Social costs of gambling to Victoria 2023 -  Victorian State Govt  -  Justice and Community Safety

The study adopted a public health approach, examining costs associated with gambling problems across the broad spectrum of severity (low to high). It includes estimates of the tangible and intangible costs of gambling harm to Victoria associated with all gambling forms, including illegal offshore wagering. It also considers the significant impact of gambling harm on affected others such as family members and friends, as well as the wider community.

The estimated $14.1 billion costs associated with gambling harm were categorised as follows:

  • $5.2 billion: financial impacts, such as higher-than-average spending and bankruptcy

  • $3.3 billion: emotional and psychological harm to a person who gambles, for example, depression, suicide attempts and fatalities

  • $2.5 billion: relationships and family, for example, divorce or separation, violence and the impact of suicide on affected others

  • $1.5 billion: productivity loss and work or study impacts, including impaired performance, job loss, absenteeism

  • $1.3 billion: costs to the Victorian and local governments, including the health, mental health and human services systems, policy, regulation, and research costs

  • $289.4 million: crime, including costs to corrections, court and police systems

  • $3.2 million: costs to non-profit organisations

  • $1.5 million: costs to the federal government

The figure of $14.1 billion compares to a previous estimate of $7 billion for 2014-15 ($10.5 billion after accounting for subsequent inflation and population growth). Aside from inflation, the higher cost mainly reflects an increase in spending by people at risk of harm compared to those who gamble without experiencing harm.

This increase occurred alongside declining participation in gambling, suggesting an intensification effect since 2014, where higher gambling spend is concentrated among fewer players, especially on electronic gaming machines, wagering and casino table games.

Factsheet 1 – Counting the costs of gambling to Victoria

This factsheet presents the costs attributable to each of the 8 categories examined, including the main cost items within these groups.

 

Factsheet 2 – Cost of gambling to Victoria by bearer of cost

This factsheet breaks down the cost of gambling as borne by people who gamble, affected others, governments and the wider community.

 

Factsheet 3 – Losses by gambling product and risk status

This factsheet examines the relative proportion of gambling losses in Victoria in 2022-23 attributable to different gambling products, and the proportion of losses on each product coming from people at different levels of gambling risk as measured by the Problem Gambling Severity Index (PGSI).

 

Factsheet 4 – Total costs attributable to major gambling forms

This factsheet provides an estimate of the total cost of gambling attributable to EGMs, casino table games, wagering, lotteries/scratchies and Keno, including the proportion of cost attributable to excess spending vs other costs.