Abstract

Since 2016, successive governments in the Australian Capital Territory (ACT) have pledged to reform electronic gaming machine (EGM) regulation in the Territory. In 2016, and again in 2020, ACT Labor and the ACT Greens negotiated over reforms to EGMs as part of their parliamentary agreements. Accordingly, the ACT Government introduced several legislative and regulatory reforms. One of the key commitments of the 9^th parliamentary agreement was to reduce the number of EGM authorisations in the ACT from around 5,000 to 4,000 by 2020. This target was reached on time, and extended in the 10^th parliamentary agreement which included a commitment to reduce EGM numbers further to 3,500 by 1 July 2025. Efforts to reach this target appear to be on track. The reduction in EGM numbers remains the most significant reform introduced over the last eight years in the ACT. Few other measures have not been implemented between 2016 and 2024.

Despite the reduction in EGM numbers in the territory, there is no evidence suggesting that there has been a reduction in gambling harm over this time period 2014 – 2019. Although EGM participation declined significantly between 2009 and 2019, from 30.2% to 19%, most of this reduction happened prior to 2014. The prevalence of gambling-related harm has not followed a similar downward trajectory. Problem gambling prevalence, as measured by the Problem Gambling Severity Index (PGSI), showed no substantial reduction and even increased by 2019.

Another proxy measure of gambling-related harm from EGMs is EGM expenditure, money lost by gamblers on EGMs. If EGM reform measures are effective, they will drive down the amount of money lost on EGMs. This paper further explores the impact of the ACT’s EGM reforms between 2016 and 2024 on reducing EGM expenditure. It finds no evidence that the reduction in EGM numbers has reduced EGM expenditure. Rather, the reduction in gaming machine numbers has led to the remaining machines being more heavily utilised.

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