CALL TO BAN POKIES
Salvation Army and Problem Gambling say Govt can cover the $242m grants that come from gaming machines – and stop the rich profiting from the poor. By Steve Kilgallon.
THE Government is being urged to shut down New Zealand’s pokie machines and itself replace the grant money they generate for Kiwi community organisations and sports codes.
A coalition of The Salvation Army, Problem Gambling Foundation and Ma¯ ori health agency Hapai te Hauora have written a white paper for Internal Affairs Minister Tracey Martin arguing that the Government could easily replace the annual $242 million of pokie grants from its own coffers.
The agencies argue that the Covid-19 shutdown of pubs (and therefore pokies) has presented a ‘‘golden opportunity’’ for complete reform of the system. The sector has warned of a huge drop in grants this year because of the shutdown.
Martin says there is $2.5m in the Budget for a review of the ‘‘wider gambling framework’’, but that will initially tackle the unregulated online gambling market. She’s unlikely to heed radical calls for a complete shutdown – but could overhaul the system itself.
But the white paper has drawn a stinging rebuke from pokie trusts, who’ve accused the agencies of using deliberately misleading figures.
The paper says coronavirus ‘‘starkly highlighted the dependency of community organisations’’ on pokie grants, but argues many only take the money because they have no other choice.
Because 50 per cent of pokies are in the poorest areas, the agencies say the system redistributes money from poor to rich, and as only 1.3 per cent of Kiwis regularly play the pokies, relies on a small group of problem gamblers who cannot afford their outlays.
The paper’s authors state: ‘‘The system… is based on the assumption that it is acceptable for a small proportion of New Zealanders living in the poorest communities to lose money in support of a national benefit.’’
The paper advocates for a temporary shutdown to allow for a review of the system, and for Government to cover six months’ worth of grants – $120m – while devising a new model.
But Paula Snowden, chief executive of the Problem Gambling Foundation, says pokies could be removed entirely without impacting community grants.
‘‘The extraordinary event of Covid-19 has given us a breather and a chance to look to do community funding differently,’’ she said.
‘‘All we are asking is that we don’t go back to the old normal, it was broken, let’s make a new normal – one which is fair and transparent and sustainable.
‘‘People say it can’t be that easy, and it would never have been that easy before, but the Covid-19 shutdown of hospitality has made it possible to look at it.’’
The paper says in 2019 about $939m was lost in pokie machines.
After taxes and the costs of the pokie trusts, about $242m remained in grants, split roughly equally between sport and community organisations.
Snowden says the Government could provide a year’s worth of money as seed funding for community foundations to replace the grants system entirely.
The paper says sport has developed a ‘‘relatively recent dependency’’ on pokie grants and Sport NZ could be tasked with reviewing its needs and ensuring money is shared equitably.
Snowden argues the trusts could be dumped and a centralised system could save $187m in admin costs.
‘What our clients are telling us now it is not only a relief when they couldn’t go to the pub and the pokies, they are afraid of what will happen when they open up again.’ PAUL SNOWDEN