Wednesday, 27 November 2024


Bills

Gambling Legislation Amendment (Pre-commitment and Carded Play) Bill 2024


Melissa HORNE, Danny O’BRIEN

Gambling Legislation Amendment (Pre-commitment and Carded Play) Bill 2024

Statement of compatibility

Melissa HORNE (Williamstown – Minister for Casino, Gaming and Liquor Regulation, Minister for Local Government, Minister for Ports and Freight, Minister for Roads and Road Safety) (11:12): In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006, I table this statement of compatibility with respect to the Gambling Legislation Amendment (Pre-commitment and Carded Play) Bill 2024:

Opening paragraphs

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006, (the Charter), I make this Statement of Compatibility with respect to the Gambling Legislation Amendment (Pre-Commitment and Carded Play) Bill 2024.

In my opinion, the Gambling Legislation Amendment (Pre-Commitment and Carded Play) Bill 2024, as introduced to the Legislative Assembly, is compatible with human rights as set out in the Charter. I base my opinion on the reasons outlined in this statement.

Overview

The Bill amends the Gambling Regulation Act 2003 and the Casino Control Act 1991.

The Bill will implement the government’s policy on pre-commitment and carded play for all gaming venues and provide for regulations to be made to support these harm minimisation measures. The Bill will also require slower spin rates for new electronic gaming machines (EGMs).

Human Rights Issues

Human rights protected by the Charter that are relevant to the Bill

The human rights protected by the Charter that are relevant to the Bill are:

• privacy and reputation (section 13)

• the right to be presumed innocent (section 25).

Section 13 – Privacy and reputation

Section 13 of the Charter provides that a person has the right not to have that person’s privacy, family, home or correspondence unlawfully or arbitrarily interfered with.

Clause 6 of the Bill engages this right by requiring a person to have their identity verified before a venue operator may pay out, or allow another person to pay out, accumulated credits of $2000 or more from a gaming machine. The venue operator must verify the person’s identity in accordance with the regulations.

This right is further engaged by clause 7 of the Bill which inserts new section 3.5.33T to the Gambling Regulation Act 2003, providing that a person may not be issued a player card unless the venue operator has first verified their identity in accordance with the prescribed requirements (if any).

Identity verification is central to tracking gaming machine play to prevent a person giving false details to create a pre-commitment account, having more than one account or using someone else’s card. The regulations will contain the processes and requirements for identity verification. Identity verification is intended to prevent and minimise harm and money laundering.

If an interference with a right to privacy is lawful and not arbitrary, it does not come within the scope of section 13 of the Charter. In this case, the requirement for identity verification will be required by law and is not arbitrary as it will apply to all persons who use an electronic gaming machine (EGM). Therefore, the above clauses do not limit the right to privacy in section 13 of the Charter.

Section 13 of the Charter is also engaged by clause 9 of the Bill in so far as it facilitates the disclosure of loyalty scheme information, which may include personal information about players. Clause 9 inserts new section 3.5.41B into the Gambling Regulation Act 2003 to provide that the Minister may from time to time direct the loyalty scheme provider or venue operator to provide information derived from the loyalty scheme to the Minister or the Commission for the purpose of enabling the reconciliation of loyalty scheme information with information in relation to the pre-commitment system.

As noted above, if the interference with a right to privacy is lawful and not arbitrary, it does come within the scope of section 13. In this instance, the Minister may direct the loyalty scheme provider or venue operator to provide information derived from the loyalty scheme to enable reconciliation of such information with information in relation to the pre-commitment system. There is currently no capacity for data to be requested in relation to loyalty schemes. Clause 9 of the Bill will support regulatory activities, especially in circumstances where suspicious activity via the pre-commitment system is detected. Under the new provisions, that data could be compared to the relevant loyalty data to assist with an investigation. Clause 9 will also enable regulation of loyalty schemes more generally, for example to confirm that points are being awarded in accordance with requirements.

Section 25(1) – The right to be presumed innocent

Section 25(1) of the Charter provides that a person charged with a criminal offence has the right to be presumed innocent until proven guilty according to law. Where an offence provides an exemption, this may affect rights under section 25(1).

Clause 4 of the Bill, substitutes paragraph (2) of section 2.5A.13 of the Gambling Regulation Act 2003 to provide that a person does not commit an offence against section 2.5A.13(1) of the Gambling Regulation Act ‍2003 where notice of the making of an interim ban or fixed term ban order is not published in a newspaper circulating generally in Victoria and the person is not aware of the making of the order. As this amendment provides an exemption, it appears to engage section 25(1) of the Charter. However, it does not require the accused to prove or establish their defence, nor does it require the accused to prove or establish the absence of an element of an offence. It therefore does not engage the Charter.

Finally, clause 15 of the Bill inserts new section 10.7.12(1)(b) into the Gambling Regulation Act 2003, to provide that a person does not commit an offence against section 10.7.3, 10.7.4 or 10.7.6 if immediately before the acts, there was produced to the person acceptable proof of age for the minor. The amendment does not engage the Charter because it does not require the accused to prove or establish the element of an offence. Even if it did engage the Charter, the amendment would be justifiable because it involves offences which prevent gambling by minors, conduct which carries a high risk of harm.

For the reasons set out above, I consider that the Bill is consistent with the Charter.

The Hon Melissa Horne

Minister for Casino, Gaming and Liquor Regulation

Second reading

Melissa HORNE (Williamstown – Minister for Casino, Gaming and Liquor Regulation, Minister for Local Government, Minister for Ports and Freight, Minister for Roads and Road Safety) (11:13): I ‍move:

That this bill be now read a second time.

I ask that my second-reading speech be incorporated into Hansard.

Incorporated speech as follows:

Most Members in this chamber will know people who have experienced gambling harm in some form.

We have met people who have struggled to pay bills because they have gone over their limit for what they are willing to gamble.

As Members of Parliament, most of us will have met people who have lost everything from their addiction to gambling. We have heard stories of the impacts on not only their lives, but the lives of their families.

This is why I am proud to introduce this Bill, which delivers on the government’s commitment to introduce landmark gambling reforms.

These changes will protect not just the 10 per cent of Victorians who play poker machines from gambling related harm, but their friends and loved ones.

Purpose

The Bill I am introducing amends the Gambling Regulation Act 2003 and the Casino Control Act 1991 to establish the necessary legislative and regulatory framework for mandatory carded play and pre-commitment on electronic gaming machines in Victoria.

The Bill will also introduce new spin rate limits to new electronic gaming machines, slowing down the rate of play and player loss, both at hotel and club venues and at the casino – lowering the rate in which people can lose or launder money on gaming machines.

The Bill will also make some minor and technical amendments to ensure Victoria’s gambling legislation is clear and consistent.

This Bill gives the Government the power to set requirements for carded play on gaming machines in hotels and clubs.

Carded play is a relatively simple concept – it means that a player card must be inserted into an electronic gaming machine for it to operate. This establishes the means to enable patrons to make better informed choices about their spending.

Victoria was proudly the first Australian state to introduce a voluntary statewide carded play and pre-commitment scheme for gaming machines. As such, the technical framework is established.

However, voluntary requirements have been stigmatising and would be more effective if normalised via standardising its use.

Implementation

In recognition of the weight and complexity of the reforms, the Act enables the Minister to conduct pilots, learn from the implementation and be responsive to these lessons.

In this way, the amendments provide maximum flexibility for implementation of the reforms, embedding the opportunity for continuous review and improvement, and ensuring a careful and considered rollout that allows venues and players to adapt gradually, if necessary. These laws also allow a flexible approach for different regions in the state.

As a first step, these laws will give the Minister the powers necessary to conduct a pilot of carded play.

It is expected that a that pilot will take place in mid-2025 for a period of three months and will include approximately 40 venues.

Following a successful pilot, carded play requirements will be introduced on all poker machines. This is expected to occur by the end of 2025. Patrons will still be able to use “casual” cards which do not require any identification requirements and do not require them to set their own loss limits.

Following evaluation of the state-wide introduction of carded play, to occur by end-2026, additional requirements such as the phasing out of “casual cards” will be considered, with changes to the currently non-binding pre-commitment limits to be considered as part of the next monitoring license arrangements in late-2027.

Evidence

There is a strong Australian evidence base for these this type of reform. The proportion of people who play poker machines is shrinking, but the number of them who experience harm is growing.

The most recent study of Victorian gamblers found that 29 per cent of people who played poker machines experienced some form of harm.

In its 2010 report, the Productivity Commission recommended binding loss limits due to significant difficulties people using EGMs experience in controlling their gambling. The report highlighted that around 70 per cent of people using EGMs reported exceed their spending limits. A pre-commitment limit was further recommended by the Commonwealth’s 2011 Parliamentary Joint Select Committee on Gambling Reform

A 2019 independent evaluation from the University of Adelaide’s Centre for Economic Studies further highlighted that the voluntary nature of Victoria’s system was compromising its ability to assist problem gamblers, and a similar finding was made in the 2017 report by the Australian Gambling Research Centre, which found that pre-commitment works best when it is required to be used by all patrons.

And in June of this year, the Australian Capital Territory’s Standing Committee on Justice and Community Safety recommended mandatory carded play and binding pre-commitment, and in September the Grattan Institute also recommended that state governments implement pre-commitment schemes for poker machines.

Consultation

The major reforms in this Bill represent an important shift in the way gaming machines are played in Victoria ‍– putting the power back in the hands of the patron.

Since we announced our reforms in July, I have met with advocates, people with lived experience of gambling harm, as well as with industry and clubs to hear from them directly about these reforms.

The Government’s approach to implementation has been informed by these conversations, as well as through the robust engaged undertaken by my Department.

We recognise that the approach and timeline for implementing these reforms must be balanced with the need to ease impacts on hotels and clubs and their patrons, and ensure Victoria maintains its vibrant hospitality sector.

This approach is not ‘set and forget’ – we will continue to work with advocates and industry on the implementation approach.

Spin rates

The Bill will also ensure that the pace at which gamblers lose or launder money is slowed.

Research shows that faster play speed is generally associated with higher bets, longer sessions of gambling, and some level of impaired control during gambling.

Furthermore, this will slow down the rate at which a potential criminal could ‘launder’ money, further discouraging this illegal behavior and complementing our carded play reforms.

The current gaming machine spin rate in Victoria is 2.14 seconds. Under the Bill, any new gaming machines approved by the Victorian Gambling and Casino Control Commission after 1 December 2025 must have a spin rate of at least three seconds per game – a 40 per cent increase in spin rate.

The Casino Control Act 1991 will also be amended to ensure the slower spin rates also apply to new machines at the casino.

Penalties

The Bill creates new offences to support the reforms once in place and ensure that venue operators who do not comply face the consequences.

This includes offences for a venue operator to allow someone to play a gaming machine without a player card, to issue a player card that does not meet prescribed requirements, and to issue a card without properly verifying a person’s identity.

The Bill establishes a power for the Minister to direct a loyalty scheme provider or venue operator to provide loyalty scheme information for the purpose of data reconciliation with the pre-commitment system. It will be an offence not to provide this information when directed to do so.

It will also be an offence for a venue or casino operator to allow a person to play a machine with a faster spin rate than is allowed.

Ancillary amendments

The Bill also prohibits a venue operator from paying out, or allowing another person to pay out, accumulated credits of $2000 or more without verifying the player’s identity. This elevates an existing operational obligation to a legislative requirement.

Further minor amendments will update the operation of loyalty schemes and the consistency of the Gambling Regulation Act.

A definition of player account will be added, meaning an account established in accordance with the regulations for the pre-commitment system.

Several offence provisions in the Act will be re-cast to explain the circumstances in which the offence will not be made out, rather than requiring a defendant to prove those circumstances as a defence. This will improve fairness and consistency across the Victoria statute books.

These reforms offer critical protections – both for Victorians experiencing harm from gambling, but also their families who disproportionately experience these impacts.

As such, I am proud to commend this Bill to the house.

Danny O’BRIEN (Gippsland South) (11:13): I move:

That the debate be adjourned.

Motion agreed to and debate adjourned.

Ordered that debate be adjourned for two weeks. Debate adjourned until Wednesday 11 ‍December.