BALANCING THE GROWING INFLUENCES OF GAMING INDUSTRY AND THE DEBILITATING AT-RISK COMMUNITY AN ASIAN EXPERIENCE

Similar documents
Video Lottery/Tourism Promotion

Graduate Trainee Programme 2015

LOGO. Industry Profiles. Speaker: William A. Nader. Executive Director of Racing, The Hong Kong Jockey Club

OHRIA Ontario Horse Racing Industry Association

Sport Integrity Racing as the Frontrunner

5. Golf Industry Trends and Developments in the US 6. The US Macro Economy Factors and Impact over Golf Industry

By making use of SAFRIM (South African Inter-Industry Macro-Economic Model) By Jeaunes Viljoen, Conningarth Economists, 1

Current Hawaii Economic Conditions. Eugene Tian

National Report Iceland. RINORD June 2018 Tryggvi Jónsson, Chairman of FRV

CHIEF EXECUTIVE S STATEMENT

A comment on recent events, and...

Dr. Greg Hallman Director, Real Estate Finance and Investment Center (REFIC) McCombs School of Business University of Texas at Austin

As Good as it Gets. The Aging Expansion Powers On... but for How Much Longer? Andrew J. Nelson Chief Economist USA, Colliers International

Economic Transformation and Recovery in Hong Kong and Singapore

THE ECONOMIC CONTRIBUTION FROM HORSES

Bob Costello Chief Economist & Vice President American Trucking Associations. Economic & Motor Carrier Industry Trends. September 10, 2013

Wenlin Liu, Senior Economist. Stateof Wyoming. Economic Analysis Division State of Wyoming 1

New Zealand Thoroughbred Racing (NZTR) Job Description

Irish Bookmakers Association

Noah Williams. University of Wisconsin-Madison Center for Research On the Wisconsin Economy (CROWE) Outlook for the Wisconsin Economy

Discussion of Lottery Revenues

COOPERATIVE EXTENSION Bringing the University to You

More of the Same; Or now for Something Completely Different?

Update on HKJC s Simulcast Expansion into New Markets

Will it offer a worthwhile return on investment for operators seeking growth in new markets? GO OR NO GO?

The Rise of China and Breaking out the Middle- Income Trap in Latin America and the Caribbean countries: A New Structural Economics Approach

Texas Housing Markets: Metropolitan vs. Border Communities. September 22, 2014

Whitepaper. V2 August BetKings

BETTING. World Cup 2006 marked the first time the greatest tournament on. earth had been staged since the Club introduced its regulated football

Content. Research Objectives. A Survey on Gambling Behaviours: Will you become a gambler?

Bob Costello Chief Economist & Vice President American Trucking Associations. Economic & Motor Carrier Industry Update.

ABA Commercial Real Estate Lending Committee

The Wisconsin and Minnesota Economies: What can we learn from each other? Noah Williams

2018 Annual Economic Forecast Dragas Center for Economic Analysis and Policy

Department of Legislative Services Maryland General Assembly 2005 Session FISCAL AND POLICY NOTE

The Future of the World s International Education

Car Production. Brazil Mexico. Production in thousands. Source: AMIA Asociacion Mexicana de la industria automotriz.

HIGH YIELD ANGLERS IN RTO13: A SITUATION ANALYSIS EXECUTIVE SUMMARY

2014 Economic Indicators, Trends & Observations. 51 South Main Street Janesville, WI P F RockCountyAlliance.

SA economic review Kevin Lings. August 2018

CHIEF EXECUTIVE S STATEMENT

Canada s economy on track for a solid 2018 although policy uncertainty lingers

The University of Alberta SEIGA Research Team

The Economic Impact of Colonial Downs in Virginia

Big Changes, Unknown Impacts

Running head: THE DANGERS OF GAMBLING 1. The Dangers of Gambling. Joe Student. Keiser University

The 2010 Economic Contribution of Tourism to the Meadowlands Liberty Region

The U. S. Economic Outlook: Robert J. Gordon

Economic Overview. Melissa K. Peralta Senior Economist April 27, 2017

Forecast evaluation report Robert Chote Chairman

colorado.edu/business/brd

WHERE ARE ARIZONA DEMOGRAPHICS TAKING US? HOW GROWING SLOWER, OLDER AND MORE DIVERSE AFFECTS REAL ESTATE

Creating the Greater Bay Area of the Future- Opportunities for Hong Kong

The Economic Outlook. Economic Policy Division

Puget Sound Regional Forecast Chris Mefford Community Attributes

Briefing on the State of the State. presented to the. SCAA Schuyler Center for Analysis and Advocacy

China at a glance 2011

Gaming Machine Expenditure in NZ (outside Casinos)

2018 Annual Economic Forecast Dragas Center for Economic Analysis and Policy

Tax Fairness for the Golf Industry

Department of Legislative Services Maryland General Assembly 2007 Session FISCAL AND POLICY NOTE

An American Profile: The United States and Its People

Susan J. Adams, PhD IMF-PFTAC Coordinator

The Economic Outlook. Economic Policy Division

Key words: Economic multiplier, community tourism, walking street, Chiang Mai

United Nations Conference on Trade and Development

THE PERRYMAN GROUP. The Economic Benefits of the Precision Dance Industry Inspired by the Kilgore College Rangerettes

PROVINCE OF SASKATCHEWAN INVESTOR PRESENTATION

U.S. and Colorado Economic Outlook National Association of Industrial and Office Parks. Business Research Division Leeds School of Business

Impacts of the Global Economy on Asia Pacific Travel. 29 June 2007 John Walker

Babson Capital/UNC Charlotte Economic Forecast. May 13, 2014

How to Explain Car Rental to Banks and Investors

International Trade Economic Forecasts An Overview of Orange County and Southern California Exports

A talk at the European Association for the Study of Gambling by Peter Wilson 3 July 2008

Oregon Department of Fish and Wildlife: Inland Fisheries - Hatchery Management

Not For Sale. An American Profile: The United States and Its People

Westmead Innovation Precinct

Major Issues and Trends Facing the Port and Marine Transportation Industry

National and Virginia Economic Outlook Professor Robert M. McNab Dragas Center for Economic Analysis and Policy Strome College of Business

A Threatened Bay: Challenges to the Future of the Penobscot Bay Region and its Communities

Labour Market Segmentation in Poland. Artur Gajdos Department of Spatial Econometrics University of Lodz

PRESENTATION TO THE BRITISH COLUMBIA LEGISALTIVE STANDING COMMITTEE ON FINANCE September 26, 2013

OPAP S.A. Corporate Presentation November Nikos Polymenakos Investor Relations

Maximizing Tourism Marketing Investments A Canadian Perspective

What did the World Student Games do for Sheffield? The 1991 Games as the catalyst for the regeneration of Sheffield

1. Executive summary Purpose Objectives Strategy: Specific priorities 4

Fiscal Impact of SunTrust Park and The Battery Atlanta on Cobb County Executive Summary Sept. 18, 2018

Chief Economist s Report

2019 Economic Outlook: Will the Recovery Ever End?

Social Development Index 2018 ( )

Economic Impact Analysis BOONE DOCKS RESORT AND MARINA, LLC

Transitions: 2019 Economic Forecast for Metro Denver February 6, 2019

being challenged in court

The Economic Relationship between the Mainland and Hong Kong

HORSE RACING AND CALIFORNIA FAIRS

Lawrence J. Lau 刘遵义. CSIS Forum Washington, D.C., 22nd May 2013

ECONOMIC IMP ACT REPORT 2018

The gambling market UNDERGOING CHANGE

2015 Economic Forecast & Industry Outlook. Robert A. Kleinhenz, Ph.D. Chief Economist, Kyser Center for Economic Research, LAEDC October 8, 2014

EXECUTIVE SUMMARY. Methods

Transcription:

BALANCING THE GROWING INFLUENCES OF GAMING INDUSTRY AND THE DEBILITATING AT-RISK COMMUNITY AN ASIAN EXPERIENCE Dr. Cheuk-yan Li Executive Director Zion Social Service

Contents of Presentation 1. The expansion of gambling industries in Asian countries 2. Macau is a testing ground to most Asian countries 3. Hong Kong s gambling reform proposal 4. Does the society really benefits by opening up of gambling industry? 5. Economic benefits Vs social costs 6. Suggestions for balancing the impacts of gambling to the community

1. The Expansion of Gambling Industries in Asian Countries

Liberalization of Gambling Industries by Asian Governments Many Asian governments are showing signs of relaxing conservative rules on gambling To tap new streams of tourism income, tax revenue and fund infrastructure.

The Expansion of Gambling Industries in Asian Countries Those US-based gambling corporations foresee a big expansion in Asian gambling capacity over the next few years They plan to expand or set up casino operations, put huge investment in these Asian countries Macau is considered a testing ground for the potential of Asia's casino market.

Las Vegas Sands Corp. will spend about $2.75 billion to build a casino resort and finance the development of 3 hotels in Macau

2. Macau is a testing ground to most Asian countries

MACAU Increase Government Tax Revenue In 2004 (in billion dollars) Gross public revenue: $19.59 MOP (US$2.49) Gross gaming industry revenue: $3.80 MOP (US$4.75) Gross gaming tax revenue: $15.20 MOP (US$1.90) Government benefits from gaming industry: Over 3/4 (77.7%) of the gross public revenue from it Government surplus $6.16 MOP (US$0.77) Source: Statistics and Census Service of Macau 2004

MACAU Rise of Tourists and Visitors (in million) 2002 2003 2004 2007 (forecast) 11.53 11.88 16.67 30.00 As the liberalization of Macau s gambling monopoly, 3 companies awarded gambling licenses have pledged to invest From 2003 to 2004, an increase of over 40% contributes the growth of GDP

MACAU Employment Due to the relocation of labour-intensive industrial processing to neighbouring China, Macau has lost a lot of jobs The new infrastructure of gaming and tourism are creating new employment opportunities.

MACAU New employment Opportunities: The need for casino dealers In the next two years, 6,000 8,000 dealers will be needed Being a dealer is a high-paying job in Macau The starting monthly wage is $13,000 MOP to $15,000 MOP (US$1,625 - US$1,875) with tips The median starting wage in general is $5,680 MOP (US$710)

MACAU Macau's casinos presently account for 80 % of economic activity Leading the revolution are American casino operators from Las Vegas bringing a business model that places casinos within huge hotel and entertainment complexes

MACAU Macau will become the Las Vegas of Asia Air traffic expansion The number of cities accessible by air from Macau has been increasing The casino expansion The construction of the so-called Cotai strip on a huge reclamation When complete in 2009 will employ 150,000 staff at its 30,000 hotel rooms and 1,000 gaming tables.

South Korea South Korea is expected to liberalise its casino sector further to enhance its competitive positioning in light of the interest by U.S. gaming companies to enter Asia In October 2004, new licenses are granted to two new operators, one in Seoul and the other in Busan The total number of casinos are 17 The new casinos will bring in an additional US$150 million in annual revenues

Singapore Singapore has lost competitiveness due to rising costs, and several thousand manufacturing jobs have been lost. The old manufacturing jobs will not return with the opening of China and other low-cost countries. Singapore plans to award licenses to build two casinos. It estimates that this will translate into roughly $3 billion in investment

Thailand Thailand has a variety of gambling such as horse racing, lotteries and cock fighting. But casino is currently still not legalized. Like Singapore, the Thai Government is in advanced stage of considering new laws to allow casinos to operate Since the tsunami, the economy is seriously affected. Casino gambling is believed to be accepted soon in order to attract more tourists to Thailand.

Hong Kong Has proposed to build a casino but is rejected by the public All gambling is controlled by the Hong Kong Jockey Club (HKJC) which is a nonprofit organization and regarded as the most prestigious racing establishment in the world. The HKJC operates horse racing, soccer betting and lottery facilities

3. Hong Kong s Gambling Reform Proposal Hong Kong

Hong Kong Recently Gambling Taxation Reform is proposed The Gambling Taxation Reform aimed at giving the HKJC flexibility in setting dividends and betting products to boost revenue The provision of extending the number of racing days in summer

Hong Kong The HKJC will be allowed to simulcast top international races held on non-racing days The HKJC will guarantee HK$8 billion (US$1 billion) as revenue to the Hong Kong SAR Government The reform will allow the HKJC to offer more varieties of gambling in order to boost revenue It appeals to non-gamblers start gambling

Marketing Strategies of Hong Kong Gambling Industry Promote gambling as charity contribution Develop new market segments young people, female, and even family members Design new product lines Miss Hong Kong betting, lottery of odd &even number betting Position gambling as family recreation

Children are allowed to participate in horse racing with parents

Proposed New Ways of Betting - To Bet Who Will Be The Hong Kong New Chief Executive, Who Will Be Miss Hong Kong.

Horse-racing Carnival Children and Family Members Are Welcome

Public Image of Hong Kong Jockey Club The HKJC relies on its record as a nonprofit charitable benefactor as a major justification for its monopoly Lots of people assume all the profits go to charity and that's not true Only 1 2% of its gross revenues are used as charitable funding

Gambling Is Viewed As A Source of Income to the Society Gambling is viewed as a relatively palatable form of revenue generation, compared to traditional tax increases Stimulation of tourism, and as a catalyst for tourism diversification Economic development Combat illegal gambling

No Gambling Prevention & Treatment Services in Macau They leave individuals to address the social problem of gambling because: Local citizens do not have gambling problems Most gamblers come from the mainland China, Hong Kong and other Asian countries. It is difficult to render any treatment services when the service recipients are not local citizens or living in the districts

4. Does The Society Really Benefits By Opening Up Of Gambling Industry?

Does the Society Really Gain The Economic Benefits From The Gambling Industry? Construction Employment Wages Government revenue Use of revenue to upgrade community Infrastructure upgrades

Construction Is Very Short Term Construction activity offers only shortterm (12-18 months) economic benefits including a brief increase in output, income, and employment in the country. Once the construction is completed, those impacts disappear.

Employment Opportunities Only Limit to Gambling Industry and Tourism Unemployment rate of other industries will be high if the government focuses only on expanding gambling industry and tourism The choice of career or employment are in fact very limited

Employment Opportunities in Macau: High Demand Gambling, tourism and retail industry Low Demand Trading, production and manufacturing industry Unemployment 22.3% in manufacturing 17.1% Construction 15.3% wholesale and retail trade Source: Statistics and Census Service of Macau 2004

To Open Up Gambling may not benefit the vulnerable groups In Macau 19.2% no schooling 33.4% primary education 28.2% junior education Total 80.8% of the unemployed are those with low education attainment or new-immigrant groups

Problem Gambling Is Not Only Individual Torment, It is a Public Health Issue The classical approach of problem gambling employs a medical perspective - focuses on diagnosing and treating the "sick" individual Problem gambling is not only a private torment for the individual but is fundamentally a public health issue It cannot be dealt with in isolation

All Stakeholders In the Community Are Affected Stakeholders in the community are affected It affects families, friends, social groups and, by extension, the community in general Each problem gambler costs society US$8,681 to US$15,990 per year (Wisconsin, 1996, Connecticut,1997 of US study) In Hong Kong, each problem gambler costs US$16,140 per year (Zion Social Service, 2005)

Society is a big loser It is estimated that there is currently 2.75% of problem and pathological gamblers in Hong Kong (i.e. 19,250 people) The total social cost of gambling per year could be as huge as US$310,695,000 (about US$310 millions)

5. Economic Benefits Vs Social Costs

A Changing Picture Since 1975, the proportion of adults who never gambled dropped from 1 in 3 to 1 in 7. 85% of US adults have gambled at least once in their lives, 65% in past year. Source: National Council on Problem Gambling, Inc.

Economic and social costs of Gambling $1 economic revenue = $3 social cost associated with casino gambling The benefits of gambling come at the expenses of net loss for taxpayers Source: Economist Earl Grinols of the University of Illinois

Profits of Gambling Industry Come from Problem Gamblers 5-15% are frequent gamblers (twice per week or more) and 2-5% are problem and pathological (P&P) gamblers. They might be in the casino daily, for long periods of time, and at unusual hours. Two-thirds to 80% of gambling revenues come from the 10% of those who gamble most heavily. The increase of revenues of gambling industries means the increase of loss of gamblers.

Government Decisions Are One-sided Government decisions are usually taken without attention to: long-term balance of costs and benefits of the project for the total economy of the area, including non-gambling businesses ; the labour force; and charities; calculations of both gains and losses in government revenue, including lost revenues from non-gambling businesses;

Debilitating Family Functions Gambling increases in volume, costs to society must increase Spouses who may also participate in illicit fund raising to deal with situations brought about by the gamblers Children are affected when a pathological gambler use a child s tuition fees to gamble Results: Family breaks down Education is stifled.

Increase School Dropout In 2004, 22% increase in school dropout rate on the allure of casino dealer jobs in Macau Most dropout students are tertiary college or university students They know that even though they graduate from universities, they cannot find such high-paying jobs The Macau Tourism and Casino Career Centre, subsidized by the Macau government, offers training to young people and charges no tuition fees Young people are guaranteed to have jobs after training

Other Social Impacts of Gambling Crime, drugs, prostitution Suicide Underage gambling Family violence and conflicts Confusion of moral and social values Insolvency & bankruptcy More social problems

6. Suggestions for balancing the impacts of gambling to the community

Balance the Impact of Gambling to the Community Government is the largest stake-holder They need to play close attention to the possible adverse social impacts that arise from expanding gambling Government has a duty of care to citizens Pay attention to special populations (seniors, young people, racial & ethnic minorities)

Balance the Impact of Gambling to the Community Policy makers : should analyze the effects of the huge gambling industry should make informed policy decisions based not only on tax revenues and perceived economic benefits but also on the dangerous effects of gambling

Balance the Impact of Gambling to the Community A multi-stakeholder health coalition forms in the community Community leaders, health professions, politicians, researchers and educators should be involved To monitor, examine and mitigate the impacts of problem gambling To provide information and advices to the government

Balance the Impact of Gambling to the Community Problem gambling research focusing on the entire continuum of gambling behaviour should be conducted regularly Through updating research data to achieve a broader understanding of gambling in the population Government policies related to gambling are thus examined

Balance the Impact of Gambling to the Community To address the problems of gambling, government usually struggle with budget shortfalls. Additional taxes levied to the gambling industry for prevention and treatment is an option To promote a healthy community say no to gambling

The End Thank you! Any comment, please contact Info@zss.org.hk