Complaints of illegal poker tournaments being run in Bay of Plenty pubs are being investigated by Government gambling inspectors.
The popularity of Texas Hold 'em poker nights around Western Bay bars has led to complaints about instances of entrepreneurs who run the tournaments being paid a fee by pub managers.
The Internal Affairs Department's gambling compliance director Mike Hill said he was concerned about the number of potentially illegal gambling activities that were being planned or were under way in the Bay.
While he was unable yesterday to spell out the specifics of where or how many pubs were potentially breaching the rules, it was being driven by complaints about the way some tournaments were being run.
"Venues are making arrangements with specialist entrepreneurs who offer to run gambling activities such as poker games, with additional games of chance or lotteries, for a fee."
Mr Hill said pub managers risked heavy penalties if they were found to be breaching the laws under the Gambling Act.
The bottom line was that publicans could not receive money for allowing poker tournaments to be run on their premises, and neither could they pay a fee to organisers, apart from reimbursement for legitimate expenses.
Texas Hold 'em poker has become so popular that there is usually at least one tournament operating most nights in Western Bay bars.
They are usually careful to ensure that total prize money per event did not exceed $500 and that all stake money was returned to players, with the exception of reimbursement for actual costs to run the evening.
Where stake money exceeded $500 per event, the purpose of the gambling must be to raise money for community and charitable organisations and the event must be run by a society.
Alan Sciascia, the Hotel Association of New Zealand (Hanz) representative for the Bay and Waikato, was not aware of any licensed establishments being held to account by the Department of Internal Affairs.
He said the 270 establishments covered by Hanz represented about 80 to 90 per cent of bars in the Bay and Waikato - with most public poker nights taking place in bars.
Mr Sciascia said the legislation kicked in as soon as a payment was made to play.
Patrons could be charged to play but the money must go into the gambling pot.
"Broadly speaking, no one can profit from the activity," he said.
He said one of the department's inspectors had met with licensees and Hanz members were very aware of their responsibilities. Inspectors frequently and openly visited poker tournaments to check the rules were being met.
If the games were not being run on a pay-to-play basis, then a commercial organisation could be paid by a publican to run a promotion. At least one large operator was offering prizes for the most successful poker players at the conclusion of a series lasting a few weeks or a month.
One Tauranga publican, who spoke to the Bay of Plenty Times on the condition of anonymity, said interest in his poker nights appeared to be waning. The 50 people that used to attend his weekly poker night 12 months ago had dropped to about 20.
He said they were a different breed of patron who made one beer last a long time because they became so engrossed in gambling.
Crackdown to flush out illegal poker evenings
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