Tuesday, 30 May 2023

Bills

Gambling Regulation Amendment Bill 2023

Gambling Taxation Bill 2023

Cognate debate

Lee TARLAMIS (South-Eastern Metropolitan) (14:03): I move, by leave:

That this house authorises the President to permit the second-reading debate on the Gambling Taxation Bill 2023 to be taken concurrently with the second-reading debate on the Gambling Regulation Amendment Bill 2023.

Motion agreed to.

Second reading

Debate resumed on motions of Jaclyn Symes:

That the bill be now read a second time.

Matthew BACH (North-Eastern Metropolitan) (14:04): You have got to take whatever win you can get in opposition. We were hearing from Dr Heath just before about an outstanding win for the Liberals and Nationals in her part of the world. This is actually another win for the Liberals and Nationals. With the forbearance of the house at the start of my contribution, I was looking just earlier today at the contribution of the Shadow Treasurer, the member for Sandringham in the other place, and he actually said:

… both bills, the Gambling Regulation Amendment Bill 2023 and the Gambling Taxation Bill 2023, that we address today should not in my view be seen as two separate bills.

And so I just want to thank the government for doing what we had asked of them and moving to ensure that we could deal with these matters concurrently. So through you, President, I would pass on my thanks to the Government Whip, which is something that I regularly have need to do.

Given the fact that on this side of the house we do not see anything particularly problematic or contentious with these measures, I will not take up too much of the time of the house. I will recapitulate just one or two points that were made by my honourable friend in the other place and by other members sitting on both the Treasury bench down there and on the opposition side of the house. Then, in addition to that, I will dwell for just a moment or two upon some further feedback that we have received since the time at which the bills were debated in the other place, if I may, before then resuming my seat within a precipitous time frame.

As members of the house are aware, these bills seek to do a range of things. They seek to introduce a new and strengthened casino tax arrangement from 1 July this year actually, which will be administered by the commissioner of state revenue; to extend the application of the Taxation Administration Act from back in 1997 to cover casino taxes payable by the casino operator, which addresses a recommendation of the Royal Commission into the Casino Operator and Licence – that is a theme running through these bills; to consolidate provisions for and amend various gambling taxes by repealing the existing provisions for the keno tax and wagering and betting tax imposed under the Gambling Regulation Act from back in 2003 and re-enacting them in this bill to provide a single legislative vehicle to address gambling taxes administered by the commissioner; to make a series of consequential amendments, which I am sure members of the house do not need me to go through in detail; and to increase the existing point-of-consumption tax from 10 to 15 per cent, which gets us in line with New South Wales, which I think is an important point.

Furthermore, before going into the specifics of this bill, it is important to note the broader importance of this industry to our state. I am advised that the value-added contribution of Victoria’s racing industry totals something like $4.7 billion, and taxes generated by the industry – which obviously flow through into consolidated revenue for use by the government as it sees fit – total just over half a billion dollars. Stacks of Victorians are employed in this important industry that obviously some members of this place would like to have shut down yesterday. About 15,000 Victorians are directly employed in the racing industry. In addition to that, there are something like 20,000 further indirect jobs. So there is a huge net fiscal contribution and there is then a further very significant contribution in terms of jobs. That is important context, we think over here on this side of the house, because we want to make sure ‍– and I am sure other members of the chamber would agree with us on this point – that the racing industry is viable as we move forward. We understand that the racing industry also wants to contribute back to the Victorian community, which is important in noting our broader support for some of the measures in this bill which under other circumstances you would not necessarily think that the Liberals and Nationals would support.

As I said, the bills we are discussing today are largely not controversial in our view. They are also supported by the racing and gaming industries themselves. In our discussions with key stakeholders we spoke to a vast array of people. We spoke to Entain, the Melbourne Racing Club, Racing Victoria, Sportsbet and Tabcorp, and we spoke to the Alliance for Gambling Reform, Responsible Wagering Australia, the Victorian Bookmakers Association and a range of others. I do want to thank all of them very much, as I want to thank the government for the thorough briefing that they provided to members of the opposition.

The point-of-consumption tax was introduced on 1 January 2019. The bulk of the revenue from that tax is paid into the Hospitals and Charities Fund, with a bit under 4 per cent of net wagering revenue per month paid to the Victorian racing industry itself. There is also an annual contribution that is made out of wagering tax revenue in support of the Anzac Day Proceeds Fund. These bills will allow the government to increase its payments to the racing industry from 3.5 to 7.5 per cent. We have received some advice from the Department of Treasury and Finance about this. They tell us that the racing industry will now receive an estimated $119 million in additional average annual funding from the increased consumption tax over each of the three financial years starting in the middle of 2024. Further to that, we have received more advice from the department that the racing industry will have funding certainty for the next 10 years as a consequence of the increased consumption tax arrangements. Finally, the department tells us, as I am sure they have told the government, that Crown Casino acquiesces to its changed taxation arrangements, given the royal commission report into its conduct.

And so because of these points, on this side of the house we will not make too much of certain areas where we do have a concern or two – let me get to them briefly. I do want to make a brief point to underscore the points of others in the other place. Now, this point was made in the other place, both by members of the opposition but also members of the government, and that is that this is an arrangement that the racing industry has agreed to itself and thus we need to make it really clear, as a Parliament together, that there should be no expectation that the racing industry will seek additional government support in the short to medium term. There should be no expectation that the racing industry will seek additional government support over the period of this 10-year deal – this is the deal for the next 10 years. The industry acquiesces to it, the government has worked on it, and so from our perspective – and my understanding is that this is the government’s perspective as well – that should be that.

Secondly, as a point of some concern for us, we have engaged with the Victorian Bookmakers Association, and they have said to us that there should be more concessions for smaller bookmakers – and we are concerned about smaller bookmakers – including a range of things that they have asked for: for example, an increase in the threshold, the removal of free bets or an allowance in the calculation of point-of-consumption tax for clients under a turnover threshold; and an end-of-financial-year true-up for the calculation of POCT based on the actual net gaming revenue. Again, on this side of the house, we will support the measures outlined in this bill, and we agree with the government that if this is the deal that has been struck over the period – for a decade – well, that should be the deal. Nonetheless, given our regard, especially for small bookmakers, I wanted to note some of the concerns that they have raised – and in particular these are concerns that have been raised with us, and certainly raised with me personally, since the period in which these bills were debated in the other place.

There was a raft of other feedback that members in that place wanted to talk about, and I will just briefly mention a couple of points that were raised by my friend the member for Sandringham, which again links very directly to the feedback that he received as he led this process for us, ably supported by Mr O’Brien and also Mr Bull. He said this in debate:

This is a deal for a decade. So whatever the circumstances in the future, whether they be economic circumstances or whether they be socio-cultural circumstances, the racing industry, in my view, must not – cannot – come cap in hand to a future government, whether it be the colour of the current government or the colour of a future government, to say ‘We want more’, because they will not get it. I cannot be any clearer: they will not get it. This is a deal which they have done, which they are supportive of, which they have put out supportive statements on and which they have negotiated with the government. It is the deal for a decade. I want to be really clear on that, and I suspect that government speakers will be equally clear on that arrangement as well.

The member for Sandringham had excellent foresight, because government members were indeed clear on that arrangement as well.

A couple of final points from me regarding the bill. There are some changes that I have not yet spoken of to Crown Casino’s taxation rates, and I have referenced the royal commission process already. Currently, electronic gaming machines, which in the biz are called EGMs, operated by Crown Casino are taxed at different rates to those operated by club venues. Crown Casino’s EGMs are taxed at a flat rate, I am advised, of 31.57 per cent of a machine’s revenue, plus then a community benefit levy of 1 per cent of total machine revenue. However, EGMs operated by club venues are taxed differently, on a sliding scale with progressive tax brackets.

From August 2022 the maximum marginal tax rate for club venue operators will be 60.67 per cent, so there is a difference. From 1 July this year Crown Casino’s EGMs will be subject to the same tax rates as EGMs operated by club venues. The decision to tax Crown Casino at a higher rate follows the government’s response to the royal commission into that casino operator. This response includes the removal of longstanding arrangements with Crown Casino that prevented the state from changing regulations without having to pay compensation. The change is expected to generate, we are told – again, by the Department of Treasury and Finance – about an extra $30 million a year in additional revenue for the state without increasing gambling expenditure.

There are tax increases incorporated in these bills, and of course on this side of the house we oftentimes oppose the government’s tax increases. I remember a time when then opposition leader Andrews stood in front of the cameras, just before the 2014 election, and promised no new or increased taxes. I have lost count of how many times he has broken that promise. I think it is 48. Do not quote me, but I think it is 48. I was standing with the member for Sandringham, the member for Kew and the Leader of the Opposition just a little bit earlier today when we were talking about a range of tax increases through the recent budget. Most notable for me is the schools tax, but there were a range of others. With these bills, given the history we have been through, given the royal commission recommendations, given the fact that the industry itself not only does not oppose these measures but actually supports these measures and given the fact that these measures will lock in a deal for a decade, we believe that if we can be crystal clear, as my colleagues in the other place have been – and to be fair, as government members have been – that that deal is the deal for a decade, on that basis, notwithstanding the brief commentary I have made about some of the concerns especially of small bookmakers, on this side of the house we will not be opposing these measures.

John BERGER (Southern Metropolitan) (14:17): I rise today to make a contribution to the debate on the Gambling Taxation Bill 2023 and the Gambling Regulation Amendment Bill 2023. These bills are the last in a long process of amendments that we, the Andrews Labor government, have put forward to address the findings of the Finkelstein Royal Commission into the Casino Operator and Licence. These findings highlighted a stark need for improvement in the law surrounding gambling in Victoria. This legislation comes from careful consideration of innocent third parties that would have been implicated in the immediate removal of Crown Casino’s licence. Whilst Crown must face the consequences for their disregard of the principles of fairness within the Victorian economy, other groups and individuals ought not to be negatively affected by their punishment. An estimated 12,000 were on the line, and considering the strong values of fairness we hold, it was considered a better course of action for the greater community that the licence not be immediately cancelled.

In matters of such severity Labor governments will always act effectively and as quickly as possible to address the harm that such behaviour poses to the greater community in a way that meaningfully protects stakeholders in the situation. We take these infractions against the important laws of Victoria very seriously, as they degrade the quality of our society. These laws exist for a purpose: protecting the balance of our society. Without regulation against criminals and criminal behaviour our world would fall into absolute chaos. To this effect the Andrews Labor government is taking such high degrees of unlawfulness very, very seriously.

The list of neglectful acts committed by Crown Melbourne is long and deeply disappointing. To think an institution that is so iconic to the City of Melbourne would continue to have such a blatant disregard for our laws despite multiple punitive fines being issued over the past several years really does give you a real feeling of disappointment. The silver lining in the millions upon millions of dollars Crown Casino Melbourne was fined last year alone is that it does at least mean that the body of bills amending gambling regulation, this being the fourth of those bills, are in fact doing what they are supposed to do: addressing the predatory business operation and culture that seems to have cemented itself in Crown Melbourne.

The infringements that warranted Crown being issued with fines are extensive. They range from severely breaching their responsibility to responsibly deliver gambling services to the deeply concerning evidence that Crown Melbourne have been implicated in money-laundering schemes. Taxation matters are serious. Taxes are how a responsible government, like the Andrews Labor government, funds programs to give back to the community. Taxes are how we ensure hospitals and schools run, how we keep our state running and how we do what matters. Taxes are also indicative of the community Victorians have built. They are how we make sure that governments can take care of those who need to be taken care of. To think that a multimillion-dollar organisation would think that it is above one of the most basic obligations that productive members of society fulfil is disappointing to say the least. Sixty million dollars: that is the sum of tax that Crown Casino denied Melbourne and the Victorian people – the hardworking people of my electorate in Southern Metro, the hardworking residents of every other region represented in this room. That is money that could have gone towards schools, hospitals and roads. It could have been used to better our society and do what matters, but it was hoarded by Crown.

Their implication in the illegal act of money laundering is also not lost on this government. We are a government that takes crime very, very seriously, thanks to our fine Minister for Police and Minister for Crime Prevention, my friend in the other place Minister Carbines. This is why, when it was discovered that Crown Melbourne was operating its gambling services in such a manner that the act of money laundering was easily conducted at Crown’s casino facilities, it was a cause for much concern and an immediate call to action.

The Victorian Gambling and Casino Control Commission discovered that from 1994 until 2021 – nearly three decades – the casino accepted bank cheques in exchange for the issuing of chips without clearing the cheques. This policy of theirs is deeply concerning due to how easily it facilitates the laundering of money acquired by illegal means. It also allowed for large portions of money to be laundered at the Southbank venue, which led the VGCCC to conclude that Crown resorts is no doubt implicated in serious organised crime operations. Additionally, Crown facilitated illegal money transfers of a sum of $160 million through the use of a China Union Pay bank card.

Investigations into Crown Melbourne also discovered that the casino had in many instances blatantly disregarded their obligations in the responsible delivery of gambling services. One instance that was so neglectful that it made it to the media was a practice in which, despite Crown being equipped with a thorough and competent monitoring system, customers of Crown were allowed to gamble for up to 24 hours straight. The chair of the Victorian Gambling and Casino Control Commission is quoted as having said:

For a long time, Crown had promoted itself as having the world’s best approach to problem gambling. Nothing could be further from the truth …

Problem gambling is a serious issue facing modern Victoria. The prevalence of such predatory means of gambling as electronic gambling machines, or EGMs, is a concern that hangs heavily on the Andrews Labor government. The Andrews Labor government took swift and strict action in recognition of the recommendations set forward by the Finkelstein Royal Commission into the Casino Operator and Licence and subsequent report. A special manager Stephen O’Bryan KC, who was appointed in July 2022, has overseen the operations of Crown Melbourne to ensure that their organisation is held to the highest of regulatory standards so that they may not be allowed. When O’Bryan’s stint as special manager comes to the end date that is outlined in the Casino and Gambling Legislation Amendment Act 2021, Crown Melbourne’s licence to operate a casino in Victoria will lapse unless the VGCCC sees that the operators of Crown Melbourne are fit to continue their operation in Victoria.

As the fourth instalment of the Andrews Labor government’s gambling reforms, the Gambling Taxation Bill 2023 will ensure that Victoria is a state that truly backs fairness and lawfulness. Tax legislation is one of the best ways to ensure that our state stays as fair as it should be, and it is time that gambling taxes reflected that. This money will go into important projects that are going to improve Victoria, money that is rightfully owed to the Victorian people. This money will go towards our broad commitments to health and schools as we go to work doing what matters.

One of the recommendations from the royal commission pertains to the appropriate course of action when addressing a casino operator’s non-payment of tax. The penalty fine issued to casino operators in breach of their tax requirements has been increased from $1 million to some $100 million. This is a fine much more appropriate to the predatory and offensive crimes that would have been committed to warrant the receiving of such a fine. Perhaps in an ideal world would-be criminals would get the message that this is a government and a state that takes such infractions very seriously. This is a jurisdiction where you cannot hide.

The bill also addresses the division of the roles, responsibilities and structures relating to the administration of gambling-related tax, mostly consolidating these figures to the commissioner of state revenue and subsequently the State Revenue Office. This bill will establish that the responsibilities over regulation fall under the portfolio of the commissioner of state revenue rather than the VGCCC, allowing for a more informed level of expertise overseeing the tax matters of Crown and other casino operators. This will be executed by bringing casino tax arrangements under the umbrella of the Tax Administration Act 1997. This is a recommendation from Finkelstein’s royal commission findings. The Tax Administration Act 1997 offers a standard set of provisions surrounding taxes referenced in other acts. It is something of a one-stop shop for tax administration, overseen by the State Revenue Office. The level of specialist expertise and knowledge used for the scrutiny that Crown will be subject to will surely mean that we will never see the likes of such offensive disregard for our state’s taxation laws again, or at least not for a long, long time.

The obligations outlined under the casino tax legislation pertaining to the casino tax currently lie in the Casino (Management Agreement) Act 1993, also known as the management agreement act. This stipulates that tax must be paid on all electronic gambling machines and table games in addition to commissions received from commission-based players. At the moment this falls under the administration of the Victorian Gambling and Casino Control Commission due to the casino tax legislation’s current placement in the management agreement act. The royal commission recommended the establishment of a new gambling taxation act under which the casino tax will lie, thereby transferring the administration of the casino tax to the State Revenue Office and under the responsibilities of the commissioner of state revenue, effective 1 July 2023. The bill will also greatly equalise the nature of casino and club taxes. Effective 1 July 2023, casino and club taxes on revenue from electronic gaming machines will increase from 31.57 to 66.67 per cent. This will do much to increase equality in the gambling industry and encourage the industrial competitiveness necessary to any market.

This bill also intends to address the need for a change of rates in the wagering and betting tax. The tax will be increased to even the proverbial playing field. This is yet another part of tax legislation that will be consolidated under the Tax Administration Act so that it may be overseen by the State Revenue Office. Currently found in the Gambling Regulation Act 2003, the wagering and betting tax will fall under the authority of the commissioner of state revenue if this bill is adopted.

Most of the taxes referenced in this bill feed directly into the Hospitals and Charities Fund, apart from 3.75 per cent of the tax revenue from the wagering tax, which goes towards the Victorian racing industry, keeping our racing industry robust and competitive. This is what taxation looks like in Victoria under the Andrews Labor government. We are always ensuring that your taxes and hard-earned income are not wasted but rather go towards supporting our important state services.

I would also like to touch on the Gambling Regulation Amendment Bill 2023. This bill addresses a theme of our gambling legislation reflected in the taxation bill: the current laws do not reflect the economy we live in. The bill takes some very simple and straightforward actions to update gambling regulations to a fit-for-purpose model that is adequate for a healthy, competitive market. The racing industry in Victoria will benefit greatly from these amendments. Contributing nearly $5 billion to our economy annually and supporting nearly 34,000 jobs, the racing industry is the beating heart of Victoria. From the humblest of regional amateur clubs to the grand spectacle of the Melbourne Cup, racing brings so many Victorians together, which is why it is important to ensure that wagering and betting, which support the industry, are effective in creating a competitive market.

At this stage there is only one wagering and betting licence issued in Victoria. That licence is set to expire next year. This bill seeks that there be provisions made to allow for multiple wagering and betting licences to be issued in Victoria, allowing for a more robust and competitive market. In times of economic stagnation this is exactly what you would need. Industries should all be ensuring that money is circulating through businesses into the wages of everyday Victorians and back out into the economy to start the cycle again. Labor governments recognise this. That is why we were the only country to avoid the recession in 2009. With all the jobs that the racing industry supports, there is no doubt that this boost to the industry by way of multiple licences being issued will have a considerable impact on the state of the economy – more money in the hands of everyday Victorians. Besides this point, the single-licence measure was taken during the privatisation of the TAB and is therefore no longer necessary, which is why we are also removing the NLF – or ‘no less favourable’ – funding requirement from the act. It stands in the way of the kind of racing industry that we would like to see in Victoria. We do not want a monopolistic racing industry; we want one that is active and thriving and an effective contributor to our state’s economy.

We also do not want to see a shift en masse to online betting and gambling. In online environments people participating in gambling are much more financially vulnerable to manipulation, overuse or predatory scams. We must ensure that in-person gambling, betting and wagering continue in order to protect individuals from the dangers of online betting. Offcourse, offline betting is incredibly important to protecting our industry and protecting the people who participate in it. These bills are an important step in the right direction for gambling.

I commend the Treasurer for ensuring a healthy economy surrounding gambling and allowing the government revenue to be meaningfully and effectively used. I also commend the Minister for Casino, Gaming and Liquor Regulation, Minister Horne, also in the other place, and the work she has done not just on this bill but on the other three relevant bills that update and improve legislation surrounding our gambling industries in Victoria.

These are both fine bills to be read before this chamber. The Gambling Taxation Bill 2023 covers all the taxation bases it needs to cover. I can see no reason why anyone would oppose the adoption of this bill into law, and as such I commend the bill to the house. The Gambling Regulation Amendment Bill will successfully restructure our gambling regulation to be more fit for the modern economic conditions that our state is experiencing.

Katherine COPSEY (Southern Metropolitan) (14:32): An opportunity to speak to these two bills together – a daily double if you will – gives us all a chance to step back and look at the wider picture of how much harm gambling causes across Victoria and how imperative it is in the longer term that we transition the state away from dependence on this revenue. The Rethink Addiction consortium, Monash University and KPMG released a sobering report six months ago showing that of the harms caused from all addictions gambling was among the top four alongside tobacco and alcohol. The report reinforces for us again that harms from gambling extend beyond financial losses to include adverse effects on work, education and relationships; psychological harm; and, tragically, suicide. Australians also spend hundreds of billions of dollars every year on gambling, the highest in the world in losses on a per capita basis. We also have the largest per capita gambling losses, meaning that harms in Australia are more severe to our citizens than in any other country on earth. And our current responses are not working. These levels of harm are increasing, not decreasing.

While today we debate the finer details of should there be one licence or more to run retail betting or if the gambling tax rate should be increased to 20 per cent, not merely 15, which is what the Greens advocate, I do wish that we had the opportunity – in fact I wish the government had the vision – to properly consider gambling and all its harms across the state. Other states are taking action on addressing harms from gambling, showing how far Victoria is still lagging behind. As a few examples, South Australia has legislation in place for better regulation of gambling advertising; both Tasmania and New South Wales have announced plans to introduce mandatory precommitment and cashless gaming on all poker machines; and as I spoke about in this place last sitting week during the motion to reduce the debts from some RSLs on their disallowable poker machine entitlements, mandatory precommitment and limiting daily losses statewide would be a game changer for reducing gambling harm in this state. It is the ambitious reform that the Victorian government should be embracing, and the Greens would welcome opportunities to advance this type of reform with the government.

In the last 30 years successive governments have completely failed to introduce meaningful statewide reform of the gambling industry, letting Victorians continue year on year to lose record amounts at poker machines and allowing the gambling industry to expand its power in this state, which is already too significant. Speaking of industry power, we all know it is the Greens who refuse to take donations from the gambling industry, unlike the parties of our colleagues on both sides of this chamber. To actually get the sort of sector-wide reforms I have just outlined, it is imperative that we end dirty donations from the gambling industry. Given that context, I will now move on to the bills we have before us today.

With regard to the Gambling Taxation Bill 2023, as it is part of the response to the Royal Commission into the Casino Operator and Licence, the Greens will not be opposing this bill. We called for and therefore support the extension of greater oversight powers to casino regulation. This bill raises the point-of-consumption tax for betting in Victoria to 15 per cent. The Greens agree that the gambling industry should pay its fair share of taxes. If procedures had allowed the Greens to move an amendment to change that tax rate from 15 to 20 per cent, we would be doing so. Instead, all I can do is congratulate the government for moving from the historically low rate of point-of-consumption tax we have had in Victoria and call on them to in future do the right thing and catch up to other states – following, for example, Queensland, where the tax is set at 20 per cent.

What manifestly does not make sense in this bill is its further entrenching the existing practice of funnelling revenue collected straight back into the racing industry. If you want to talk about the influence that the gambling industry has on Victorian politics, I just refer to the statements from colleagues on both sides around the racing industry’s amenability to this arrangement and in fact their deep involvement in determining the flow of revenue that is being discussed today.

It is disgraceful that this bill increases the proportion of public money being gifted back to the racing industry from 35 per cent of the revenue collected through this measure up to 50 per cent. The gambling industry should pay its fair share of tax, and then – as the Greens are very clear about – that revenue should be spent on the things that we all need, like affordable housing and better health services. The revenue should absolutely not be gifted back to mates in the racing industry, but that is currently what happens in the state of Victoria: money taxed from the harmful gambling industry goes straight back into the harmful racing industry. This is egregiously wrong. At the moment the point-of-consumption tax raises about $280 million per year; with the taxation rate increasing to 15 per cent, we think that the revenue will be around $420 million. So half of that, around $210 million per year, will be gifted back to the racing industry in a preferential deal, to an industry that actively harms animals and generates gambling harm to humans.

In a slash-and-burn austerity budget which is going to see thousands of public service workers sacked, the government is making an active decision to send revenue to a harmful industry. It is fiscal madness, and in a cost-of-living crisis it beggars belief that the government is handing out free public money to the racing industry. As my colleague Sam Hibbins in the other place outlined so well, in a cost-of-living crisis there are so many options for what that revenue could be directed to – to the people who need it most: people experiencing homelessness, people experiencing hunger, people waiting years for essential medical and dental services – but this government says, ‘No – not putting funding towards those people. It is the racing industry who really needs the money.’

We are being shown up by the rest of the country. If Victoria actually had a progressive government rather than one that talks about being progressive, we would do better. It is not too late to start now. It is one thing that the government continues to let cruel animal racing continue, but it is beyond outrageous that it also uses public funds to prop it up. So the Greens are proposing an amendment to this bill to delete the Victorian racing industry payment. That would mean that all of the tax – $420 million annually – would be directed to hospitals and charities.

With regard to the Gambling Regulation Amendment Bill 2023, the Greens will not oppose this bill, which gives the government the ability to award multiple licences for offcourse betting and other activities rather than only a single licence.

I ask that my amendments be circulated.

Amendments circulated pursuant to standing orders.

Katherine COPSEY: On the regulation bill, we support removing the requirement that a new licence arrangement be no less favourable to the animal racing industry than current arrangements. Given most policy settings for animal racing under this government are already extremely preferential, this is one small positive step. The Greens are, though, concerned that having multiple licensees risks increasing the amount of gambling advertising that we will see. We know that more ads and more innovative ways to format and deliver ads will increase gambling harm. The landmark Royal Commission into the Casino Operator and Licence was scathing, as multiple speakers have commented, of Crown’s behaviour and its failure to keep patrons safe from gambling harm. In response this government has, I acknowledge, embarked on a reform program at the casino. It is disappointing, though, to see that that reform aimed at reducing gambling harm is limited only to the casino and not a statewide approach across all gambling types.

We all know, and if we do not, we should take this time to remind ourselves, that Australians, including Victorians, are the world’s biggest gamblers, with an average of $958 lost per year – more than any other citizen on the planet. But these per capita averages do not tell you about the spread of these losses amongst the community. The Australian Gambling Research Centre recently published its findings that 38 per cent of Australians, almost two in five, are gambling at least weekly and that almost half of all Australian gamblers are at risk of gambling harm. We know also that for every person directly experiencing gambling harm at least six more people are estimated to experience vicarious harm connected to those people, so we are talking about an issue that affects an extraordinary number of people in our community.

If multiple licences are awarded under the provisions in this bill, it is reasonable to expect that the increased competition amongst licensees will see more predatory marketing dedicated to growing the market and customer base, not merely competing with the existing market. The subsequent harm from gambling can therefore also be expected to increase. For this reason we understand that there will be amendments put forward by the Legalise Cannabis Party to extend the definition of ‘static betting advertising’ to include scoreboards to ensure that betting advertisements on scoreboards are not excluded from the static advertisement ban. We will be supporting this amendment as we see this as reducing the saturation of gambling advertising, which is a good thing.

I will end by calling on this chamber to consider the wider context, as we look at these bills, of gambling harm across Victoria and the significant suffering it is causing in our communities. We have normalised the gambling situation in this state so much I wonder who else finds this shocking at this point, and I do wonder why we do not urgently do more. People are being harmed and in some tragic cases dying. Families are suffering, and communities are being impoverished. We need to do better.

Gaelle BROAD (Northern Victoria) (14:43): I rise to speak today in relation to the Gambling Taxation Bill 2023 and the Gambling Regulation Amendment Bill 2023, and I just want to thank Brad Rowswell, Shadow Treasurer, and Danny O’Brien, Shadow Minister for Casino, Gaming and Liquor Regulation, for their work on these bills. They have undertaken considerable consultation with the industry, including Racing Victoria, Sportsbet, Tabcorp, the Alliance for Gambling Reform, Responsible Wagering Australia and many others.

The Gambling Taxation Bill 2023 includes proposed changes to introduce new and strengthened casino tax arrangements from 1 July 2023, which will be administered by the commissioner of state revenue as a taxation law under the Taxation Administration Act 1997; to extend the application of the Taxation Administration Act 1997 to cover casino taxes payable by the casino operator, which addresses a recommendation of the Royal Commission into the Casino Operator and Licence; and to increase the existing point-of-consumption tax from 10 to 15 per cent, in line with New South Wales.

I also want to acknowledge the contribution of Dr Matthew Bach, who is a member for North-Eastern Metropolitan Region. He spoke in this chamber just before about the benefits to the racing industry under these arrangements. The Gambling Taxation Bill basically introduces new casino taxation arrangements so that rather than being administered by the Victorian Gambling and Casino Control Commission the casino’s tax will now be under the purview of the commissioner of state revenue and the State Revenue Office. It also introduces an increase in the casino tax. The gaming machine tax on electronic gaming machines, or EGMs, operated by Crown will be increased to be the same as that on EGMs operated by club venues. From 1 July 2023 Crown Casino’s EGMs will be subject to the same tax rates as EGMs operated by club venues.

The changes in this bill stem from recommendations coming from the Royal Commission into the Casino Operator and Licence, headed by Ray Finkelstein. To quote from the royal commission, Commissioner Finkelstein said:

… for many years Crown Melbourne had engaged in conduct that is, in a word, disgraceful. This is a convenient shorthand for describing conduct that was variously illegal, dishonest, unethical and exploitative.

This period that the commissioner refers to occurred under the Labor government’s watch.

We do not disagree with the move to increase the tax on the casino’s EGMs, but it is certainly worth noting that in an era of massive state government debt – the highest in Australia and continuing to climb – this change will net the government an expected $13 million in additional revenue a year. Now, that is a drop in the ocean against a state debt that is going to reach $171 billion by 2026. It really is staggering to think that we are currently paying over $10 million in interest a day on our state debt. As we have seen in the recent budget, that number is going to continue to rise, and we will be paying over $22 million a day in interest just to service our debt.

In relation to the Gambling Regulation Amendment Bill 2023, this bill relates more to the racing industry. It amends the Gambling Regulation Act 2023 to allow the government to issue more than one wagering and betting licence and removes the requirement for the racing industry to receive ‘no less favourable’ treatment under the new wagering licence. The Victorian wagering and betting licence allows the licensee exclusive rights to conduct several gambling activities, and I understand that a process is currently underway to choose a winning bidder for the next licence.

This bill makes amendments to seek to maximise the returns from the next wagering licence to the state of Victoria and the racing industry, and the amendments under this bill will allow the minister the flexibility to issue more than one licence, maximising competition and potential returns to the state. The bill also removes the ‘no less favourable’ requirement that ensures the racing industry is not disadvantaged financially by the awarding of a new wagering and betting licence compared to the previous arrangements. This amendment is made in the context of the growth in online betting and the acceptance by all stakeholders that the 2024 licence is no longer as valuable as previous licences. I have certainly spoken in this chamber previously about the social and economic benefits of the racing industry to regional Victoria.

We will monitor the outcome of the licence process, and as mentioned by my colleague Tim McCurdy in the other chamber, the member for Ovens Valley, we hope it does not go terribly wrong. The intentions are good to get multiple licences if need be, and we want to make sure that there is the best financial benefit to Victorians. Tim McCurdy was also a founding member of the Victorian Responsible Gambling Foundation, and while Tim has recently stepped off, it is great to see my colleague Kim O’Keeffe, the member for Shepparton, step on. She will make a very positive contribution.

While we do not oppose either bill, in speaking about these bills I wanted to take the opportunity to highlight some of the challenges when it comes to gambling and particularly electronic gaming machines in regional areas. According to research, Australians have the highest rates of gambling losses per adult in the world. This results in a loss of $1277 per year on gambling for the average Australian. One in five Victorians who gamble may experience harm from gambling. Victorians lost $2.2 billion at the pokies in the 2021–22 financial year, and the heaviest pokie losses occur in the most disadvantaged areas. To the end of March this financial year, residents within the City of Greater Bendigo have already lost a total of over $45 million on electronic gaming machines. It is worth noting that a danger of gambling revenue in this state is a dependence on it, because it reduces the incentive for the government to monitor the harmful effects of gambling, particularly gaming machines, when the income contributes to the government coffers.

Harm from gambling not only impacts individuals but also affects family members, friends, local businesses and communities. I met with staff from Anglicare Victoria last week. They run one of the largest financial counselling teams in Victoria, and they provide programs to assist people with problem gambling. Anglicare Victoria’s financial counsellors consistently note that it is vulnerable people on low incomes who tend to suffer the most harm from gambling. Gambling addiction can snowball from broken relationships, bad health and an opportunity for an easy way out to ease the cost-of-living pressures. For some it provides respite from their social isolation, joining a busy room full of noise and other people to play electronic gaming machines, but the reality is very different.

Many gambling addicts try and hide their issues behind closed doors, when they need to seek financial advice and support to help them overcome it. The risks of gambling are well known, where the potential for gambling can lead to debt, self-isolating behaviours and in some instances crime. Those who experience big financial losses and continue to gamble can experience relationship breakdowns, job losses and mental health problems. The financial stress created by gambling is also associated with high levels of family violence. I heard one story of a lady who worked in administration in a small business. At first she was just taking a little bit from her work to help cover the losses, in the hope that her next big win would repay the debt. But over five years she took $100,000 from the business in an effort to cover the cost of her gambling losses. In the end, she lost her job and her family. She sold her house to repay the debt, ended up serving time in prison and now has a criminal record, making it even harder for her to find a job. Now she faces the huge task of rebuilding her entire life. Thankfully, she is receiving help, but there are many who do not.

The Australian Gambling Research Centre published a survey of more than 2000 people in October 2020 that looked at gambling behaviour during the pandemic. Those surveyed self-identified as gamblers, and nearly 80 per cent of them were already experiencing or were at risk of gambling-related harm. The highest-risk age group was young men aged 18 to 34, who were the most likely to sign up for new online betting accounts, increasing the frequency and monthly spend on gambling and risk of harm. A study undertaken for Anglicare Victoria also found that young people were between two and four times more likely to be problem gamblers than adults. Certainly there has been a lot of public commentary on betting advertising, particularly around sports like the AFL, and the need to reduce gambling advertising. As a parent of a family that love sports, I am concerned about the constant bombardment of gambling ads. Restrictions on advertising and sponsorships are a conversation worth having, especially when 30 to 40 per cent of the AFL’s income comes from gambling.

I note that the Public Accounts and Estimates Committee has launched an inquiry into the Follow up ofRegulating Gambling and Liquor report of2019 and also the Reducing the Harm Caused by Gambling report of 2021 by the Victorian Auditor-General. This inquiry will be examining the recommendations of both reports, including licensing, compliance and gambling harm, and will be looking into regulating and reducing the harm caused by online gambling. As regional Victorians are disproportionately affected by problem gambling, I especially encourage people living in Northern Victoria to make a submission before the closing date of Friday 7 July 2023. The committee plans to hold public hearings in late July and report to Parliament in November 2023. Thankfully, services are available to help people suffering harm from gambling, and early intervention is the best way to prevent serious harm – gamblershelp.com.au is a great place to start. But in summary, we do not oppose either bill, and we will monitor these changes with interest.

Michael GALEA (South-Eastern Metropolitan) (14:54): I also rise to speak on the Gambling Regulation Amendment Bill 2023 and the Gambling Taxation Bill 2023 in cognate. These two pieces of legislation are crucial to our ongoing mission to reform gambling and casino operations in Victoria. They are designed to ensure the fairness and integrity of our gambling industry, protect communities from the potential harms of gambling and ensure that the industry contributes its fair share to the public purse.

I was going to make some comments about the Public Accounts and Estimates Committee, but my colleague Ms Broad has already done so. But as a member of PAEC I am very delighted to join her in saying that, yes, PAEC is in fact already conducting an inquiry into the Victorian Auditor-General’s report 99 Follow Up of Regulating Gambling and Liquor of 2019 and their report 213 Reducing the Harm Caused by Gambling 2021. As Ms Broad said, the submissions are now open, and those submissions do close on Friday 7 July. I do encourage all interested community members to have their say through that process. It has been good to see some submissions come through already, although comparing it to a different committee I am on at the moment, there are perhaps not quite as many submissions as those for recreational native bird hunting. I am sure we will get the numbers up still, nevertheless. We will shortly be conducting some visits and hearings in regional areas as well. It will be really good to see that firsthand in one of our regional centres too. I and the rest of the PAEC committee members will certainly be looking forward to that and taking a closer look at some of these issues with regard specifically to non-casino gambling in detail through this own-motion inquiry.

The Victorian Gambling Regulation Amendment Bill 2023 and the Gambling Taxation Bill 2023 represent the next phase of this government’s comprehensive response to the issue. They build on sweeping legislative changes that have already been made to mitigate gambling-related harm and to thwart money laundering, particularly at Crown Casino in Melbourne. These bills address the pressing need for reform in taxation laws highlighted by the Royal Commission into the Casino Operator and Licence. They bring us closer to fulfilling our commitment to implementing all of the commission’s recommendations, and they do mark a significant step towards a fairer and more transparent and accountable gaming industry in this state.

The Victorian Gambling Regulation Amendment Bill 2023 and Gambling Taxation Bill 2023 are a response to the findings of the Royal Commission into the Casino Operator and Licence. The commission, as many members will know, was established to investigate allegations of wrongdoing at Crown Melbourne, including gambling-related harm and money laundering. This inquiry aimed to ensure the integrity of Victoria’s gambling industry, protect the vulnerable and demand accountability from operators. We fully embrace the insightful and pivotal findings of this royal commission. In this speech I would also like to show how we are using them as a springboard to take these decisive actions. The commission revealed alarming systemic findings at Crown Melbourne, including ineffective oversight and lax tax regulations. To address these severe issues the commission proposed 33 recommendations to bolster regulations, diminish money laundering, reduce gambling-related harm and refine governance. Our government accepted every recommendation and has been resolute in ensuring their comprehensive implementation.

First, I would like to touch on the specifics of the amendment bill, the Victorian Gambling Regulation Amendment Bill 2023. This bill proposes some vital changes to our current wagering and betting framework. Firstly, the bill advocates for the award of multiple licences, with the exclusivity periods determined by the responsible minister. By breaking away from the limitation of a single-licence holder, we pave the way for greater competition and interest in the licensing process. This adjustment aligns our wagering and betting framework with provisions in place for public lottery and keno licences. The benefit is twofold: it enhances the value of the licence to the state whilst creating opportunities for more potential stakeholders.

Secondly, this bill is set to grant government discretion to establish any periods of exclusivity for future licences. By adding flexibility to determine periods of exclusivity, we stand in a better position to maximise the value of the wagering and betting licence. For instance, the government can issue one licence for a set term with an exclusivity period ending before the licence term. Subsequently the government has the option to issue additional licences, thus optimising the licences’ value to the state.

Lastly, a significant change proposed in this bill is the removal of the ‘no less favourable’ funding requirement for the wagering and betting licence. This requirement, arising from the privatisation of the Victorian TAB, has become outdated given the current market conditions, which include a rise in online gambling and advertising freedoms for bookmakers in other states. Removing this requirement paves the way for a broader set of opinions from the market, potentially leading to greater value extraction from the licensing process. These proposed changes signal a critical shift in Victoria’s approach to managing wagering and betting, promoting an agile, competitive and consumer-focused landscape that is responsive to modern market conditions.

Moving now to the Gambling Taxation Bill 2023, this is also a pivotal piece of legislation that seeks to reorient and reform the taxation structure for the gambling industry in Victoria. It ensures an equitable contribution from the gambling industry to the state’s revenue in line with the changing gambling environment that we face. The main provisions of the Gambling Taxation Bill 2023 include a revamped tax structure that increases the tax rates for online gambling operators, ensures better tax compliance and overhauls the casino system to prevent improper deductions from gaming revenue. It also establishes a new casino supervisory levy and consolidates other casino fees.

The reform of the taxation system is about ensuring fairness. It is about asking the gambling industry, which profits significantly from this state, to contribute its fair share back to our economy. It also aims to discourage excessive gambling by making it less profitable for operators. The bill will also help us to address the social harm caused by problem gambling. The revenue collected from these new tax measures will be channelled into our public health system, bolstering our ability to offer support and services to those suffering from gambling addiction. By instituting a fairer tax system for the gambling industry, we are aiming to ensure that the industry contributes proportionally to the community it operates within. Furthermore, these reforms are expected to secure public revenue that will fund vital public services and infrastructure projects, thereby supporting Victoria’s broader economic recovery and growth. Let me also assure you that these reforms are not meant to hinder the industry but rather to create a more level playing field – a field where the industry flourishes but not at the expense of our people’s wellbeing and the state’s revenue. It is a balance that is long overdue, and these two bills make important strides towards achieving that balance.

Many have already commented on, and I would like to add my voice to the depth of disappointment and concern over, the findings of the Royal Commission into the Casino Operator and Licence. The systematic shortcomings and breaches of trust at Crown Melbourne are not just deeply troubling, they are downright infuriating. The level of misconduct and disregard for regulatory systems is unacceptable. We cannot turn a blind eye to the staggering amounts of loss in high-risk gambling; the prevalence of gambling-related harm; and the devastating social impacts that have affected countless individuals, families and communities. It is utterly disheartening to learn that in the south-east of Melbourne $570 million was lost due to pokies alone last year, exacerbating issues such as mortgage stress, family violence, crime and family breakdown. As legislators we have a moral obligation to address these issues head on and to demand accountability from the gaming industry. The Victorian Gambling Regulation Amendment Bill and the Gambling Taxation Bill 2023 are not just symbolic gestures, they are crucial steps towards rectifying these deeply rooted problems.

The Victorian Gambling Regulation Amendment Bill is a vital tool for strengthening regulatory oversight and governance within the industry. We cannot tolerate operators who fail to meet the highest standards of accountability, transparency or social responsibility. This bill will implement a robust licensing framework, ensuring that only those who adhere to those principles can operate in Victoria. It also includes measures to tackle gambling-related harm and combat money laundering, effectively safeguarding the wellbeing of all Victorians. Similarly, the Gambling Taxation Bill 2023 is an essential component of our reform efforts. It addresses the issue of fairness in taxation within the gambling industry and ensures that operators contribute their fair share to public revenue. By harmonising tax rates, increasing the wagering and betting tax rate and consolidating other gambling taxes, we can create a more equitable and sustainable gaming tax system. This will enable us to invest in critical services and programs that will benefit gamblers and the entire community.

Let me be clear: these bills are not just cosmetic changes. They are a direct response to the recommendations of the royal commission. We are fully committed to learning from the past, strengthening governance and regulation, and holding operators accountable for their actions. We will not tolerate a repeat of the failures and disregard for public trust that led us to this point. These bills are a manifestation of the Andrews Labor government’s determination to protect the interests of individuals, families and communities from the insidious harms associated with gambling. We must create a safer environment that promotes responsible gambling practices and prevents the devastating consequences of excessive gambling. Furthermore, by eradicating money laundering within the industry we ensure that the integrity of the sector is upheld and that the law is respected.

We must never lose sight of the broader positive implications of these bills. By reforming the tax system we generate a fair and sustainable revenue stream for public services and infrastructure development. This means that vital resources can be allocated to health care, education and community sports programs that benefit all Victorians. Our commitment to good governance, accountability and transparency remains unwavering. We will strengthen regulatory frameworks, establish clear guidelines and foster an environment of trust and integrity within the industry. Responsible operators who prioritise fairness and compliance will be welcomed, whilst those who disregard their obligations will face severe consequences. Ultimately the future impact of these bills is twofold: they will create a safer and more responsible gaming environment and ensure that the industry operates in a manner that benefits the broader community. We will continue to refine and adapt our regulations to address emerging challenges and to ensure that a sustainable and socially responsible gambling industry operates for the benefit of Victoria into the future.

The Victorian Gambling Regulation Amendment Bill 2023 and the Gambling Taxation Bill 2023, two critical pieces of legislation aimed at reforming gambling and casino operations in Victoria, are not simply a response to the findings of the Royal Commission into the Casino Operator and Licence; they also represent a profound commitment to holding operators accountable, strengthening regulations and protecting the interests of the Victorian people. We have acknowledged the historical context and the need for change in the gambling industry, especially in light of those alarming findings of the royal commission. The Victorian Gambling Regulation Amendment Bill introduces a robust licensing framework, enhances oversight and addresses gambling-related harm and money laundering. Similarly, the Gambling Taxation Bill seeks to ensure fairness in taxation, generating a sustainable revenue stream for public services. These bills directly respond to the recommendations of the royal commission, demonstrating our unwavering determination to learn from the past and to rectify systemic issues. We have emphasised the need to strike a balance between the entertainment value of gambling and protecting individuals and society from its potential harms.

Moreover, these bills have far-reaching benefits for Victoria as a whole. They create a safer gambling environment, contribute equitably to public revenue and foster good governance and transparency within the industry. By implementing these reforms we aim to rebuild trust, attract responsible operators and enhance the overall reputation of Victoria’s gambling sector. The path ahead will not be easy, but with determination and a collective effort we can achieve meaningful change. We must remain vigilant in monitoring the impact of these bills, adapting regulations as required and ensuring the continued wellbeing of individuals, families and our communities.

Before I close I would like to briefly acknowledge the work of a colleague of mine from the south-east, the federal member for Dunkley Peta Murphy, who has been doing some considerable work in the federal space with regard to gambling advertising. I am sure that would interest many members; I have certainly been following that one closely. In closing, let me reaffirm our commitment to reforming the gambling industry. These bills are not just about legislation; they are about protecting the interests of Victorians, fostering a fair and responsible gambling environment and upholding the integrity of gambling in our great state.

Georgie PURCELL (Northern Victoria) (15:09): To be completely up-front, the reasons I cannot support the Gambling Taxation Bill 2023 today all have four legs – horses and greyhounds, endlessly exploited by this government and a cruel industry that knows no bounds, continuously propped up by hardworking Victorians’ taxpayer dollars. Rather than do what is ethical and what is right, here we are today proposing to reward animal abuse even further in Victoria. Since day one I have stood in this place and told you all about the true horrors of the racing industry in Victoria. I bring its discarded waste to work with me every single day, and they have names: Slayer and Frankie. Then there are Mae, Jerry and George, who have all made their way through our team foster efforts since I got elected. They like to lay on couches and have a good stretch and a little scratch behind the ear, something that the industry continuously deprives them of.

I have long been involved in the growing movement against the use of animals in racing industries in Victoria. I myself have seen horses dying on the track in front of me. I have been inside Victorian knackeries and I have seen the abhorrent and squalid conditions inside greyhound racing kennels. This industry is failing animals at each and every turn, treating them as commodities – instead of companions, the way that most Victorians expect them to be treated. This is exampled by 48 greyhounds being killed on Victorian government-funded racetracks last year. 3289 were injured on the track. It is exampled by 37 horses being killed on Victorian racetracks last year, not to mention those that were sent to the slaughterhouse as wastage. It is exampled by two horses falling at Hamilton in jumps races today, with their injuries and their fate still unknown. It is clear that this industry does not want the public to know what happens to these animals because, without fail, when one dies at the hands of these so-called sports, the race replay is swiftly deleted or edited because they are so desperate to protect their image as their social licence rapidly deteriorates day by day.

To paraphrase quotes of some recent participants from this industry: ‘When we gave a possum to the greyhound, the more it scratched him the more he went nuts,’ ‘If anyone says anything, you went out and caught it in the run … It’s not your fault,’ ‘A few months ago he was letting dogs live in his trailer because he didn’t have enough kennels, and he literally forgot about them and they starved to death,’ ‘In 2022 I sent Greyhound Racing Victoria an email telling them which trainer to buy live possums off and how much they were … Guess what? He’s still selling possums,’ and ‘I went to the racing commission earlier this year with some recorded phone calls of trainers bragging about drugging dogs and live baiting – nothing happened.’ Those are just a few of the conversations that have been sent through to my office in recent times.

Participants in Victoria can breach the rules of racing. Not only do they breach them, they make an absolute mockery of them. They can send non-desexed dogs to China for breeding and illegal racing in vile conditions, unpunished. I have raised in this place and inquired directly with Greyhound Racing Victoria’s integrity unit about Aston Gigante and Aston Lee, owned by Raymond Borda and sent to China. GRV have confirmed that they will not be following up on this matter, simply because Mr Borda is from South Australia and also registered there. If a participant does get before the Victorian Racing Tribunal itself to respond to charges, the disparity between penalties speaks volumes to where this government’s priority lies – with dirty gambling money. Yet this government continues to reward these industries endlessly.

This bill seeks to increase the share of the point-of-consumption tax from 10 per cent to 15 per cent – at least another $140 million per year. With an increase to the point-of-consumption tax, the majority will be gifted back to the racing industry. It continues a cycle of problem gambling, and a dying industry that has lost its social licence and cannot support itself is now rewarded and supported again. The gambling industry profits from addiction, distress and violence. Australians spend more than $24 billion annually. The gambling industry has exceptional access and influence in politics and policy, and that is evidenced here today.

I support any measures that minimise harm, protect consumers and reduce corruption. This bill will achieve the opposite. I know that the Greens will be bringing amendments to this bill, and I will be supporting them. With the state budget handed down just last Tuesday, choosing to give millions of dollars to the racing industry rather than to fund vital services that support people and animals simply does not make any sense. This revenue would be better distributed to social projects, health and wildlife protection and animal welfare. Make the gambling industry pay their own way. Make them stand on their own two feet. A good modern government should fund the things that animals, people and the planet need and deserve. While this bill represents some changes that make sense, especially following the Royal Commission into the Casino Operator and Licence, this government will never have my support in continuing to exploit animals.

Melina BATH (Eastern Victoria) (15:16): Acting President McArthur, I am very pleased to see you in the chair. I am pleased to speak on the bundle of bills that form today’s debate, the Gambling Regulation Amendment Bill 2023 and the Gambling Taxation Bill 2023, and I will start my contribution on the Gambling Taxation Bill, which stems from the recommendations from the 2021 Royal Commission into the Casino Operator and Licence, headed up by the honourable Raymond Finkelstein.

As for the purpose of understanding the origins of the royal commission, it was discovered that for many, many years Crown Melbourne was engaged in conduct that could only be described as disgraceful, and there are other terms – illegal, dishonest, unethical and exploitative. I want to put on record my thanks to my former Nationals colleague and former shadow gaming minister Steph Ryan, who has an amazing talent that we sorely miss, for her investigative powers and her nose to smell out and find a story, an issue and in this case, as I have just said, the dishonest, unethical and exploitative actions and really ways of doing business that Crown had. It also comes off the back of, of course, the New South Wales inquiry into the Sydney casino, where they found that money had been laundered there and it was a front for organised crime.

This bill, then, seeks to remedy some of the recommendations at least from the royal commission and in doing so strengthens the arrangement from July this year, which will be administered by the commissioner of state revenue as a taxation law under the Taxation Administration Act 1997. It also introduces a new increase in casino tax. This will be the only acceptance – or not opposition – to taxes that the Andrews government has put in over the 8½ years that it has been in operation. We have seen so many taxes, and we will see more that I will speak to at great length when I make my budget contribution. But the gaming machine tax on electronic gaming machines operated by Crown will be increased so that from July this year the tax rate will be the same as for those operated by club venues ‍– an equalisation, you could say. I note that Crown Casino’s current electronic gaming machines are at a flat rate of 31.57 per cent of machine revenue plus a community net benefit of 1 per cent; alternatively, those operating in clubs are taxed on a sliding scale with progressive tax brackets. That is all quite technical. What we do see here is that in terms of the racing industry – the three code racing industry – we also see an increase on monthly repayments in terms of the point-of-consumption tax, and this will have an increase in terms of payments from 3.5 to 7.5 per cent.

I note that the Greens have chosen not only to oppose this but to propose to take all revenue from it and redirect it. One of the things that the racing industry does – must do and should do – with funds that are directed from betting revenue is look at, support and improve animal welfare standards, the standards and professional development of their vets and the whole professional development of the industry. If you are going to withdraw that funding, then the level of oversight, capability and support for those very important issues – animal welfare and professionalism – is going to be affected, so it does not make sense. In one way you are sounding quite pious about this, but you are actually withdrawing important funding that helps Racing Victoria to do its job to ensure that it is an industry of integrity and an industry where there is support for animal welfare. Whilst I understand the Greens, I think that they are ill informed and misunderstand the point.

The next bill, the Gambling Regulation Amendment Bill 2023, amends the Gambling Regulation Act 2003 to allow the government to issue more than one wagering and betting licence and removes the requirement for the racing industry to receive ‘no less favourable’ treatment under a new wagering licence. My colleague the Honourable Tim Bull is the Shadow Minister for Racing, and he wholeheartedly embraces his work. It is also part of his life’s interest. He is very focused on the importance of racing in terms of revenue raising within the community within Victoria, and I want to go into some of those stats because I think it is important to put them on record. But he also has a flutter himself and quite regularly has a fetlock, a foreleg or at least a tail’s worth of a horse going around on any given racetrack, so he casts his eye most interestedly.

Across the three codes, in Eastern Victoria Region we do see the really important economic stimulus that the racing industry provides. Right across Victoria it provides $4.7 billion to the economy. In a report from last year, Size and Scope of the Victorian Racing Industry, we see that almost 150,000 jobs and participants support the three codes – thoroughbred, harness and greyhound racing. More than 121,000 people are directly employed, volunteer or participate in the industry, and it supports around 120 charities across Victoria by investing, producing or supplying much-needed funds of around $3.4 million to charitable organisations. When we go to our local race days, and we often do right across Victoria, it is really important to see how our local charities and local sporting clubs benefit from race days. My local one, just down the road, is the Stony Creek Racing Club. It has four meetings a year, and they are very well run. Many of the committee members are longstanding committee members in the racing fraternity and really take their job and their volunteerism most seriously. You see the CFA benefiting from it and you see the local football clubs benefiting from it, and it is really important for revenue raising for them.

You also see that it is a social outing. I was up in Benambra a few months ago, and that is at the very beautiful top end and north-eastern part of my electorate in the High Country. There is a beautiful picnic race cup right beside Benambra. Go and have a look one day, because it is just a beautiful, beautiful area – Hinnomunjie I think it is called, but I may have got that wrong. It is absolutely beautiful. Their catchcry is ‘Swap your fascinator for a sunhat and leave your suit and tie for an open-neck shirt and shorts.’ The key things are just to enjoy and to socialise with people. For as long as we have had human beings we have had someone betting on a fly going down a windowpane or a snail on the ground. So it is important to continue to support our rural and regional racing fraternity.

In conclusion, it is really important that there is better oversight. It is important that we have greater rigour. We can see that there will be benefits from both bills. One of course comes off the back of the royal commission, which the Andrews government was dragged kicking and screaming to – thank you very much to Steph Ryan, a former member for Euroa. But also there is the importance of having greater oversight and greater integrity in our three codes.

Jacinta ERMACORA (Western Victoria) (15:26): I am pleased to speak on the two pieces of important legislation put before the chamber today, the Gambling Regulation Amendment Bill 2023 and the Gambling Taxation Bill 2023. Introducing these two pieces of legislation simultaneously helps us focus our attention and valued time on establishing a comprehensive regulatory framework for two important and interconnected facets of the gambling industry: licence regulation and taxation. While we are all focusing on the gambling industry today, it seems prudent to address these matters concurrently, and I would like to acknowledge the contributions of the other members in the house today, in particular Mr Galea.

I will turn my focus to the Gambling Regulation Amendment Bill first. In essence, this bill will allow the government to permit multiple wagering and betting licences and provide the legislative framework for this process. A wagering and betting licence allows a business to conduct gambling activities of wagering and approved betting competitions. At present the government is able to issue only one wagering and betting licence at a time, which is in contrast to public lottery and keno licences. I am pleased to make my contribution on a key purpose of this bill, which is to promote a more equitable and competitive environment within the industry. The amendments in this bill will provide much-needed flexibility for the government to consider alternative options in awarding the next wagering and betting licence. The minister can use discretion to determine periods of exclusivity to ensure that the value of the licence is not diminished due to the number of operators.

This bill has come about from the government recognising the need to provide for technological advancements and demand adaptability in the legislative framework. We have new online gambling happening. The gambling landscape and the industry itself are evolving rapidly, and we see this in new online platforms, which in themselves have become a competitive market. With the other states winding back restrictions on advertising, in order to keep Victoria competitive in what has become a national and even international market the bill addresses the antiquated ‘no less favourable’ clause, which requires the minister to be satisfied that the licence-holder has an arrangement with the Victorian racing industry that is no less favourable than the previous licence. This is an artefact from a gambling industry of days gone by.

In the current market it sounds ridiculous to maintain a framework that reduces market competition in such a key industry for jobs and revenue. It grants too much control over the current licensee to rinse and repeat the same offer each time the licence is due for renewal. While the current framework provides a stable level of funding for the racing industry, the current circumstances provide a risk as well. The way this plays out is that the current licensee holds all the cards and the state government is beholden to that from a financial perspective. This bill enables the state to regulate and enforce compliance without compromising financial certainty. I am satisfied that this bill is a step in the right direction because it builds a stronger level of process, unchains the government from the vagaries of the current incumbent and provides for a competitive process in the marketplace.

Now to the Gambling Taxation Bill 2023. The government has also introduced the Gambling Taxation Bill, which establishes a new primary taxation law for gambling through an increase to the wagering and betting tax from 10 per cent to 15 per cent, an increase in the tax rate on electronic gaming machines at the casino to align with the tax rate for clubs and other regulations. I want to focus on a key issue that I believe is a monumental leap in the right direction, and that is a commitment to further implementing the recommendations of the Royal Commission into the Casino Operator and Licence. This is pivotal to ensuring that the people who voted us into government know that our government is committed to implementing the recommendations of the royal commission. This is now the fourth bill to be introduced in response to the commission’s findings. Once the bill becomes law, all 33 recommendations of the royal commission will have been fully implemented or legislated for and waiting to commence.

This bill addresses an important matter from the royal commission that a vast majority of Victorians would view as egregiously unfair. I am of course talking about Crown not paying tax. The royal commission identified that Crown Melbourne has regularly underpaid casino tax since at least 2012 through improperly claimed deductions. To resolve this underpayment the most that the state could do was take disciplinary action through breach of casino licence or to sue for the unpaid tax – a rap over the knuckles, so to speak. I am sure all of us in this chamber would agree that this is a different standard than that expected of a community sporting club or a country hotel that operates a gaming venue or any of us as citizens of this state, yet another reason why it is important that this bill will align the tax rate for Crown Melbourne’s electronic gaming machines with that of venue operators, a significant step towards equity between the Goliath that is Crown Melbourne and the David that is a country club or hotel. The disparity between the casino and the local clubs is even expressed through the responsible gaming training for staff in these venues. It is not uncommon for trainers to say the phrase ‘These are the rules for clubs and hotels, but it is different for the casino.’ The government recognises this unfairness and is making the casino pay its fair share.

The increase in the marginal tax will cause a significant cash injection to the state, which will then be directed into the Hospitals and Charities Fund to support health and community services. I spent the best part of last week announcing the fulfilment of election promises in south-west Victoria. I am particularly proud of our hospitals investment, enhancing our specialist women’s health clinic and our first PET scanner at the Warrnambool Base Hospital. A more accountable tax regime for Crown Melbourne will directly contribute to the funds needed to help women seek diagnoses and treatment closer to home for conditions like endometriosis, pelvic pain, polycystic ovary syndrome, perimenopause and menopause and other conditions that are under-reported, under-recognised and undertreated. Another PET scanner will soon be operating at South West Healthcare, providing diagnoses for cancer, heart disease and other conditions closer to home. Not having to travel to Melbourne for this kind of test is one less thing to worry about during what is always a very stressful diagnosis waiting period.

Paying your fair share of taxes is not an unreasonable expectation; in fact the majority of us do just that. I think the majority of us also expect that if you are extremely wealthy or even obscenely wealthy, you also should pay your fair share of taxation. I would prefer this taxation money to be delivered to our community in the form of vital life-saving services like women’s health services and a PET scanner rather than lining the pockets of those who have not paid their fair share. Additionally, I welcome the increase of the wagering and betting tax, otherwise known as the point-of-consumption tax, from 10 per cent to 15 per cent, primarily for the contribution that the revenue will make to the racing industry.

Minister for Racing Anthony Carbines recognised the importance of the racing industry to my home base in Warrnambool when he made his contribution on this bill in the lower house, and I could not agree with him more. Earlier this month Warrnambool hosted the annual May Racing Carnival, which saw a $10 million benefit to the local community from almost 30,000 people across the three days of the carnival – and I must say we were all here in Parliament missing out. I have been a member of the Warrnambool Racing Club for quite a few years. I cannot remember; I will have to ring them up and ask. It is not a really long time, but I still cannot remember.

Infrastructure at the Warrnambool Racecourse exists because racegoers attend and pay their way. The state government also contributes, and the club then invests and leases facilities to the industry. One prominent tenant of the Warrnambool Racing Club is Dabernig Racing, a new generation of the Hayes family. I had the pleasure of visiting Dabernig Racing’s stables prior to this year’s carnival, where I was pleased to note that they employ 27 staff and also have expansion plans. They currently house 40 horses and have intentions of constructing stabling for a further 20 horses so that they can expand their operations out of Warrnambool. This is an example of the importance of the racing industry to the state of Victoria and to outer regional communities. It is also an example that you can extrapolate to other racing codes as well.

Country racing is a significant contributor to the economy of my electorate in Western Victoria. From Murtoa to Dunkeld and everywhere in between, racing is a vital industry to rural and outer regional communities as an economy booster, employment provider and event organiser on the social calendar. I can endorse the social event side of the racing industry. I understand that regional Victoria alone has more than 100 country racing clubs, and they contribute $2.45 billion to the economy each year. I endorse other contributions to the role of the economy and the racing industry as well. Without the capital injected by the government to support these events, smaller regional communities would die, which would have far-reaching consequences when these communities are more often than not fundamental to agriculture, particularly in the south-west, which is a significant contributor to the state’s economy in relation to food and fibre.

The Victorian racing industry as a whole can sleep better at night knowing that there will be long-term certainty brought about by an increase in their share of the tax revenue. And I reiterate that even in the new phase of being a developer of facilities at the Warrnambool Racecourse the Dabernig Racing enterprise is a significant contributor to the economy of the city, not just during the carnival but also during the year. That stable operates every day of the year, training horses and training jockeys as well and employing apprentices in all of the skills that are required for the racing industry, including strappers.

In conclusion, I remind the house that Labor was founded on the principles of equity and fairness and jobs for workers, and these bills promote just that. They strengthen the integrity in the competitive space while concurrently providing ongoing financial stability, and I commend them to the house.

David LIMBRICK (South-Eastern Metropolitan) (15:40): I rise to speak on two bills: the Gambling Regulation Amendment Bill 2023, which I will not be opposing, and the Gambling Taxation Bill 2023, which I will be opposing, and I will confine my comments to that.

Libertarians like me believe what people do with their own money and their own bodies is their own business. We believe using the power of the state against people making their own choices is wrong. Gambling is a leisure activity that many Victorians enjoy, and the vast majority do so responsibly. There is no good moral reason why gambling should be taxed any more than any other leisure activity, like visiting farmers markets or drinking coffee. However, I think we all know why we are not debating the Farmers Markets and Soy Latte Taxation Amendment Bill today. Gambling taxes are sin taxes – it is an activity that offends middle-class values, just like harvesting timber or hunting. I do not know why. Maybe some people are worried that working people who gamble might have a win one day, move in next door and start having a good time without authorisation.

Of course some will try to justify this tax hike by saying some of the money will go to harm minimisation, but this is nonsense. By hiking taxes for gambling, the government will take money from the pockets of gamblers and their families – it adds to the harm. Increasing a tax to stop problem gambling is like adding alcohol to prevent problem drinking. If the government cared about harm minimisation, they would remove gambling taxes altogether, but I do not like the odds on that. There is no way the government could do this, because they themselves are already addicted to the gambling revenue, so those here who pretend to be offended by gambling will be voting for a bill which entrenches gambling and makes poor people poorer. The problem with the Crown Casino bill that this is supposed to fix was an entirely predictable outcome, dating back from the past when Victorian governments handed Crown a monopoly in the first place. This bill is not about fairness or harm minimisation, it is about greed, and it has its roots in snobbery and incompetence. I condemn this bill.

Evan MULHOLLAND (Northern Metropolitan) (15:42): I would like to thank and acknowledge the previous speakers in this debate, particularly on my own side. We saw thoughtful contributions from Dr Bach as well as Mrs Broad and Ms Bath. I would like to thank my good friend in the other place the member for Sandringham Brad Rowswell, the responsible Shadow Treasurer, as well as my other good friend the Shadow Minister for Casino, Gaming and Liquor Regulation Mr Danny O’Brien in the other place, a man who well understands the importance of sensible gaming regulation and policy. A couple of weeks ago I was delighted to be able to take Mr O’Brien to the Glenroy RSL to meet the president Ken White and congratulate him on his hard-earned victory against the government on poker machine entitlements they were being shaken down for but could not legally use. It was a great honour to stand up in the Parliament in the last few sittings to fight for our community RSLs across our state. I am most proud of this achievement of the Liberals and Nationals on behalf of our RSLs in raising this matter for debate here in this place and forcing the government into a backdown.

But I will bring the discussion back to the bills before us today. The Gambling Regulation Amendment Bill 2023 is a bill that will allow the government to issue more than one wagering and betting licence, and it will cover parimutuel and fixed-odds betting, the operation of offcourse wagering and betting retail networks in Victoria and the establishment and operation of betting exchanges. This allows the minister the flexibility to issue more than one licence, maximising competition, something that we on this side of the house will always support. It will also allow greater potential returns to the state, but unfortunately the government seems totally incapable of managing its spending. The government has never seen a tax it did not like but despite this is on track to send our state into a $171 billion debt, and interest payments are hurtling towards $22 million a day.

That is why members would be unsurprised to see that this amendment is accompanied by a tax hike with the Gambling Taxation Bill 2023. As Dr Bach mentioned in his contribution, Daniel Andrews promised no new or increased taxes, and I specifically remember the Treasurer Tim Pallas at the recent election just gone –

Matthew Bach: And 2018.

Evan MULHOLLAND: and 2018, but 2022 as well, promising no new or increased taxes. Of course it jacks up taxes all across the board, including on the Crown Casino. I do not have as much sympathy for them. It also increases the point-of-consumption tax by 50 per cent and increases the wagering and betting tax from 10 per cent to 15 per cent on all gambling revenue other than online betting in Victoria. To the government’s credit, at least they are talking about taking all of this revenue to cover for their own financial mismanagement. Some of the money will be returned to our local racing industry. This bill increases payments out of the net wagering revenue from 3.5 per cent to 7.5 per cent to the Victorian racing industry. This will amount to an estimated $119 million every year.

It is important to get on the record the contribution of the Victorian racing industry. I have read a couple of times the Size and Scope of the Victorian Racing Industry report, jointly prepared by Racing Victoria, Greyhound Racing Victoria, Harness Racing Victoria and the Victorian state government. It was released just last July. It found that the racing industry provides a direct $1.6 billion to the Victorian economy and an indirect and induced $3.1 billion – a total of $4.7 billion. My regional colleagues, I know, who are here in the chamber, including a member for Western Victoria, will be delighted that the racing industry is a major supporter of regional Victoria, with more than half of that $4.7 billion value-adding occurring in regional areas. The industry engages over 99,100 individuals who participate in the racing industry as a trainer, a breeder, a volunteer or an owner, and is responsible for generating nearly $3.2 billion in expenditure in Victoria, 65 per cent of which is in regional areas. How good is that? The racing industry provides a total of 34,900 jobs in Victoria, and I say to those that do want to shut down the industry: what do you say to those 34,900 people?

In the north I am proud to be a member representing three fantastic racecourses. We have of course the race that stops the nation at the Flemington Racecourse, a wonderful track that many members of this place will have fond memories of – of a Melbourne Cup Day, a Derby Day or a Stakes Day. Nothing speaks to the importance of racing in our state quite like a public holiday that makes every other state look on in envy.

In the north we also have the Moonee Valley Racecourse, another fine racing institution. It is also a venue very close to my heart. It is a venue in which my Liberal Party preselection was held, which led to me leading the Northern Metropolitan ticket, which led to me being in this place. I have very fond memories of the Moonee Valley Racecourse, and I am a frequent visitor to the Moonee Valley Racecourse as well.

As I have spoken of in this place before, I am also a frequent visitor to the Meadows greyhound racing track in Broadmeadows in the northern suburbs. It hosts a number of race meets, but my favourite has to be the Phoenix annual greyhound race, which colleagues would be interested to know is actually the richest greyhound race in the world – right here in the northern suburbs, right in Broadmeadows.

Sheena Watt interjected.

Evan MULHOLLAND: I would be delighted to take – this year, perhaps – my Northern Metropolitan colleague Ms Watt along to the Phoenix in our electorate. The Meadows is just a really great institution in such a great working-class suburb. It puts on terrific family events, which include jumping castles and kids stalls and activities, which make the Meadows such a fun, family-friendly venue.

We on this side of the house support Victoria’s racing industry. While we might condemn the government for its fixation with trying to solve its spending problem with greater taxes, we will not be opposing this bill.

Rachel PAYNE (South-Eastern Metropolitan) (15:50): I rise as part of this cognate debate to speak specifically to the Gambling Regulation Amendment Bill 2023 on behalf of Legalise Cannabis Victoria. We recognise that the bill will provide the government with the benefit of greater marketplace competition in awarding multiple wagering and betting licences after the expiry of the current licence and that that may ultimately lead to an improved financial position for the state. As it has the flavour of a supply bill, in that it relates to revenue generation for the state, we are in a general mind to support the bill in principle on that basis. However, we also recognise that this bill fails to acknowledge a broader, long-term plan to reduce the harm caused by the pervasive issue of problem gambling. In addition, by allowing for the awarding of multiple licences, this bill could further encourage predatory gambling tactics. We understand well the toll that gambling takes on our community. Sadly, it can be measured in terms of lives, in financial losses, in addiction and in family violence.

We, as a society, should not be blindly normalising betting. But sports betting is on the rise, and advertising for sports betting during sporting events has reached absolute saturation point. You need only watch one game of AFL on the telly to understand just how much betting advertising our children are being exposed to; in fact they are swimming in it. Our kids should be cheering on their teams and their sporting heroes, not learning to love the odds.

As we know, broadcast media, including advertising, is the domain of the federal government, and recently we have seen a strong cross-party push federally to do something about it. But that does not mean we cannot do something about gambling advertising here in Victoria. Broadcast media may be the domain of the feds, but static advertising is the domain of the state government. That is why we are here suggesting that Parliament act. Already in Victoria we ban gambling advertising on roads and public transport and within 150 metres of schools, clearly in recognition of the potential harms to children. Now it is time we do the same for the 90,000 Victorians attending a blockbuster match at the MCG, especially those impressionable and suggestible children in that crowd. To that end I will be moving amendments to this bill, and this may be an opportune time for those to be circulated.

Amendments circulated pursuant to standing orders.

Rachel PAYNE: The amendments will take the list of sites where betting advertising is already banned and add sporting grounds to it. Further, the amendments clarify that a scoreboard at a ground is part of static digital advertising, to which the ban will apply. This is an easily achievable gambling harm minimisation measure, and we cannot see a reason why this Parliament and this government would not support it. It would deliver evidence-based gambling harm reduction without preventing gambling use. These amendments are overwhelmingly supported by the community. A recent poll of the AFL Fans Association found 79 per cent supported a ban on promotions at stadiums. A survey also found 76 per cent fans would support a ban on gambling advertising on television and radio. We appreciate that gambling can be a personal choice, but the extent of gambling advertising is pervasive and it is toxic and it is ruining lives. When we allow this harm we all lose, and we will continue to lose until something is done. I ask for the house’s support for the instruction motion and for our amendments.

Returning to the bill as a whole, we acknowledge the potential of the bill to increase state revenue and reduce the preferential treatment of the Victorian gambling industry, so we will support it in that context, but in so doing we urge caution and encourage meaningful gambling harm reduction.