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School of Population Health
University of Auckland
Gambling as an Extractive
Industry & the Moral
Jeopardy it Generates
Peter J. Adams, 2008
Centre for Gambling Studies, 2008
Expansion of Commercial Gambling
• Major societal
change
• Impacts socially &
economically
• Also impacts on
political ecology
• Links with
expansion globally
Centre for Gambling Studies, 2008
Centre for Gambling Studies, 2008
Auckland
Wellington
Christchurch
Centre for Gambling Studies, 2008
Gambling Expenditure in NZ
Source: Department of Internal Affairs
700
600
Millions NZ$
500
400
300
200
100
0
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
(Excluding bingo & raffles)
Centre for Gambling Studies, 2008
Gambling Expenditure in NZ
Source: Department of Internal Affairs
1800
1993
2002
1600
Millions NZ$
1400
1200
1000
800
600
400
200
(Excluding bingo & raffles)
Centre for Gambling Studies, 2008
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
0
Gambling Expenditure in NZ
Source: Department of Internal Affairs
1000
Track
Lotteries
Machines (non-casino)
Casinos
900
800
Millions $NZ
700
600
500
400
300
200
100
(Excluding bingo & raffles)
Centre for Gambling Studies, 2008
20
03
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
0
Gambling Expenditure in NZ
Source: Department of Internal Affairs
Millions NZ$
NORMALISATION
2000
LIBERALISATION
1500
1000
REGULATION
500
INDIVIDUAL
TREATMENT
PUBLIC
HEALTH
POLITICAL
ECOLOGY
(Excluding housie & raffles)
Centre for Gambling Studies, 2008
20
07
20
05
20
03
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
0
Centre for Gambling Studies, 2008
Ecological Perspective…
• Gambling as an
extractive industry
• No substantial
product
• Extraction within
current systems
• Those systems in
turn are affected
Centre for Gambling Studies, 2008
Centre for Gambling Studies, 2008
Centre for Gambling Studies, 2008
Centre for Gambling Studies, 2008
Centre for Gambling Studies, 2008
Centre for Gambling Studies, 2008
Centre for Gambling Studies, 2008
Drivers for Native Logging
• Governments interested in profits
from large scale extraction
• Multinational ability to maximize
profit potential
• Entrepreneurs quick to recognize
profit potential
• Rapid expansion relies on absence
of popular opposition
20
07
20
05
20
03
20
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19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
Millions NZ$
2000
1500
1000
500
0
With Rapid Expansion of Extractive
Industries comes…
Degradation of
natural ecology
Degradation of
socio-political
ecology
Centre for Gambling Studies, 2008
Gambling Expenditure in NZ
Source: Department of Internal Affairs
NORMALISATION
Millions NZ$
2000
LIBERALISATION
Expenditure
1500
WORRY
1000
Profit
Benefits
REGULATION
500
Taxes
(Excluding bingo & raffles)
Centre for Gambling Studies, 2008
20
07
20
05
20
03
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
0
Money Builds Relationships
• Money exchange forges
ongoing connections
• Establishes expectations
and obligations
• Reinforced by multiple
exchanges
• Links cut across other
relationships
Centre for Gambling Studies, 2008
What are the long term
prospects for these profitdriven relationships?
Where are they leading?
What are the risks?
Can they be reversed?
Centre for Gambling Studies, 2008
Moral & ethical dilemmas
generated by receiving
gambling funds
Environments promoting high
industry connectedness
Conflicted relationships very
likely
Multiple traps for the naïve,
greedy & fearful
Centre for Gambling Studies, 2008
Risks in Accepting Profits
1. Ethical risks
2. Reputational
risks
3. Governance
risks
4. Relationship
risks
Centre for Gambling Studies, 2008
1. Ethical Risks
• Trying to do good from
sources that do harm
• Majority of gambling funds
from low income families
& problem gamblers
• Credentialing providers
(improving public profile)
• Contributing to sales
Centre for Gambling Studies, 2008
2. Reputational Risks
• How link is judged
by others
• Collegial
disapproval
• Consumer
discomfort
• Government agency
ambivalence
Centre for Gambling Studies, 2008
3. Governance Risks
• Creeping reliance
• Perception of
vulnerability
• Threatens
independence &
sovereignty
• Perceived reliance leads
to silence & compliance
Centre for Gambling Studies, 2008
4. Relationship Risks
• Between colleagues
• In larger organisations,
between sections &
levels
• Potential loss of voice,
loss of interest, loss of
staff
Centre for Gambling Studies, 2008
How to respond to
gambling profit-driven
increases in moral
jeopardy?
Centre for Gambling Studies, 2008
Continuum of Moral Jeopardy
Intensity of Relationship
Centre for Gambling Studies, 2008
Primary Concern
Moderate Risk
High Risk
Low Risk
Centre for Gambling Studies, 2008
Extremely
High Risk
Moral Jeopardy & Loss of Voice
• Community charities receiving
significant funds from pokie trusts
• Researchers with gambling funding
avoiding “rocking the boat”
• Government agency managing funds
from gambling
• Newspapers relying heavily on
funding from gambling advertising
• Politicians & political parties
accepting or influencing distribution
Centre for Gambling Studies, 2008
Low Moral Jeopardy Environments
• Principle 1: Ethical consciousness
• Moral jeopardy awareness raising activities
• E.g. workshops with governance boards
• Principle 2: Informed participation
• Requirements for disclosure of funding sources
• E.g. web-based observatory tracking money
• Principle 3: Independence of function
• Reduction in reliance on gambling funding
• E.g. seek reductions in gambling profits
• Principle 4: Government duty of care
• Benchmark standards regarding conflicts of interest
• E.g. adherence to international charter
Concluding Remarks
• Long term environment of
high moral jeopardy
• Compromises community
& government sector
• Subtle degradation of
democratic systems
• Future obligations to
devise safeguards
Centre for Gambling Studies, 2008
More material…
Adams, P. J. (2007). Assessing whether to receive
funding support from tobacco, alcohol, gambling and
other dangerous consumption industries. Addiction,
102(7), 1027–1033.
Adams, P. J. Gambling, Freedom and Democracy. New
York: Routledge (Jan 2008)
Adams, P. J. & Rossen, F. (2006). Reducing the moral
jeopardy associated with receiving funds from the
proceeds of gambling. Journal of Gambling Issues,
Issue 17, August 2006
Centre for Gambling Studies, 2008