Maddocks - City of Whittlesea...2016/11/07 · Szafraniec, J (2016) Rising to the Challenge: Delivering social infrastructure in established areas of Sydney/Melbourne, Presented at

IN THE VICTORIAN COMMISSION FOR GAMBLINGAND LIQUOR REGULATION

In the matter of an application by:

Australian Leisure and Hospitality Group Pty Ltd

for premises at

Commercial Hotel, 820 Plenty Road, South Morong

Date of Document: 7 November 2016

Filed on behalf of: City of WhittleseaPrepared by:MaddocksSolicitors140 William Street

MELBOURNE VIC 3000

EXPERT WITNESS STATEMENT OF JULIAN SZAFRANIEC

I, JULIAN SZAFRANIEC of 222 Exhibition Street, Melbourne, Victoria STATE as follows

11/11/111111111111111111111111111111H11111 1/11/1111

Maddocks

I am a spatial economist who has extensive experience in applying economic theories and

econometric techniques to urban and regional issues to gain a better understanding of the

dynamics of the economy. I have extensive experience in cost benefit analysis, feasibility

assessment, impact assessment and forecasting. Attached and marked "JS-," is my

curriculum vitae.

2. I hold a Bachelor of Economics (Hons) - Economics/Econometrics from Monash University.

Solicitor's Code: 230DX: 259 Melbourne

Tel: (03) 92583815Fax: (03) 9288 0666Ref:JXR:KWL:69,6002

Attn : Kate LyleEmail: kate. Me@maddocks. comau

3. In October 2016, I prepared a Social and Economic Impact Assessment titled 'SEIA of

Commercial Hotel: EGM Application' (SEI Assessment) in respect of the application of the

Australian Leisure and Hospitality Group Pty Ltd to the Victorian Commission for Gambling

and Liquor Regulation (VCGLR) for the approval of 40 EGMs at the Commercial Hotel, 820

Plenty Road, South Morang.

4. My SEI Assessment was filed on behalf of the City of Whittlesea in the VCGLR inquiry

5. My SEI Assessment, dated October 2016, is attached and marked "JS-2".

[69,6002: 1790728t, ]

I 11 11/11/11111111111111111111 1111/1"

addocks

JULIAN SZAFRANIEC

fogi6002: 1790728i 11 page 2




for premises at



Filed on behalf of: City of WhittleseaPrepared by:Maddocks

Solicitors140 William StreetMELBOURNE VIC 3000

CERTIFICATE IDENTIFYING EXHIBIT

1111/11/11111111111111111111111111111111111111

Maddocks

This is the exhibit marked "JS-I" now produced and shown to Julian Szafraniec atthe time of stating his expert witness statement.

Before me:

THOMAS A THONY ABOUR!ZK

727 Collins St, Melbourne 3008An Australian legal practitionerwithin the meaning of the Legal

Profession Uniform Law (Victoria)


Tel: (03) 92583815Fax: (03) 9288 0666Ref:JXR:KWL:69,6002

Attn : Kate LyleEmail: kate. Iyle@maddocks. comau

Exhibit "JS-'I "

Julian Szafraniec - Curriculum Vitae

169,6002: 17907281 11

JULIAN SZAFRANIEC

Principal and PartnerSGS Economics & Planning Pty. Ltd.

Qualifications

Bachelor of Economics (Hons) - Economics/Econometrics, Monash UniversityCertified Prince2 Registered Practitioner/ Project Manager

Affiliations

Member, Economics Society of Australia

Current summary

Julian is an urban economist who has extensive experience applying economic theories and models tourban and regional issues across Australia and internationally. He has provided advice to all tiers ofgovernment and the private sector, contributing to better policy and investment decisions around thedynamics of housing, transport, community infrastructu re, gaining machines, retail, and the economy.

Julian is an excellent communicator and able to translate often complex ideas into PIOin Engi^^h. Heregularly presents to councilors, the community, at conferences, seminars and has been reported in themedia around key economic and housing issues.

Relevant project experience

I have previously presented expert evidence at Planning Panels Victoria and other hearings, including:Amendment C21 in Benalla Rural Shire. This was in relation to their Gambling Planning Framework,specifically the inclusion of a Gaining Vulnerability Index (GVl) used to identify vulnerable areas of thecommunity based on a range of demographics.

- Amendment C198 in Hume City Council. This was related to proposed rezonings associated with theCraigieburn North Employment Area Precinct Structure Plan (PSP). I provided expert evidence inrelation to SGS report on Restricted Retail and other relevant economic matters.Amendment CIO8 in Yarra Ranges Shire. This was related to a proposed rezoning of ex VicTrack landfrom Public Use 4 to a Business I Zone. I provided expert evidence regarding the potential impact tothe role and economic/retailing viability of the existing Healesville Activity Centre.

Julian is an expert in SOCio economic analysis and has experience in analysing Electronic GainingMachines (EGMs). A selection of relevant experience includes:- Social Economic Impact Assessment - Commercial Hotel (City of Whittlesea)- Strategic Framework and Local Planning Policy- Gaining (Wyndham City Council);- Gambling Planning Framework Benalla Rural City (Rural City of Benalla);

Kingston Gaining Indices - Including revised Gaining Vulnerability Index;- Public Transport Access Levels: - A holistic index that captures a locations proximity, number,

frequency, mode and reliability of public transport (PTV);- Housing Capacity Assessments: geospatial regression analysis of the drivers of housing density (State

Government).

Economics& Planning

Julian has also completed a number of employment land studies looking at industrial land,commercial, retail, and hospitality needs in a number of municipalities including, Dandenong, HumeDarebin, Melton, Yarra, Port Phillip, Nillumbik and Melbourne.

Conference presentations and publications

Szafraniec, J (2016) Rising to the Challenge: Delivering social infrastructure in established areas ofSydney/Melbourne, Presented at SGS Quarterly Seminar, 2016

Szafraniec, I and Spiller, M (2015) Does Transport investment boost potential housing supply inmetropolitan areas?, Presented to the 2015 Housing Researchers Conference, Hobart

Szafraniec, I (2014) Housing in the Middle. Perspectives on housing supply in established suburbs:past, present and future, Presented at SGS Quarterly Seminar, 2014

Szafraniec, J and Spencer, A (2014) Housing Supply in 'middle' Melbourne, SGS Insights Bulletin

MCDougall, A, Finney, B and Szafraniec, J (2013) Urban town centres: how have they performed?,Presented at PIA National Congress, Canberra, March 2013

Szafraniec, J and Holloway, A (2012) The Unplanned source of Housing Supply, Presented to the 2012Housing Researchers Conference, Adelaide

Szafraniec, I and 10vanovic, D (2012) Housing Development in Heritage Locations, Presented to the2012 Housing Researchers Conference, Adelaide

Szafraniec, J (2012) Small Area Land Use Projections, Presented to the Oceania CUBE User Conference2012

Rawnsley, T. Finney, B and Szafraniec, I. (2011) Riding the Smart Bus: Knowledge Workers,Agglomeration Economies and Public Transport Us, Presented to the A1TPM National Conference,Melbourne.

Szafraniec, I (2011) House prices creating a 'divided city', SGS Occasional Paper

Szafraniec, J (2010), Housing Capacity Assessments, Presented to the 2010 AUStralasian HousingResearchers Conference, Auckland

Rawnsley, Tand Szafraniec, I. (2010) Agglomeration and Labour Productivity in Australian Cities,Presented to the Knowledge Cities World Summit, Melbourne.

Spiller, M and Szafraniec, J (2011) Centres, Competition and Urban Form, Planning News, April2010

Szafraniec, I and Spiller, M (2009) Valuing Access to Opportunities in Housing Markets, Presented to theHousing Researcher Conference, Sydney

Szafraniec, I (2009) Social Housing: in the Right Place, Planning News, September 2009

Econoinics& Planning




for premises at



Filed on behalf of: City of WhittleseaPrepared by:Maddocks

SolicitorsI40 William StreetMELBOURNE VIC 3000

CERTIFICATE IDENTIFYING EXHIBIT

I I I 11 1/1 1/11 11 11/11/111111111111111111111111 111 11n

Maddocks

This is the exhibit marked "JS-2" now produced and shown to Julian Szafraniec atthe time of stating his expert witness statement.

Before me:

THOMAS ANTHONY AB RIZK727 Collins St, Melbourne 3008An Australian legal practitionerwithin the meaning of the Legal

Profession Uniform Law (Victoria)


Tel: (03) 92583815Fax: (03) 9288 0666Ref:JXR:KWL:6916002

Attn : Kate LyleEmail: kate. Iyle@maddocks. comau

Exhibit "JS-2"

SEI Assessment dated October 2016

t69,6002: 17907281 11

A .

City of WhittleseaOctober 201.6

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Economics& Planning

^^ .rid!^^^rident^^ jusight.

J SEconomics& Planning

This repo t Ias lieen p 'epared for October I . SGS ECO I Inics andPlanning has taken alldue care in the preparation of this reportHowever, SGS and its associated consu ants are 110t liable o anypel'5011 or eiitity for any damage or loss that has occuried, oritiayoccur, in relation to that persoit or eiTtity taking or not taking action iires ect of ally repiesentation, statement, opinion or advic referred therein.

mum Independentmy, " insight.

SGS Economics a xi Plan ling Ply LtdACN 007 37729

S PCOm. UWWW

Offices in Canberra Hobart, Melbourne and Sydney

SDUtlt Morang EGM - DRAFT. v4

TABLE OF CONTENTS

L INTRODUCTION

2 SITE CONTEXT

3 REVIEW OF APPLICATION

3.1 Overview

3.2 Application Details

4 POLICY REVIEW

4.1 Overview

4.2 State Government Policies, Legislation and Planning Controls

4.3 Local Government Policies, Legislation and Planning Controls

4.4 Australian Leisure and Hospitality Group Policies and Controls

5 DOCUMENT REVIEW

5.1. Overview

5.2 Government Publications

5.3 Academic Papers

5.4 Industry Reports5.5 Local Government Audit of Local Recreation and Entertainment Options

5.6 Overview of Local Community Service Needs

206 DEMOGRAPHIC ANALYSIS

206.1. Overview

6.2 Catchment 20

6.3 Key Demographic Data 20

266.4 Increased Exposure of Vulnerable Residents to EGMs276.5 Community Indicators Victoria

6.6 Vulnerability Analysis for Mortgage, Petroleum and Inflation Risks and Expenditure (VAMPIRE) 28

7 ECONOMIC AND EXPENDITURE ANALYSIS

7.1. Overview

7.2 Analysis of Shinewing Approach

7.3 Likely Expenditure Impacts

7.4 Likely Employment Impacts

I.

2

4

4

4

,

8 SUMMATION OF COMMUNITY OBJECTIONS

8. ,. Overview

8.2 Summation of Community Objections Table

8.3 Summary

7

7

7

9

to

9 SOCIALAND ECONOMIC IMPACT ASSESSMENT

9.1 Overview

9.2 Assessment of vulnerability to Problem Gambling

2.1

3.1

1.1

1.3

3.8

3.8

3.9

29

29

29

30

31

SEIA of Commercial Hotel EGM Appl'cation

32

32

33

34

36

36

36

9.3

9.4

9.5

9.6

9.7

Assessment of Economic Impact on the Community

Assessment of Potential Role of Centre as Community Facility

Assessment of Impact on Entertainment Options in Region

Assessment of Impact on Community Health

Assessment of Impact on Community Wellbeing

10 CONCLUSION

10.1 Overview

10.2 Table of Summary Findings

APPENDIX

37

39

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40

40

41

41

42

44

SEIA of Commercial Hotel EGM Application

LIST OF FIGURES

6FIGURE I. COMMERCIAL HOTEL PROPOSED GROUND FLOOR PLAN

I ,.FIGURE 2. LGA PER CAPITA EGM EXPENDITURE BY SEIFA SCORE

FIGURE 3. AT-RISK HOUSEHOLD TYPES, CATCHMENT COMPARED WITH WIDER REGION2 ,.

22FIGURE 4. HOUSING TENURE, CATCHMENT COMPARED WITH WIDER REGIONFIGURE 5. POPULATION UNDER HOUSING STRESS, CATCHMENT COMPARED WITH

23WIDER REGION

FIGURE 6. LEVEL OF VOLUNTEERING, CATCHMENT COMPARED WITH WIDER REGION24

FIGURE 7. UNEMPLOYMENT RATES, CATCHMENT COMPARED WITH WIDER REGION 25FIGURE 8. VAMPIRE INDEX (2011), REGION SURROUNDING THE COMMERCIAL HOTEL

28

44FIGURE 9. DRIVE TIME MAP

LIST OF TABLES

TABLE I. TOTAL EGM REVENUE, SELECTED VENUES 2008/09 To 20/5/16 12

1.4TABLE 2. SELECTED COMORBIDITIES

I8TABLE 3. OVERVIEW OF ALTERNATE FAMILY VENUES

26TABLE 4. SEIFA SCORES, CATCHMENT COMPARED WITH THE WIDER REGIONTABLE 5. MORTGAGE STRESS (ABS DEFINITION) 27

27TABLE 6. CHANGE IN EXPOSURE To EGMs

TABLE 7. EMPLOYMENT IMPACTS OF TOTAL EGM EXPENDITURE ON OTHER SECTORS

31.

TABLE 8. EMPLOYMENT IMPACTS OF INDUCED EGM EXPENDITURE ON OTHER SECTORS

3, .

33TABLE 9. SUMMARY OF COMMUNITY OBJECTIONS

TABLE 10. EMPLOYMENT IMPACTS OF EXPENDITURE BY SECTOR, TOTAL EGMExpE N DiTU RE

TABLE 11. EMPLOYMENT IMPACTS OF EXPENDITURE BY SECTOR, INDUCEDExpE N DITU RE

TABLE 12. SUMMARY FINDINGS

38

39

42

SEIA of Commercial Hotel EGM ApplicationEcononiic,& nani, ing

INTRODUCTION

SGS Economic and Planning (SGS) has been engaged by the City of Whittlesea to undertake a Social andEconomic Impact Assessment (SEIA) in regard to an application for approval of premises for gaining atthe Commercial Hotel, 820 Plenty Road, South Morang. The purpose of the engagement to provide anindependent assessment of the benefit Idisbenefit accruing to the local community as a result of theproposal. It is understood that 20 of these electronic gaining machines (EGM) are to be relocated fromelsewhere in the municipality, while the remainder will represent an addition to the existing supply ofEGMs in Whittlesea from 691 to 71.1.

In order to carry out this assessment, SGS has adopted a framework of analysis which looks at a range ofeconomic and social impact categories. These are:

- Vulnerabilitv of the local population to problem gambling;- Economic benefit to the coinmunit both ex enditure and em 10 merit.

- Does the proposal lead to greater availability of coinmunitv facilities;- Effect on local rovision of entertainment o tions;- Likely impact on coinmunitv health;- Anticipated impact on coinmunitv wellbeine in the region.

Notwithstanding a number of benefits associated with the installation of 40 EGMs at the CommercialHotel, SGS believe that the proposed installation of 40 EGMsin the Commercial Hotelwill imposeeconomic and social costs on the South Morong community that outweigh the benefits associated withthe proposal.

SEIA of Commercial Hotel EGM Application L

SITE CONTEXT

The Commercial Hotel (the site) is located at 820 Plenty Road in the suburb of South Morong,approximately 25 kilometres to the north-northwest of central Melbourne. The site is located on aprominent corner, at the intersection of Plenty Road and McDonalds I Gorge Road - two majorthoroughfares that are increasingly important in servicing the growing population to the north inparticular.

South Morong is a recently developed and mostly established suburb on Melbourne's northern fringe.Its population has grown significantly in recent years, with significant quantities of new developmenthaving taken place. At present the suburb's population is dominated by young families. The proportionof the population aged 50+ is presently lower than that of Greater Melbourne, though this is expected tochange as the existing resident families age in place. The suburb is relatively cardependant, with nearlythree quarters of residents accessing their workplaces by car.

The Plenty River runsjust to the east of the site and presents something of a barrier to movement in theregion. With large quantities of parklands and reserves adjacent to the river, Gorge Road is the mainroad connecting peri-urban regions such as Yarrambat and Plenty to urbanised regions to the west of thePlenty River.

To the south of the site on Gorge Road is a retail/service centre comprising take away food outlets,convenience retail and health services among others uses. Beyond this is a preschool and communityhouse, along with significant numbers of dwellings. The retail/service centre lies outside of themunicipality's activity centre network, yet provides an important neighbourhood function. The centre isreadily accessible by call and is serviced by 20+ angle parking places. The centre accommodates a mix ofbusinesses, including the following:

5-6 take-away food outlets;Two real estate agents;Convenience retailers (milk bar and a bakery);A newsagency;Financial services;

Legal services;Dental services; andMedical services.

This neighbourhood centre lies directly adjacent to the Commercial Hotel and is likely to attract a steadyflow of customers through the day, into the evenings and on weekends. EGMs at the hotel are thereforelikely to represent a temptation for people accessing retail and services at the Gorge Roadneighbourhood centre. Gorge Road, whilst consisting of four lanes in that particular section, hasrelatively low traffic volumes, with the region to the east predominantly peri-urban in nature. As such, itis readily traversable, particularly outside of the morning and evening peaks.

To the northwest of the subject site on the eastern side of Plenty Road is a bulky goods employmentprecinct with South Morang Station beyond that.

SEIA of Commercial Hotel EGM Application 2

Development Activity

A range of developments are anticipated in the vicinity of the site in the near future. Thesedevelopments concern land to the north and east of the site and will have a number of substantialimpacts, namely:- The construction of apartments adjacent to the northern and eastern boundaries of the Coinmerci

Hotel will have the effect of expanding the number of people living within close proximity to theCommercial Hotel.

- Plans for large-scale development of underutilised land to the north of the site on the western sidePlenty Road is expected to take place in four stages. Stage I of the development is proposed toinclude:

o 1,300sq. in of commercial office space;o A large (2,000sq. in) medical centre;o A supermarket and bottle shop;o A number of retail premises, including restricted retail, take-away food and cafes; ando A service station and drive-through take away food restaurant.

- Subsequent stages are envisaged to include further service and retail outlets, underpinning thedevelopment of the region and incorporating the Commercial Hotel as part of a regional retail andservice hub.

- Residential development is planned for land adjacent to the northern and eastern boundaries of thCommercial Hotel. Over a total land area of 2,131 hectares, a total of 21.5 dwellings are proposedcomprising:

o 1.76 apartments; 87 one-bedroom, 62 two-bedroom, and 27 home offices.o 39 townhouses; 26 two bedroom, 13 three-bedroom.

- Assuming between 1.8 and 2.2 residents per dwelling, the development of 215 units has the potento accommodate between 387 and 473 additional residents within a short walk of the CommercialHotel.


REVIEW OF APPLICATION

3.1

As part of their application for the installation of 40 EGMs at the Commercial Hotel, ALH have provided anumber of documents, including the following:- A Social and Economic Impacts Assessment (Urbis);- Expenditure analysis (Shinewing Australia);- Statements from a range of individuals in favour of the application.

Overview

The key points of the application are reviewed in the following section

3.2

Social and Economic Impacts Assessment

Applica ion Details

Urbis was engaged by ALH to provide an assessment of the net economic and social benefits of theinstallation of 40 EGMs at the site. Their report found that the application deserved theCommission's favourable consideration.

The consultant gave significant weight to the following benefits in recommending the approval of theapplication for EGMs at the site:

- Cash donations to the community to the value of $100,000 annually, in duding $40,000 to localproblem gambling initiatives.

- Redevelopment works to the value of $23 million creating better facilities for the communityincluding a new beer garden and a modern, flexible function room, and also generating constructionactivity for local workers'

- Local employment creation with an increased requirement for staff ongoing in the hotel.- Flow on economic activity as a result of greater use of other elements of the hotel outside of gaining

such as increased bar and bistro sales.

According to Urbis, the key disbenefit associated with EGMs at the site would be the potential forincreased problem gambling. However, the report stated that the potential for these uses to contributeto the growth of problem gambling in the region was reduced as a result of:

- The transfer of entitlements from highly productive venues in more disadvantaged areas (i. e.Thomastown, Bundoora and Epping),

- The relatively small size of the venue,- Financial commitments to contribute to initiatives aimed at limiting problem gambling, and- Limited opening hours relative to other EGM venues.

In summary, the consultant considered that the economic and social benefits around communitycontributions, redevelopment and employment should hold significant weight due to their value andcertainty of outcome, while the potential negative effects relate almost exclusively to the potential forincreased problem gambling which wasjudged by the consultant to be minimal in this case.

SEIA o1CommercialHotelEGM Application 4

Expert Report (Shinewing Australia)

This report was produced by Shinewing Australia (the consultant) and aims to provide informationregarding the likely expenditure associated with the installation of EGMs at the site. Key findings were:

The EGM density in the City of Whittlesea is lower than the state average (4.53 per 1,000 peoplecompared with 5.65 per 1,000 across Victoria);The number of EGMs per 1,000 adults, and average net gaming expenditure per adult is significantlyless in the Whittlesea - North SLA than in other parts of the LGA.After the addition of 40 EGMs to the Commercial Hotel, the EGM density rates for the Whittlesea -North SLA and the City of Whittlesea will be 5.06 and 4.88 respectively, below the Victorian rate.The consultant adopts a benchmarking analysis to understand the expenditure impacts of the newEGMs. Taking into account venue characteristics including size of EGM offering, visibility andsurrounding population demographics, a number of compareble facilities have been identified. A netmachine revenue (NMR) of $407 per day has been assumed based on benchmarks for similar venues.Lower and upper NMR ranges of $387 and $427 have been calculated to account for potentialvariation in EGM revenues at the venue. Extrapolating these figures across 40 machines for 365 daysper annum provides an estimated expenditure range of between $5.65 million and $6.24 million.The consultant estimates that in the first year of operation, expenditure relating to EGM use is likelyto be around 85% of the eventual long term expenditure, implying a range of between $4.80 millionand $5.30 million.The consultant estimates that 60% of the expenditure associated with the installation of EGMs at thesite would be transferred from existing facilities. The remaining 40% represents new or inducedexpenditure, with annual estimated expenditure attributable to this between $1.92 million and $2.12million.

Witness Statement (neigh Barrett)

This witness statement draws attention to ALHs' record on dealing with problem gambling as well aslocational and other factors to explain that the installation of EGMs at the Commercial Hotel is likely tolead minimise the potential for problem gambling at the venue. Mr. Barrett concludes that he is:

toriiident thotALHis committed to ensuring thot the services offered by the Hotelore provided in oresponsible moriner with on emphosis on venue wide customer core. The implementotibn of the AtHCode ond OSsocioted commitments und proctites, porticulorly to stofi' tmining, will help to ensure thatshould the OPPlicotion be successful the Hotel^ EGM goming product I^ delivered in o responsiblemoriner thot minimises the risk of problem gambirng at the Hotel. '

Witness Statements IALH employees)

A number of ALH employees have provided witness statements as part of the application. These includeletters from:

- David Curry (Head of Regulatory and Corporate Affairs);- Natalie Me laney (Venue Manager of the Commercial Hotel);- Tim Lalor (Operations Manager); and- David Schwarz (Responsible Gambling Ambassador).


Building Design Features

The design of the gaining room has been carried out such that its impact on other Commercial Hotelpatrons is limited. The most familyfriendly area of the hotel, the Bistro, is relatively isolated from thegaining room, with the only public access via the sports ball at the other end of the hotel. Views into thegaining room from an adjacent pathway are to be obscured by frosted glass.

The most used point of entry likely to be the Entry 2, which provides access to the hotel from the mainrear carpark. This is likely to result in increased risk of exposure to EGMs for children/at-risk groups.

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POLICY REVIEW

4.1.

This section reviews key local government, state government, and ALH policy documents that relate togambling in Victoria generally and I or gambling at the site.

Overview

Gambling Regulation Act 2003

The primary objectives of the Gambling Regulation Act 2003 are to- Minimise harm caused by problem gambling- Ensure that minors are not allowed or encouraged to gamble- Ensure that gambling is free from exploitation

Chapter 3 of the Act covers gaining machines (pokies). This chapter sets out to regulate gamblingequipment in order to, among other things:

I. Ensure gaining on machines is conducted honestly;2. Ensure management of gaining equipment is free from criminal influence or exploitation;3. Promote tourism, employment, and economic development generally; and4. Foster responsible gambling in order to minimise harm caused by problem gambling and

accommodate gamblers without harming themselves or others

This chapter of the Act also provides for allocation of gaining machine entitlements within Victoria. TheAct requires a gaining venue operator to hold an entitlement for each machine in the venue. Each

entitlement will describe the conditions for the use and location of the machine, as specified by theCommission, and will be for a specific time period.

This Act gives local governments the right to make submissions to the VCGLR on applications for EGMswithin their municipality or a neighbouring municipality. This Act gives the VCGLR the power to regulategambling in Victoria. The Gambling Regulation Act is administered by the Victorian Commission forGambling and Liquor Regulation.

Victorian Commission for Gaining and Liquor (VCGLR) Bill20, .I.

The VCGLR requires that venue operators must hold a gaining machine entitlement for each machine inoperation. Gaining machine entitlements are covered by the Gambling Regulation Act, which states thaeach entitlement will specify the region or municipality in which the entitlement is valid, and also whattype of venue the entitlement is valid for.

Gambling and Liquor Legislation Amendment Bill2007

This bill introduces a number of specific measures around gaining machines in an attempt to addressproblem gambling, such as more specific regulations as to the placement of machines (indoors) and useof machines (for example, it is prohibited for gambling machines to be played by intoxicated persons).

SEIA of Coininercial Hotel EGM Application 7

Victorian Local Government Act 1,989

The Victorian to001GovemmentAct1989 requires all local governments to provide the best outcomes for thecommunity, while having regard for the long term and cumulative effects of decisions. Local governments arerequired to protect and promote health and well-being under the Victorian Public He@1th und Wellbeing Act 2008and apply the 'precautionary principle' to preventing and controlling public health risk.

Public Health and Wellbeing Act 2008

This Act sets out local governments' responsibility to protect and promote public health and wellbeingwithin their municipalities. This Act requires local governments to develop a health and wellbeing planfor the municipality.

Planning and Environment Act ,. 987 and Victorian Planning Provisions

The Victorian Planning Provisions provide for each LGA to prepare a planning scheme under theobjectives of the Planning and Environment Act1987. The planning provisions provide a framework forthe development of local planning schemes, including providing for the implementation of land use anddevelopment policies.

The Act gives local government the power to refuse or grant a planning permit for installation or use ofEGMs.

Victorian Commission for Gambling and Liquor Regulation

The VCGLR is an independent decision making authority, which under the Gambling Regulation Act 2003has the power to regulate gambling and liquor within the state of Victoria. The VCGLR is accountable tothe Minister and Parliament of Victoria.

The VCGLR is responsible for regulating gambling and educating the public about gambling regulations.According to its website, the VCGLR's regulatory approach: "integrates licensing, informing andeducating, monitoring and enforcing. " Among the key goals listed on its website is the minimisation ofharm in the gambling and liquor industries.

The following forms of gambling are legal in Victoria: pokie machines, casino games, wagering, onlinesportsbetting, keno, lotteries, bingo. All of these forms are regulated by the Victorian Commission forGambling and Liquor Regulation (VCGLR), which is responsible for administering legislation andregulations surrounding gambling in Victoria. All gambling businesses and activities in Victoria need theCommission's permission to operate.

The Victorian Commission for Gambling and Liquor Regulation website states that the goals of theGambling Regulation Act include:- Minimising harm caused by problem gambling- Accommodating those who gamble without harming themselves or others- Ensuring the management of gambling is free from exploitation- Promoting employment and economic development in the state- Ensuring that minors are riot allowed or encouraged to gamble

Venue operators apply to the VCGLR to establish a new operator or add any additional machines. TheGambling Regulation Act allows relevant council(s) to make submissions to the VCGLR on applicationsreceived.

SEIA of Coininercial Hotel EGM Application 8 SEC"Inniics& F1. Inning

Office of Liquor, Gaining and Racing

Liquor, Gaining and Racing is an office within the, us tice and Regulation Department of the StateGovernment of Victoria. In relation to gambling, the Office is responsible for providing support andadvice on development and implementation of gambling legislation and regulation.

This office has relationships with the following bodies, among others. Victorian Commission for Gambling and Liquor Regulation. Victorian Responsible Gambling Foundation. Responsible Gambling Ministerial Advisory Council

The City of Whittlesea guides the use and development of land in the municipality through the StatePlanning Policy Framework, Local Planning Policy Framework, and Municipal Strategic Statement.

According to the City of Whittlesea, councils have a specific responsibility to consider the social andeconomic impacts of EGMs in their municipalities.The City of Whittlesea has the authority to grant or refuse a planning application for installation oroperation of an EGM. In making such a decision the coundl considers any significant social or economimpacts, as well as considering any other land use policies that impact on the application.

Local Government Policies, Legislation and Planning Controls

City of Whittlesea Gambling Strategy and Action Plan 201.4 to 2024

This Strategy outlines the roles at different levels of government as follows:- Determine risks and impacts on public health as a result of new EGMs and EGM venues.- Make determinations on planning permits- Make SEIA submissions to VCGLR for EGM license applications

4.3

Whittlesea's Gambling Strategy recognises the increasing pervasiveness of gambling in Victoria,particularly via EGMs, and notes that the City of Whittlesea experiences high EGM losses compared toother Victorian municipalities, which has a detrimental impact on the surrounding community. The Cityof Whittlesea views the wellbeing of its community as its priority, and recognises EGM gambling as apublic health issue.

The Council is committed to minimising harm caused by gambling. The 2014 Strategy superseded the2002 Strategy, and incorporates new regulatory changes and research, and has a stronger focus oncommunity awareness and minimising harm. EGMs are a particular focus of this strategy, due to recentchanges in their regulation as well as the high losses on EGMs within the area. The new strategy alsoreferences recent research describing the community implications of gambling, particularly EGMs.

City of Whittlesea Planning Scheme

Council has the authority to assess planning applications in relation to EGMs (pokies) and gamblingven ues.

The Scheme aims to ensure that:

- Gaming machines are in appropriate locations and premises- Social and economic impacts of gaining machines are considered- Gaining machines are prohibited in specified shopping complexes and strip shopping centres.


44

Australian Leisure and Hospitality Group (ALH) is the largest operator of gaining machines in the state.The following programmes and policies go beyond the requirements of this legislation and are offeredby ALH in an effort to reduce the harms associated with problem gambling associated with EGMs.

Australian Leisure and Hospitality Group Policies and Co trols

Staff Training

ALH train staff to recognise their obligations in providing a safe environment for patrons' They areexpected to understand the ALH Code in relation to EGM usage, and trained to look out for behavioursthat may indicate patrons' gambling activities are becoming problematic. Staff are also encouraged tointeract with clients as a way of better monitoring their behavior and ensuring that behavioursassociated with problem gambling are identified and monitored.

Responsible Gambling Ambassador Program

In recent years ALH has employed David Schwarz, a well-known former professional footballer andreformed problem gambler. As the ALH Responsible Gambling Ambassador, David Schwarz providesemployee education and promotes customer awareness.

David Schwarz is responsible for the delivery of workshops and training sessions to ALH managementand staff, providing them with insights and strategies to help assist patrons who may be experiencingdifficulties with their gambling. ALH will provide workshops to Commercial Hotel staff prior to theinstallation of EGMs at the hotel.

One of David Schwarz roles is to be available for staff to discuss any gambling problems they or theirfamilies and friends may be experiencing and to Iiaise with staff who may be concerned about aparticular patron or uncertain about how best to respond to a particular patron who appears to behaving difficulty with their gambling.

SEIA of Coinme, cial Hotel EGM Application 10

DOCUMENT REVIEW

Overview5.1

This section provides an overview of government and academic documents that provide background andan evidence base, helping to inform conclusions developed in later sections.

VRGLR Gaining Data

The Victorian Commission for Gambling and Liquor Regulation (VCGLR) gathers data for all municipal itin Victoria in relation to expenditure on EGMs. These data are based on electronic data files receivedfrom the licensees. VCGLR produces reports incorporating publicly available data in relation to SEIFA(from the 201.1 Census) and unemployment (from the Dept. of Education, Employment and WorkplacRelations) to help understand the exposure of vulnerable groups to EGMs.

The data shows a link between socio-economic status and expenditure on EGMs, with metropolitan LGAswhose residents spend larger amounts on EGMs tending to be of lower socio-economic status.

FIGURE 2. LGA PER CAPITA EGM EXPENDITURE BY SEIFA SCORE

$1,200.00

$1,000.00

$800.00

$600.00

$400.00

$200.00

co+,=co^coco.

*-.

=^

CG

0.1I-.

=-

^=coQ.><0.1

to^

Q.t6,.,^

0.1Q.

~

Source: VCGLR

At the time of the last Census, Whittlesea had a SEIFA score of 988.60 - making it one of the highest-ranked LGAs in metropolitan Melbourne for disadvantage (5'' of 31). In 20/5/16, Whittlesea also rankshighly for per capita expenditure on EGMs, with each adult resident spending an average of $678.63 per

S-

.

850

.

900

.

950

.

1000

SUFA score

. .

1050

o0

11.00

SEIA of Coinmercial Hotel EGM Application L, .

1150

annum on this form of gambling, significantly greater than the per capita rate annual of $553.13recorded across Victoria.

Significantly, Whittlesea has the second highest expenditure per EGM of all metropolitan LGAs (behindonly Brimbank), with an average annual loss of $149,637.02 per machine in 20/5/16. Whittlesea is alsohome to four of the top twenty venues in Victoria for aggregate EGM losses in 20/5/16:- Epping Plaza Hotel, $21. I million in 2015-16 (I, *)- Plough Hotel, $18.2 million in 2015-16 (4th)- Bundoora Taverneij $17.2 million in 2015-16 (7th)- Excelsior Hotel, $15.6 million in 2015-16 (t6, hj.

ALH Group own three EGM venues on the City of Whittlesea (the Bundoora Tavernei; the Plough Hoteland the Excelsior Hotelj, each of which was in the top 20 for overall EGM losses in 20/5/16. A review ofdata from the past eight years shows that these hotels have consistently been among the highestrevenue-generating EGM venues in the state of Victoria.

TABLE I. TOTAL EGM REVENUE, SELECTED VENUES 2008/09 To 20/5/16

2008/09 2009/ 0 20/01 20/112 20 213 20/3/14 20 4/15 20 5/169th 1st3rd 1st1st Ist 1st

6th 7th 5th 2nd 6th 7th6th

1st 2nd 3rd 5th 5th4th 4th

10th 9th 6th 17th16th 9th 16th

ource: VCGLR

Across Victoria, the average annual revenue figure for each EGM in 20/5/16 was $99,381. For ALHvenues in Whittlesea, average revenue per machine is nearly double this. At its three Whittlesea venues,average revenues per EGM in 20/5/16 were:- Plough Hotel, $181,931 ($498 per day)- Bundoora Tavernei; $178,833 ($489 per day); and- Excelsior Hotel, $175,117 ($479 per dayj.

Epping Plaza HotelBundoora Tarerner

Plough HotelExcelsior Hotel

Of the 691 EGMs operational across the City of Whittlesea in 20/5/16,70.2% were located inhotels/pubs, with the remainder in clubs. EGMs in the City of Whittlesea's hotels/pubs generate anaverage of $179,137 - far higher than the average of $80,184 recorded in the municipality's clubs. Thisdata illustrates the relative appeal of hotels/pubs in relation to clubs for EGM users, and the relativelylarger potential for harm associated with problem gambling at hotel/club venues.

1st

9th

3rd

6th

VicRoads Arterial Road Traffic Volumes

VicRoads regularly estimate traffic volumes on Melbourne's key thoroughfares. The site sits on theintersection of Gorge Road and Plenty Road, a major north-south arterial. In 2015, southbound trafficvolumes for Plenty Road were estimated at 17,000 vehicles per day (VPD) north of Gorge Road, and20,000 VPD south of Gorge Road. Northbound, volumes were estimated at 16,000 and 15,000 VPDrespectively. With the development of urban land to the north anticipated to continue, and with many ofthese residents likely to be cardependent, these volumes are likely to grow in coining years'

The Commercial Hotel is in a highly visible location, with a large volume of vehicle traffic passing on adaily basis. In addition, the hotel has a large number of car parks. It is likely that these factors combinedmake the site a relatively easy stop for passing vehicles.

SEIA of Commercial Hotel EGM Application 12Led"XII!CS& PIiniiing

Academic Papers

Measuring the Economic Impact of Electronic Gaining Machines in Regional Areas -Bendigo, a case study, Centre for Sustainable Regional Communities (La TrobeUniversity, 1,999)

This sought to measure the expenditure impact of EGMs in the Greater Bendigo region. The study foundthat EGMs within the municipality contributed 1.1. % of total regional expenditure, but only 0.3% of totalwages and 0.4% of total jobs. The report also found that the contribution to gross regional product ofEGMs was only 0.5%, with large leakages of revenues outside of the region as a result of payment ofdividends to machine owners and the State Government.

5.3

The study estimated that the Type I. multiplier for EGMs was 1.1, suggesting that for every $1 increase inEGM expenditure, only $0.10 will be generated in industry support effects. The report found that thismultiplier was among the lowest of all sector multipliers, which is indicative of the lack of forward andbackward linkages with other sectors across the Bendigo region.

The study found that income, employment, and value added multipliers were significantly below thoseof almost all other economic sectors. It is estimated that 80% of EGM expenditure replaces consumptionexpenditure in sectors in which regional linkages are far more developed, and multipliers far higher. As aresult, expenditure and employment generated as a result of the establishment of EGMs is more thanoffset by lost expenditure and employment as a result of declining expenditure in other sectors.

The South Australian Gambling Industry - Final Report (Centre for Economic Studies,2006)

In discussing the impacts of EGM use on employment creation and expenditure generation, this reportconcludes that job intensity associated with EGM use in Australia is low, with 3.2 jobs generated forevery $1. millionin additional expenditure, compared to 8.3jobs per $1million from sales of liquor andbeverages, and 20.2 jobs per $1. million of takings from food and meals. The retail sector in Australia isestimated to employ 6.5 persons per $1. million of income.

That job intensity associated with EGM expenditure is low is significant. This is because, as noted above,analysis of the benefits of gambling should take into account the jobs lost due to expenditure divertedfrom other activities. If expenditure is diverted from high job-intensity activities to lowjob-intensityactivities, ultimately the net impact on employment of EGM expenditure may be negative.

The report found that whilst employment in hotels and clubs associated with EGMs did rise followingtheir introduction, the diversion of expenditure from elsewhere in the economy led to a loss of jobs inother sectors. The researchers estimated that while total employment in South Australian hotels andclubs increased by between 5,000 to 6,000jobs following the introduction of EGMs, approximately 4,000jobs were lost in the cafe and restaurant sector over the same period. The report also finds that jobs inother sectors, in particular retail, may have dropped as a result of the introduction of EGMs.

The study also sought to estimate the net social benefit of gambling in South Australia. Although theperiod to which it relates was is riot recent (2002/03), there is no reason to suggest the findings are riotstill valid. Despite tile scale of the benefits consumei's enjoy 11'011t having access to EGMs, foi' the state asa whole, the estimated net social cost of EGMs is estimated to be between $56 million and $582 million.

SEIA orcommercial Hotel EGM Application 13

Supplying Slot Machines to the Poor (Bubonya, By me, 2015)

This work sought to build a model of EGM use that enables policy-makers to, a) quantify firms' incentivto make gambling accessible among socio-economically disadvantaged groups, and b) evaluate theeffects of government policy on the distribution of EGM supply, tax revenue and the prevalence ofproblem gambling. The key outcome of this work was to provide the first empirical evidence on firms'incentives to supply gambling access to socio-economically 25 disadvantaged markets.

The model constructed as part of this work makes the assumption that permachine revenue falls asmore machines are supplied to a market (i. e. that machines are strategic substitutes). This is in line withthe principles that underpin the concept of the downward-sloping demand curve. That is, the totalrevenue from EGM gambling in a market does not increase proportionally with the number of machinesin a market if the marginal gambler increasingly derives less utility from gambling.

A Longitudinal Study of Gambling and Health in Victoria 2008-20.2(responsiblegambling. vic. gov. au)

One of the key objectives of this study was to better understand the impacts of gambling on communityhealth. The paper quotes a number of academic sources in demonstrating strong links between problemgambling and a range of other health-related conditions. The table below summarises the extent towhich problem gamblers experience a range of conditions compared with the general population.

TABLE 2. SELECTED COMORBIDITIES

Prevalence among non-problemPrevalence among problemgamblers I general populationgamblers

3.4%16.8%

22.0%54.0%

0.4%7.0%

8.0%52.0%

0.4%7.0%

7.0%46.0%

1.4%24.0%

Source: A LongitudrnolStudy of Gombling ond He@1th

Health condition

Poor health - self reported

Smoked in the past yearClinical alcohol abuse

DepressionClinical alcohol abuse

Anxiety disorder

Severe psychological distress

The study also looked at the link between gambling and social contextual factors, namely social capitaland traumatic life events.

- Social capital. Problem gamblers were likely to be socially disconnected, being less likely to beinvolved in community events, less likely to have volunteered in the previous 1.2 months, and less ableto access capital in a short time frame.

- Traumatic life events. Problem gamblers were more likely to identify traumatic life events as 'triggers'for gambling. Residents with some backgrounds are more likely to have suffered 'trauma' (e. g.refugees, low-SES residents), so for these groups vulnerability to problem gambling is increased.

The study found that even non-problem gambler categories (low-risk and moderate-risk gamblers) weremore likely to suffer from poor health in each of the above categories. This suggests that in attemptingto develop an understanding of the health impacts of EGMs on a community, the negative impact ofnon-problem gambling should also be considered.

The study found that problem gamblers are more likely to:- Be young men (25-34 years old)- Be employed as a sales worker; machinery operator/driver or labourer- Have an annual income of $31,200-51,999 or annual household income of $62,400-,. 03,999.

SEIA of Commercial Hotel EGM Application 14 SSECUroniic,a rinni, Inn

Assessing Gambling-Related Harm in Victoria: A Public Health Perspective(responsiblegambling. vic. gov. au)

This study sets out to show the impact of gambling on the aggregate years of health life lost in Victoria.It found that low and moderate-risk gamblers account for a majority of the aggregate years of health 11flost in the state, finding that, in total:- 50.24% of years lost to disability were from low-risk gamblers;- 34.52% of Years lost to disability were from moderate-risk gamblers; and- 15.24% of years lost to disability were from problem gamblers.

'Harm to self accounted for 86.2% of total harm, with the remaining 13.8% attributable to harm toothers' When all risk categories are combined, gambling accounts for total years lost to disabilityequating to about two-thirds of the years lost to disability for alcohol use and dependence and majordepression, and much more than many other conditions, including diabetes.

The qualitative data collection identified that harms could be divided into seven dimensions. Thesewere:

- financial harm;- relationship disruption, conflict or breakdown;- emotional or psychological distress;

decrements to health;

- cultural harm;

- reduced performance at work or study; and- criminal activity.

Harms were divided into:

- general harms, which occurred at any time;- crisis harms, which were associated with attempts to seek help; and- legacy harms, which occurred long after gambling ceased.

The researchers also identified that harms could occur much later in life, or even be transferredbetween generations. For example, that parental poverty could impact on children throughout theirlifespan.

The relationship between electronic gaining machine accessibility and police-recorded domestic violence: A SOCio-temporal analysis of 654 postsodes in Victoria,Australia, 2005-L4 (Markham, Doran, Young)

This study investigated the proposition that gambling accessibility and the incidence of domesticviolence might be linked, with significant associations of polic^relevant magnitudes found between alldomestic violence and EGM accessibility variables.

EGM-free postcodes were associated with a mean incidence rate of 54 family incidents per 10,000 and11 domestic violence assaults per 10,000. The mean inddence rate for postcodes with 75 EGMs per10,000 (approximately 2 SDs above the mean), was 68 family incidents per 10,000 and 1.6 domestic-violence assaults per 10,000.

Similar patterns were evident when venue density was used as the predictor variable. In terms ofrelative risk, postcodes with no EGMs were associated with 20% fewer family incidents per 10,000 and30% fewer domestic violence assaults per 10,000, when compared with postcodes with 75 EGMs per10,000.

SEIA of CoinmercialHolelEGM Application 15

Risk Factors for Problem Gambling: Environmental, Geographic, Social, Cultural,Demographic, SOCio-Economic, Family and Household(responsiblegambling. vic. gov. au)

This study reviewed the present state of research to identify key risk factors for problem gambling acrossa range of areas. Key findings of the study were:

Environmental and geographic- Accessibility of gambling is a significant risk factor for problem gambling.- There is some evidence that area-level socio-economic disadvantage is a risk factor for problem

gambling. This may be independent of the effects of individual-level socio-economic disadvantage.- A lack of alternative leisure options and other services in the local area may be a risk factor for

problem gambling.

Social

- Low levels of social capital may be linked to problem gambling.- There is some evidence loneliness may be a risk factor for problem gambling.

Age and gender- Male gender is consistently associated with increased risk for problem gambling in both Australian

and international studies.

- Rates of problem gambling decline with age. Some studies have found that young people aged 1.8 to34 are at the most risk of problem gambling among adults but further research is required to confirmthis assessment.

- Rates of problem gambling are higher in adolescents than in adults.

Socio-economic status

- Lower socio-economic status is a risk factor for problem gambling. Some studies have shown lowereducational attainment and lower income are associated with higher rates of problem gambling.

- There is some evidence for an association between unemployment and problem gambling, althoughthis may be because problem gambling is known to cause employment problems.

Family and household factors- Family structure may be a risk for problem gambling, with various studies suggesting that separated or

divorced adults, or members of single parent households are more likely to experience problemgambling

- There is some evidence homelessness is linked to problem gambling, although it is not clear whetherhomelessness is a risk factor for problem gambling or a result of financial difficulties related toproblem gambling.

Attitudes towards Gambling and Gambling Reform in Australia (Dorialdson, Rockloff,Browne, et. all

This research explored attitudes towards gambling and how they influence opinions on harmminimisation and gambling reform. The study considered whether the Attitudes Towards GamblingScale, which has previously only been used in the United Kingdom, could be used in the Australiancontext. It also examined whether attitudes towards gambling were related to opinions about thegambling reforms proposed by the Commonwealth Government in 2012.

The study surveyed 1,773 Australian adults as part of one wave of the Australian Health and SocialSciences Survey - a longitudinal study of Australian adults administered by the Population ResearchLaboratory at Central Queensland University. Participants were recruited via telephone interviews andquestions were administered online.


Participants were asked a series of questions covering:- the questions in the Attitudes Towards Gambling Scale;- attitudes towards the Poker Machine Harm Reduction ($,. Bets and Other Measures) Bill2012 and the

Interactive Gambling and Broadcasting Amendment (Online Transactions and Other Measures) Bill2011; and

- experiences of gambling and problem gambling.

Among the key findings were:

- Overall, findings indicated support for a public health approach to gambling, where regulationprotects vulnerable people from developing gambling problems and reduces negative sodaland health consequences.

- Participants had moderately negative views of gambling, with only 1.2.5 per cent expressing POSitiviews of gambling. Participants most strongly agreed with the statement that 'there are toomany opportunities for gambling nowadays'.

- Participants generally supported the right of individuals to gamble and did riot support banninggambling altogether. However, participants tended to perceive gambling as dangerous for familylife and harmful for society.

Whilst this research was carried out in Queensland, there is no reasons to indicate that its findingswould be substantially different were it carried out in Victorian. The research found overwhelmingnegative perceptions of gambling in society, and underlines the importance of creating spaces wherpeople are not exposed to its effects.

Gambling and Family Violence Fact Sheet twomens Health in the North)

This fact sheet points out the established link between problem gambling and family violence, withpeople experiencing problem gambling more likely to be both perpetrators and voctims of domesticviolence. The fact sheet summarises research that links problem gambling and family violence notingthat:

For each Australian with significant gambling issues, there are 7.3 'significant others' that areadversely affected, with the most common impacts being impaired family relationships, emotionalproblems and financial difficulties.People with gambling problems are more likely to be both victims and perpetrators of family violence.More than half of problem gamblers' families reported some form of family violence in the previous1.2 months.

EGM venues are used by some women as a 'safe haven' from family violence.

SEIA of Commercial Holel EGM Application 17

5.4

Hotel Industry Report, Price Waterhouse Coopers, 2009

This national report, commissioned for the Australia Hotels Association (AHA) outlines the impact to theAustralian economy of the hotels sector. The report makes the point that EGMs make an importantcontribution to national economic welfare, making the following points:

Industr Repo s

- The removal of EGMs from hotels would lead to short-term loss of around 15,000jobs.- Generalised employment multipliers understate the contribution of hotel gaining to employment,

since the removal of gaining from hotels would have an indirect employment effect through increasesin state taxes such as payroll tax.

- The hotel sector generates a substantial net benefit to the economy: total spending in hotels isestimated to be $12 to $13 billion per annum.

- In the absence of the hotel sector, household consumption would contract by an estimated $3.5billion in the short term even allowing for some reallocation of spending and resources to othersectors.

5.5 oca Governmen Audit o Local Recrea on and

Entertainment Opt o s

The extent to which alternate recreation and entertainment opportunities are available in the vicinity ofthe site is an important consideration in establishing whether the establishment of EGMs at theCommercial Hotel seriously impacts choice in the vicinity of the hotel. For many families, theestablishment of EGMs at the hotel will result in the loss of a family-friendly eatery in the region. Otheroptions within 5kms of the site are:

TABLE 3. OVERVIEW OF ALTERNATE FAMILY VENUES

SUMMARY TABLE

Name

MillParkActivltyCentre

We shield PlentyValleySouth MorangActivity Centre

Dist ce and

dire ion

As can be seen in Chapter 7 in which community objections to the EGMs are summarised, theCommercial Hotel is presently the only pub in the urbanised region of Whittlesea presently withoutEGMs. Research conducted to gauge community attitudes to gambling in Queensland found that 87.5%of people in the community had a generally negative perception of gambling. It is reasonable to assumethat the proportion in Victoria would be similar. Many of these people are likely to feel strongly aboutthe presence of EGMs, and therefore ensuring that these people have access to at least one EGM-freevenue in the City of Whittlasea is important factor in consideration of this application.

I kin SW

Summary

Has a number of eatenes, Includlng to Porchetta, Jazz Bistro and a number of otherrestaurants. Also a number of chaln takeaway options

Contains a number of eaterIes, though most are only open during daytime. Ribs andBurgers provides a bistro-style option

Sinokin' Joes Pizza and Gril is a famlly-frlendly, bistro-style eatery. A small number ofsmaller takeaway outlets are also located here

I km W

4.2 kms NW

SEIA o1 Coinmercial Hotel EGM Application 18

5.6

In 2013, the City of Whittlesea carried out a Human Services Needs Analysis which sought to identifycurrent demand and trends in demand for community services across the municipality. The report madethe following key findings:

Overview o Local Community Ser Ice

- 85% of all service providers noticed a trend towards increasing demand for their services in the three-year period prior to the survey. This was due largely to the municipality's rapidly growing population,and more specifically increases in the size of at-risk resident groups, including the elderly, mentally ill,aboriginal and asylum seekers. An increase in demand for services associated with family violence wasalso rioted.

- In regard to services targeted at victims of family violence, all service providers working in that fieldrioted an increase in demand for their services.

- Service providers express concern at a lack of capacity to meet demand for services, with nearly 80%stating they were presently unable to meet the service demands of their community.

- More than 82% of service providers in Whittlesea reported a change in the profile of clients seekingassistance, with an increase in demand associated with groups that are:

o Vulnerable and disadvantaged;o Ethnically and cultural Iy diverse;o Lacking in social and community connections;o Experiencing financial hardship;o Abusing drugs and alcohol; ando Living in newer estates (i. e. to the north of the site)

- There are issues associated with newly-arrived migrant groups, with language and cultural barriersmeaning that they are often less likely or able to access community services. Facilitating access forthese groups is resource intensive. A large number of local service providers, including most of thosethat offer services for victims of family violence, report an awareness of specific groups within thecommunity that require services, but for a range of reasons do not access them.

eeds

Between 2009/10 and 20/2/13, service providers in the City of Whittlesea reported an increase in thenumber of family violence incidents of 66.1%, with the number rising dramatically over the period from1,270 to 2,110. From the police perspective, call-outs in relation to family violence have increased on aper capita basis from 358 per 1.00,000 people in 1999/2000 to 1,249 per 100,000 people in 2012-13. Thisincrease is among the highest among Victoria LGAs, and second only to Frankston.

Research demonstrates a strong link between problem gambling and family violence. Consequently, theestablishment of a new EGM facility at the Commercial Hotel is likely to lead to increased family violence,and therefore greater demand for community services.

SEIA of Co, ninercial Hotel EGM Application 19

. DEMOGRAPHIC ANALYSIS

6.1

The following section provides an overview of the key demographic data relating to the population ofthe region surrounding the Commercial Hotel.

verview

6.2

.

In order to understand the extent of the region likely to be affected, SGS have conducted a drive timeanalysis. The output of this process is a map (see Appendix) showing regions within 5,10,15,20,25 and60 minutes of the site by car. With research showing the majority of EGM users travel less than fivekilometres (typically between 5 and 10 minutes by carin urban areas) to use EGMs, SGS estimate thatthe affected community consists of an area of SA2s roughly equivalent to the area whose population isless than 1.0 minutes by car from the Commercial Hotel.

atchinent

The SA2s assessed are:

- South Morang- Mill Park North

- Mill Park South

- Plenty - Varrambat- Bundoora North

In some cases, data is only available at the municipal level, and in these cases SGS has based itsassessment on data for the City of Whittlesea as a whole.

Key Demographic ata

Population

The population of the catchment in 2011 was 83,232, with 46% of this population located in the suburbof South Morong. The site is located in a rapidly growing part of metropolitan Melbourne, withsignificant quantities of greenfield land to the north of the site. Whilst population projections for theSA2s that make up the catchment are not available, the Victorian government has produced projectionsfor Victoria in the Future Small Areas (VIFSAs) that estimate population growth at a scale midwaybetween LGA and SA2.

6.3

These projections shows that the population of the Whittlesea LGA in 201.6 is 203,397, and is likely tohave approximately doubled its 201.1 population by 2031. , rising from 160,800 to 313,959 over theperiod. The site is located on the southern border of the Epping - Whittlesea VIFSA district, a region thais expected to account for nearly 87% of the municipality's population growth between 2011 and 203, .,with an additional 133,000 residents moving to the area over the period.

.I

SEIA of Coinmercial Hotel EGM Application 20

Household Type

A number of household I family types are associated with disadvantage and would be considered morelikely to suffer adverse consequences as a result of the presencein the community of EGMs. Lone personhouseholds typically consist of elderly residents, many of whom suffer from social disengagement andloneliness. Loneliness has been linked with problem gambling behaviour, and members of thesehouseholds are uniquely vulnerable to problem gambling associated with EGM use. Another cohort thatresearch indicates may be vulnerable to problem gambling is single parents, with adult members ofthese households more likely to have lower disposable incomes, be time-poor, often with a reducedfamily support network.

Being located on the urban fringe with a rapidly-growing population, a large number of households inWhittlesea consist of families. As a result, lone person households tend to be relatively few incomparison with the Whittlesea LGA and Greater Melbourne, with only Bundoora North having a greateproportion of lone person households than Whittlesea. The proportion of single parent families as aproportion of total families is also relatively low, with only Mill Park South recording more single parentfamilies than Whittlesea LGA.

FIGURE 3. AT-RISK HOUSEHOLD TYPES, CATCHMENT COMPARED WITH WIDER REGION

25%

20%

15%

10%

S%

O%

So Lit I^

Moi'ang

Mill Park

Noith

Lone person houselTolds

Mill Pal'k

SouthPlenty -

Yarrambat

Bundooi'a Whittlesea

North LGA

. Single paleiIt families

Gi'eater

Meijioujne

Source: ABS

SEIA or Commercial Hotel EGM Application 2t

Housing Tenure

Large gambling losses may impact the ability of individuals with large levels of mortgage debt to meetongoing repayment obligations. As a result, problem gambling are more likely to cause harm in regionswith large numbers of households that are paying off mortgages on their properties.

The catchment has a comparatively large number of households with mortgages. Compared withGreater Melbourne, the catchment population is relatively vulnerable to the negative impacts of EGMs,with the northern growth areas (i. e. South Morong) particularly so, with nearly two third of dwellingsoccupied by households paying a mortgage. The population of the municipality is expected to rise bymore than 150,000 between 2011. and 2031, with this growth driven by younger family cohorts movingto greenfield areas to the north of the site. Most of these households are likely to require finance topurchase their homes, meaning that this population to the north is likely to be vulnerable to the effectsof EGMs for the foreseeable future.

FIGURE 4. HOUSING TENURE, CATCHMENT COMPARED WITH WIDER REGION

=

33o 6096co~co

, o0 50%ô

, E 40%C toto=

7096

= ^ 3096;^=

*,_ 81 209'o !g 209600=^

coCQ "

to ~ 10%

L.

coa.

O%

,,,, ,,, , ,,, ,;S*

^!* ,;:*~ ^ Q;." 6.6,, ^ ^ ^ ,,,<**$.<* <b

b @

^' *:^'\!a- ^.^, *:$,

^^.@

6.

Source: ABS


Housing Stress

Housing stress is measured in a range of ways. Each of these measures the (rental and mortgage) cost ofhousing and provides guidance as to how vulnerable the population of a region is to external shocks tohousehold budgets in the form of rises in unemployment, interest rates or problem gambling. The datashows that housing stress across Whittlesea (as measured by the proportion of households contributinggreater than 30% of gross household income to mortgage/rental payments) is generally high. This resultslargely from the fact that Whittlesea consists of large numbers of young families with mortgages - themost important target market for developers in greenfield areas. South Morong suffers from the highestrates of housing stress of the catchment SA2s, with 24.9% of households considered to be in thiscategory.

The 201.6 City of Whittlesea Annual Household Survey looks at the issue quantitative Iy, asking residentswhether 'the household's monthly rental of mortgage payments placed stress on the household'sfinances in the last twelve months'. The proportion of respondents that reported 'moderate' housingstress was 35.2% (up from 31.6% in 201.5), while the proportion reporting 'heavy' housing stress was18.6% (up from 17.3% in 2015).

With significant growth having occurred to the north of the site in recent years, the number ofhouseholds paying more than 30% of gross income toward mortgage costs is likely to have risensubstantially, increasing the number of people who are susceptible to the negative impacts of EGM

FIGURE 5. POPULATION UNDER HOUSING STRESS, CATCHMENT COMPARED WITHWIDER REGION

30%

25%

20%

Is%

10%

5%

O%

South

Moi'allg

The ABS considers a household to be under mortgage stress when:- Household income is in the lowest four deciles;- Mortgage repayments are 30% or more of gross householdincome.

Mill Park

Noi'tit

Percentage Linder mortgage stress

Precise data is not available from the ABS, with household income and mortgage repayments datadisplayed in bands only (i. e. $1,000-$1,199). As such, housing stress numbers are only approximate. The

Mill Park

S O Lit IT

.

Pieitty -Varrambat

Bundooi'a whittlesea

Noall

I 11. Percentage undei'lental stiesS

Gi'eater

Me 11,011rne

Source: ABS


data does suggest however that the populations of the South Morong SA2 and Whittlesea LGA are morelikely to be under housing stress. Of South Morang's 13,376 households in 2011,1,608 (or 12.0%) weredeemed to be under mortgage stress - significantly higher than the equivalent figure for GreaterMelbourne of 7.0%.

Volunteering

The extent to which a region's population engages in volunteer work can be seen as a proxy for thestrength I cohesive ness of a community. Strong and more cohesive communities are likely to be lessvulnerable to problem gambling. Social isolation, loneliness or boredom can be linked with a propensityto gamble, and these situations are more likely in regions where community ties are weak. Further;problem gamblers living in regions where community ties are strong are more likely to be able to accesshelp through informal support networks.

The catchment region (as well as the Whittlesea LGA) has relatively low levels of volunteering in relationto Greater Melbourne, which may indicate a lack of community connected ness and consequentvulnerability to problem gambling.

FIGURE 6. LEVEL OF VOLUNTEERING, CATCHMENT COMPARED WITH WIDER REGION

aO=L.

0.10.1*-,=

' to

20%

1.6%

> ^:. 14%

ao In 12%

'= 0.1to Q9C=-

I= -to :t=g^

18%

=co

==

I. , co

10%

0.1 "co <5

896

=*"0.1Q,-

coQ.

6%

4%

2%

O%

South

Moi'ang

Mill Park

North

Mill Park

SouthPlenty -

Vajrambat

Bundoora Whittlesea Greater

North Melbourne

Source: ABS

SEIA of Commercial Hotel EGM Application 24 SECCiion, !CSa Riniiing

Unemployment

Unemployment in the catchment area is relatively low, within only Mill Park South having anunemployment rate higher than that of Greater Melbourne in June 2016. With unemployed peoplemore likely to suffer harm as a result of problem gambling associated with EGMs, the potential forunemployment to exacerbate problem gambling is likely to be lower in the catchment than elsewhere inGreater Melbourne.

FIGURE 7. UNEMPLOYMENT RATES, CATCHMENT COMPARED WITH WIDER REGION

996

8%

7%

6%

S%

4%

3%

2%

I%

006

2012

Soulh Morong

Bundooi'a North

SOCio-Economic Indexes for Areas (SEIFA)

SEIFA has been developed by the Australian Bureau of Statistics as a way of quantifying disadvantage,allowing for the drawing of meaningful and easily understood comparisons of socio-economicdisadvantage across different regions. The indexes use commonly understood measures of SOCio-economic advantage and disadvantage to provide a SEIFA score for a region, with lower scoresrepresenting relatively high levels of disadvantage. There are four ways in which SEIFA is measured, eachof which has a slightly different focus.

2013

Mill Pal'k Noith

. Whittlesea

2014

Index of Relative Socio-economic Disadvantage (IRSD): IRSD is a general socio-economic index thatsummarises a range of information about the economic and social conditions of people andhouseholds within an area. This index includes only measures of relative disadvantage.Index of Relative Socio-economic Advantage and Disadvantage (IRSAD): IRSAD summarisesinformation about the economic and social conditions of people and hoLiseholds within an area,including both relative advantage and disadvantage measures.Index of Economic Resources (IER): IER focuses on the financial aspects of relative socio-economicadvantage and disadvantage, by summarising variables related to income and wealth.Index of Education and Occupation (IEO): IEO is designed to reflect the educational and occupationallevel of communities. The education variables in this index show either the level of qualification

2015

Mill Park South

D Greatsi' Melbourne

2016

. Plenty - Vajrambat

Source: ABS

SEIA o1Coinmercial Hotel EGM Application 25

achieved or whether further education is being undertaken. The occupation variables classify theworkforce into the major groups and skill levels, as well as the unemployed.

The table below shows SEIFA scores and deciles for the catchment SA2s and compares them with thoseof the City of Whittlesea, With scores greater than 1000 by most SEIFA measures across most regions,the catchment population is not substantially disadvantaged in relation to other most other parts ofAustralia. The most disadvantaged suburbs in Whittlesea tend to be located in the south of themunicipality, in suburbs such as Thomastown and Lalor.

TABLE 4. SEIFA SCORES, CATCHMENT COMPARED WITH THE WIDER REGION

SA2 name

South Morong

Mill Park North

Mill Park South

Plenty - Yarrambat

Bundoora North

Oty of Whittleseo

IRSD

Score Dedle

1056 8

63016

993

1106

1056

983

The catchment does score relatively poorly in the IEO category with three of the SA2s scoring 1000 orless, indicating that the population of the catchment has relatively lower education levels and is morelikely to be employed in low-skilled industry sectors. For the other SEIFA measures, Plenty - Varrambat,South Morang and Bundoora North are relatively advantaged, with SEIFA scores in the upper threedeciles.

IRSAD

Score Dedle

1063

1030

1004

1102

Toso

989

5

10

8

6.4

7

Score

1090

1042

1009

1128

1049

1020

8

7

5

The establishment of a new EGM facility in the City of Whittlesea has the potential to increase thenumber of vulnerable residents with easy access (i. e. within 2.5kms) to EGMs. SGS use Small AreaPopulation Data to estimate the change in:- The number of Whittlesea residents with access to EGMs both before and as a result of the proposal;

and

- The number of additional vulnerable (i. e. unemployed) residents with access to EGMs both beforeand as a result of the proposal.

Increased E POSure of Vulnera Ie Reside ts to EGMs

IER

Dedle

10

8

6

9

8

6

10

8

8

Score

At present, there are 1.94,369 residents within 2.5kms of the City of Whittlesea's nine metropolitanMelbourne EGM venues (i. e. excluding the Whittlesea Bowls Club), with the majority of thesein thesouthern part of the municipality. An additional EGM venue in the northern part of the municipality willlead to a significantly greater number of residents and households living within 2.5kms of an EGMvenue. According to 2016 population estimates, there are 194,369 people, 6,658 of whom areunemployed, living within 2.5kms of one of the City of Whittlesea's nine EGM venues. The establishmentof EGMs at the Commercial Hotel will result in the number of people living within 2.5kms of one ofWhittlesea's EGM venues rising to 208,958 - an increase of 14,590 or 7.5%.

IEO

1000

973

970

1050

1048

955

Dedle

6

5

8

8

5

Source: ABS

Labour market status is an important indicator of disadvantage, and unemployed residents areoverrepresented among problem gamblers. The establishment of EGMs at the Commercial Hotel willincrease the number of unemployed people living within 2.5kms of an EGM from 6,658 to 7,174 - anincrease of 516, or 8.6%.

5

SEIA of Commercial Hotel EGM Application 26 S

TABLE 5. MORTGAGE STRESS (ABS DEFINITION)Great r

Melbourne

1,638,627Households

Households in lowest-earning 40% of totalhouseholds

Households in lowest-earning 40% of totalhouseholds also paying more than 30% ofgross income towards mortgage

% of total households

TABLE 6. CHANGE IN EXPOSURE To EGMs

Catchment

Existing

With Commercial Hotel

Change

Change (%)

Whittlesea L

563,661

6.5

115,042

The Community Indicators Victoria Wellbeing Index measures the wellbeing of the residents of VictorianLGAs across a range of measures by ranking them against other Victoria LGAs. Many of these can providean indication as the extent to which residents are vulnerable to the negative impacts of problemgambling. Some of those relevant to the addition of EGMs in Whittlesea are:

FinonciolStress: People who could rotse $2,000in two doys in on emergency. This indicator measures acombination of household income, disposable income levels and access to social I community networks.Whittlesea is the lowest ranked of all Victoria LGAs, indicating a high degree of vulnerability to financialstress among its residents.

Co

55,096

10.48%7.02% 12.02%

Source: ABS, SGS Economics and Pionning

in unit Indicators Victoria

South Morang

13,376

20,206

Population

5,772

Opportunities to porticipote in sporting orleisure octMti^s: People wholeelthe oreo hos eosy occess torecreotionolondleisurejoci/itIes. The availability of alternative leisure and recreation opportunities areimportant in redudng problem gambling within a region. Whittlesea performs poorly by this measure,with only 72.5% of residents feeling that they had easy access to recreational and leisure facilities. Thisput Whittlesea among the poorest performing Victorian LGAs, with only five metropolitan LGAs havingworse perceived access to these facilities.

Subjective wellbeing. êrsonolwellbeing index. Problem gambling can be linked to general wellbeing.'Escape gamblei's', o1' those who gamble as a way of dedliitg willI negative erriotions such as stress,anxiety or depression are more likely to become problem gamblers. We would therefore expect thatregions whose populations report low levels of subjective wellbeing are likely to suffer relatively morefrom problem gambling. Whittlesea is ranked among the bottom ten LGAs in Victoria for subjectivegeneral wellbeing, and as a result is relatively more vulnerable to the impacts of problem gambling.

194,339

208,958

14,590

7.5% 8.6%

Source: ABS, SGS Economics ond PIOnning

3,304

1,608

N in her of unemployed

6,658

7,174

516

SEIA orcommercial Hotel EGM Application 27

Vulnerabilit Anal sis for or gage, Petroleum and InflationRisks and Expenditure (V PIR )

The VAMPIRE index is produced by the Australian Urban Research Infrastructure Network, an initiative othe Australian Government set up to undertake targeted research into a range of urban issues. TheVAMPIRE index provides a measure of the financial vulnerability of Australian households associatedwith mortgage repayment obligations and exposure to the increasing negative impacts associated withoil price inflation in particulai; but also rising prices for goods and services more generally.

FIGURE 8. VAMPIRE INDEX (20n), REGION SURROUNDING THE COMMERCIAL HOTEL

6.6

1.1. ,. LID on 11yhiook

' E U"11

Palk

I\.."ItIu. ,.

WO I I ck

will I"@ Oa

NII, 1/1, , .

WolloiI

It. .11t, .

I.

Eppliiq

Source: City of Whittleseo

The above picture shows the northern urbanised area of the City of Whittlesea by SAL in 201.1, with thehouseholds of those shown in red considered among the most vulnerable in metropolitan Melbourne. TheCommercial Hotel is located in an urban region that is considered to be at significant risk. Indeed, almostallSAls in South Morong, and all of thosein Mernda and Doreen are in the most severe VAMPIRE category.

'11/1/1 V. I

1.1 Inda

.

Tl, onin, t w, I

Doreen

SouthMormig

MillPalk

Buildoora

O-9

10 - 14

15 - 11>

17-18

19-30

I.


ECONOMIC AND

EXPENDITURE ANALYSIS

71

This section seeks to provide an understanding of the net economic and expenditure benefits associatedwith EGMs. The first section 'unpacks' the approach used by Shinewing to estimate the expenditureimpacts of a new EGM facility at the Commercial Hotel. SGS then address a set of likely expenditure andemployment impacts that have riot been addressed by ALH's consultant group.

Overview

7.2

its expert report, Shinewing estimate of the total expenditure associated with the installation of EGMst the Commercial Hotel. A number of assumptions underpin these estimates. These are:

Anal sis o Shinewing Approach

NMR is estimated at $407 per day - a rate lower than the present average across Whittlesea. Thisreduced figure is based on an average across three similarly-sized venues - the Bridge Inn, Mernda;the Pascoe Vale Taverner, Pascoe Vale; and the Sugar Gum Hotel, Hillside. This rate is relatively low incomparison with those seen at ALHs existing Whittlesea venues (which have daily NMRs ranging from$479 to $498).An estimated 60% of expenditure associated with the new EGMs is estimated to transfer from existingvenues. This relatively high figure based upon experience with other greenfield EGM applications andthe Commercial Hotel's location in a 'mature' gaining market. This somewhat contradicts an earlierpoint that there are no EGM venues within 2.5kilometres, and only one within 5 kilometres of theCommercial Hotel. It is also questionable whether the Commercial Hotel is located in a greenfieldarea. Whilst there are greenfield areas to the north of the Commercial Hotel, in Mernda and Doreen,the suburban areas in the vicinity of the site are relatively well established.Shinewing also make no provision for additional expenditure induced as a result of newly-generatedcapacity in other regional venues, in particular at the Bridge Inn Hotel (projected to lose 10.02% ofEGM expenditure), the Plough Hotel (projected to lose 6.49% of EGM expenditure), and the EppingHotel (projected to lose 5.95% of EGM expenditure).Shinewing assume that expenditure is transferred out of existing venues at the rate of $407 permachine. This is based on an unrealistic assumption that marginal revenues associated with eachadditional EGM in a single location are constant. SGS estimate that in reality, marginal EGM revenuesare likely to diminish as the number of EGMs within a market increases (i. e. as the marginal gamblerderives increasingly less utility). As a result, the transfer of entitlements from a relatively 'well-served'region to one in which access to EGMs is relatively limited will not result in the equivalent transfer ofrevenues between regions. Whilst the twenty EGMs transferred from existing venues will be servingthe 11/05t mai'gillal gamblei'sin these locations (i. e. the least PIOduclive inacliines at these veilues),the establishment of EGMs in a new region will induce new expenditure that is likely to lead tosignificantly greater revenues at the new venue.As a result, the decrease in EGM losses in these lower SES areas associated with the transfer of EGM

entitlements is likely to be significantly lower than estimated by Shinewing.

SEIA orcoinmercialHotelEGM Application 29

- Assuming that 40% of expenditure associated with the EGMs is 'new' expenditure, and assuming anNMR of $407, the Shinewing estimate additional annual expenditure (i. e. EGM losses) associated withthe establishment of EGMs at the Commercial Hotel of between $2.26m and $2.50m.

- The consultant estimates that overall additional expenditure would be lowered further as a result of'10st' expenditure resulting the reduction in capacity at the Plough Hotel, the Bundoora Tavernei; andthe Excelsior Hotel.

The methodology used by Shinewing to estimate the future expenditure effects of the transfer of EGMentitlements from existing venues in the southern part of the Whittlesea municipality has some flaws. Anumber of assumptions are adopted that serve to down play the economic and expenditure impacts ofthe additional EGMs on the surrounding community. SGS estimate that these methodological flawsrender the analysis carried out by Shinewing unhelpful in attempting to understand the economic andexpenditure impacts of the establishment of an additional EGM venue at the Commercial Hotel.

7.3

Although there may be some issues with the Shinewing methodology, in the absence of other detailedexpenditure estimates, SGS use the figures generated by Shinewing to assess the impacts of a new EGM

- According to Shinewing estimates of expenditure associated with the new EGMs vary between $5.65million and $6.24 million per annum, of which between $2.26 million and $2.50 million (or 40%)would represent new expenditure.

- With the bulk of EGM users likely to live in the local area, and with replaced consumption expenditureassumed to contribute around 80% of total EGM expenditure, it is estimated that between $4.52million and $4.99 million of expenditure of the annual expenditure on EGMs at the Commercial Hotelis likely to be diverted away from other businesses across the region. The new (induced) expenditureis likely to result in an additional $1.81 million to $2.00 million in consumption expenditure beingdiverted away from other sectors.

- Studies of the contributions of EGMs to regional economies have indicated that expendituremultipliers are among the lowest of all industry sectors, suggesting weak linkages with other parts ofthe economy. As a result, expenditure associated with EGMs that replaces consumption expenditureelsewhere in the economy is likely to generate lower amounts of activity elsewhere in the economy.

- Furthermore, in comparison with other economic activities, many of which comprise businesses withlocally-based owners and upstream/downstream linkages with other local businesses, a significantamount of expenditure leaks out of the local economy. This occurs as a result of the transfer of thebulk of proceeds to ALH (who base their operations in South Yarra), and the State Government.

- ALH have committed to providing $100,000 per annum over a ten year period to the localcommunity, comprising $10,000 for an annual charity day, $40,000 to the City of Whittlesea forproblem gambling initiatives and $50,000 to a committee for grants to local community/sportsgroups. At end of the ten-year period, $25,000 per annum will be transferred to localcommunity/sporting groups. These funds will help offset economic losses to the community as aresult of the EGMs, though represent only a small proportion of the total money likely to be lost tothe community on an annual basis.

- Renovations associated with the installation of the venue will result in construction activity that islikely to generate some local employment and flow-on expenditure elsewhere in the local economy.

Likel E penditure Impacts

venue.


7.4

Based on an employment multiplier (of 3.2) drawn from the South Australian Gambling Industry FinalReport (2006), the addition of between $5.65 million and $6.24 million in EGM expenditure at SouthMorong could theoretically generate between 1.8 and 2010bs at the Commercial Hotel. The $2.26 millionand $2.50 million in induced expenditure estimated by Shinewing will theoretically lead to the creationof between 7 and 8 newjobs, with the others theoretically transferring from other EGM venues.

Likely in PIO

In isolation, this can be interpreted as a positive net outcome, but in reality a large proportion of EGMexpenditure is diverted away from other sectors in which expenditure has the potential to generategreater numbers of jobs. Assuming that 80% of EGM expenditure is diverted from consumption in othersectors, we can say that $5.65 million to $6.24 million of EGM expenditure leads to a reduction ofbetween $4.52 million and 4.99 million in other parts of the economy. Reduction in this level ofexpenditure in other sectors would have the following effects:- Sales of liquor and beverages: a loss of between 38 and 41jobs;- Food and meals: a loss of between 1.91 and 1.01 jobs; and- Retail trade: a loss of between 29 and 32 jobs.

ent Impacts

TABLE 7. EMPLOYMENT IMPACTS OF TOTAL EGM EXPENDITURE ON OTHER SECTORS

Employment multiplier110bs per $tinexpenditu I

Sector

Sales of liquor and beveragesFood and meals

Retail trade

Using the same method to understand the impact of the induced (new) expenditure resulting from theaddition of EGMs, we can see that while $2.26 million to $2.50 million in EGM expenditure is likely togenerate 7 to 8 newjobs, it is likely to replace expenditure elsewhere in the economy, generating greateremployment losses in other industries.

TABLE 8. EMPLOYMENT IMPACTS OF INDUCED EGM EXPENDITURE ON OTHER SECTORS

Employmentmultiplier 00bsper $1mexpenditure)

8.3 4138

202 91 101

65 29 32

Source: ABS, South Australian Gambling Industry - Final Report 2006

Sedor


Retail trade

Lower scenario jobs

Urbis have estimated a total of 20 additional jobs (equivalent to 9 full-time equivalentjobs) are likely tobe generated at the Commercial Hotel as a result of the installation of EGMs. However, in properlyaddressing the net employment effect of additional EGMs, it is necessary to consider the impact ofexpenditure being diverted away from other sectors. With increased EGM expenditure expected tolargely result from decreased expenditure in other sectors with larger employment multipliers, decliningexpenditure would be expected to generate a loss of employment that outweighs the employment gainsgenerated at the hotel.

Upper scenario jobs

.

8.3 171.5

3720.2 40

1.26.5 1.3

Source: ABS, South Australian Gambling Industry - Final Report 2006

Lower scenariojobs Upper scenariojobs

SEIA of Coinmercial Hotel EGM Application at GSECU, ,"hiltsa PI, ,rimng

.

. SUMMATION OF

co M M U N ITY

OBJECTIONS

Overview

As part of the process for gathering community input into the planning permit and gaining licence, aseries of objections was sent to Council from a total of 37 interested parties. Each of these was inopposition for a range of different reasons. The table below categorises the responses by objection typein order to show the strength of community opposition by issue. Following this, the most importantobjections are identified and discussed in brief.

8.1

SEIA of Co, timercial Hotel EGM Application 32

8.2

TABLE 9. SUMMARY OF COMMUNITY OBJECTIONS

Summation of Coin

",

WITOGI

2 R. ,pond. nt L

3 R'Sponden, 2

4 R. ,pond. ing

S R. ,pDnd. at 4

6 Re, pond. n, 5

7 R'Sp@rident 6

8 R"pond. at 7

9 Re, pondent B

10 RE, pondent 9

U R. ,pond. nt 10

12 Re, pond. fit 1.1

B Rapondent 12

14 R"pondent L3

15 Respondentl,t6 Respondent15

,7 Respondent16

18 R"ponden, 17

19 Re, pond. fit ig

20 a. nyul. CoundlHillumbik

Coundl

XIId, nl. n

U/C. r.23 WHl"

24 PVCH

25 R'Spand. "I a. 9

M. Ibourn. C ,vMission

27 Rapand. nt 20

28 R"pondenr 21

29 Re, pondent 22

30 Respondent 23

31 Respondent24

32 Respondent2S

33 R. .pond. fit2G

34 Respondent27

35 R. ,pendent28

36 Re, ponden12937 VCPS

0.1for

nun re, .,

E. G. in

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I

Sod. I ban. ,"Mham v".. in us,

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8.3

Existing Numbers of EGMs

Nearly all submitters commented that there was already an ovensupply of EGMs, with many alsoobserving that there was a disproportionate number in the LGA when compared the national average.Many submitters also rioted that the losses per machine in Whittlesea are significantly higher than themetro-wide average. Pertinent to this, it was stated that the applicant was being misleading regardingpotential losses, with the average annual take of $153,000 per EGM in the LGA leading to higher lossesthan claimed.

Summar

Social Harm

The vast majority of objectors rioted that the substantial impacts of EGMs are not limited to those whogamble, with families, friends and colleagues directly affected. Many of these claimed to have firsthandexposure to this, with some personal anecdotes concerning family and relationship breakdowns.Particular concern was raised by many as to the impacts on children, with nearly all of these respondentsconcerned that these issue would become more prevalent with the introduction of more EGMs into thearea. A large number of submitters were particularly concerned about the link between EGMs and familyviolence. Many expressed an anxiety that this problem would be exacerbated, with some detailing thatthe rate of reported family violence is already significantly higher in the City of Whittlesea than the stateaverage (1,316 per 100,000 people I 1,129 per 000,000).

Lack of nori-EGM venues

Almost every submitter responded that the Commercial Hotel was the last remaining public licencedvenue without EGMs that they were able to access. Some expressed particular concern that a change tothis would impact on live entertainment in the area, with no venue remaining to host and foster livemusic, comedy, and other entertainment. Many claimed that the venue has been a major focal point forentertainment in the local area, with an absence of any other cultural institutions. A large number of thesubmitters were dismayed that there would be nowhere for them to social ise without gaining machines.Most of these were simply expressing a desire for an enjoyable atmosphere to have a quite drink,however there were also a considerable amount of submitters upset that there would no longer be afamily friendly venue. It was noted by some that there are already eight venues within eight kilometresof the venue with EGM licenses, and thirteen within the wider LGA. A vast weight of submissions wereconcerned at a potential lack of socialising options within travelable distance, with the Commercial Hotelcurrently being the only place for local residents within 13.6km without EGMs.

Economic Impact

It was commonly expressed that there is a very high rate of mortgage stress experienced in the LGA. Thiswas often raised in the context of the diversion of finances from the local economy into EGMs, withcommentary that while losses are concentrated to 20% of households, the effects of these losses are feltmore broadly across the LGA. Many were particularly upset that much of the discretionary spending inthe local economy would be re-directed away from the district's small businesses and into EGMs. Therewas concern that, given Whittlesea's status as a growth area, the future economic health of the areawould be adversely through the compounding economic effects, not only of diminished discretionaryspend, but also of the inability for new businesses to effective Iy establish and grow. There was someapprehension that the transfer of expenditure to EGMs would reduce the number of local jobs, meaningmore people are required to leave the community to access employment, services and retailopportunities.

SEIA of Commercial HotelEGM Application 34 SGS^ Econonii*s& Film, k In

Community Impact

Many submitters noted that the location was one which would have adverse impacts on the community.It was pointed out that, though the venue had existed as a licenced venue since 1,890, there had been arecent intensification of activity at the adjacent neighbourhood centre, making a transformation to againing venue neither appropriate nor compatible. This matter was notjust raised in relation to thecharacter of the Hotel as an EGM venue, but due to the area being a focal point of local trade, it was alsoseen as a place that would see a significant rise in 'convenience gambling, ' as those users that passed bywere for alternative reasons more likely to access EGM in an unplanned way. There was also concernthat the locality was one that was utilised by many school children on their commute two-and-fromschool, as well as being a place for impressionable older school children to congregate nearby when theysocial ise. Some also raised the issue of the venues proximity to aged-care, medical and training facilities,all of which contain cohorts vulnerable to problem gambling.


. SOCIAL AND ECONOMICIMPACT ASSESSMENT

9.1

This section builds on the findings of the previous chapters to determine the extent to which theinstallation of 40 EGMs in the Commercial Hotel in South Morang provides a benefit I disbenefit to thelocal community.

Overvie

9.2

The Productivity Commission defines problem gambling as the instance of a gambler experiendng acluster of significant harms, in duding harms to a person's behaviours, relationships, health and finances,among others, In light of this definition, this section builds on the work undertaken in the precedingchapters to assess the level of vulnerability of residents of the catchment area to problem gambling.

ssessment of vul erabilit to roblem Gambling

Social and Economic Disadvantage

Much of the demographic data indicate that the population of the City of Whittlesea is relativelydisadvantaged. The population of the catchment however is less so, with much of the municipality'ssocio-economic disadvantage clustered to the south of the catchment in suburbs such as Thomastownand Lalor. As at June 2016, the catchment was experiendng generally low unemployment with a rate ofless than 5 per cent in each of the catchment SA2s besides Mill Park South.

There is a strong positive association between gambling losses associated with EGMs and SOCio-economic status, with per capita losses assodated with use of EGMs far higher in regions suffering fromsocio-economic disadvantage. The City of Whittlesea's disadvantaged groups clustered in the southernpart of the municipality, which already has the maximum number of entitlements allowable under StateGovernment regulations. Whilst the site is putatively in the northern region, the establishment ofadditional EGMsjust beyond the northern edge of the southern region is likely (given the link betweendisadvantage and EGM usage) to draw from socio-economically disadvantaged suburbs such asThomastown and Laloij parts of which are less than ten minutes by car from the site.

The installation of 40 EGMs at the Commercial Hotel involves the transfer of 20 entitlements from

venues to the south (in Mill Park, Bundoora and Thomastown). This will somewhat reduce the exposureof residents in the southern region of the City of Whittlesea to EGMs. With EGM usage rates in theregion among the highest in Victoria, there is a strong incentive for the region's venue operators to seekto absorb these newly available entitlements.

Access to EGMs

The site liesjust beyond the northern edge of the southern region of Whittlesea designated by the StateGovernment as an area suitable for a Regional Cap. In this region, the number of EGM entitlements iscapped at 581. As at July, the full58, . entitlements were in operation across the region. As aconsequence, the population of the areas to the south in particular have good access to EGMs. Todemonstrate the ready availability of EGMs in the vicinity of the site, of the 1.0 EGM venues in themunicipality, eight (representing 541 of the total 691 municipal entitlements) are less than 15 minutesby car from the Commercial Hotel (Google Maps, September 2016). As a result, it is likely that the

SEIA of Commercial Hotel EGM Application 36 SGSECU@tilts& maltni XI

installation of EGMs at the site would riot substantially improve access for residents of Whittleseapresently unable to access EGMs for leisure purposes.

Access to EGMs located at the site are also enhanced by a number of locational factors. Firstly, the site islocated adjacent to a neighbourhood centre whose retailers and service providers draw customersacross normal trading hours, into the evening and over the weekends. It is likely that the existence ofEGMs at the Commercial Hotel will result in impulse gamblers using the neighbourhood centre beingdrawn into the hotel. The site is also located on a major intersection, increasing its visibility to residentsof the surrounding region.

Financial Vulnerability

Some groups that are considered at-risk in relation to problem gambling associated with EGMs areoverrepresented in the catchment. Firstly, households that are highly leveraged (i. e. with a high ratio ofhousing-related debt to assets) are relatively vulnerable to harm associated with problem gambling. Theregion to the north of the site consists of urban areas that have been recently developed, or that areexpected to be developed in coming years' As shown in Chapter 6, nearly two thirds of households inSouth Morong were servicing a mortgage at the time of the 201.1 Census. The VAMPIRE index score forthe region surrounding the Commercial Hotel is high, meaning that the region's households arevulnerable to external shocks in the form of interest rate rises and fuel price rises. With a relatively largeproportion of household incomes going to mortgage repayments and fuel, the region's households arealso relatively vulnerable to losses associated with problem gambling.

The catchment population experiences relatively high rates of housing stress, particularly for thosemaking repayments on mortgages. This problem is particularly acute in newly developed areas such asSouth Morong, where nearly a quarter of all households are under mortgage stress (compared with 11per cent across Greater Melbourne).

As a result of these issues associated with housing tenure and mortgage repayment obligations, thepopulation of the catchment (to the north in particular) is relatively vulnerable to the impacts ofgambling losses associated with the use of EGMs.

SGS conducted a critical assessment of the approach taken by Shinewing in identifying the expenditureimpacts of the proposed EGMs at the Commercial Hotel. A number of assumptions were adopted byShinewing that serve to down play the economic and expenditure impacts of the additional EGMs on thesurrounding community. SGS estimate that these methodological flaws render the analysis carried outby Shinewing unhelpful in attempting to understand the economic and expenditure impacts of theestablishment of an additional EGM venue at the Commercial Hotel.

Likely Expenditure Impacts

Although there may be some issues with the Shinewing methodology, in the absence of other detailedexpenditure estimates, SGS use the figures generated by Shinewing to assess the impacts of a new EGMvenue.

Estimates of expenditure associated with the new EGMs vary between $5.65 million and $6.24 millper annum, of which between $2.26 million and $2.50 million (or 40%) would represent newexpenditure.

With the bulk of EGM users likely to live in the local area, and with replaced consumption expenditureassumed to contribute around 80% of total EGM expenditure, it is estimated that between $4.52 millionand $4.99 million of expenditure of the annual expenditure on EGMs at the Commercial Hotel is likely tobe diverted away from other businesses across the region. The induced (new) expenditure is likely to

SEIA orconiimercialHotelEGM Application 37

result in an additional $1.81 million to $2.00 million in consumption expenditure being diverted awayfrom other sectors.

Studies of the contributions of EGMs to regional economies have indicated that expenditure multipliersare among the lowest of all industry sectors, suggesting weak linkages with other parts of the economy.As a result, expenditure associated with EGMs that replaces consumption expenditure elsewhere in theeconomy is likely to generate lower amounts of activity elsewhere in the economy.

Furthermore, in comparison with other economic activities, many of which comprise businesses withlocally-based owners and upstream/downstream linkages with other local businesses, a significantamount of expenditure leaks out of the local economy. This occurs as a result of the transfer of the bulkof proceeds to ALH (who base their operations in South Yarra), and the State Government.

ALH have committed to providing $100,000 per annum over a ten year period to the local community,comprising $10,000 for an annual charity day, $40,000 to the City of Whittlesea for problem gamblinginitiatives and $50,000 to a committee for grants to local community/sports groups. At end of the ten-year period, $25,000 per annum will be transferred to local community/sporting groups. These fundswill help offset economic losses to the community as a result of the EGMs, though represent only asmall proportion of the total money likely to be lost to the community on an annual basis.

Renovations associated with the installation of the venue will result in construction activity that is likelyto generate some local employment and flow-on expenditure elsewhere in the local economy.

Likely Employment Impacts

Based on an employment multiplier (of 3.2) drawn from the South Australian Gambling Industry FinalReport (2006), the addition of between $5.65 million and $6.24 million in EGM expenditure at SouthMorong could theoretically generate between 18 and 20jobs at the Commercial Hotel. In their report,Urbis also estimate that approximately 20jobs will be generated as a result of the EGMs. The $2.26million and $2.50 million in induced expenditure estimated by Shinewing will theoretically lead to thecreation of between 7 and 8 newjobs, with the others theoretically transferring from other EGM venues.

In isolation, this can be interpreted as a positive net outcome, but in reality a large proportion of EGMexpenditure is diverted away from other sectors in which expenditure has the potential to generategreater numbers of jobs. Assuming that 80% of EGM expenditure is diverted from consumption in othersectors, we can say that $5.65 million to $6.24 million of EGM expenditure leads to a reduction ofbetween $452 million and 4.99 million in other parts of the economy. The employment effects of thisreduced expenditure are laid out in the following table:

TABLE 10. EMPLOYMENT IMPACTS OF EXPENDITURE BY SECTOR, TOTAL EGMExpE N DiTU RE

Sector


Retailtrade

Using the same method to understand the impact of the induced (new) expenditure resulting from theaddition of EGMs, we can see that while $2.26 million to $2.50 million in EGM expenditure is likely togenerate 7 to 8 newjobs, it is likely to replace expenditure elsewhere in the economy, generating greateremployment losses in other industries.

Employment multiplier00bs per $Lmexpenditure)

41388.3

9120.2 101

32296.5

Source: ABS, South AUStrolion Gombling Industry - Fino/ Report 2006

Lower scenario jobs Upper scenariojobs

SEIA of Commercial Hotel FGM Application 38 GSI "I;;!,?I, :;

TABLE 1.1. EMPLOYMENT IMPACTS OF EXPENDITURE BY SECTOR, INDUCEDExp EN DiTURE

Sector


Retailtrade

Both Urbis and SGS estimate a total of 20 additional jobs are likely to be generated at the CommercialHotel as a result of the installation of EGMs. However, in properly addressing the net employment effectof additional EGMs, it is necessary to consider the impact of expenditure being diverted away fromother sectors. With increased EGM expenditure expected to largely result from decreased expenditurein other sectors with larger employment multipliers, declining expenditure would be expected togenerate a loss of employment that outweighs the employment gains generated at the hotel.

Employmentmultiplier 00bsper $1mexpenditure)

8.3 3.71.5

20.2 37 40

6.5 1312

Source: ABS, South AUStrolitrn Gomb!ing Industry - Finol Report 2006

94

Rapid growth in the population of the urban region to the north of the site is associated with a lack ofcommunity facilities, with the establishment of these facilities tending to lag the residentialdevelopment. As a result, the Commercial Hotel presently functions as an important community hub inthe region, providing a family-friendly environment for the population of the surrounding region.

Assessmen o Potential Role of Centre as Community Faci tv

Lower scenario jobs

SGS note that changes to the hotel layout have been proposed to reduce the impact of EGMs on otherhotel patrons, and works to expand the size of the facility will expand its capacity to function as acommunity focal point. Nonetheless, for many the installation of EGMs at the site will reduce the extentto which it is able to offer a familyfriendly environment and will thus effectiveIy represent the loss of animportant community hub.

Upper scenariojobs

9.5

The Whittlesea Recreation Strategy recognises the need to foster the delivery of new communityfacilities, acknowledging the lag in establishment of high quality universally accessible communityinfrastructure in rapidly growing, and relatively low-density urban regions. Community IndicatorsVictoria also suggests that the population of the municipality has poor access to recreation Ientertainment options, with only 72.5% of residents feeling that they had easy access to recreationaland leisure fadlities. This puts Whittlesea among the poorest performing Victorian LGAs, with only fivemetropolitan LGAs having worse perceived access to these facilities.

Assessmen of I

With a lack of competition in terms of entertainment and recreation, particularly in the northern part othe municipality, EGMs at the Commercial Hotel are likely to be a relatively attractive recreational optiofor the local community. The lack of substitutes in regard to entertainment I recreation options in themunicipality is likely to result in a greater level of harm being experienced by the community as a resultof problem gambling.

pac on Entertainment Options in Region

Putting aside their likely impact on exacerbating problem gambling, the installation of EGMs at the sitedoes augment the available entertainment options in a growing region that typically lacks these. Inaddition, development works at the site associated with the installation of the EGMs will result in anexpanded and improved facility that has the potential to enhance the experience of all Commercial Hotcustomers.

SEIA of Commercial Hotel EGM Application 39 S

For many, however; expansion of the Hotel will be offset by the perceived loss of benefit for people whovalue I require EGM-free environments. The Commercial Hotelis presently the only large licencedpremises in the municipality without EGMs, and as such represents the only 'safe' venue for residents ofa large region for whom avoiding EGMs is essential (i. e. recovering addicts, compulsive gamblers). Theinstallation of EGMs at the Commercial Hotel would thus result in this group of people losing access tothe one remaining EGM-free pub in their municipality. For a second category of pub users (as is madeclear in many submissions), the addition of EGMs would result in substantial loss of amenity, andseverely impact their ability to enjoy the Commercial Hotel.

9.6

The evidence suggests strong a relationship between problem gambling and a range of health problems.Self-reported health among problem gamblers is significantly lower than for the general population, andproblem gamblers are far more likely to smoke, abuse alcohol and suffer from a range of mental healthissues including depression, anxiety, psychological distress, and suicidal thoughts. Problem gambling hasalso been linked to increases in family violence. There is evidence of elevated incidences of theaforementioned health conditions even in lower risk gambler categories (i. e. low-risk and moderate-riskgamblers), Although it is undear whether in these less acute cases poor health outcomes result ofgambling (or vice versa), there is a suggestion that even 'safe' use of EGMs may adversely impact thehealth of the community.

Assessmen of in pact on ommunit Health

With problem gambling likely to increase as a result of the establishment of EGMs at the CommercialHotel, the impact on community health is likely to be adverse. In addition, given the evidence that even'safe' levels of gambling can be associated with poor community health outcomes, there is likely to be anegative health outcome even among these groups. With surveys of community service providersindicating that they are already insufficiently resourced, it is possible that increased demand for health-related social services associated with problem gambling will go unmet, with a corresponding possibilityfor even greater harm.

9.7

The local community was given an opportunity to provide input into the planning permit and gaininglicence. The responses revealed widespread opposition across the community to the installation ofEGMs at the Commercial Hotel. It is noteworthy that no party that provided input as part of thecommunity consultation process wasin favour of the installation of EGMs at the site.The main concerns raised by the community in relation to the proposed EGMs were:

ssessment o Impact on Coinmunit Wellbeing

- The potential for increased social harm in the community;- The loss of one of the few remaining non-EGM pub venues in the area;- Inappropriate location;- Inappropriate given the region's character; and- Potential to adversely impact the regional economy.

SEIA of Commercial Hotel EGM Application 40 GSI .mum, **& rinniiiiXi

CONCLUSl. N

IO. I

Overall, SGS find that the proposal for a new EGM facility at the Commercial Hotel in South Morong willhave a net negative social and economic impact on the surrounding community.

Generally speaking, the community is riot significantly socio-economically disadvantaged, which reducesthe risk of harm associated with problem gambling. The proposal is also likely or have a positive impacton the provision of entertainment in the region. HoweverI the community is vulnerable to risksassociated with problem gambling, with high levels of mortgage stress and vulnerability to increases inthe costs of living. The proposal will expose a large number of people that presently do not have accessto EGMs to harm associated with problem gambling. Although ALH has offered funding for services toalleviate social issues exacerbated/caused by problem gambling, local service providers are alreadyoperating at capacity. With the number of EGMs in the region to grow, it is expected that these serviceproviders will come under further strain.

Overview

The introduction of EGMS at the Commercial Hotel will also result in limited economic benefits to the

community, with expenditure being diverted from other parts of the economy with higher employmentand expenditure multipliers. In addition, the establishment of the Commercial Hotel as an EGM venuewould represent the loss of the last remaining EGM-free venue in the City of Whittlesea, leadingessentially to a loss of choice in entertainment options for the local community, an overwhelmingnumber of whom appear to be opposed to the application.

SEIA of Commercial HotelEGM Application 4^

1.0 2

The following table summarises the findings of the Social Impact Assessment, clarifying the likely impactof EGMs at the Commercial Hotel across a number of categories.

Table of Summar Findings

TABLE 1.2. SUMMARY FINDINGS

Sub-Category CoinmeImpactCategory

The region surrounding the Commercial Hotel is riotparticularly disadvantaged, and therefore not particularlyvulnerable to the impacts of problem gambling. The claimedbenefits associated with the transfer of entitlements from

lowersES areas is probably overstated.There is presently one EGM venue within Skins of theCommercial Hotel, though a large number just beyond this,with most EGM venues in the municipality less than 10kilometres from the Commercial Hotel.

The region surrounding the site scores poorly on theVAMPIRE index. In addition, rates of mortgage stress in SouthMorongin particular are shown to be extremely high,suggesting a substantial level of vulnerability among the localpopulation to losses associated with problem gambling.

Expenditure and The proposal is likely to lead to additional expenditure in theEconomic

region, though it would be expected that this replacesbenefits to the contributions

expenditure in other parts of the economy with strongercommunitylinkages to other regional businesses. A1arge proportion ofEGM revenues is also likely to leave the region via transfers toEGM operators and the State Government. These losses aresomewhat offset by promised community contributions.The proposal is likely to directly lead to the creation ofemployment at the Commercial Hotel. It is likely, however,that a large proportion of this expenditure will be redirectedfrom more employment intensive sectors, thereforetriggering a larger reduction in employment in otherindustries.

The proposal includes plans for the expansion of capacity atthe Commercial Hotel, which arguably augments its value tothe local community. This is offset by the loss of the oneremaining non-EGM pub in Whittlesea, a feature that isimportantin particular to those who want access to a pub butneed to keep their distance from EGMs. For others, thepresence of EGMs reduce the extent to which a place issuitable for children.

For many, EGMs are a safe, enjoyable pastime and theestablishment of an EGM venue at the Commercial Hotel will

expand the range of entertainment options presentlyavailable across the in unidpality. In addition, the plannedexpansion associated with the EGM application will Increasethe entertainment and recreation optionsin the municipality.Thereis strong evidence of a link between problem gamblingassociated with EGM use and poor community health. Withthe number of problem gamblers across the expected to risedue to the expenditure induced as a result of the EGMs at theCommercial Hotel, there is likely to be a net negative impacton the health of the local community.The local community has been established relatively recently,and is also relatively fragmented. This is evidenced by lowvolunteering rates and low access to last-resort finance,which can be seen as proxies for access to social networks

Vulnerabilityto problemgambling

Social andeconomic

disadvantage

Access to EGMs

Financial

Vulnerability

Communityfadlities

Local

employment

Impact

Provision of

communityfacilities

POSitiV

Entertainment

Neutra

Communityhealth

Provision ofentertainment

and recreationfacilities

Negative

Communityhealth

Negative

Communityconnected ness

Negative

Negative

POSitlV


Negative

Negative

^..^^:;^

Communitywellbeing

Communitywellbeing

and community cohesion. With local problem gamblers likelyto be less able to access informal support networks, they aremore vulnerable to associated poor health outcomes.Input from interested parties has been relatively limited,however the feedback that has been received has revealed

overwhelming opposition to the establishment of EGMs atthe Commercial Hotel.

Negative


APPENDIX

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SEIA of Commercial Hotel EGM Application 44 GSECor, "mite& naming

Contact us

CANBERRA

Level6,39 London CircCanberra ACT 2601

+61262635940

sgsact@sgsep. coin. au

HOBART

PO Box 123

Franklin TAS 71.13

+61 421 372940

sgstas@sgsep. comau

M L OURNE

Level 14,222 Exhibition StreeMelbourne VIC 3000

+61 386160331

sgsvic@sgsep. comau

SYDN Y

209150 Holt StreetSurry Hills NSW 2010+61 283070121.

sgsnsw@sgsep. coin. au

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Maddocks - City of Whittlesea...2016/11/07 · Szafraniec, J (2016) Rising to the Challenge: Delivering social infrastructure in established areas of Sydney/Melbourne, Presented at