems to offer voluntary precommitment on any machines in compliance with the voluntary code.

These are important harm minimisation methods, but this regulation seeks to absolve operators from their obligations to do what the law says and consider those with gambling problems or those who might become addicted and apply on-screen warning messages. Welfare agencies that deal with problem gambling issues in our community were not even consulted in this process, but the industry, notably the Australian Hotels Association, were.

We are yet to learn why these venues, and there is a large number of them which are preparing to welcome the insidious, sophisticated note acceptor technology, and possibly face recognition cameras, have so far failed to update the machines that do not yet carry the on-screen messaging. The commissioner for business and consumer affairs wrote to the Legislative Review Committee and reported that 88 per cent of machines are noncompliant and unable to display dynamic on-screen messages, the excuse being that the technology is too expensive to retrofit. That is a cop out.

The commissioner says that, as a fallback, other harm minimisation methods are being implemented; for example, a system where staff are alerted if players stay too long on a gaming machine, losing their shirts and emptying their wallets or purses; a reduction in maximum bets to $5; staff training every two years; and making it simpler to bar patrons. We do not really know how effective these have been, although we are told that a review is underway.

This is just another example of a government that is addicted to the revenue it gets from these abominable machines, from the most vulnerable battlers in our community. We know where the biggest takes come from: the lower socio-economic areas to the north and south of Adelaide. It demonstrates that the government is once again kowtowing to its industry puppet master, the AHA, which, as we know, contributed to their election win.

Of course, it is no surprise that my Labor colleagues, who also benefited from the AHA at the last election, have decided to side with the government. If there was genuine concern on both sides of this chamber for the welfare of problem gamblers, this motion would get overwhelming support. That it does not get that support shows the cynicism and contempt they have for those having to deal with the fallout. I would still like to urge both sides of the Legislative Council to support the motion.

The council divided on the motion:

Ayes 5

Noes 14

Majority 9

Motion thus negatived.