Home - Topics - Gaming 'pokie' machines
Gaming 'pokie' machines
Should the council retain its policy of gradually reducing the number of gaming machines in the Wanganui district?
Why is council seeking public input now on this issue?
- In 2008 the council introduced a 'sinking lid' (gradual reduction) policy for 'pokie' machines. Since that time, sports clubs and community groups have approached council with concerns that their major funding source is being reduced. They have asked council to reverse its policy.
What is council's current Class 4 Gambling ('pokie machine') Venue Policy?
- The council's 'continuous sinking lid' Class 4 Gambling Venue Policy means no new 'pokie' machine licences will be issued in the district.
- There will be a continual reduction over time of 'pokie' machines as machine licences or venue licences cease operating.
What were the reasons for that decision?
- In 2008, the council reviewed its policy which, at that time, had no district-wide cap on the number of new machines.
- During the review, council received a significant number of submissions that provided compelling arguments for both a restrictive policy due to the social harm caused by 'pokie' gambling and a more permissive policy due to the social benefits 'pokie' machines bring a community.
- The council considered the arguments of social good versus social harm from 'pokie' machine gambling. It decided, on balance, that a more restrictive policy was needed to reduce 'pokie' machine gambling over time in the district.
What are the advantages of council's sinking lid policy?
- Reduces the number of gaming machines in the district over time.
- Aims to reduce the amount gambled on the machines over time.
- Aims to reduce gambling addiction in Wanganui.
- Aims to protect the people who can least afford to play the machines from becoming addicted.
- Aims to protect families and the wider community from problem gambling sometimes caused through playing 'pokies'.
What are the disadvantages of council's sinking lid policy?
- Over time is likely to result in less funding available for grants to organisations within the community.
- Could result in less money available for pubs and clubs to pay staff wages and other operating costs.
- May result in fewer machines and venues for the public to play gaming machines in Wanganui.
How does Wanganui compare with the rest of New Zealand?
- In 2008 Wanganui had 276 Class 4 machines and in 2010 we have 268, a reduction of 3%. Nationally there were 19,856 machines in 2008 which dropped to 18,944 in 2010 (down 5%).
- In the June 2008 quarter Wanganui people spent $2.8 million on Class 4 machines, whereas in the June 2010 quarter it was $2.5 million (down 11%). Nationally for the March 2008 quarter, people spent $218 million which has dropped to $199 million for the March quarter 2010 (down 9%).
- The total proceeds (turnover less winnings) per year through the district's machines is approximately $10 million for Wanganui. Of this amount approximately 37% goes by way of grants to Wanganui and regional entities, 34% to the crown and 24% as direct gaming venue operating expense costs.
- There is a national trend of decreased turnover through Class 4 gambling with up to 10% decline over the last few years. This is due to a combination of factors including a more regulated and controlled gaming environment, smokefree environments, increased gambling within TAB, Lotteries and on-line environments and the recession.
- Approximately 8% of the population play 'pokies' and 1 in 5 (20%) will have current gambling problems.
What are the next steps?
- The referendum results will determine whether the council's Class 4 gambling policy is suitable in its current form or should be reviewed. If the result suggests that the gambling policy needs to be reviewed then the council will need to formally review its Gambling Venue Policy 2008 using the special consultative procedure required under the Local Government Act.
- This will include public consultation displaying any proposed changes to the policy, including the options and reason for change. Public submissions, including those from the gaming industry, will be sought.
- Council will hear and consider all submissions and determine the final gambling venue policy for the Wanganui district. This policy is subject to any future changes the council decides on, following a formal review process.
Introduction || Home
