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A Database

On Australia’s Gambling Industry

Published and Prepared by the Australasian Gaming Council (AGC).

DISCLAIMER

Whilst a great deal of care has been taken in the preparation of this publication, it is nevertheless necessary to caution users with regard to its accuracy.

The information contained in this publication has been obtained from external sources and has not been independently verified by the Australasian Gaming Council (“the Council”).

The Council expressly disclaims all and any liability (including all liability from or attributable to any neglect or wrongful act or omission) to any persons in respect of anything done or omitted to be done by any person in reliance whether in whole or in part upon any material in this publication

.

The Australasian Gaming Council welcomes comments and suggestions on this publication.

Please contact [email protected] Address:

Phone Email Web

Level 1/1 Little Collins Street Melbourne 3000

Victoria Australia +61 3 9650 1856

[email protected] www.austgamingcouncil.org.au

This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1986

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1

Chapter 1 Australia’s Gambling Environment

DEFINITIONS OF GAMBLING ... 2

G

AMBLING

... 2

G

AMING

... 2

K

ENO

... 2

S

PORTS BETTING

... 2

W

AGERING

... 2

GAMBLING IN AUSTRALIA ... 2

GAMING IN AUSTRALIA ... 3

C

ASINO

G

AMING

... 3

E

LECTRONIC

G

AMING

M

ACHINES

(G

AMING

M

ACHINES

/EGM

S

/P

OKER

M

ACHINES

/P

OKIES

) ... 5

K

ENO

... 10

L

OTTERIES

,

L

OTTO AND

I

NSTANT

L

OTTERIES

... 10

L

OTTERY PROVIDERS IN

A

USTRALIA

... 10

O

NLINE

/I

NTERACTIVE

G

AMING

/G

AMBLING

... 11

P

OOLS

(F

OOTBALL

P

OOLS

) ... 12

RACING AND WAGERING IN AUSTRALIA ... 13

R

ACING

... 13

W

AGERING

... 16

B

ETTING

E

XCHANGES

... 16

B

OOKMAKERS

... 16

S

PORTS BETTING

... 17

T

OTALISATOR

A

GENCY

B

OARD

(TAB/T

OTE

) ... 18

LICENCE AND EXCLUSIVITY ARRANGEMENTS ... 19

C

ASINOS

... 19

K

ENO

... 20

L

OTTERIES

... 20

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2 DEFINITIONS OF GAMBLING

Gambling

Gambling is the placement of a wager or bet on the outcome of a future uncertain event.1

Gaming

Gaming refers to all legal forms of gambling other than racing and sports betting, such as lotteries, poker and gaming machines, casino gaming, football pools, interactive gaming and minor gaming (which is the collective name given to raffles, bingo, lucky envelopes and the like).2

Keno

Keno is game where a player wagers that their chosen numbers match 20 numbers randomly selected from a group of 80 numbers via computer or ball draw device.3

Sports betting

Sports betting is wagering on approved types of local, national or international sporting activities (other than forms of horse and/or greyhound racing), whether on or off-course in person, via telephone or via the internet.4

Wagering

Wagering refers to all legal forms of gambling on racing and sporting events.5

GAMBLING IN AUSTRALIA

Table 1-1

Forms of gambling in Australia

Gambling Form ACT NSW NT QLD SA TAS VIC WA Betting exchange6 _× _× _× _× _× _ü _× _×

Casino gaming ü ü ü ü ü ü ü ü

Football pools ü ü ü ü ü ü ü ü

Gaming machines (Hotels and

Clubs only) ü ü ü ü ü ü (Casino only)

Keno ü ü ü ü ü ü ü (Casino only)

Lotteries ü ü ü ü ü ü ü ü Minor gaming ü ü ü ü ü ü ü ü Online/Interactive gaming7 × × × × × × × × Racing/Wagering ü ü ü ü ü ü ü ü Sports betting ü ü ü ü ü ü ü ü 4

Source: Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics 2011-12 (29th_Edition).

1

Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics 2011-12 (29th_edition). 2 Ibid 3_Ibid 4_Ibid 5 Ibid

6_{A Betting Exchange (Betfair) is currently licensed in Tasmania. The Tasmanian Gaming Commission reports only government}

revenue for this product, which is recorded under interactive gaming.

7

Under the Commonwealth Interactive Gambling Act 2001 it is an offence to offer interactive gaming services to Australian residents

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3 GAMING IN AUSTRALIA

Casino Gaming

Thirteen casinos operated throughout Australia in the 2012-13 period many offering both gaming opportunities and a number of other amenities including:

· tourism and accommodation facilities;

· cultural and entertainment facilities – including theatres and showrooms; · recreational facilities such as games arcades, pools and gyms;

· business facilities such as conference and meeting venues; as well as · multiple dining and retail outlets.

The provision of gaming at Australian casinos is highly regulated. Comprehensive rules and fixed odds (approved by the relevant jurisdictional regulatory authorities) are in place.

Bets at casinos are placed on various table games, electronic gaming machines (EGMs) and Keno systems. Just some of the table games available at casinos in Australia include Baccarat, Roulette, Blackjack, Sic Bo, Pai Gow, Poker and Big Wheel. Casinos may also offer outlets for TAB wagering and sports-betting – the Sydney casino (‘The Star’) also offers Keno.

All casinos in Australia (except Casino Canberra in the Australian Capital Territory) offer Electronic Gaming Machines (EGMs) and most properties offer Multi-Terminal Gaming Machines (MTGMs) which may also be referred to or defined as Fully Automated Table Games (FATGs).

Table 1-2

Number of casinos in Australia by state/territory (2012-13)

Location Property Name Number of casinos Australian Capital Territory Canberra Casino Canberra 1

New South Wales Sydney The Star 1

Northern Territory Darwin SKYCITY Darwin

Alice Springs Lasseters Casino 2

Queensland Brisbane Treasury Casino and Hotel

Cairns Reef Casino

Gold Coast Jupiters Gold Coast

Townsville Jupiters Townsville 4

South Australia Adelaide Adelaide Casino 1

Tasmania Hobart Wrest Point Casino

Launceston Country Club Casino 2

Victoria Melbourne Crown Melbourne 1

Western Australia Perth Crown Perth 1

Total 13

Source: Allen Consulting Group (2009), Casinos and the Australian Economy, Report to the Australasian Casino Association - with updates by the AGC.

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4 Table 1-3

Estimated number of table games and EGMs at casinos in Australia

(2012-13)

Please note that figures in the following table are a snapshot only, current only for the period stated.

Source: Productivity Commission (2010) Gambling, Report no. 50, Canberra – with updates by the AGC.

8_{Please note that this number may include MTGMs available at select properties – listings are provided separately only where}

separate numbers are available.

9_{Please note a total figure for MTGMs is not provided as these figures are only included where information is made available. It is}

also important to note that MTGM’s/FATG’s may be included in other total’s provided.

10_{Figures from Echo Entertainment Group, current at 30 June 2013.}

11_{Figures from Queensland Office of Liquor and Gaming Regulation, current at 31 December 2013.}

12_{On 1 January 2014, the concept of a gaming machine entitlement was extended to include the gaming machine operations of the}

Adelaide Casino. The casino licensee was granted 995 non-transferable gaming machine entitlements equivalent to the maximum number of gaming machines which could be operated at the Casino on 31 December 2013.

13_{The maximum number of gaming tables available for gaming at any one time at the casino is 400. In addition, up to 100 poker}

tables will also be allowed at any one time, enabling the casino to operate a maximum of 500 gaming and poker tables.

14_{In December 2012 Crown Perth received approval for 500 additional gaming machines (to be phased in at 100 machines per year}

over five years) and 100 additional tables (to be phased in at 25 tables per year over four years), which will eventually take the total number of gaming machines to 2,500 and the total number of tables to 320 in 2018 and 2017 respectively. Figures cited are estimates at end 2013.

Location Venue Tables 8 _MTGMs/FATGs9 EGMs

Australian Capital

Territory Casino Canberra 39 Nil

New South Wales10 _{The Star} ₃₁₄ ₅₀₄ 1,500

Northern Territory SKYCITY Darwin 36 788

Lasseters 17 300

53 1,088 Queensland11

Jupiters Gold Coast 91 39 1,486

Treasury Brisbane 95 34 1,385

Jupiters Townsville 26 20 352

Reef Casino Cairns 38 20 499

250 113 3,722 South Australia Adelaide Casino 95 40 99512

Tasmania Wrest Point 27 650

Country Club 18 523

45 1,173 Victoria Crown Melbourne 50013 2,500

Western Australia Crown Perth 245 50 2,10014

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5 Electronic Gaming Machines (Gaming Machines/EGMs/Poker Machines/Pokies)

All states and territories in Australia have Electronic Gaming Machines (also known as gaming machines, EGMs, poker machines or ‘pokies’) available at licensed venues (with the exception of Western Australia which allows EGMs only at the casino and the ACT where Casino Canberra is not licensed to provide EGMs).

Gaming machines can be defined as a device designed for the playing of a game of chance that pays out money or tokens or registers a right to an amount of money to be paid.15 Gamblers place bets on an EGM by selecting the lines to be played, the bet per line and then pushing a button that places machine reels in motion. Prizes are paid out according to the position of symbols displayed when the machine reels halt. All game results are determined by a Random Number Generator (RNG). The style of game and game characteristics may vary somewhat between jurisdictions but are determined by state/territory government legislation and regulations.

Restrictions (including EGM caps) apply throughout Australian jurisdictions regarding the number of EGMs that may be made available – whether on a state-wide, industry, regional and/or venue basis. Caps vary according to the jurisdiction. Many have been accompanied by forfeiture requirements upon redistribution and/or other arrangements.

Table 1-4

State-wide EGM caps

Source: Productivity Commission (2010) Gambling, Report no. 50, Canberra - with updates by the AGC.

15

Adapted from the Gaming Machines Act 2001 (NSW)

16_{ACT Gambling and Racing Commission (2013)}_{Annual Report 2012/13.} 17

The effective state-wide cap for hotels is 19,310. On 8 May 2001 the Queensland Government introduced a state-wide cap on the total number of gaming machines in hotels. The scheme allows the re-allocation of gaming machine authorities that become available within the cap as a result of a hotel closing, a reduction in the number of approved gaming machines or the surrender or cancellation of the gaming machine licence.

18_{The club gaming machine reallocation scheme commenced from 30 November 2009, capping club EGM numbers at 24,705.} 19

The Allen Consulting Group, Problem Gambling Research and Treatment Centre and the Social Research Centre (2011) Social and Economic Impact Study of Gambling in Tasmania, Volume 1: Gambling Industry Trends and Economic Impacts, Tasmanian

Government Department of Treasury and Finance p16. The state-wide cap does not include gaming machines operated on vessels operated by the Trans-Tasman-Line (TT Line Ferries which operate 46 EGMs).

20_{20% of Victorian gaming machines must be located in regional areas (outside Melbourne). From 2012 the maximum density of}

gaming machines in all municipal areas is capped at a maximum of 10 entitlements per 1,000 adults. There are exceptions for Melbourne CBD, Southbank and Docklands.

Location Clubs/Hotels Casino(s) Cap arrangements Australian Capital

Territory 5,200 Nil

The maximum number of EGMs allowed in the ACT (all licensed premises) is capped at 5,024. Amendments to the Gaming Machine Act 2004

commenced in September 2012 that provide a target for the maximum number of gaming machines in the Territory of 4,000.16

New South Wales 97,500 1,500 A state-wide cap of 99,000 machines in total with 1,500 EGMs permitted at The Star casino.

Northern Territory 1,190 No cap A state-wide cap of 1,190 EGMs applies for clubs and hotels, no cap is applicable to casinos.

Queensland 44,705 Limited by ratio

A state-wide cap of 20,00017 EGMs for hotels (with an effective cap of 19,310) and 24,70518 EGMs for clubs applies. Casinos are limited by ratio of 12 gaming machines per table game.

South Australia 12,086 Limited by formula

Declines to a hotel/club cap of 12,086 EGMs are to be achieved through forfeiture requirements. The Adelaide Casino EGM cap is determined by a formula relating to the number of hotel and club machines with an effective cap of 995 EGMs.

Tasmania 2,500 No cap A state-wide cap of 3,680 for all gaming _{machines, with a cap of 2,500 applicable to clubs} and hotels applies.19

Victoria regional/municipal 27,500 caps also apply

2,500

A cap of 27,500 in clubs and hotels, split between the two venue types. An additional 2,500 machines are permitted at Crown casino. Further regional and municipal caps also apply20

Western Australia N/A 2,500 2,000 EGMs are permitted at the casino rising to 2,500 (100 per year) by 2018.

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6 Table 1-5

EGM cap arrangements in club venues

Table 1-6

EGM cap arrangements in hotel venues

21_{From 14 March 2014, clubs can apply for up to 300 gaming machines at a single premise, an increase of 20 gaming machines.} 22

ACT Gambling and Racing Commission (2007), Gaming Machine Act 2004 – Review of the Maximum Numbers of Gaming Machine Allowed in the ACT.

23

As of February 2005 profit organisations (i.e. hotels) have been allocated a reduction in gaming machine entitlements. Venues licensed for 28 or more machines receive eight less than the approved number; venues approved for between 21 and 27 machines receive 20 entitlements and venues licensed for less than 20 machines received entitlements equivalent to their approved number. An entitlement trading system is in place, allowing venues to trade up to their original licensed capacity, if the entitlements are available.

Location Year legalised Cap arrangements Australian Capital

Territory 1976 No venue cap. New South Wales 1956

Clubs must abide by a Gaming Machine Threshold (GMT) applicable at each venue and application must be made to increase any threshold and/or increase the threshold beyond 450 EGMs. Multi terminal gaming machines are restricted to 15% of the EGM stock at any venue.

Northern Territory 1996 45 machines per venue.

Queensland 1992 280 machines per venue.21

South Australia 1994 40 machines per venue.

Tasmania 1997 40 machines per venue.

Victoria 1992 105 machines per venue.

Western Australia N/A Not applicable

Location Year legalised Cap arrangements Australian Capital

Territory 1988

Taverns in the ACT are allowed a maximum of 2 Class B (draw poker) gaming machines. Hotels with 12 or more units of accommodation are allowed a maximum of 10 Class B gaming machines, while hotels with less than 12 units of accommodation are allowed a maximum of 2 Class B gaming machines.22

New South Wales 1992 30 machines per venue.

Northern Territory 1996 10 machines per venue.

Queensland 1992 45 machines per venue.

South Australia 1994 40 machines per venue23

Tasmania 1997 30 machines per venue.

Victoria 1992 105 machines per venue.

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7 Table 1-7

Estimated number of venues with EGMs in Australia by state/territory

(2012-13)

Please note that figures in the following table are a snapshot only, current for the period stated.

Source: ACT Gambling and Racing Commission, Northern Territory Licensing Commission, NSW Office of Liquor, Gaming and Racing, Queensland Government Office of Liquor Gaming and Racing, Government of South Australia Consumer and Business Services, Tasmanian Department of Treasury and Finance, Victorian Commission for Gambling and Liquor Regulation.

Table 1-8

Estimated number of EGMs in Australia by venue type (2012-13)

Please note that figures in the following table are a snapshot only, current for the period stated.

24_{Please note that this figure refers to live gaming machine licences as expressed in Government of South Australia, Consumer and}

Business Services, Gaming Machine Licence Statistics Quarter 4 2012-2013. The total has been expanded to include 39 ‘Special

Circumstances’ licences not counted in previous columns.

25

The total venues for Tasmania includes 2 Trans-Tasman Line Ferries equipped with EGMs.

26_{Total includes 2 Trans-Tasman line ferries equipped with EGMs (Tas) and 39 Special Circumstances Licences (SA).} 27_{Total at 30 June 2013.}

28_{Total at 31 December 2013.}

29_{Please note this total refers to operational EGMs rather than approved EGMs as at 31 December 2013.} 30_{Please note this total refers to operational EGMs rather than approved EGMs as at.31 December 2013.} 31_{Total at 30 June 2013.}

32_{Total at 30 June 2013. Government of South Australia, Consumer and Business Services,}_{Gaming Machine Licence Statistics}

Quarter 4 2012-2013

33_{On 1 January 2014 the concept of a gaming machine entitlement was extended to include the gaming machine operations of the}

Adelaide Casino. The casino licensee was granted 995 non-transferable gaming machine entitlements equivalent to the maximum number of gaming machines which could be operated at the casino on 31 December 2013.

34_{This figure refers to live EGMs designated as ‘Special Circumstances’. In South Australia certain licensed premises may hold a}

Special Circumstances Licence and are authorised to operate gaming machines under the Gaming Machines Act 1992. The Special

Circumstances licence is a diverse type of licence covering a wide variety of premises from hotel and tavern style venues to billiard/pool/snooker halls, limousines, buses, boats/vessels, caterers and function rooms.

See http://www.cbs.sa.gov.au/assets/files/SCL_With_Gaming_31032014_By_Suburb.pdf

35_{Please note this figure has been expanded to include the 1,191 EGMs denoted as ‘Special Circumstances’.} 36_{This figure refers to the 46 EGMs available on Tasmania’s Trans-Tasman Line Ferries.}

37_{Please note this total has been expanded to include the 46 EGMs available on Tasmania’s Trans-Tasman Line Ferries.} 38_{Total at 31 December 2013.}

Location Hotels Clubs Casino(s) Total Australian Capital Territory 10 51 0 61

New South Wales 1,576 1,169 1 2,746

Northern Territory 45 32 2 79

Queensland 752 493 4 1,249

South Australia 453 57 1 55024

Tasmania 90 10 2 10425

Victoria 263 247 1 511

Western Australia N/A N/A 1 1

Total 3,189 2,059 12 5,30126

Location Hotels Clubs Casino(s) Other Total Australian Capital Territory 68 4,906 N/A 4,97427

New South Wales 23,337 70,481 1,500 95,31828

Northern Territory 428 753 1,088 2,269

Queensland 19,30029 23,86030 3,722 46,88231

South Australia32 _10,144 _1,278 ₉₉₅33 _1,19134 _13,60835

Tasmania 2,180 173 1,173 4636 3,57237

Victoria 13,428 12,844 2,500 28,77238

Western Australia N/A N/A 2,100 2,100

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8 Figure 1-1

Estimated Australian EGM distribution by venue type and state/territory

(2012-13)

EGM distribution by venue type EGM distribution by state/territory

Figure 1-2

Estimated EGMs per 1,000 adults (18+) in Australia by state/territory

(2012-13)

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9 Figure 1-3

Estimated Hotel and Club EGMs per 1,000 adults (18+) in Australia by

state/territory (2012-13)

Source: ABS 3101.0 Australian Demographic Statistics, June Quarter 2013 and data collated by the AGC.

Figure 1-4

Estimated EGMs (Hotel and Club Only) per 1,000 adults (18+) compared

with estimated EGMs (All Venues) per 1,000 adults (18+) in Australia by

state/territory (2012-13)

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10 Keno

A computerised Keno system operates in clubs and/or hotels in New South Wales, Queensland, South Australia, Victoria, Tasmania and the Australian Capital Territory.

In 1998-99, Keno became available at the NSW casino (now known as ‘The Star’).

Keno is a game where a player wagers that their chosen numbers match any of the 20 numbers randomly selected, via a computer system or a ball draw device, from a group of 80 numbers. In most states, Keno is linked to all venues within a particular jurisdiction, enabling the operator to offer large jackpot prizes. Keno has a fixed pay scale. The pay-out for each wager is established by rules and is independent of the total wagers made on the game.39

Lotteries, Lotto and Instant Lotteries

Lotteries are conducted in Australia by both government and commercial operators although over recent years there has been a trend towards the privatisation of previously state run lottery operations (such as those in Queensland, New South Wales and South Australia).

There are three components to a lottery; the purchase of a ticket, the draw and the prize. A person whose ticket is selected in a lottery wins a prize based on the total amounts wagered after deduction of a set percentage by the operator to cover costs. Lottery operators may also conduct lotto, pools and instant lottery. 40

Lotto players select any six numbers from 1-45 in anticipation that their chosen numbers will be among eight subsequently drawn at random. Players win when their selected numbers match those randomly drawn in a set combination. There are a variety of lotto games available in Australia, some common product titles including Tattslotto, Gold Lotto, Lotto, X-Lotto or Powerball (depending on the jurisdiction). Instant lotteries are also known as scratch tickets or ‘scratchies’. Prizes in the instant lottery are paid on a set return to player based on the number of tickets in a set, the cost to purchase a ticket and a set percentage retained by the operator to cover costs.

Lottery, lotto and instant lottery tickets are commonly sold through newsagents and convenience outlets. More recently, lottery products have also been made available online and via mobile applications.

Although lottery licensing regimes are state-based, Australia has a number of lottery games that may also be operated as a bloc - where games are conducted nationally, pooling entries and winnings.

Lottery providers in Australia

Tatts Group Pty Ltd

Tatts Group Pty Ltd is the largest lottery operator in Australia with licences in Queensland (to 2072)41, New South Wales (to 2050)42_,_{Victoria (to 2018), Tasmania (to 2015) the Northern Territory (to 2032)}

and in the ACT.43

From December 2012 Tatts has also secured exclusive management rights for a 40 year period for SA Lotteries (which was previously operated by the South Australian state government).44

39_{Government Statistician, Queensland Treasury and Trade (2014)}_{Australian Gambling Statistics 2011-12 (29}th_edition) 40

Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics 2011-12 (29th_edition) 41_{The Tatts Group has managed the Golden Casket Lottery Corporation from 2007 in Queensland.}

42_{Ownership of NSW Lotteries was transferred to the Tatts Group on 1 April 2010.} 43

Tatts Group Ltd (2013) Annual Report 2012/13

44

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11 Intralot Australia

Intralot Australia holds a Public Lottery Licence to operate a variety of lottery games and instant tickets in Victoria, and in Tasmania via the authorisation of a Foreign Games Permit. Intralot Australia is a wholly owned subsidiary of Intralot S.A. Integrated Lottery Systems and Services, an international company operating in over 50 countries across five continents.45

Lotterywest

The lottery in Western Australia, operated by the state government through Lotterywest, is currently the only remaining government operated lottery structure in Australia.

Table 1-9

Lottery and instant lottery outlet providers in Australia by state/territory

(2012-13)

Location Licensee Australian Capital Territory Tatts

New South Wales Tatts (NSW Lotteries)

Northern Territory Tatts

Queensland Tatts (Golden Casket)

South Australia Tatts (SA Lotteries)

Tasmania46 _Tatts

Intralot

Victoria47 _Tatts

Intralot

Western Australia Lotterywest

Online/Interactive Gaming/Gambling

Interactive gambling (also commonly termed Internet or on-line gambling) can be defined as gambling on activities conducted via the Internet and is governed in Australia by the Interactive Gambling Act

2001 – which is Commonwealth, rather than state/territory, legislation.

Interactive gambling is a broad term and can include various forms of remote gambling generally conducted via digital means (such as digital television or mobile gambling platforms).

The Interactive Gambling Act 2001 (Cth) prohibits the offer of interactive gambling services to

Australians however it contains an exception for wagering in the form of racing, sports-betting and lotteries.

A number of lottery providers, licensed wagering providers and bookmakers now offer access to their products via the internet. The provision of internet casino gaming (such as poker, blackjack and roulette) and online EGM gaming to Australians remains strictly prohibited.

The Australian Federal Government Department of Broadband, Communications and the Digital Economy (now the Department of Communications) undertook a review of the Interactive Gambling Act

2001 in 2012. For further information a report is available from the Department of Communications at:

http://www.communications.gov.au/online_safety_and_security/online_gambling/2011_review_of_the_in teractive_gambling_act_2001

45

Intralot Australia website https://www.intralot.com.au

46_{Please note that there is a split of scratch tickets and lottery ticket sales between Intralot and Tatts. Retailers are able to offer both}

Intralot and Tatts products.

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12 Pools (Football Pools)

The Pools is a numbers game of chance where the winning numbers are based on the results of the United Kingdom or Australian soccer matches.

Each week 38 soccer matches are selected to form a “match list”. Each match is assigned a number from 1 to 38. The results of the matches are then collected and ranked, with scored draws ranked highest and home score wins ranked lowest. The six highest ranked match numbers are then used as the official results numbers for the Pools draw. There is also a supplementary number selected which is the seventh highest ranked match result.

To play the Pools, players select six numbers from the 38. If the selected numbers are the same as the official results numbers, the player wins one of the five prize divisions. The Pools is administered by SA Lotteries on behalf of the Australian Soccer Pools Bloc – which was formed in 1989 by lottery jurisdictions in Australia.48

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13 Racing and Wagering in Australia

Racing

Legal betting occurs in Australia on horse and greyhound races with bookmakers and totalisators, both at race courses and off-course.49

Australian thoroughbred racing is second in size only to the United States with 389 race clubs, 367 race tracks and 19, 626 races in the 2012-13 year.50

Thoroughbred Racing

Table 1-10

Number of thoroughbred race clubs, tracks, meetings and races in

Australia (2012-13)

Location Clubs Racetracks Meetings Races Australian Capital Territory 2 2 27 185

New South Wales 127 120 759 5,420

Northern Territory 5 5 79 436 Queensland 121 106 736 4,801 South Australia 25 24 202 1,471 Tasmania 4 6 78 622 Victoria 69 68 566 4,428 Western Australia 36 36 295 2,263 Total 389 367 2,742 19,626

Source: Australian Racing Board (2013), 2012/13 Australian Racing Fact Book.

Figure 1-5

Thoroughbred prize money ($ millions) in Australia by state/territory

(2006-07 to 2012-13)

Source: Australian Racing Board (2007, 2008, 2009, 2010, 2011, 2012 and 2012-13), Australian Racing Fact Book.

49_{Government Statistician, Queensland Treasury and Trade (2014)}_{Australian Gambling Statistics 2011-12 (29}th_edition). 50_{Australian Racing Board (2013) 2012/13 Australian Racing Fact Book.}

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14 Harness Racing

Table 1-11

Harness racing tracks, meetings and races in Australia (2012-13)

51

Location Racetracks Meetings Races New South Wales 32 525 4,201

Queensland 5 311 2,405 South Australia 7 180 1,367 Tasmania 10 92 765 Victoria 27 454 3,820 Western Australia 14 281 2,351 Total 95 1,843 14,909

Source: Harness Racing Australia National On-Line Statistics

Figure 1-6

Harness racing total stakemoney in Australia by state/territory (2006-07

to 2012-13)

52

Source: Harness Racing Australia National On-Line Statistics

51_{http://www.harness.org.au}

52_{Please note that during the 2006/2007 and 2007/2007 periods harness racing was at times either restricted or suspended owing to}

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15 Greyhound Racing

Table 1-12

Number of greyhound race clubs, meetings and races in Australia by

state/territory (2011)

53

Location Clubs Meetings Races Australian Capital Territory 1 44 422

New South Wales 35 1,380 14,209

Northern Territory 1 51 255 Queensland 7 488 4,567 South Australia 8 321 3,284 Tasmania 3 154 1,547 Victoria 13 933 10,607 Western Australia 3 288 3,489 Total 71 3,659 38,380

Source: Greyhounds Australasia, Australasian Statistics

Figure 1-7

Greyhound racing stakemoney paid in Australia by state/territory

2006-2011

Source: Greyhounds Australasia, Australasian Statistics

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16 Wagering

Betting Exchanges

Betting exchanges offer a market place for gamblers to trade wagers and bet against each other rather than against a bookmaker.

The betting exchange then matches participant wagers and earns revenue by charging a commission on net winning positions on a particular market.

Betfair is the only licensed betting exchange in Australia (licensed in Tasmania) and operates nationally.

Betfair extracts a commission (between 2.6% and 6.5% of profit on Australian and New Zealand Racing and between 2% and 5% on other markets).54

Bookmakers

On-course bookmakers

Wagering with bookmakers at a racetrack on horse and greyhound racing allows a player to wager any amount above a set minimum and receive the odds at the time of making the wager. Those odds stand, irrespective of whether the bookmaker alters the odds at a later time. These alterations to odds are calculated to reflect weight of betting on different race competitors. Bookmakers are licensed in each jurisdiction.55

Off-course bookmakers

Similarly to on-course wagering, wagering via off-course bookmakers allows a player to wager any amount above a set minimum and receive the odds at the time of making the wager. Those odds stand, irrespective of whether the bookmaker alters the odds at a later time. Bookmakers are licensed in each jurisdiction. 56

Table 1-13

Number of bookmakers in Australia (2008-09 to 2012-13)

Source: Australian Racing Board (2007, 2008, 2009, 2010, 2011, 2012 & 2013) Australian Racing Fact Book.

54_{http://guide.betfair.com.au/betfair-userguide.pdf} 55

Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics 2011-12 (29th_edition). 56

Government Statistician, Queensland Treasury and Trade (2014) Australian Gambling Statistics 2011-12 (29th_edition).

Location 2012-13 2011-12 2010-11 2009-10 2008-09 Australian Capital

Territory 7 7 11 13 18 New South Wales 169 179 191 203 213

Northern Territory 38 46 46 50 52

Queensland 75 99 107 107 110

South Australia 11 14 28 38 33

Tasmania N/A N/A 15 18 19

Victoria 178 171 124 146 175

Western Australia N/A N/A N/A 56 23

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17 Figure 1-8

Number of bookmakers in Australia by state/territory (2012-13)

Source: Australian Racing Board (2013) Australian Racing Fact Book 2012/13.

Sports betting

Sports betting refers to wagering on all types of local, national or international sporting activities (other than the established forms of horse and greyhound racing), whether on or off-course, in person, by telephone or via the internet. Bets may be laid on a variety of sporting events domestically and/or overseas.57

Online sports-betting is an area of significant growth in the Australian gambling environment which has experienced “an ongoing shift of wagering spend from traditional offline betting channels (i.e. retail or TAB outlets, on-course bookmakers and with bookmakers over the phone) to online channels (internet, mobile, tablet)”.58

A number of online sports betting providers in Australia are based in the Northern Territory. In December 1992, the Northern Territory approved Australia’s first sports bookmaker, Centrebet in Alice Springs. Centrebet commenced the provision of internet wagering in August 1996. Today the Northern Territory hosts sports bookmakers in Darwin and Alice Springs with corporate bookmakers allowed to trade 24/7.

Table 1-14

NT licensed bookmakers (operating 24/7) and/or internet

59

Bet365 NT TAB

Betchoice / Unibet Sportsbetting.com.au

Betezy Sportsbet

Betstar Sportingbet

Centrebet Tom Waterhouse NT Pty Ltd

Luxbet Weather Lottery

Source: Northern Territory Government, Department of Business 2013.

57_{Government Statistician, Queensland Treasury and Trade (2014)}_{Australian Gambling Statistics 2011-12 (29}th_edition) 58

Australian Wagering Council (AWC) http://australianwageringcouncil.com/policy-representation/industry-statistics

59

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18 Totalisator Agency Board (TAB/Tote)

The term ‘TAB’ or ‘Tote’ commonly refers to the wagering totalisators that are licensed in each Australian state/territory. TAB’s were first established in Australia between 1961 and 1985 and now offer a range of wagering products including fixed odds betting on races and sports as well as pari-mutuel wagering.60

Pari-mutuel wagering is where a player makes a unit wager (a unit being any multiple of 50 cents or

one dollar, depending on the jurisdiction) with monies then being placed into a pool for each bet type on each race. The prices change as the amount of money on each runner is invested. The more money on a runner, the shorter the price, or odds, it will be. After the deduction of tax and operating costs the remainder of pool is shared by those customers who have selected winners, place getters or correct combinations in the case of multiple-bet types (such as Trifectas and Quinellas). Dividends (winnings) are paid to players in multiples of the unit wagered.

Fixed Odds wagering means that the price of the runner when the bet is placed is the price the

consumer receives, regardless of whether that price should later change or not.

Wagering is conducted Australia-wide at TAB retail outlets which may be stand alone or located within a club, hotel, casino or on-course. More recently TAB customers can also bet on account using internet and telephone services – including self-service terminals and applications created for mobile devices.

The two major wagering operators in Australia are Tabcorp (which has a monopoly licence to operate the totalisators in NSW and Victoria) and the Tatts Group (through ownership of UNiTAB which operates the Queensland, South Australian, NT and Tasmanian TABs). In Western Australia and the ACT the TAB’s are currently operated by government-owned organisations.61

There are three TAB pools, the Victorian TAB pool (known as the SuperTAB, to which Tasmania, the Australian Capital Territory and Western Australia are parties), the New South Wales Pool and the Queensland Pool (to which South Australia and the Northern Territory are parties). Each jurisdiction retains deductions from wagers made in that particular jurisdiction.

Table 1-15

Estimated number of TAB retail outlets in Australia by state/territory

(2012-13)

Location Total Australian Capital Territory 5862

New South Wales 2,13063

Northern Territory 5364 Queensland 78565 South Australia 34666 Tasmania 15167 Victoria 75068 Western Australia 31969 Total 4,592

Sources: ACTTAB (2013) Annual Report 2012/13, RWWA (2013) Annual Report 2012/13, Tabcorp Holdings Ltd 2013, Tatts Group Ltd 2013.

60_{Government Statistician, Queensland Treasury and Trade (2014)}_{Australian Gambling Statistics 2011-12 (29}th_edition). 61

In July 2013 a Future Options Feasibility Study of ACTTAB recommended that the government not retain ownership and that ACTTAB be sold by way of a trade sale. (http://www.cwd.act.gov.au/__data/assets/pdf_file/0005/497552/ACTTAB-Report.pdf).

62_{Please note these figures include 3 ACTTAB outlets that offer Sportsbet & Keno only and one venue that offers Keno only.} 63

Attenborough, D. (2013) Taking Australian Racing to the World, Tabcorp. Statistics current at 31 December 2012. Please note

these figures do not include on-course facilities.

64_{Sourced from https://tatts.com/racing/outletsearch.aspx} 65_{Sourced from https://tatts.com/racing/outletsearch.aspx} 66_{Sourced from https://tatts.com/racing/outletsearch.aspx} 67_{Sourced from https://tatts.com/racing/outletsearch.aspx}

68_{Attenborough, D. (2013)}_{Taking Australian Racing to the World, Tabcorp. Statistics current at 31 December 2012. Please note}

these figures do not include on-course facilities.

69

Racing and Wagering Western Australia (RWWA) Annual Report 2013. In 2012-13 RWWA's TAB retail network offers 90 full time

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19 LICENCE AND EXCLUSIVITY ARRANGEMENTS

Casinos

Table 1-16

Casino licence/exclusivity arrangements in Australia by state/territory

Source: Productivity Commission (2010) Gambling, Canberra - with updates by the AGC.

70_{In November 2013 the NSW Government announced that another casino will operate from 2019 (after the exclusivity period for ‘The}

Star’ has expired). The second casino will operate at Barangaroo from November 2019 but will provide VIP table games only at a proposed $1.3 billion hotel complex run by Crown Resorts Ltd.

71_{SKYCITY Entertainment Group Ltd (2013)}_{Full Year Results Presentation.} 72

In October 2013 the Queensland Government announced the potential release of another three casino licences in the state, provided they formed part of an integrated hotel and resort development.

73_{Cairns Casino Agreement Act 1993 (QLD)} 74

SKYCITY Entertainment Group (2011) Annual Report and SKYCITY Entertainment Group Ltd (2013) Full Year Results Presentation.

Location Casino Duration

Australian Capital Territory Casino Canberra A 99-year lease on licence with exclusivity until 2012.

New South Wales70 _{The Star}

The casino licence was originally awarded in 1994 to Sydney Harbour Casino Pty Ltd. The 99-year licence included a 12 year exclusivity right to operate the only casino in New South Wales from the time the temporary casino opened. In late 2007 the exclusivity arrangement was extended for another 12 years until 2019

Northern Territory SKYCITY Darwin

The licence term was set in 2006 for a 20 year period until 2026 subject to extension for a further 5 year. Exclusivity is until 203171_.

Lasseters Casino Southern NT division exclusivity until 2018

Queensland72 _{Treasury Casino Brisbane}

75-year licence awarded in 1995. The casino has a 10 year regional casino gaming exclusivity agreement (within a 60 kilometre radius) which expired in 2005.

Jupiters Casino Townsville

Exclusivity within a 400 km radius granted in 1986 for 15 years (with the exception of Cairns which was only excluded for five years).

Reef Casino Cairns

1996 licence provided for a ten-year exclusivity period for casino gaming within a 120 kilom etre radius.73

Jupiters Casino Gold Coast

Licence awarded in perpetuity. The casino had a 10 year regional casino gaming exclusivity agreement which expired in 1996.

South Australia _{Adelaide Casino} Exclusivity until 2035 (extended from 2015 in 2013) _{The current licence term is until 2085 unless}

terminated earlier.74

Tasmania Country Club Casino The Deed of Agreement between the Crown and Federal Hotels Pty Ltd provides exclusive rights for the Federal Group to operate table gaming, gaming machines and keno throughout the state until 30 June 2018.

Wrest Point Casino

Victoria Crown Melbourne

The casino licence commenced in 1993. Exclusivity rights have been negotiated by variance to the original agreement until 2032.

Western Australia Crown Perth

The State must not grant another licence to a casino and hotel of similar size and standard as Crown Perth within a 100km radius of Crown Perth.

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20 Keno

Table 1-17

Keno licence/exclusivity arrangements in Australia by state/territory

Source: NT Licensing Commission (2011) Annual Report 2010/11,Tabcorp Holdings Ltd (2013) Annual Report 2012/13, Tasmanian Department of Treasury and Finance (2012), Tatts Group Ltd (2013) Annual Report 2012/13 with updates by the AGC.

Lotteries

Table 1-18

Lottery licence/exclusivity arrangements in Australia by state/territory

Source: Tatts Group Ltd (2013) Annual Report 2012/13 with updates by the AGC.

75_{http://www.premier.vic.gov.au/media-centre/media-releases/399-keno-licence-awarded.html} 76_{http://au.news.yahoo.com/thewest/a/-/newshome/8317445/clubs-push-for-keno-gambling/}

Location Licensee Duration Australian Capital Territory ACTTAB and Casino Canberra No exclusivity

New South Wales Tabcorp Holdings Ltd Licence renewed in 2007 until 2022.

Northern Territory SKYCITY and Lasseter’s (North – SKYCITY) until 2015 (South – Lasseter’s) until 2018

Queensland Tabcorp Holdings Ltd Licence until 2047 (extended from 2022 in 2013).

South Australia SA Lotteries _{(operated by Tatts Ltd)}

From December 2012 Tatts has exclusive management rights to SA lotteries for a 40 year period.

Tasmania Federal Group

The Deed of Agreem ent between the Crown and Federal Hotels Pty Ltd provides exclusive rights for the Federal Group to operate table gaming, gaming machines and Keno throughout the state until 30 June 2018.

Victoria Tabcorp Holdings Ltd Licence and exclusivity for 10 years commencing in April 201275

Western Australia Crown Perth Operates in casino only.76

Location Licensee Duration

Australian Capital Territory Tatts No exclusivity. No fixed term on licence expiry.

New South Wales Tatts 40 year licence/exclusivity until 2050.

Northern Territory Tatts No exclusivity. No fixed term.

Queensland Golden Casket Lottery Corporation _{(operated by Tatts)} Exclusivity until 2016. Licensed until _2072. South Australia SA Lotteries _{(operated by Tatts)} From December 2012 Tatts has exclusive management rights to SA

lotteries for a 40 year period.

Tasmania Tatts Tatts is licenced until 2015 in Tasmania.

Victoria Tatts

In 2008 ten year licences were awarded to both Intralot (scratchies) and Tatts (lottery products) until 2018.

Western Australia LotteryWest No fixed term – government owned/operated

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21 Wagering

Table 1-19

TAB licence/exclusivity arrangements in Australia by state/territory

Source: Tabcorp Holdings Ltd (2013) Annual Report 2012/13, Tatts Group Ltd (2013) Annual Report2012/13 - with updates by the AGC.

77_{On October 12 2006 UNiTAB Limited became part of Tattersall’s Limited as a result of a merger of both companies.}

78_{http://www.theaustralian.com.au/business/mergers-acquisitions/tatts-buys-tote-tasmania/story-fn91vdzj-1226211735773} 79_{http://au.finance.yahoo.com/news/Tatts-buys-Tasmanian-TAB-103m-aap-442179975.html}

Location Licensee Duration

Australian Capital Territory ACTTAB Sports (no exclusivity), racing (perpetual)

New South Wales Tabcorp Holdings Ltd Licensed until 2097, exclusivity extended by agreem ent in 2013 to 2033.

Northern Territory TattsBet77 _{Licensed for wagering and sports betting until 2015}

Queensland TattsBet77 Wagering licence to 2098, exclusivity until 30 June,

2014

South Australia TattsBet Licensed for wagering and sports-betting until 2100 with exclusivity until 6 December 2016.

Tasmania TOTE Tasmania _(Tatts)78

Licensed for 50 years, with an additional 49 years (to 2111). Exclusivity until 26 March 2027.79

Victoria Tabcorp Holdings Ltd

Licence/exclusivity until 2024 commencing August 2012. (At the discretion of the responsible minister, the licence may be extended for a further two years).