Hansard debates

            GAMBLING REGULATION AMENDMENT (PRE-COMMITMENT) BILL 2013
                                 Second reading
Ordered that second-reading  speech be incorporated  into Hansard on  motion  of
Hon. G. K. RICH-PHILLIPS (Assistant Treasurer).

  Hon. G. K. RICH-PHILLIPS (Assistant Treasurer) -- I move:
  That the bill be now read a second time.
Incorporated speech as follows:

  The Victorian  coalition government has  committed to introducing  a number of
  keystone   reforms  to  promote  responsible  gambling  and  reduce  the  harm
  associated with problem gambling.
  Most  notably,  the  coalition  government  has  established  the  independent
  Victorian  Responsible  Gambling  Foundation  with  a  mandate  to  reduce the
  incidence  and severity of problem  gambling across Victoria.  This body, with
  funding of  $150 million over four  years, undertakes the  treatment, research
  and education activities  necessary  to address the  complex issue of  problem
  gambling.  This is the largest financial commitment towards  reducing the harm
  associated with  problem  gambling  ever  provided  by  a state  or  territory
  government in  Australian history, and represents a 41 per  cent increase over
  the funding provided by the former state government.

  With  this bill, the coalition government has moved to make Victoria the first
  jurisdiction to have a statewide,  networked  precommitment  system. With this
  bill,  Victoria  remains  the  national  leader  in  implementing  responsible
  gambling measures.
  While governments have  an important role  to  play in  promoting  responsible
  gambling, individual gamblers must also have the tools to empower them to make
  their own decisions about  gambling responsibly, in particular with respect to
  the limits they set on playing gaming machines.
  The  coalition  government  has led  the  way by committing  to  introducing a
  voluntary precommitment scheme. Precommitment is a vital harm minimisation and
  consumer protection measure that will help players control their gambling  and
  avoid it escalating to  harmful levels. Precommitment is not just for  problem
  gamblers; it is for everyone who makes the decision to play a gaming machine.

  Players  can decide what they  want to spend or  how  long they want to  spend
  playing a gaming machine, and precommitment  provides the tools to  enable the
  player to keep  track of the time and  costs of their gaming  machine play and
  the tools to enable the player to stick to the limits they have set.
  The bill before the  house introduces the legislative framework to give effect
  to the  coalition  government's commitment.  As  the  bill  makes  clear,  the
  precommitment  system  will  be up and running in 2015-16. This is over  seven
  years sooner  than the former federal Labor government's proposed timeline for
  the completion of the national rollout of precommitment.
  The Victorian precommitment system will  mean that players will be able to set
  limits both on the time they  spend  playing  gaming  machines  and  on  their
  losses.

  The  precommitment  system will  also  enable players  to  track their playing
  history and spending over time so that they can get a much clearer idea of how
  much time and money they spend playing gaming machines.
  The proposed features and functions of the Victorian precommitment scheme were
  determined  on the basis of striking a balance  between providing players with
  choice and  keeping  the system  simple  and  user friendly.  Also  taken into
  consideration was  keeping  cost low for  industry, whilst ensuring  that  the
  features and functions of the precommitment scheme are effective at minimising
  harm. The  proposed  system will also  allow for upgrades  to  technology when
  needed.
  As has been previously announced,  the  current  monitoring licensee, Intralot
  Gaming Services Pty Ltd, is in discussions with the government to  provide the
  precommitment system throughout Victoria.

  With  the company's monitoring equipment  installed in all hotels and clubs in
  Victoria, this  option requires the least  cost and effort  for  operators and
  less duplication of infrastructure. I am pleased to say that this decision has
  the broad support of the Victorian gaming industry.
  I now turn to the provisions of the bill before the house.
  The bill will expand the scope of the current monitoring licence to enable the
  monitoring licensee to provide, operate and  maintain the precommitment system
  and to provide 

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related  services,  such  as  a  precommitment  website.  This  will  allow  the
government and the  monitoring licensee to  enter into the  necessary commercial
arrangements for the provision of the precommitment  system and services.  These
arrangements  will  include the  state's  requirements  for  the  functions  and
features of the precommitment system. The bill will also enable other commercial
arrangements to be made with venue  operators that will underpin the delivery of
the overall precommitment scheme.
  Venue operators will be subject to new obligations to ensure that their gaming
  machines  are connected to  the  precommitment system  and  to install certain
  equipment  in  their venues that will allow players to access the features  of
  the precommitment system.

  This equipment includes interactive display screens  on  the  gaming machines,
  that will  display messages to  players regarding their play  activity such as
  alerts about when they are reaching a limit, as well as kiosks that will allow
  players to register  for precommitment, set  and update their limits  and view
  their  play data. Other  equipment  includes card  readers,  card encoders and
  keypads.
  The  Victorian  Commission  for  Gambling  and  Liquor  Regulation  will  have
  regulatory  oversight   of  the  precommitment  scheme.  The  bill  gives  the
  commission new  powers to make  technical standards for both the precommitment
  system  and  the equipment that  venues  will require. The  commission will be
  required to approve  the precommitment system and  any equipment that  will be
  installed on the gaming machines.

  A number  of  gaming venue  operators  have introduced loyalty  schemes within
  their venues. The Gambling Regulation Act 2003 currently includes  a number of
  harm-minimisation and  consumer  protection measures  in relation  to  loyalty
  schemes.  In particular, a  loyalty  scheme must enable  a participant in  the
  scheme  to set a time  or net loss limit on  their gaming machine play.  These
  limit-setting  functions have fewer features than  those  proposed  under  the
  statewide precommitment scheme.
  In order  to  promote  the precommitment system and to avoid any confusion for
  players  from having two limit-setting  systems available within  a venue, the
  bill  prohibits  any  other limit-setting mechanisms from operating  within  a
  venue from 2015-16, apart  from  the  statewide  precommitment system. Loyalty
  scheme providers and venue operators will  also be required to inform players,
  through their  written  activity statements, about  the ability to  set limits
  under the precommitment system.

  In  determining the best  way to implement precommitment  for both players and
  industry, consideration has been given  to the benefits that could accrue from
  the use by  a  player of one card  for both precommitment and loyalty  and one
  means of accessing  information  at a gaming  venue  about both schemes.  This
  could encourage the use of precommitment by players and remove the  stigma  of
  using a  card that is designed  solely for precommitment.  The  bill therefore
  proposes that, for those venues  that  have  a  loyalty scheme, the same card,
  card  reader,  display  screen and kiosk must be used  for  both  loyalty  and
  precommitment. To allay any concerns about loyalty schemes being promoted more
  prominently in a venue than precommitment on the display screen or on a kiosk,
  venues will be required to ensure that  information relating to  precommitment
  is  given precedence over  information relating to loyalty.  In this way,  the
  system will ensure that players are made  clearly aware  of how  much they are
  spending on gaming.

  Players  will  be   issued  with  a   card  once  they  have   registered  for
  precommitment.  Whilst  these cards will  be  issued by  venue  operators, any
  logos,  symbols or  other  markings that are  associated with gaming  machines
  should not  appear on the card. The bill therefore extends the restrictions in
  the  act  on  gaming  machine  advertising  to  the  player  cards  used   for
  precommitment.
  The precommitment system will capture the personal details and play history of
  players  who choose to register for precommitment. The government  understands
  the concerns about  potential misuse of that sensitive information. To address
  these concerns, the bill includes an express  prohibition on the  unauthorised
  disclosure  of precommitment information  in order to ensure the protection of
  players' data.

  However, the data  from  the system will be an important source of information
  regarding gaming machine  play and  the use of limits, and the bill includes a
  power   for  the  minister  to  direct  the  monitoring  licensee  to  provide
  de-identified  data  to  researchers.  This will help facilitate research  and
  evaluation into the effectiveness of precommitment.
  To  further  ensure  the  protection  of  the  player  data  captured  by  the
  precommitment  system, the government  requires the system  to be designed  so
  that there will be no data transferred to or from the precommitment system and
  loyalty schemes.  In  addition,  venue  operators  will  not  have  access  to
  identified  data in relation to players registering for or using precommitment
  at their gaming venue.
  Finally, the bill includes a regulation-making power.

  This  will  enable  regulations  to  be  made about  the  equipment  used  for
  precommitment,  as well as  imposing obligations on venue  operators about the
  operation  of  precommitment in venues  and  their duty  to  assist players to
  register for, and use, precommitment.
  In summary, this  bill  is  the first step in implementing the legislative and
  regulatory  framework  for the  statewide precommitment scheme.  The coalition
  government's commitment to  introduce voluntary precommitment  in 2015-16 will
  also  involve  ongoing   consultation  with  the  gaming  industry  and  other
  interested  parties,  including community  groups, on developing  protocols to
  encourage the take-up of precommitment and reduce any  potential social stigma
  for players.  The government will  also  be revising the  responsible gambling
  codes  of  conduct  to  require venues to  support  and  promote  the  use  of
  precommitment technology.

  I commend the bill to the house.
Debate adjourned for Ms PULFORD (Western Victoria) on motion of Mr Leane.
Debate adjourned until Thursday, 19 December.