KEY POINTS:
A South Auckland pub has been ordered to shut down its poker machines for four days after it was found to have misused more than $33,000 that should have gone to the community.
The decision, made this week by the Gambling Commission, is the first time a pub
gaming machine operator has been suspended since the Gambling Act became law in 2003.
However, a lawyer for the Whitehouse Tavern says the matter is a storm in a teacup and an appeal is being considered.
The commission ruled that Papakura's Whitehouse Tavern Trust breached its licence conditions on four occasions.
The first was when it gave councillor Glen Archibald $1000 for his 2004 mayoral campaign, despite rules preventing funds from being used for electioneering. Mr Archibald was not available for comment yesterday.
The trust argued the payment was reasonable because it was for the trust's survival. It said Mr Archibald promoted local gaming policy, while opposing factions that represented a "considerable risk" to the trust's future.
Other misuses of funds included a $1279 payment to Whitehouse Tavern venue manager Roger Garrick to attend a gaming expo - despite a warning two months earlier from the Gambling Commission that he should not attend.
Mr Garrick was also paid $5842 in wages for services which the commission found two other trustees were more than capable of carrying out.
The final misuse of funds was a $25,000 grant to the Ardmore Tenants Association so it could challenging noise restrictions on the airport. This was not deemed a charitable purpose as outlined in the licence.
However, trust lawyer Grant Cameron said the commission had come down hard on what were "four minor technical issues" by the trust.
He said the only real breach was the issuing of a grant to the Ardmore group and that was an oversight. He said the trust could have applied to alter its licence which would have allowed the grant to be made.
"Many other trusts could have made the identical grant without being taken to task," he said.
The trust has 15 days to consider appealing against the decision to the High Court.
Acting director of gambling compliance Greg Crott said the commission's ruling was a good reminder to all societies of their responsibilities.
"The money raised by the gaming machines is held in trust by societies for the community and is destined to benefit a range of activities identified as authorised purposes under a society's licence conditions."
The Dunedin Casino was suspended for two days last month after it turned a blind eye to a woman who gambled away $6.6 million over three years.
Papakura Whitehouse Tavern is the first pub to be suspended and has a month in which to shut down its pokies for four consecutive days - if it does not appeal. Those days cannot include any statutory holidays.
WHERE THE MONEY WENT
* $1000 given to Glen Archibald for 2004 mayoral campaign because he promoted gaming policy, despite rules preventing funds being used for electioneering.
* $1279 given to venue manager Roger Garrick to attend a gaming expo, despite being advised by Gambling Commission not to attend.
* $5842 paid in wages to Mr Garrick for services to trust, when there was no need for the services to be provided.
* $25,000 grant to Ardmore Tenants Association for challenging noise restrictions at the airport, despite this not being a charitable purpose.