This report examines the factors affecting spending on Class 4 Gaming machines. In particular, it seeks to explain the apparent upturn in expenditure that started around the end of 2013. Before then, there had been a steady decrease in expenditure that resulted from provisions in the Gambling Act 2003.
The principal purpose of this report is to identify the factors that influence changes in gambling expenditure on non-casino electronic gaming machines (EGMs), otherwise known as Gaming Machine Proceeds (GMP). More specifically, the purpose is to identify the factors influencing the changes since 2003 and the recent increases in GMP. An additional purpose is to establish a base for analysis of future trends.
GMP decreased steadily following the introduction of the Gambling Act in 2003, which was introduced (in part) to control the growth of gambling. This decline continued until 2014, but since then there have been year-on-year increases. These recent increases have occurred despite continued decreases in the number of EGMs and venues.
Initial analysis conducted by the Department of Internal Affairs (DIA) hasn’t been able to confirm the extent to which these or other factors may have influenced GMP. It was, therefore, determined that the research leading to this report should should consider a wider range of possible influences.
In brief, the methodology entailed:
1) Assessing possible influences on GMP individually. This is called univariate analysis.
2) Examining the findings of the univariate analysis to decide what sort of multivariate model to fit.
3) Testing which of the variables have a statistically significant effect on the expenditure, when analysed alongside other variables. This is called multivariate analysis.