This week, New Zealand’s Department of Internal Affairs (DIA) has launched an investigation into pokie grants that have been awarded by the NZ Racing Board. A complain about recent pokie grant was launched by publican Leo Malloy, and the DIA will be investigating funds that were awarded to the Racing Integrity Unit. The New Zealand Racing Board has recently awarded $318,000 to the Racing Integrity Unit.
This grant is considered controversial because it violates Sections 113 and 118 of the Gaming Act. Malloy has supplied the DIA with evidence of the breach, which he had kept secret for two years. He had originally tried to work with the racing industry to rectify the issue, but they refused to cooperate. So, he finally decided to launch a complaint with the DIA and the Serious Fraud Office.
Some of the evidence consists of emails from Martin Burns, a senior analyst for the New Zealand Racing Board. In these emails, he encouraged members of prohibited groups to apply for pokie grants from the trust, outlining the way in which the billing would allow them to claim grants that they are not necessarily entitled to. "I am aware of the investigation, but it is not for me to comment,” says Mr Burns.
“The DIA are aware of the email, there is nothing I should add." This is the not the first time that a New Zealand-based trust has been investigated over its poker machine grants. In September 2013, the North and South Trust was accused of donating pokie funding for professional sports teams. In March, New Zealand Community Trust, Infinity Trust and Bluegrass Trust were all accused of committing fraud.
These transgressions highlight the need for stricter regulation of poker machine grants. As part of the Harm Reduction Bill, the DIA has requested more transparency when it comes to grant applications, which is certainly needed in New Zealand.