The House of Representatives on Tuesday unanimously gave a second reading to the Lotteries and other Games (Amendment) Bill. Winding up the debate, Finance Minister Tonio Fenech gave a stern warning to operators that their licence would be withdrawn if they broke the law.
During the debate, various opposition speakers criticised the government over the Bill.
Marie Louise Coleiro Preca (PL) said it lacked substance. The government had encouraged operators to change their machines and reduced their registration fees. The economic aspect has been given priority over the social aspect.
The government should have included a report analysing the economic and social impacts of gaming before introducing the Bill.
As Malta lacked data on the social impact of gaming, she quoted a report by the Florida Council which found that compulsive gamblers cost approximately $5 billion (€3.4 billion) and an additional $40 billion (€27 billion) with regard to creditor losses and welfare benefit.
Ms Coleiro Preca suggested intensive preventive programmes in schools as the Sedqa programmes were not enough. Lotteries organised in schools were giving children a feeling for winning, which might result in future gaming problems. Similarly, amusement machines, which did not give the gambler money, still gave that crave for winning and, therefore, people might still spend more on such machines.
The government should have a good structure, which would be implemented and enforced. Gambling cannot be see in isolation as many compulsive gamblers compounded the issue by becoming alcohol and drug addicts with more suicidal thoughts.
The same study showed that 66 per cent of compulsive gamblers committed crimes to pay gambling debts. Many ended up in usury, which gave rise to other problems.
Families were often the first to feel the adverse effects of gambling, which might give rise to poverty.
Ms Coleiro Preca said that the fact that a gaming parlour needed to be distant from churches and schools did not mean anything. Gaming parlours were close to the Maltese families, she said.
People were continuously being bombarded by adverts with regard to lotteries, many of which might give rise in interest and desire of both those who were already gambling victims and those who were not. The government needed to consider what was best for society.
Ms Coleiro Preca said a portion of the Good Causes Fund should be allocated to effective structures presenting preventive and rehabilitation programmes with regard to gambling. The government should help agencies such as Oasis and Caritas on this issue.
Concluding, Ms Coleiro Preca said that just as health policies were implemented in schools, there was the need for introducing policies on lotteries as these were self-defeating. There were other ways of fund-raising in schools.
Labour MP Noel Farrugia said that former Finance Minister George Bonello du Puis had introduced the Super 5 Lottery which contributed to public revenue. But various commercial sectors complain that when the Super 5 fund is high, even grocery sales are affected.
The Australian authorities provided funds to address social problems emanating from gambling. Addiction was the result of lack of responsibility and it made sense for MPs to heed the bishops' advice.
Mr Farrugia said that he believed that there was scope for the development of gambling. Casinos had instilled some form of discipline but those who did not conform sought other avenues where to gamble.
He emphasised that Malta needed a structure to ensure education as the proposed legislation was not sufficient to protect individuals from the addiction of gaming. The government was trying to legislate on a problem which it had itself created.
He noted that when between 1986 and 1989 his party had given a casino licence it had ensured that severe conditions were imposed on the operator. He said the government lacked the will and had retracted a number of declarations.
He acknowledged that Minister Tonio Fenech was in a difficult situation. However, he criticised the Cabinet which did not show a resolute will on developing the economy even through gaming.
Evarist Bartolo (PL) called for the setting up of a responsible gaming trust with funds accruing from it and from the Good Causes Fund being used to give treatment to compulsive and pathological gamblers, for preventive education and for research.
This trust and the Good Causes Fund should not be administered by politicians or persons appointed by them because this gave rise to temptation to use such funds for political mileage.
He criticised the government for letting the gambling sector to flourish in a rampant way over the last few years with gambling parlours operating illegally or without the necessary permits or licences. Many operated in the vicinity of youth clubs and community centres.
Mr Bartolo said that international websites claimed that this sector was highly contradictory in Malta because the government was legislating to regulate while at the same time encouraging foreign companies to set up shop for online gaming and e-betting in Malta. This provided 2,000 jobs with annual revenue of between €30 million to €40 million. These websites accused the Maltese government of having no regret for causing damage to the social fabric in other countries.
The government had to induce these companies to contribute funds to this gaming trust as was done in the UK.
He said that the Good Causes Fund was used in Malta for political mileage as was the case in Mellieha where the present mayor Robert Cutajar had donated Lm10,000 to the Victoria Band Club before the local council elections and less than half that sum, €10,000, to the Imperial Club after the elections.
He also said that the Bill, which was an enabling law, gave wide powers to the minister and called on the government to consult the opposition to give its contribution on the drafted legal notice before its publication. He added that the opposition had proposed serious amendments to the Bill through the consultation process.
The rest of Mr Bartolo's speech and that of other speakers will be carried tomorrow.