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Paternalism and the Pokies: Unjustified State Interference or Justifiable Intervention?

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Abstract

The Australian Productivity Commission and a Joint Select Committee on Gambling Reform have recommended implementation of a mandatory pre-commitment system for electronic gambling. Organizations associated with the gambling industry have protested that such interventions reduce individual rights, and will cause a reduction in revenue which will cost jobs and reduce gaming venue support for local communities. This article is not concerned with the design details or the evidence base of the proposed scheme, but rather with the fundamental criticism that a mandatory pre-commitment policy is an unacceptable interference with the liberty of the individual, and of organizations. It is argued that the concept of paternalism is a useful lens with which to study the interactions between business and society on this issue. It is contended that the benefits of a pre-commitment system to problem gamblers and society are socially and economically significant, and the cost to recreational gamblers, particularly the cost in terms of interference with the liberty of the individual, is minimal. Pre-commitment also requires gambling businesses to act in a more socially responsible manner. It is concluded that the proposed legislation constitutes a paternalistic intervention by government on the interaction between business and society, and that this is justified.

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Notes

  1. Although some (e.g., Blaszcynski and Gainsbury 2011) suggest the absence of an upper limit will allow problem gamblers to set very high loss limits and play to those, thus not limiting the amount of their losses.

  2. Parenthetically, it may also be that some gamblers are prevented from becoming problem gamblers by the intervention, as it will require them to place limits upon their gambling behaviour, so preventing it from becoming problematic.

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Authors and Affiliations

  1. Department of Management, Monash University, Melbourne, 3800, Australia

    Elizabeth Prior Jonson, Margaret Lindorff & Linda McGuire

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  1. Elizabeth Prior Jonson
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  2. Margaret Lindorff
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  3. Linda McGuire
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Correspondence to Margaret Lindorff.

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Prior Jonson, E., Lindorff, M. & McGuire, L. Paternalism and the Pokies: Unjustified State Interference or Justifiable Intervention?. J Bus Ethics 110, 259–268 (2012). https://doi.org/10.1007/s10551-011-1152-y

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  • DOI: https://doi.org/10.1007/s10551-011-1152-y

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