“Research by the Ministry of Health has shown that ethnicity and socio-economic factors correlate highly with gambling-related harm,” the council wrote in its response.
“Tairāwhiti's population is 53 percent Māori and the district's high levels of deprivation mean problem gambling is likely to be disproportionately affecting certain parts of our community.”
The region, home to about 50,000 people, has 11 venues collectively operating 159 gaming machines. All are in high deprivation areas.
Since 2013, the Tairāwhiti population has grown approximately 8 percent, while its gaming machine proceeds have increased by almost 60 percent since early 2015.
The letter of response drove home the gap that had been left by the lack of a dedicated, regional gambling-support provider for the past five years, estimating that $600,000 of allocated annual funding remained to be used for the region.
In that time, more than $38 million had been lost in pokies.
Asked by the ministry if it believed there was anything important it might be overlooking, the council responded that it should reconsider the appropriateness of the country's community funding model.
The council said the funding model often redistributed funds from those least able to afford it to groups that should have other funding options available.
The system created a reliance on gambling funds and incentives that were inconsistent with the goal of minimising gambling-related harm, the letter said.
It gave the example of the New Zealand Community Trust's August decision to decline a funding application from the council because its Gambling Venue Policy 2022 focused on reducing the number of venues in the region.
Debate at Thursday's council meeting was brief, with strong support for the council response, but councillor Debbie Gregory took the opportunity to say she was “astounded” to find out the community trust's reason for declining the application.
Councillor Rawinia Parata echoed the written response, saying her pocket of the region was feeling the effects of problem gambling.
“I come from a community where we have a gambling problem, and lots of people who do gamble … are being exploited. There must be another way (to fund community projects) that isn't causing addiction and pain.”
In its recommendations to the department, the council also requested increased visibility on the licensing and compliance process for Class 4 venues, saying that during policy reviews it was unable to assess if venues were doing enough to minimise gambling harm.
It also recommended a broader review of the Act, suggesting the department expand local government's authority under it to deliver “meaningful polices and action”.
The Gambling Venue Policy was a weak tool which could prevent expansion of gambling venues but had no effect on the existing number of venues, the council said.
“Community feedback on the district's Gambling Venue Policy reviews in 2015, 2019 and 2022 has consistently indicated majority support for reducing the number of machines and venues in the region,” the letter said.
“However, the Act does not provide local government with the tools to achieve this community outcome.” Feedback was due to the department by today.
Gisborne District Council has sent a clear message to the Department of Internal Affairs over issues affecting its ability to address problem gambling in the region.