Online gambling review should not ignore the problems in our own backyard – Charles Livingstone

As those who watch sport will attest, online gambling is seemingly ubiquitous. Certainly advertising for it is.

In Australia, the regulation of gambling services is a matter for state governments. However, the federal government has responsibility for telecommunications, which includes the internet. So, there is some division of responsibility for online gambling. This has arguably left the area less well regulated than it might be.

This is one ostensible reason the federal government has announced a review of the online gambling industry.


The current federal legislation is the Interactive Gambling Act. It allows Australian operators to offer online betting. It also seeks to prohibit the provision of casino-style gambling – roulette, slot machines – to Australian residents, but doesn’t prohibit Australians from using such services.

This means that Australian-registered services are not allowed to offer some gambling services, but are permitted to take online bets.

The most recent review of the act reported in 2012. It concluded that it would be useful to consider a trial of some online gambling – suggesting online poker, which is thought to be a less harmful form of gambling than slots or other casino-style gambling.

The review also recommended a host of harm-minimisation measures be introduced into the online gambling arena. These included a pre-commitment system, an effective self-exclusion system and much-improved practices among bookies. The review recommended that better enforcement of offshore providers be implemented, although effective regulation of extra-jurisdictional gambling providers is likely to be futile.

Nonetheless, the review suggested that banking institutions should be rewarded for blocking transactions between Australians and nominated unlawful gambling providers. This may have some effect, although mainstream banking institutions provide only some of the plethora of ways of moving money around the world.

A recent Financial Counselling Australia report highlighted a number of what can only be regarded as very dubious practices among prominent bookmakers operating under Australian regulation. These include extending unsolicited lines of credit, failure to pay winnings on request and repeated inducements to gamble.

These practices are not caught by current consumer protections under credit law or gambling regulation. Bookies also appear to regularly share data on their customers, which is likely to breach privacy legislation.

What this review will focus on

Media reports early this month – when Social Services Minister Scott Morrison confirmed that a review would be held – appeared to focus on a range of the issues highlighted by the 2013 review, including consumer protection.

However, the terms of reference headlined this new review as being into the:

Impact of Illegal Offshore Wagering.

In fairness, one of the terms of reference of the review is concerned with increasing consumer protection.

It will be a quick review. The final report must be with Morrison by late December. Submissions will be sought from industry and the public.

Those concerned with the growing harms of online gambling – and particularly sports betting – will be disappointed with the terms of this review. There are a number of pressing concerns that, from a consumer protection perspective, might have ranked higher in both the terms of reference and Morrison’s messaging.

Online bookies are competing for market share in Australia, where the operators now include global giants such as the British bookies Ladbrokes and William Hill. Their practices have attracted considerable criticism as the scramble for revenue escalates.

Troubling practices include the continuing provision of credit, the pushing of boundaries on such issues as the prohibition of online in-play betting, and blanket advertising of their wares – including to children during sporting events – and the aggressive branding of sporting teams with gambling providers.

What is Australia’s real gambling problem?

Sports betting in Australia is likely to generate revenue – that is, player losses – of around A$750 million in 2015-16. It is the fastest-growing gambling sector and is likely to produce a new wave of gambling problems among the young men to whom these products are marketed.

Although modest in comparison to poker machines – which generated around $11 billion in losses in 2014-15 – it needs to be effectively regulated if Australia is to avoid adding to the already significant burden of gambling harm. The good news is that preventing this harm is actually quite straightforward.

Unfortunately, substantial and powerful segments of the Australian body politic are now closely affected by the fortunes of the bookies. These include Packer interests via CrownBet, the AFL’s official wagering partner. State and territory treasuries are also abundantly interested in maintaining the flow of money.

It is worth asking if the offshore online gambling sector is Australia’s most pressing gambling problem. Undoubtedly, some Australians get into a lot of trouble gambling online. Most of them will fall prey to bookies already licensed in Australia and offering services lawfully. Some will end up in trouble because of offshore sites offering unobtainable services such as online slots or roulette.

Overall, the market going to such offshore providers is estimated at around $1 billion, although there is no way of verifying this under current circumstances.

But, at least 75% of those with a gambling problem have it because of poker machines in clubs or pubs. We see little concern from the government about this group.

And, even in the online gambling environment, there appears to be little concern about first cleaning up our own backyard. The 2013 review made some very sensible recommendations about harm minimisation, including restricting or prohibiting credit betting. This is clearly a source of considerable harm to many. And prohibiting credit betting is in fact current federal government policy.

The Financial Counselling Australia report provided ample evidence of the excesses of the Australian online gambling industry. A recent whistleblower article from within the industry confirmed these concerns. These need to be a major focus of any review of the Interactive Gambling Act and other relevant federal legislation, including the regulation of advertising and banking services.

But if the renewed urgency behind this review is to highlight the “dangers” of offshore online gambling providers, then the bookies will be arguing as hard as they can that the solution is to allow them to offer the same services from Australia. After all, the internet is notoriously difficult to regulate and service providers licensed in Australia would be expected to observe Australian regulation.

It is important to ensure gambling is properly regulated. But it is probably better to address the main game first, or at least simultaneously. That involves making sure that current providers are adhering to the best possible harm-minimisation practice.

The 2013 review set up a clear set of goals for that. We don’t need another review to know what needs to be done, or to do it.

One step toward letting yourself lead: Let go! – Renee Charney, Ph.D. Candidate

One step toward letting yourself lead: Let go!

I asked her a question that encouraged her to step back and reflect a bit:  “What do you want?” She thought about it for a minute and then answered: “I want my team to do what I want them to do!”

Now we really had something to explore.

Many times new leaders (and, at times, seasoned leaders, as well) get securely attached to their own ways of performing a job; their way is the right way because, as their personal experience demonstrates, it’s been those very skills and techniques that got them into the position they now hold; it’s because they did a great job.

But here’s where leaders might get derailed. If they hold fast to what they know best, their expertise, they squander the opportunity to truly lead.

Rooke and Torbert (2005) suggest that great leaders are not differentiated by their personality or management style, but rather their “action logics”—how they react (or act) when they step (or are pulled) out of their comfort zone. People, according to the model, fall into one of seven of these action logics, which include such groupings as achievers, experts, diplomats, strategists, and individualists.When we allow ourselves to step back, reflect, consider others’ perspectives or ways of doing a task, we ourselves grow to be more inclusive and relational in our leadership capacity. And, by doing so, we can also transform how our organization develops across teams by modeling the same behaviors and, by extension, enriching the environment for others to also develop.

Rooke and Torbert (2005) further suggest that most of our working population rests within the action logic stage of “expert”—actually 38% of the working population—someone who may be well-suited as an individual contributor due to his or her technical expertise and, possibly, less suited to be the developmental leader needed to grow others.

Here’s the opportunity.

When leaders are willing to practice new habits of letting go, and allow their team members to try new things (and, perhaps, perform tasks that might not map directly to what they would have done), amazing and wonderful things happen – for both the leader and the team.  In Rooke and Torbert’s (2005) “action logic” language, this behavior demonstrates a later stage of development called the “achiever” stage (30% of the population), which occurs when a leader expands her capacity to focus on team development and team goals, rather than on personal expertise and personal goals. As you might imagine, as adults expand their capacity to let go, step back, and enable others to take more responsibility, make more independent decisions, and deepen their capacity to “lead in place” (Wergin, 2007), this leadership growing pattern becomes more challenging; leaders must be able to enter into the unknown and trust others’ capacity to lead. This leadership development process enables teams the opportunity to step up and take the lead on projects, and to learn from both their successes and mistakes. The leader, in turn, gets to learn new ways of doing tasks and, by extension of the willingness to let go, deepens the loyalty and trust across the team.

My client decided to give it a try to let go and see what would happen. She decided to let herself lead. What she noticed was enlightening!  Her relationships with her team members became richer, their creativity soared, and they began to make decisions independently. She then gained more time to work on her own tasks, thinking and planning strategically (and was able to answer her emails in time to get home to her family at a reasonable hour). She grew as a leader and gained the respect of upper management as her team achieved results that exceeded expectations.

A simple shift of thinking can make all the difference as we commit to growing ourselves as leaders and to growing our teams. Letting go of what we know andletting ourselves lead can be that simple shift. What possibilities to let go might you see within your leadership life?

New Managers Need a Philosophy About How They’ll Lead – Carol A. Walker 

Being promoted to manager is a good sign you’ve been successful to date — however,  the road from this point forward gets trickier to navigate. Your job is no longer just about getting the work done. You’re more likely now to find yourself juggling conflicting demands, delivering difficult messages, and addressing performance problems. While there is no guidebook of straightforward answers to your new challenges, having a clear philosophy can provide a firm foundation from which to.

With respect to your career, a philosophy is simply a cohesive way of thinking about your role. Very few people take the time to establish one. Most managers live in a reactive mode, responding to issues based on gut feelings, past experiences, and examples set by others. The success or failure of this approach is often determined by your temperament (some people are naturally more gifted managers than others) and the caliber of your role models—two factors largely out of your control. Whether you’ve been lucky in these areas or not, having a core philosophy can help guide you through the day-to-day and the job’s tougher moments.

The idea of “servant leadership” is a great place for new managers to start. Robert Greenleaf coined the term 35 years ago, but the concept is still vital and empowering. Granted, “servant” doesn’t sound nearly as powerful as “boss,” but it has the potential to deliver far more of what most of us are really after: influence.  The reason is simple. When you have a servant mentality, it’s not about you. Removing self-interest and personal glory from your motivation on the job is the single most important thing you can do to inspire trust. When you focus first on the success of your organization and your team, it comes through clearly. You ask more questions, listen more carefully, and actively value others’ needs and contributions. The result is more thoughtful, balanced decisions. People who become known for inclusiveness and smart decisions tend to develop influence far more consistently than those who believe they have all the answers.

Servant leadership is most powerful when applied to managing employees. The first step in embracing this mindset is to stop thinking that your employees work for you. Instead, hold onto the idea that they work for the organization and for themselves. Your role as servant is to facilitate the relationship between each employee and the organization. Ask yourself, “What will it take for this employee to be successful in this relationship?” And, “What does the organization need to provide in order to hold up its end of the bargain?” When these questions drive your thinking, you advance both parties’ interests. (The same principles apply to managing products, supply chains, and customer relationships, but we’ll keep our focus on employees here.)

Does servant leadership prohibit telling people what to do or correcting their behavior? On the contrary, it means that you must do these things to facilitate an individual’s success within the organization. The key is that your mind is in “servant mode” when you perform the daily tasks of management.

For instance, assigning work should be a thoughtful process that balances business goals with an individual’s interest, skills, and development needs. Not every routine task has to be so thoroughly considered. But whenever significant assignments are made, putting them into context maximizes their impact. An employee who understands why she has been asked to do something is far more likely to assume true ownership for the assignment. When she owns it, you become more guide than director. You ask how you can support her and how she would like to report progress rather than tell her these things. An employee who believes her boss understands her strengths, values her input, and encourages her growth is likely to stick around for the long-term.

Clearly, the servant approach to assigning tasks requires more thought and preparation than simply dishing them out. It takes time. But remember that you are actually multitasking—you are making sure the work gets done while simultaneously strengthening the individual’s relationship with the organization.

Adopting the servant philosophy should also make it easier to provide corrective feedback. You are merely a facilitator, and facilitators aren’t angry, frustrated, or resentful when they deliver feedback, because it isn’t about them—it’s about the relationship between the two other parties. For that reason, exercising the servant frame of mind makes development conversations feel less personal. You aren’t disappointed in your employee’s actions; you are simply explaining how they get in the way of what he’s trying to accomplish for himself and the organization. When your only agenda is setting someone else up for success, your words tend to be received more openly. True upset happens when either party’s interests are allowed to suffer over time without intervention. It must be the manager’s primary concern to balance those interests.

By definition, developing a reputation takes time. However, when you are consistent with the servant approach, people know what to expect from you and trust ensues. Trust, combined with the smart, inclusive decision-making discussed earlier is a surefire way of gaining influence.

We’ve just scratched the surface of the many challenges that you will confront as a first-time manager. There is simply no way to anticipate them all. But a core servant leadership philosophy will provide critical guideposts to help you manage in real time. Whatever your temperament, a serving mindset will keep you out of the reactive and self-protective patterns that can impede your success. Servant leadership may not appeal to those who are attracted to a more traditional idea of power, but it should be the choice of those interested in influence and results.

Let’s start a lemonade stand! – John Hussman


OK, boys and girls. It’s been pretty hot out lately. So we’re going to start our own lemonade stand!

What? Jimmy, Sally, and Bobby all have lemonade stands just on your block alone? See, this is why I’m a professional money manager and you’re not even out of middle school. I only have two words for you: Global Warming. It’s a New Era. That’s all you need to know. Now go and borrow $100 from your Mom.

… I’ll wait.

Got it? Great. Now you’re deeply in debt, far beyond your ability to earn income, in an industry ridiculously overburdened with capacity. Hey, we haven’t been at this more than 30 seconds and you’re already qualified to run a telecom company! See how much you’ve learned already?

Now let’s go public. Go to your Dad and offer to sell him your business for $100. We’ll still have to pay Mom back, but Dad will have a claim on everything else.

… I’ll wait.

Holy smoke, you’re a natural. Alright now. Let’s take that $200 of investor money to buy some stuff: a lemonade stand, pitchers, spoons and ice buckets. Since the lemonade stand is cheap, you’ll have to spend another $10 a week to fix it as it “depreciates,” but we’ll deal with that later.

You’ll also have to pay for some other things before we show a profit. The lemonade mix and paper cups will be part of your “cost of goods sold.” Since you’ve got a credit rating of about F-, Mom wants $10 a week “interest” on her loan. Finally, there’s the big kid. For every dollar of profit, you’ve got to give him 40 cents or he’ll give you a wedgie until you cry “Uncle.” We’ll just call him the Uncle.

You’re off to a great start! In the first week, you’ve sold $50 of lemonade. Subtract off $20 as “cost of goods sold” and the $10 that you’ve stuffed into your pocket as “selling, general and administrative expenses.” Congratulations, you’ve earned $20 in “EBITDA” – earnings before interest, taxes, depreciation and amortization. Now subtract that $10 of depreciation, and you have $10 in “EBIT,” otherwise known as “earnings from operations.” Call CNBC. Also, make sure to buy the lemonade mix and cups with an IOU and don’t replace the depreciation, so when Dad looks into your cash register, he’ll actually see $40 in “cash flow from operations,” underscoring the “quality” of your earnings. Sweet.

But let’s take a closer look at what Dad can actually claim if you actually intend to stay in business. $50 revenue, minus $20 cost of goods sold, minus $10 administrative expense, minus $10 interest, minus $10 to replace depreciation, gives $0 in “net earnings.” The good news is that you don’t owe anything to the Uncle.

Hmmm. Which number should you report to Dad? $20 of EBITDA or $0 of net earnings? Hmmm.

Wait. Even better. Let’s classify the lemonade mix and cups as an “investment.” We can also underdepreciate the lemonade stand. And we’ll write both off as “extraordinary losses.” After all, the stand wouldn’t have worn down had it not been for the existence of time, and our investment in lemonade mix and cups would have survived had it not been for the existence of customers. That leaves us with EBITDA and operating earnings equal to $40. Yes, that’s much better.

Week two. Unfortunately, the novelty of lemonade has worn off in the neighborhood, and it’s a little cooler out too. As it turns out, you’ll only be able to take in $25 a week in revenue from now on. Now we’ve got $10 in cost of goods sold, $10 in administrative costs, $10 of interest costs… Oops! We can’t even make our interest payment, much less replace depreciation. And nobody wants to buy a used lemonade stand. Suddenly, Dad’s investment is worthless, and we’ve got to default on our debt to Mom.

But hey, we can still report $5 in EBITDA! Maybe nobody will notice.

The changes Australia must make in the digitally disrupted world

If we are to keep up in the new world, I think Australia needs to change. We are besotted with the “corridor of comfort” – we don’t like tall poppies and distrust bankrupts – we like the middle too much.

We need to celebrate our successes and support those who fail. In the words of Winston Churchill: “Success is stumbling from failure to failure with no loss of enthusiasm.”


How Your Boss Views Failure Determines Your Success – Oscar Benjiman

As Americans we spend the majority of our lives in a cubicle or office somewhere, working diligently as a cog in some giant machine. All so that we can afford essentials like housing, transportation, health care and food. Money continues to top the charts as the thing that brings us the most stress, and it’s no coincidence that our jobs come in a close second.

For many of us, the biggest pain point on the job comes from the relationship we have with our boss. A boss that doesn’t know how to properly motivate, challenge and credit employees can have a overwhelmingly negative impact on their team. What’s worse, once employees start leaving reviews on sites like Glassdoor.com, the manager’s actions, or lack thereof, can have a truly adverse effect on the company’s brand and especially its ability to acquire new talent.

After all, employees who are highly skilled have options, and rarely do anything just for the money. So why would they ever choose to work in a toxic environment?

Now, when I use the terms “boss”, “supervisor” or “manager”, I’m referring to everyone from c-level executives to mailroom employees. There’s hardly an organization that doesn’t have at least one manager who turns their division into a petri dish of bad ideas. Typically it’s because they take advice from dopey management books, misapply lessons from stories of the lives of famous CEOs, or implement a surface level understanding of human psychology that they get from online magazines.

I’ve manned cash registers, worked on research teams, have been a middle-manager, owned a small business with 6 employees, and directed a team of 30…so I know what it’s like to be a manager, and I’ve also dealt with many of them in a wide variety of situations. Those experiences, coupled with years listening to family, friends, colleagues and strangers rant about their bad bosses, have given me a rich perspective.

Whether you’re actively searching for new employment, hiring managers for your company, or simply making a decision about whether to stay with the organization you’re in now – there’s one key indicator that signals that you may be dealing with a manager from hell.


Some of the most inept and unsuccessful managers I’ve known have seen failure as a curse word, a proverbial third rail that should never be touched or crossed. Some even went so far as to change the definition of success midway through a project to avoid failure.

From the outside, or perhaps from first-hand experience, you might empathize with their situation. You might see it as a manager protecting their team or company from the barbarians at the gate. After all, failures such as missing goals can depress stock prices or ruin a company all together. Isn’t the fear of failure a good thing?

Simply put, no. As noble as a manager’s intentions might appear, the fear of failure is a perfect recipe for mediocrity and obsolesce.

Thomas Edison cut to the heart of the matter when he said, “I have not failed, I’ve just found 10,000 ways that won’t work.” Whether it’s testing drugs that cure diseases or figuring out how to launch and land reusable rockets on Mars, failure is a vital part of the equation.

It’s just as important to know how to do a thing, as it is how not to do a thing.

I’m not suggesting that managers who wear failure as a badge of honor should be celebrated. What I’m saying is that managers who are willing to take risks to reap big rewards are invaluable to both the company as well as the team they manage. How a manager views failure is important, because that mindset carries with it a slew of  other valuable character traits.

When your boss can appreciate failure’s place in the workplace, you can expectnot to be thrown under the bus every time they need to account for a failure. You’ll likely have the opportunity to learn new skills and gain a great deal of autonomy at your workplace, since you’ll no longer be mired in BS and trying to maintain the status quo. You might even be given credit for your successes…imagine that. Most importantly, you will find purpose in the work you do, while simultaneously building a stellar resumé for any future pursuits.


However , if you’re in a situation where your manager acts like the one in the Dilbert cartoon below, your best option is to simply leave. Sure, there are circumstances where getting a different job isn’t feasible, but more often than not, that’s just something we tell ourselves so that we don’t have to  deal with the uncomfortable reality of change.

If you do find yourself working for the boss from hell, leave before the stress kills you, both figuratively and literally. Once you decide to leave, here are a few basicsthat will improve your job search:

  1. Get active on LinkedIn in your particular field of expertise. This means interacting within Groups, as well as creating content for LinkedIn Pulse
  2. Browse open job positions on LinkedIn as well as other career sites, taking note of skills you don’t yet possess
  3. Learn those skills at your job by requesting training, being part of a specific project, or by learning it yourself. Acquire these skills by whatever legal means you can imagine
  4. Work on building your own website as a portfolio to showcase your thoughts, talents, abilities, and general knowledge
  5. Use social media to connect with other like-minded individuals, past employees and other potential contacts

This will take time, so set a realistic hard date for your exit once you’ve figured out how much time you need to acquire new skills and showcase current ones. This is of utmost importance, because it will solidify your plan in your own mind and make it more real. And, of course, don’t be afraid to fail. Just remember to document and learn.