Question – Online gambling losses during COVID-19 shutdown

Questions asked by the Hon Meg Webb MLC on 7 May 2020 and answered for the Government by the Minister for Finance Hon Michael Ferguson MP on 4 June 2020   

I (Ms Webb) tomorrow to ask the Honourable Leader of the Government —

Noting that there is concern expressed about an increase in online gambling during the time face-to-face gambling venues are closed, with many gambling-related activities such as racing having also ceased, and with people spending more time in isolation at home:

QUESTION: 1. How does the Government measure the level of use and quantum of losses to online gambling in this state?

QUESTION: 2. (a) Is there an accurate and credible measurement of the levels of use and quantum of losses to online gambling prior to the COVID-19 crisis in Tasmania; and

QUESTION: 2. (b) If so, what are the pre-COVID-19 Tasmanian figures on use and losses to online gambling?

QUESTION: 3. How is the Government monitoring or measuring the levels of use and quantum of losses to online gambling during the COVID-19 crisis in Tasmania?

ANSWERS 1-3: It is difficult to obtain  data  on  the  level  of  online  gambling  by  persons  based  in  Tasmania. This is due  to  the  different forms  of  online gambling, the  cross-border  nature  of  the  service, that some  people  are  gambling  on  illegal  overseas  sites,  and  the  limited  availability  of industry data.

While some data from online gambling taxed in Tasmania is available, information on the volume of spend by Tasmanians  on other  products  offered  online such  as  keno and  lotteries is difficult to obtain. The introduction of the point of consumption  (POC)  tax  in  Tasmania from I January 2020 provides an indication of Tasmanian betting levels. The tax applies to all wagering and betting types or products offered to customers in Tasmania. This includes bets placed online or through a physical TAB terminal located in Tasmania.

There are limitations in using this data to assess trends in online gambling pre and during COVID-19. These include the lack of historical trend data and that the tax collected is not separately reported for online and terrestrial gambling. However, based on both sources, POC tax revenue year-to-date to 30 April 20i0 is tracking to budget, with no noticeable spikes relating to increased activity.

Research is currently underway by the University of Sydney to determine  how COVID-19 has affected gambling participation in Australia.

QUESTION: 4. Is the Government aware of an increase in the use of and losses to online gambling during the COVID-19 crisis?

ANSWER: It has been reported by credit bureaus and some major banks that consumer spending on gambling has increased during the period of COVID-19 restrictions. Changes to consumer spending habits are to be expected due to the restrictions imposed. Spending on online gambling has fluctuated over this period, however it is too early to draw any meaningful conclusions from the limited data available.

QUESTION: 5. (a) Is the Government monitoring or measuring changes in the amount of advertising for online gambling in Tasmania during to the COVID-19 crisis?

QUESTION:  5. (b)  (i)      If so, has there been an increase in advertising; and

                                 (ii)     what is the data on that increase?