Experts warn of increased gambling harm in WA as TAB sale raises prospect of electronic gaming – ABC News

A financial counsellor to some of the most vulnerable people in Western Australia says the state government should "hang its head in shame" if it allows electronic gaming to be rolled out in TABs across the state.

Alan Gray travels throughout the Kimberley helping Aboriginal people in financial crisis and has seen the bank statements of people with gambling addictions who find themselves with no money for their children.

So he does not want to see the introduction of simulated racing machines into TAB outlets in the Kimberley, which could happen with the sale of the WA TAB.

"I just see these machines as a drift to further entrench poverty through gambling," he said.

Mr Gray said he was concerned the stategovernment could be unwindingone of the great things about WA society having addictive gaming machines restrictedto the casino and therefore somewhat difficult to access.

While there are TAB outlets offering opportunities to gamble in the Kimberley not to mention plenty of online gambling options it is a 2,000-odd kilometre drive from Broome to the Burswood casino.

"I hear people laugh about how if they got a lump sum they would go to the casino," he said.

"It's what they want to do."

Poker machines are banned by law in WA and electronic gaming machines (EGMs), as well as simulated racing games, are only allowed at Crown Perth casino.

But the McGowan government decided to allow the successful WA TAB bidder to offer electronic simulated racing games, like Trackside, in TAB agencies when it first called for expressions of interest in 2019.

The sale of the state-owned betting agency was put on hold last year due to the coronavirus pandemic, but is now back on track.

But it has been kickstarted in one of the most tumultuous periods for gambling in WA, with the TAB under increasing pressure from online gambling and the state's monopoly casino and gambling watchdog facing the scrutiny of a royal commission this year.

The inquiry, which will hand down its findings in March, has looked into WA's policy of banning poker machines and whether, over time, EGMs have changed to become very similar to poker machines.

During the inquiry, the commissionheard of new research which found that WA's low levelof problem gambling despite having the highest proportion of gamblers in the country wasbecause of the restricted availability of EGMs.

Lead researcher Matthew Rockloff, of CQUniveristy, calledEGMs "the most dangerous form of gambling that we know of".

"The closer you are to a venue that has gambling opportunities, the more likely you are to have gambling problems," he said.

Dr Rockloff said that while Trackside was slower than poker machines, he was concerned it would allow TAB gamblers to gamble without a break, instead of waiting for the next race to start.

"It turns what's a non-continuous form of gambling into a continuous form of gambling," he said.

"There's no doubt it will be associated with some increase in harm."

Like Mr Gray, Dr Rockloff questioned why WA would undo its good work in restricting gambling opportunities by allowing simulated racing games in TABs.

"Let's not kid ourselves, that's what it's all about: making that sale come off with a better payoff," he said.

"But the downside to that, of course, is expanding gambling opportunities right at a time when we've just shown that gambling problems are a lot lower in Western Australia.

"They're a lot lower because Western Australia has restricted gambling opportunities."

The WA TAB has hundreds of agencies throughout Perth and regional areas, including standalone betting shops as well as outlets in pubs and clubs.

One of the frontrunners to buy the WA TAB, Tabcorp, runs the betting agencies in every other state and operates the Trackside simulated racing game.

The ABC asked former Racing and Gaming Minister Reece Whitby about how many TAB agencies would be able to offer simulated racing products under the sale, but received no response.

In addition, the government did not respond when questioned about whether the successful bidder would still have to make a $1.2 million-plus payment to Crown Perth if they decided to offer simulated racing products, which was an element of the previous sale process.

A government spokeswoman said there was healthy interest in the expression-of-interest process of the sale.

She said requests for binding offers were likely to be issued early next year and a new operator could be in place by the end of the year.

"The racing industry will continue to be consulted through the sale process, with a focus on the development and refinement of the racing industry funding model," she said.

Under the new sale process, the WA government has removed the requirement for the successful new operator to fund the racing industry.

During the previous sale process, it said that allowing simulated racing products would help the new operator to meet this condition.

The sale documents highlighted the opportunity for growth in a market that was "relatively under-penetrated relative to other jurisdictions", with "significant scope for product innovation via new products and bet types".

The WA Council of Social Service (WACOSS) has questioned why the new operator would needthe revenue of these games, given it no longer had to fund the racing industry.

Chief executive Louise Giolitto has called on the WA government to ensure the wagering licence of the new operator doesnot include the ability to offer simulated racing games.

"We understand the desire for the WA government to achieve the best price possible for the asset, but at what cost?," she said.

Ms Giolitto said WACOSS did not want Trackside to lead to the de facto introduction of poker machines at TABs, like at Crown Perth.

"Our concern is that over time, these products will morph into full-blown pokie machines, and they will be spread all over WA," she said.

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Experts warn of increased gambling harm in WA as TAB sale raises prospect of electronic gaming - ABC News