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The
Productivity Commission Draft Report recognises
that because higher taxes are levied on
gaming than on most other goods and services,
the “leakage” of funds resulting from
expenditure on gaming will be commensurately
greater than from spending on other goods
(page 9.41). This is particularly so in
Victoria, where arrangements for the provision
of
EGMs result in clubs and hotels retaining a
lower proportion of revenues than in other
States
(notably New South Wales).
In this Supporting Paper, we report on some
quantitative analysis which was performed to
identify the factors affecting the level of
gaming expenditure in a region. The research
uses
information collected during our study –
quantitative data from official sources reported
in
the regional profiles, issues raised in
consultations and desk research, and data
collected
through our household survey (reported in
Supporting Paper No. 1). The research
undertaken integrates the findings of the
different phases of the Longitudinal Community
Impact Study through an investigation of the
determinants of EGM expenditure in the
regions. Comprehensive econometric analysis was
performed, but not economic modelling
of the type which incorporates macro-economic
variables.
We would expect that the determinants of gaming
expenditure within a region would be
divided into the following broad categories:
1. Size factors
- population of the region.
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