Appl Ex 5j

Question 1

The Federal Government’s approach to problem gambling can be described as ‘soft paternalism’ as it relies on the use of nudges. The government is using messaging to through the media to encourage gamblers to change their behaviour rather than prohibiting or placing restrictions on gambling. In other words, gamblers still have the choice to gamble without restriction if they wish

 Question 2

The Tasmanian Government’s approach can be described as ‘hard paternalism’ where the government imposes limits or restrictions on how much gamblers can wager. For example, the use of mandatory pre-commitment schemes where daily, monthly or annual limits are set on how much people can wager or gamble. This is depriving people of the choice to gamble as much as they please.

Question 3

The Federal Government’s approach is an example of ‘soft paternalism’ while the Tasmanian Government’s approach is an example of ‘hard paternalism’. Soft paternalism relies on the use of nudges designed to subtly coax people to change their behaviour while not removing choice. While hard paternalism removes choice and employs financial penalties.

 Question 4

Problem gamblers often have unwarranted faith in their ability to win back any losses they incur. That is, they are subject to the ‘over confidence’ bias. They also are prone to the present bias. Where they overvalue the present and undervalue the future. That is, they can get caught up in the thrill of gambling in the moment without giving sufficient regard to the future consequences i.e., the monetary losses from gambling and the impact of these on their wellbeing and family.

 Question 5

This is research dependent. Given it is a discuss question students must provide arguments for and against.