In New Zealand, clubs and pubs are permitted to host poker machines to entertain their customers. However, owners must ensure that these activities do not account for the majority of their profits. Unfortunately for the Galaxy Function Centre in Otara, its pokies were the profitable part of the venue, resulting in the loss of its license.
"Galaxy's business would not be sustainable without the revenue it received under its venue agreement with gaming machine operator The Lion Foundation," the Gambling Commission’s decision stated. The venue saw more patrons who came to play pokies than those who had come for other purposes. Patrons did not come to drink, eat and socialize as much as they showed up the gamble.
Without pokies players, the Galaxy would not be able to remain open. The majority of its profits were from gambling, which is not permitted by the local gambling commission. According to the commission, this is not a common solution to this particular transgression; however, Galaxy’s “degree of non-compliance was substantial”.
The only venues in New Zealand that are permitted to derive most of their profits from gaming are casinos. Even so, they are required to offer other entertainment outlets, such as restaurants and bars. Essentially, Galaxy had become a casino, encouraging patrons to gamble rather than eat, drink and socialize.
At pubs and clubs, pokies are meant to be supplementary entertainment, but Galaxy had placed far too much emphasis on this aspect of the business. Now, without its pokies, the venue will have to search for a new means to earn profits. Since pokies drove the business previously, Galaxy is in danger of shutting down. However, it simply means that the operator will have the re-evaluate its business plan.
Most clubs across the country can survive without depending solely on poker machines, and Galaxy should be able to, as well.
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