Profit from pokies creates 'conflict'

The amount Rotorua punters spent on pokies dipped to $20.2million in the last year.

But a new commission structure that will allow venue owners to profit from the machines is raising fears operators will have an incentive to promote gambling.

Department of Internal Affairs figures show the amount Rotorua gamblers dropped into the pokies in the year to March fell 1.7 per cent from the $20.6million spent the previous year. Meanwhile, the number of gaming venues across the region rose from 27 to 28, taking the number of machines from 380 to 398 year on year.

Problem Gambling Rotorua counsellor Anaru Haumaha said a commission system would create a "conflict of interest" for pokie operators.

"On one hand you're looking to look after your business and any extra income would be welcomed, but [by] the same token, there's a host responsibility to ensure patrons are not suffering gambling harm.

"[It's like] paying incentive payments for the amount of liquor venues are selling."

Hinemoa St, home to Problem Gambling Rotorua, had four gaming venues in the one street alone - a significant imbalance, Mr Haumaha said.

"When you look around at the other retail businesses, there's no one with that amount of businesses in that area. Is Rotorua becoming famous for its availability of pokie venues?"

Under changes announced last week by Internal Affairs Minister Peter Dunne, 80 per cent of pokies proceeds will now go into the regional council area where it was spent.

Mr Haumaha welcomed the move but said because regional council areas were so large, there was a risk the money could end up where it wasn't needed.

In the year to March machine numbers fell from 17,542 to 17,182 nationwide and losses fell 2.1 per cent to $811.6million.

Mr Dunne announced pokie operators would now be allowed to earn a commission on gambling proceeds, overturning a clause in the Gambling Act banning venues and operators from profiting from the machines.