Pokies spending falls in economic squeeze

Outlay on gambling machines down 4.2pc - below $200m for first time since 2007. Photo / APN

Pokie spending has fallen again as tough times force New Zealanders to cut back on gambling.

Spending dropped by 4.2 per cent from the same time last year to $199.9 million in the first three months of this year, the first fall below $200 million since a new electronic monitoring system started in 2007.

The number of pokie machines outside casinos also fell by 3.2 per cent in the past year and is now almost a quarter below their peak just before a new law in 2003 allowed local councils to impose "sinking lids", not replacing gaming licences for venues which closed down.

Seasonally adjusted spending has dropped in almost every quarter since the new monitoring system began and is now 8.5 per cent below the same quarter of 2008.

Community Gaming Association chief executive Francis Wevers said the decline was almost solely due to the recession.

"As the economy has tightened up, some venues that were marginal at best have closed," he said.

With bars required to pay out at least 37.12 per cent of their revenue to community groups, he expects the fall in gambling to flow through into a similar drop of about 4 per cent in community grants by pokie trusts.

In contrast, Health Ministry figures show the number of people seeking help from problem gambling services jumped by 59 per cent in the year to December to 12,248.

Problem Gambling Foundation chief executive Graeme Ramsey said this reflected heavy television advertising.

"What we are seeing is the success story of a public health approach to gambling," he said.

"We are seeing pokie expenditure going down, machine numbers going down, and we are also seeing presentations going up, i.e. people coming forward for help and overcoming all the barriers to coming forward. I think that is about the work that has been done to educate and raise awareness of the issue."

Maori (36 per cent), Pacific people (9 per cent) and East Asians (6 per cent) made up just over half of all those seeking help, with 49 per cent "European and other".

Pokie spending has fallen since 2008 in 66 of the country's 73 council areas. The biggest falls were in Rodney and Mackenzie districts (just over 20 per cent) and South Wairarapa (30 per cent).

Spending rose in Kaipara, Opotiki, South Taranaki, Manawatu, Queenstown-Lakes, Westland and the Chatham Islands.

The figures do not include casinos, racing or lotto. The last available data to last June showed a big jump in lotto spending driven by large jackpots, with slight declines for casinos and racing.

* Gambling helpline, 0800 654 655.