Gaming Machines a Form of Gambling or Entertainment? Tabcorp Receipts Action Raises Ultimate Question

Recent action by Tabcorp to provide gaming machine consumers with handwritten receipts raises serious questions for the gaming industry as to whether gaming machines are considered a form of gambling or a form of entertainment. As a form of gambling, gaming machines are illegal.

(PRWEB) March 3, 2005 -- Legislation (Gaming Machines Act 2001 Clause 8) clearly states that gaming machines are not legal if they are used for the purposes of gambling. Gaming machines are legal only if they are used for therapeutic, research, educational or cultural purposes -- such as entertainment.

Tabcorp venues in Victoria have been provided with a formal procedure used to issue receipts to consumers for use of gaming machines.

Gaming machine experts are surprised by the Tabcorp procedure as they expected receipts to be calculated on the amount of money put into the machine. Instead, the procedure requires venue staff to calculate the amount of money put into the machine minus the amount of money taken out of the machine.

The amount of money taken out of the machine is the net win from monies won and lost by a consumer during gaming machine play.

If a receipt is issued based on the amount of money put into the machine, gaming machines are considered a form of entertainment, as the consumer is paying for a service -- in return for an initial outlay, the consumer gets the enjoyment of the reels spinning and an opportunity to win money.

If a receipt is issued based on the amounts of money put in and taken out of the machine, gaming machines are considered a form of gambling, as the consumer has risked amounts won during play - they are spending more than their initial outlay, risking their prizes during play rather than collecting their prizes at the end of play.

It is no longer entertainment with spinning reels and the opportunity to win money, it is gambling, risking money to win money -- money for which a receipt is not provided. A consumer could put $50 into a machine, lose their initial $50, win $500, re-invest $400 of the $500 they won, and the Tabcorp receipt would be for $50. When in actual fact, the consumer spent $450.

The industry may argue that re-investing winnings is simply prolonging the entertainment, however as the service has already been provided with the initial outlay -- the re-investment is gambling.

AAGM Media Release -- Gambling or Entertainment?
A lottery ticket is an example - when the jackpot is 10 million dollars, the prize is not 10 million minus the cost of the ticket. The cost of purchase and the prize are clearly separate - you must receive proof of purchase when the ticket is bought, not when the prize is paid.

Lana OShanassy, spokeswoman for the Action Against Gaming Machines (AAGM) class action said Consumers have the right to know how much money they are spending on gaming machines. It is time Tabcorp and gaming machine operators show some respect for the multi-billion dollar industry they have created by allowing participants and those who benefit to be accountable for our valuable dollars."

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