New Zealanders pumped more than $883 million into pokies through 2017 and approximately $300 million is returned to the community each year in the form of grants.
Problem Gambling Foundation director of communications and marketing Andree Froude said the social cost from pokies far outweighed any benefit received from funding.
“The reliance on funding from pokies poses an ethical dilemma for many of the community groups that benefit from this money.
“These machines are disproportionately situated in our poorer communities, so the money is coming out of the pockets of those who can least afford it.
“While the spend on pokies nationally had been trending downward, over the past few years we have seen the spend increasing, despite machine numbers declining and venue numbers decreasing.”
Ka Pai Kaiti made ethical choiceIn 1988, electronic gaming machines were legalised for hotels and clubs and have become a feature of many pubs, clubs and sporting venues, tucked away in discreet, walled-off corners around the country.
There are about 16,000 pokies in New Zealand (outside of casinos).
Of these 3000 are owned by sports clubs and RSAs but the bulk are owned by community trusts.
Pokies activity is captured by Internal Affairs using an electronic monitoring system connected to non-casino gaming machines nationwide.
They are supposed to be a bit of harmless fun but the reality of gambling addiction is far from fun.
“Pokies are highly addictive machines, the major cause of gambling harm and the primary mode of gambling that people seek help for.
“It is estimated that 40 percent of the money lost on pokies comes from people with gambling problems,” said Ms Froude.
Anti-gambling harm campaigner Lizz Crawford said addiction to pokies was not just exclusive to those sitting in front of the machines, but endemic to the system.
“Funding received from gambling sources including pokies, Lotto and the New Zealand Racing Board are just as addictive to communities, business and central government and the tax system, as it is to those who gamble or the whanau who have to live with the choices of those close to them.”
The Problem Gambling Foundation has called on other regional councils to follow the lead of Hamilton City Council, who made the decision to stop accessing money from pokies to fund community projects in 2017.
“Hamilton City Council showed real leadership on this issue and it would be encouraging to see other councils do the same.
“Councils have the authority to determine the numbers of machines in their community so they are in a position of conflict if they then benefit from grants that come from those very machines,” said Ms Froude.
Anti-gambling campaigners Ka Pai Kaiti have also been recipients of gaming trust funding.
Manager Tuta Ngarimu said they had been open about having received gaming trust funding but began to see a paradox as they explored where the money came from.
“We noticed the actual harm and abuse that was happening outside a pokie venue that was right next to our offices.
“I decided to look into what was going on and what I saw really challenged my views.
“Our people were in there every day hoping to win big but walking out with nothing, only to repeat that hope week after week with the same results.
“Kids were waiting outside for parents. Domestic violence and really bad behaviour has been a constant coming from that one venue.
Mr Ngarimu began to look at other venues in Gisborne and witnessed similar behaviours.
“We made a commitment to not access any funding that came from gaming machines, which was an ethical choice and continues as our stance to this day.
Mr Ngarimu says he understands how reliant communities have become on gaming trust funding.
“The fact we are now so dependent on this pokie funding everyone from the government to central government, and community sports trusts and organisations means it’s going to be an uphill battle trying to close them down.
“The challenge for us is to find another ethical stream of funding that will sustain our communities so we can turn off the unethical tap for good.”
