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Social cost of gambling estimated to have reached $14.1 billion in Victoria in 2022-23

A study released last month by the Victorian Government has revealed the shocking impact gambling has on the state’s population just a year.

The ‘Social costs of gambling to Victoria 2023’ report estimated that gambling resulted in loss of $14.1 billion in Victoria in 2022-23, consisting of both tangible (eg: financial losses) or intangible (eg: detriment to personal relationships) costs.

Executive Clinical Director of Turning Point and Professor of Addiction Studies and Services at Monash University Professor Dan Lubman AM said this shocking $14.1 billion figure tells us we’re falling a long way short when it comes to protecting people from gambling harm.

“Gambling is an inherently risky activity and gambling harms don’t discriminate – they affect people across all backgrounds, ages, and income levels. This isn’t just about money. Behind these figures are real people and families experiencing serious harm,” he said.

“Fewer people are gambling but they’re losing more than ever. And many are losing their lives – every year 25 Victorians die by suicide as a result of gambling harms.”

EACH is responsible for running the free local Gambler’s Help services for the Outer East, with locations in Healesville, Yarra Junction, Lilydale, Boronia, Ringwood, Box Hill and Glen Waverley.

EACH Gamblers Help Therapeutic Counsellor Diana Casis said unfortunately, the figure is not surprising to them, though disheartening and very disappointing.

“Gambling harm can really impact our clients in every area of their lives if we think about it, for example emotionally, financially, socially, and often lowering their self-confidence and isolating them from others,” she said.

“This can create a lot of shame and isolation with clients often not wanting to discuss it further with their wider community due to the stigma, so we notice that it can become a cycle that is really hard to break free of by yourself without help.”

The last report for 2014-15 estimated a social cost of $7 billion, which accounting for inflation and population growth, would be $10.5 billion, still $3.6 billion short of the 2023 estimate.

The study’s authors hypothesise that this mainly reflects an increase in spending from people at risk of gambling harm rather than those who gamble without experiencing gambling harm.

Prof Lubman said while most Victorians play lotteries and scratchies, these account for just 10 per cent of losses, with poker machines and sports betting generating over 80 per cent of losses from far fewer people.

“The cost of living crisis has also meant that some people have been able to reduce gambling as non-essential spending, but for others, financial pressure and uncertainty actually drive them toward gambling hoping to improve their situation, only to face greater harm,” he said

“Meanwhile, gambling advertising is everywhere – on TV, radio, and our phones. Victoria has nearly 1000 gambling ads daily, and online gambling is growing fastest of all,”

“We’re seeing particularly alarming trends among young men who can now gamble anytime, anywhere on their phones.”

The study estimated the following costs caused by gambling:

$5.2 billion on financial impacts, such as higher-than-average spending and bankruptcy.

$3.3 billion towards emotional and psychological harm, such as depression, suicide attempts and fatalities of people who gamble.

$2.5 billion on impacts to relationships and family such as divorce or separation, violence and the impact of suicide on loved ones.

$1.5 billion on lost productivity or impacted work or study such as impaired performance, job loss and absenteeism.

$1.3 billion in costs to the state and local governments such as their health, mental health and human services systems, policy, regulation, and research costs.

$289.4 million related to crime, including costs to corrections, court and police systems.

$3.2 million of costs to non-profit organisations.

$1.5 million in costs to the federal government.

Ms Casis said there possibly needs to be a lot more compassion and understanding around addiction not being something that someone just chooses to have or to do.

“The pervasive nature and the amount of pokies venues in our local communities, for an example, can continue to normalise and perpetuate gambling harm in the community, the fact that there is multiple pokies venues in almost every suburb is quite problematic,” she said.

“The fact that there are a thousand gambling ads on TV and radio per day continues to normalise the really harmful narrative that gambling is part of our Aussie culture,”

“Even if we talk about gambling-like elements in games targeted at really young kids as well, as young as eight years old or younger, this is really hugely problematic and continues the cycle of normalising gambling, which we see is a big problem with our clients.”

Financial impacts saw the biggest rise from the 2014-15 study, up from $2.0 billion (adjusted for inflation and population growth) with the vast majority of this cost ($4.8 billion) attributed to excess spending by people who gamble.

Prof Lubman said given the wide-ranging social costs revealed in this study, addressing gambling addiction is absolutely critical, with harms devastating entire families and communities.

“While it’s positive that the Victorian Government has committed to important reforms like mandatory carded gambling, we need these implemented quickly and we need to go much further with both state and national reforms,” he said.

“We need a total ban on gambling advertising, as well as the introduction of mandatory pre-commitment, and maximum loss limits. Most importantly, the industry profiting from this harm must be held accountable through a legislated duty of care that requires them to actively protect people experiencing gambling harm,”

“This is ultimately about the kind of community we want to be. We aspire to be a society where everyone is valued and supported, especially when they’re struggling.”

For support with gambling harm, Gambling Help Online offers a number of different support options, from helplines to counselling, financial counselling, email support, SMS support and online forums.

Support is available on their website – gamblinghelponline.org.au – or via their 24/7 helpline on 1800 858 858.