In New Zealand, local politicians have thrown their support behind a new legislative initiative called the Harm Reduction Bill. Aimed at helping to reduce problem gambling and underage gambling rates, the bill could change the way poker machine funds are allocated and how local governments decide how many poker machines should exist in any one area.
Now, pubs and gaming clubs are looking to make their own changes to local gambling laws – but their ideas have not been well-received. According to reports, Hospitality NZ, which represents bar and club owners across the country, wants to introduce a bill that will change the way pokies allocate their profits. Currently, gaming venue owners are only allowed to accept enough funds to cover the costs of operating the games.
Hospitality NZ wants to change this by introducing a commission-based program, by which operators can receive up to 16% of poker machine profits. The group would also like to see all remaining revenue given back to the community. What this means is that gaming clubs would also be able to profit, and local responsible gambling advocates believe that this could be a slippery slope.
The Problem Gambling Foundation reminds us that poker machines were introduced solely as a means to raise funds for community programs. By introducing commission for business owners, it would make pokies into a business rather than a community initiative.
"Under this, a commission-based system, apart from the incentive to maximise revenue at the expense of gamblers, what you're doing there is saying this is a business enterprise,” says Graeme Ramsey of New Zealand’s Problem Gambling Foundation. He argues that the introduction of a commission-based system would also encourage club owners to increase the number of pokies that they host.
Despite the provision that would increase community funding, it is still a dangerous proposal, as it could lead to an increase of poker machines in low-income areas, where gambling is most popular.
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