CHAPTER ONE: THE CONTEXT AND BACKGROUND OF THE RESEARCH
1.1 In the past twenty years, Western nations have witnessed a massive expansion in commercial gambling. A gradual liberalisation of the once tight controls on the industry has led to increased availability, participation and expenditure, and the exponential growth of the industry itself. This growth has been particularly strong in jurisdictions where electronic gaming machines and large urban casinos have been widely introduced, for example, Canada, the United States, Australia, New Zealand and South Africa.
1.2 In most cases, the introduction of state lotteries preceded these developments. Relative to these countries, the U.K. has been a late developer, only introducing a National Lottery in 1994, and only last year introducing legislation that paves the way for more widespread expansion.
1.3 The 2005 Gambling Act, which will be fully implemented by 2007, will create the most dramatic reorganisation of the gambling climate the U.K. has ever experienced. Up until the new legislation, gambling in this country had been strictly regulated by the 1968 Act, which was designed to 'satisfy' but not stimulate existing demand, and involved restrictions on advertising, licensing and all forms of promotion.
1.4 However, the introduction of the National Lottery in 1994 effectively began a process of liberalisation, with the loosening of strictures on, for example, advertising and access, that came to be seen as inequitable by the rest of the gambling industry, which continued to operate under tight regulation. The new Act is the culmination of this process. As well as attempting to increase protection of the vulnerable and regulate Internet gambling, it also removes the principle of 'unstimulated demand' and allows for the development of large casinos, of which at least one, a regional casino, will possess large numbers of high stake, high jackpot electronic gambling machines.
1.5 These proposals were accompanied by widespread opposition from a range of sources, including political, religious and community groups, who criticised them on ethical and moral grounds. Segments of the British gambling industry itself were also critical, fearing the proposals would undermine their profitability by granting licenses for lucrative regional casinos to overseas competitors.
1.6 In heated debate over the costs and benefits of gambling, proponents emphasised the economic regeneration, while opponents emphasised the social costs - particularly in terms of increased problem gambling - that increased gambling is argued to bring. In most cases, the debate tended to be based on polarised opinions, based on ethical and/or religious convictions rather than factual evidence.
1.7 The controversy led to pre-legislative concerns over the potential negative impacts of increased casino gambling, such as increased problem gambling and crime, and saw initial proposals for the development of eight regional casinos scaled back to only one, albeit with the possibility for potential increases at a later date. This has significant implications for policy, and at present, various authorities are attempting to assess the measure of 'best social impact' of the proposed developments. In effect, this involves weighing up the potential benefits of increased gambling, and especially casino gambling, against the potential social harms it may create.
1.8 It is to facilitate this process of evaluation that this report has undertaken a review of the international evidence base on the social impacts of gambling.