Hansard debates

            GAMBLING REGULATION AMENDMENT (PRE-COMMITMENT) BILL 2013
                                 Second reading

  Mr O'BRIEN (Treasurer) -- I move:
  That this bill be now read a second time.
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 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 

 Page 3801


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 

 Page 3802


venues to support and promote the use of precommitment technology.
I commend the bill to the house.
Debate adjourned on motion of Ms GREEN (Yan Yean).
Debate adjourned until Thursday, 14 November.