Problem gambling could spike, papers warn
Govt playing down concern over extra pokies, reports Michael Fox The Government was warned its SkyCity gambling concessions could cause an increase in problem gambling and money-laundering, documents show.
The concerns were revealed in Ministry of Business, Innovation and Employment papers released by the Government as the legislation to ratify the deal was introduced to Parliament.
The documents also reveal the Government will be able to use the convention centre for free.
The concessions, which are in exchange for the construction of the $402 million convention centre, are hugely controversial with opponents concerned about the potential increase in problem gambling and social harm, though the Government has played down those concerns.
The concessions include an extra 230 pokie machines and 40 gaming tables.
In a regulatory impact statement released yesterday, the ministry says the concessions could increase problem gambling.
‘‘Some of the agreed concessions could lead to an increase in the number of people seeking help who cite problems linked with casino machines or casino table games.’’
It adds that while research shows there is a ‘‘clear link between the availability of gaming machines and opportunities to gamble and the incidence of problem gambling,’’ it does not demonstrate ‘‘a directly causal relationship between an increase in gaming machines and a commensurate ‘‘With such enormous risks spelt out for them in black and white it would be wrong for MPs to support this deal.’’ increase in problem gambling incidence’’.
While problems appeared likely there was no reliable way to quantify or cost the potential harm.
The statement pointed to potential harmful side effects, including relationship breakdown, depression and suicide.
The documents also said there was an increased risk of money-laundering because of the anonymity of pre-pay cards. SkyCity has agreed to stronger prevention measures to combat both.
Measures to curb problem gambling will include the monitoring of player data using loyalty cards to identify problem gamblers and the hiring of an extra three host responsibility executives.
Player identification requirements when amounts over $500 are being loaded or cashed from prepaid tickets in non-restricted areas will also be introduced.
A ministry spokesperson said they were satisfied with the measures put in place.
The Government has not previously made these details public, instead trumpeting the benefits of the convention centre which will host up to 3500 delegates, create 1000 jobs while being built and 800 when operational and will contribute an extra $90m a year to the economy.
The Government and any other Crown entity will be able to use the convention centre for free, though they will have to pay for any goods or services on top of that at commercial rates.
Green Party co-leader Metiria Turei called it ‘‘immoral legislation’’.
‘‘With such enormous risks spelt out for them in black and white it would be wrong for MPs to support this deal,’’ she said.
Prime Minister John Key said yesterday the bill had the support of ACT’s John Banks and Ohariu MP Peter Dunne.