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Home / Horowhenua Chronicle

Horowhenua District Council continues with sinking lid pokie machine policy

Paul Williams
By Paul Williams
Journalist·Horowhenua Chronicle·
10 Nov, 2021 05:47 PM4 mins to read

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Horowhenua wants to maintains its sinking lid policy on pokie machines.

Horowhenua wants to maintains its sinking lid policy on pokie machines.

The amount of money lost in Horowhenua to electronic pokie machines continues to increase despite a global pandemic and attempts to curb their number.

The average amount lost each day had now reached a record average of almost $30,000 - almost $1 for every man, woman and child in the region every day.

Department Internal Affairs figures showed a Gaming Machine Profit (GMP) figure of $9.4 million in Horowhenua in 2019 - prior to the outbreak of Covid-19 - figures that were since bettered.

The total GMP for Horowhenua for the year ending June 2021 was more than $10m - the highest 12-month period on record - with a total of $2,628,524 recorded as lost in the last quarter of that period.

GMP was the aggregate winnings of each machine, minus payouts. New Zealand recorded its highest quarterly GMP of $260,617,914 for the three-month period ending June 2021.

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Those record figures were in spite of a decrease in the number of venues nationally by 15 for the year to June 2021, while the number of gaming machines nationally decreased by 143 compared to the previous year.

All local authorities were required to have a gambling policy. Horowhenua District Council decided at a meeting this week to continue with a "sinking lid" policy on the number of poker machines and pokie dens within the region.

HDC first adopted a policy to cap the electronic gaming machines in 2004. In 2007, a new policy introduced the sinking lid approach that would aim, in theory and time, to reduce the number of machines and venues.

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In 2015, there were 11 venues within Horowhenua operating 164 machines. At the end of last year, there were nine venues operating a total of 146 machines. As of June 2021, there were eight venues and 139 machines.

Under the sinking lid policy, once a venue closed a new licence would not be issued to replace it. Pokie machine venues could still merge, but could only operate two-thirds of their original combined total of electronic machines.

There were limits on the number of machines per venue, varying between nine and 18, depending on when a venue licence was granted. If it was before October 2001, the maximum number was 18, otherwise the maximum number was nine.

HDC's policy stated only an "Act of God" would permit an existing poker machine venue to set up camp anywhere other than their existing site, although there were still questions around how that term was defined.

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The number of licensed non-casino gaming machines in New Zealand peaked at more than 25,000 in June 2003, the last full quarter before the Gambling Act 2003 became law.

Pokie machines were owned by Gaming Trusts and Societies. Profits from each machine were recorded by a DIA Electronic Monitoring System and collected by the trust that owned the machine.

According to DIA information, about 25 per cent is spent on fixed costs such as duties, levies and licencing fees, while running costs had to be "actual, reasonable and necessary".

Societies had to distribute no less than 40 per cent of proceeds each year, excluding GST, to communities. In 2019, grants handed out within the Horowhenua Community totalled $782,000.

A levy of 1.5 per cent was set aside to address problem gambling.

DIA information showed the intention of the commission rate was to cover the actual costs of operating gaming machines, without allowing venues to profit from their operation.

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It states: "Venues must not be reliant on gaming revenue for survival." Societies were not allowed to make any payments to venues other than the commission payment.

Pokie venues received a commission payment that was a percentage of the GMP and can claim up to 16 per cent of the generated GMP to cover operating expenses.

HDC was required by law to review its policies on pokie machine venues and TAB venues every three years.

One stand-alone TAB venue was permitted within its rohe, although at present there were none. There were designated TAB venues, one in Levin and one in Foxton, but those outlets both closed years ago.

There was still provision within the Racing Industry Act for one stand-alone TAB venue in Horowhenua. There were several TAB self-service outlets at various bars and clubs with the region, although those facilities did not form part of the policy.

Where horse racing used to be the only game in town, there was now a wide range of gambling activities in New Zealand, including casinos, electronic gaming machines, Lotto, Instant Kiwi, sports betting, Keno, housie, internet gambling, and telephone gambling.

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