The table below summarises the considerations and findings aligned with the analytical framework for government failure.
| Step | Description |
| Define the area of policy interest | - Gambling and gambling-related harm specifically relating to Class 4 gaming (pokie machines outside casinos) - Community group reliance on funding that is raised through the proceeds of Class 4 gaming |
| Determine the objectives of government action | - Controlling the growth of gambling - Reducing gambling-related harm - Requiring profits from gambling to be spent on charitable or non-commercial purposes for community benefit |
| Note the nature of information and coordination problems that can arise through reliance on decentralised, private decision making | - A large proportion of pokie profits are not returned directly to communities where the money was lost |
| Contrast the current or favoured government actions with possible alternatives | - Remove or significantly reduce the number of pokie venues and machines outside casinos - Allow only licensed clubs (e.g. RSAs and sports clubs) to operate pokie machines - Remove or change the advertising by gaming trusts that suggest gaming money will be returned to local communities |
| Identify opportunities for undue political interference in programme management | - Lobbying by large corporate societies or community groups that receive pokie funding puts pressure on central and local government politicians not to reduce the number of pokie machines |
| Identify opportunities for provider capture | - Funding the Ministry of Health and the Problem Gambling Foundation through money that is derived from gambling through the problem gambling levy creates moral jeopardy, which can impact on their independence and may lead to ineffectual policies and programmes |
| Identify perverse incentives and unintended outcomes | - Gambling operators have a disincentive to encourage problem gamblers to seek help, because the problem-gambling levy that operators must pay is calculated using an assessment of the number of clients accessing problem-gambling services |
| Propose changes in policy design to reduce observed government failure | - Introduce a pre-commitment system for pokie machines so that players must set limits on their spending |
| Consider ways that reliance on government action could be reduced over time | - Change the way the Ministry of Health and other government departments involved in problem-gambling reduction are funded and operated, to remove any real or perceived reliance on funding from gambling proceeds - Establish an independent body to develop, monitor and review key performance indicators to ensure that problem-gambling services are achieving their objectives on time and on budget |