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The regulatory regime assists to address
problems associated with excessive gambling by
being
able to limit the supply of the gambling
product. The licensing system enables the
government to
assess and monitor the impacts of increased
opportunities to gamble and make adjustments
accordingly based on the impact on the
community. It is pertinent to note that the
current regulatory
system is permissive compared to the pre
licensing system which was a complete ban on the
activity.
Alternatives to the current licensing system.
Alternatives to the current licensing system
need to be able to produce similar benefits.
There are a
number of alternatives that could be considered.
These are evaluated in detail here although they
apply
equally to other areas of the legislation (e.g.
casinos) where licenses are required.
Self regulation
Self-regulation would depend on the gaming
industry setting and enforcing standards through
membership rules or a code of practice, the
application of which would be voluntary.
Self-regulation is
the least restrictive method of industry
regulation, but one that has significant
defects. Self-regulation by
an industry body excludes consumers from the
regulatory process; it can create inherent
conflicts of
interest with the industry body both drafting
and enforcing the rules; and industry
organisations can have
a reluctance to recognise that members’
standards are inadequate.
The gaming industry consists of several distinct
market segments with different types of
organisations
active within each market segment. The Lotteries
Commission, the Totalisator Agency Board and
licensed casinos each have a different purpose,
method of operation and reason for existing. It
is likely
that self-regulation would result in different
peak bodies in each of the gaming market
segments
operating differing codes of conduct. If one
body was established to administer
self-regulation it is
possible that the most lucrative segment of the
gaming industry would seek to control that body
to
protect (or expand) its own interests.
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