How much more gambling harm can we put up with? We need a royal commission

<span>Photograph: Paul Jeffers/AAP</span>
Photograph: Paul Jeffers/AAP

How many more allegations of connections between gambling and nefarious activities in Victoria need to come out before a royal commission into this exploitative and underhanded industry is finally called?

Within less than a week we’ve had animal cruelty charges around jiggers being used in horse racing and at Crown Casino even more allegations about money laundering, along with alleged procurement of drugs and sex workers and avoiding immigration procedures for high rollers.

Then on Thursday we have revelations that a man who was sanctioned by the United Nations for assisting a war criminal has been allowed to gamble millions at Crown.

Only a few weeks ago there were accusations from whistleblowers that the AFL was getting favourable treatment from the gambling regulator, the Victorian Commission for Gambling and Liquor Regulation (VCGLR), in its investigations of gambling by players.

Related: Calls for Crown casino inquiry after leaked video of bricks of cash in junket room

The whistleblowers must be going blue in the face from making all these sordid allegations, yet the Victorian government continues to fail to take any real action against the gambling industry.

Couple all this with how influential the Australian Hotels Association (AHA) can be when it comes to elections; the AHA imposed a special one-off levy on pub poker machines to help bankroll donations of at least $500,000 to Labor and about $300,000 to the Coalition parties in the Victorian election last year. It also funded independents who preferenced the major parties, for a total of almost $1 million in “donations”.

These payments went to denying the Greens the balance of power in Victoria as the industry feared the party’s strong anti-poker machines policies, including the introduction of $1 maximum bets. Some would argue that was $1m well-spent by the AHA in protecting its poker machine interests.

So that’s Crown Casino knees-deep in sordid accusations of illegality; a Melbourne Cup-winning trainer allegedly involved in cruel, banned practices; alleged sports gambling messes within the AFL; and poker machines all tied up in controversy and politics. Yet the Victorian government remains effectively silent about gambling in Victoria. Why is that? A royal commission is the only way to get a proper answer to that question.

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The Victorian premier, Daniel Andrews, hasn’t been shy about instigating royal commissions – he’s to be applauded for the royal commissions into family violence and mental health. But something critical was missing in the terms of reference for both those royal commissions: gambling harm.

There is a real thread running here. Gambling harm can be a factor in family violence, and there are established links between gambling harm and mental ill-health. In fact, gambling harm is estimated to account for 22% of the costs to our mental health system.

With gambling inextricably linked to two royal commissions already under way or completed in Victoria, why is it not being addressed with the same level of scrutiny?

Daniel Andrews is proud of his progressive agenda, yet he seems no different to Jeff Kennett in his laissez faire approach to the gambling industry, and Crown Casino in particular.

It’s telling that we are not hearing much from either the Labor or Liberal parties on these alleged instances of the gambling industry flouting regulations and seeking influence. Both parties have strong ties to the gambling industry; both take political donations from the industry; both have former insiders working in the industry now, including former ministers and advisers. Daniel Andrews’s own former chief of staff went to work for Crown Casino.

It’s funny that when the ALP were in opposition in Victoria they cheered me on for taking on Jeff Kennett over Crown Casino and the fact it is three times bigger than the largest casino in Las Vegas. Yet when they regained power they hosted a fundraiser at Crown.

Related: Revolving door between politics and lobbying undermines good policy – report

There are undoubtedly some very tangled webs between both Labor and Coalition governments, Crown Casino, and the broader gambling industry that need to be unwoven as a priority. Both major parties have too much skin in the game to be trusted to have the interests of the community at heart ahead of furthering their own political interests.

If Daniel Andrews doesn’t have the strength to take the gambling industry on at a state level, perhaps it is time prime minister Scott Morrison stood up and had a national royal commission into gambling?

There are enough instances of the gambling industry having captured power around Australia to make a national royal commission worthwhile, let alone the devastating harm the industry wreaks as it fleeces Australians of $24bn per year. That $24bn in losses is 2.5 times what we spend on Newstart annually. Imagine untangling the gambling industry’s power and getting some of those billions back into our economy to be spent on goods and services instead. How good would that be, Scomo?

  • Reverend Tim Costello is the chief advocate for the Alliance for Gambling Reform