Pokies rules will ‘slash’ charities, arts funds

The body representing gaming societies has warned new regulations will slash millions of dollars from the pool available to give to sport, art and charity groups.

At a press conference attended by Athens Olympic gold medallists Sarah Ulmer and Hamish Carter yesterday, the Charity Gaming Association warned the rules would cut the funding available for distribution by $28 million to $48 million annually.

Rules governing payments to pubs will be introduced in two waves - today and on December 1 next year.

Gaming machine trusts pay venues to operate machines but association chairman Paul East said the cut to their revenue meant operators would have to reduce opening hours, staff and even the number of machines on their premises.

The rules would hit the top 20 per cent of venues, which currently contribute 60 per cent of the money available to distribute to community groups.

Caps are introduced limiting hourly, weekly and venue operating costs from today.

From December 1 next year a cap of 16 per cent of gaming machine profits will apply to the amount each gaming machine society can pay in expenses to its venues, a reduction from about 20 per cent now.

Mr East said the changes would hit many worthwhile charitable and sporting organisations.

The association was the largest donor to the Olympics and Commonwealth Games Association, with a grant over the last three years of $4.3 million.

"We hope to make a similar contribution in the future, but that has got a cloud of doubt over it at the moment given that we have to wait and see what the impact of these changes will be on the profitability of the charitable trusts," he said.

The bar smoking ban due to come into force on December 10 would also hit patronage and therefore gaming machine revenue, he added.

Ulmer said this year she had won two world cups, the world championships and her Olympic event, yet her total prize money was just over $800 so she could not rely on that.

"In Olympic year having the support of the New Zealand Olympic Committee through the Charity Gaming Association it's just part of the whole equation ... in order to be able to have a completely uncompromised buildup."

But the department's gaming and censorship regulation group director, Keith Manch, said while it would monitor the regulations' impact it was satisfied the rules were appropriate.

Limiting pub expenses had been done because of concerns some publicans had been getting more than the reasonable and necessary costs of running the machines.

"The actual cost associated with running gaming machines in our view are more than covered by the limits on expenses," he said.

"The Charity Gaming Association, on behalf of the venues that are going to lose some of this money, is running quite a significant campaign to get the policy changed."