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Problem Gambling Levy Formula Announced

Internal Affairs Minister, George Hawkins, has announced how the four main gaming sectors will be levied for problem gambling prevention and treatment services when the new gambling legislation comes into force next year.

The levy formula will calculate each sector’s contribution on the basis of the demand it creates for problem gambling treatment services, and the amount players are spending.

The government has agreed that the problem gambling levy will raise up to $9.8 million in the 2002/03 year. The formula would give an approximate distribution of payments from the sectors as follows:
Levy Amount($m)
Non Casino Machines 6.5
Casinos 1.9
TAB 1.1
Lotteries Commission 0.2

“The formula means that each sector will be levied according to the riskiness of their product. While non-casino machines are a high risk for problem gambling, Lotto tickets are low risk – the levels of contribution reflect those differences,” said Mr Hawkins.

Currently, non-casino machine operators pay a compulsory levy per gaming machine, and the other three sectors pay only a voluntary contribution, towards the funding of problem gambling services, administered by the Problem Gambling Committee.

“I want to thank the Problem Gambling Committee for the great job they have done over the years. However, the growth of gambling and gambling problems requires us to put the levy on a clearer statutory basis,” said Mr Hawkins.

Mr Hawkins said that details on calculation of the levy would be included in the Responsible Gambling Bill, which will be introduced to Parliament early in the New Year.

Ends

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