The Gambling Act 2003 ("Act") became law on 18 September 2003, replacing the Gaming and Lotteries Act 1977 and the Casino Control Act 1990.
The aim was to provide a harmonised regulatory framework for gambling in New Zealand. Key objectives of the Act include:
- controlling the growth of gambling;
- preventing and minimising the harm caused by gambling;
- ensuring that money from gambling benefits the community; and
- ensuring community involvement in some decisions about the provision of gambling.
A wide range of gambling is now available in New Zealand including casinos, Lotto, TAB, housie and gaming machines. The Act provides broad powers to make regulations to keep up with technological changes and new forms of gambling as they emerge. It also classifies gambling based on the amount of money involved and risks of problem gambling and criminal activity associated with an activity.
Number of Machines - in recent years, although the number of venues with gaming machines has remained steady, the number of machines increased every quarter to a high of 25,221 at 30 June 2003. Since the Act was introduced, that number has reduced each quarter to 22,646 at 31 March 2004.
Community Grants - gaming machines in pubs are licensed only as a form of community fund-raising.
The societies who own them must pay duty of 20%, GST and a problem gambling levy. These taxes and levies total 33% of the gross profit. Societies must minimise costs and maximise returns to the community in the form of grants (the minimum return by way of grants is 33% of gross profit). Under the previous regime it was not clear whether that figure included GST. Most operators chose to make it GST exclusive which meant that effectively only 29% of the gross profit was paid out in grants.
You may not think that is much of a difference - but consider this. Estimates for the last year are that the national gross profit from gaming machines in pubs was $800 million. The difference between 33% and 29% meant that community groups were deprived of as much as $32 million last year.
Number of Machines - under the Act, where a venue was established after 17 October 2001, no more than 9 machines may be operated at that venue. Venues that were already operating machines on 17 October 2001 may operate up to 18 machines. This has led to a reduction in the number of machines operating nationwide.
Community Grants - new regulations passed this year mean that gaming machine societies will have to distribute at least 37.12% of the GST exclusive gross profits to the community (from 1 December 2004) and must maintain a website (from 1 July 2005). The requirement for a website is a response to community groups feeling shut out of the grant application process. Access to those societies through a website is intended to ease this frustration.
Societies will also have to keep data, maintain and manage gambling equipment, and provide information to the public.
Other Measures - the Act is also aimed at minimising the harm caused by gambling. Two ways this is effected is by putting limits on banknote acceptors (up to $20 only) and controlling the placement of automatic teller machines in gambling areas.
Casinos will not be able to extend the use of cashless technology on gaming machines without the Department of Internal Affair's approval.
Time will tell whether or not the new Act and regulations will achieve the objectives set out in the Act, but the early signs are encouraging.
December 2004
All information in this article is to the best of the author's knowledge true and accurate. No liability is assumed by the author for any losses suffered by any person relying directly or indirectly upon this material. It is recommended that you should consult a senior representative of Rotherhams before acting upon any information provided in this article 
