In New Zealand’s gambling market, pokie profits are donated to a wide range of community organizations. One of the most popular uses for pokie grants is the funding of operation costs for amateur sports organizations – but one group has been accused of misappropriating these donations. This week, the Department of Internal Affairs has criticized the North and South Trust for potentially using pokie grant money to fund professional sports.
After a year-long audit into the organization’s finances, the DIA discovered proof that the N&ST has used some of its grant money to fund the Auckland Rugby Union (ARU). New Zealand’s Gambling Act explicitly states that professional sports are not allowed to benefit from poker machine grants.
Their equipment, player salaries and operation costs are to be funded by sponsorships and other sources of revenue that are not meant for community donations. As such, the ARU should not be able to accept funding from the North & South Trust. The issue is that the trust has not provided enough information to assure the DIA that pokie grant money is not being used to fund professional sports.
According to DIA representatives, the North & South Trust aims to rectify this issue by providing sufficient proof that funds are not being spent on the ARU. "We found their [Trust] systems weren't sufficiently robust to give us an assurance that the money was all being directed to amateur sport," says Maarten Quivooy of the DIA.
"We will take them at their word, but we are continually gathering information. If we find information from the sector that throws doubt on that then we will consider acting further." This case comes at a time when federal politicians are considering increasing pokie grant transparency. When the laws are reformed, there will be no room for trusts or sports organizations to misappropriate poker machine funds.
They will go to rightful organizations.
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