Digest No. 1971
Purpose
The aim of this Bill is to enable “local authorities, in consultation with their communities, to reduce the number of, or even eliminate, pokies from those suburbs and towns where they are particularly concentrated or doing particular harm”. The Bill also changes the responsibility for distributing pokie funds and “proposes to give gamblers more ability to limit and control their own gambling behaviour through player tracking and pre-commit cards”
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Background
“Electronic gambling machines (pokies) venues tend to be overly represented in lower income communities and town centres. Māori and Pasifika populations are effectively being disproportionately targeted and often severely harmed by them. The harm generated by pokies in terms of poverty, relationship break-up, depression, domestic violence, crime, neglected children, and the greatest losses by gamblers from pokie machines tend also to be drawn disproportionately from Māori, Pasifika, and lower income communities and families”
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Main Provisions
“Authorised purpose”
The Bill intends to “restrict the definition of “authorised purpose” to exclude promoting, controlling, and conducting race meetings under the Racing Act 2003, including the payment of stakes
(Clause 5, amending Clause 4 (1) the definition of “authorised purpose”).
Comment.The definition of “authorised purposes” provides for how, in certain circumstances, proceeds of gambling may be applied. Authorised purposes as defined include, for example “a charitable purpose” and “a non-commercial purpose that is beneficial to the whole or a section of the community”. Section 106 of the Act provides that a corporate society must apply or distribute the net proceeds from class 4 gambling only to or for an authorised purpose specified in the corporate society’s licence. Section 30 of the Act defines “class 4 gambling” as:
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gambling that is not gambling of another class and that satisfies the following criteria:
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the net proceeds from the gambling are applied to or distributed for authorised purposes:
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no commission is paid to, or received by, a person for conducting the gambling:
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the gambling satisfies relevant game rules; and
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gambling that utilises or involves a gaming machine; or
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gambling categorised by the Secretary as class 4 gambling.
Content and conditions of class 4 operator's licence
The Bill provides that there must be included in every Class 4 licence:
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“a condition that at least 80% of all funds derived from gambling under the licence must be distributed for purposes that are located in the same territorial authority district or, where such electoral subdivisions exist, in the smallest of the local council ward, local board subdivision, or community board area”;
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“such conditions requiring the use of player tracking devices, pre-commit cards or other devices designed to permit responsible gambling” and
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“such conditions which “maximise player knowledge about, and control over, their gambling”; or
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“such conditions which “minimise gambling related harm originating at the venue” (Clause 6, amending Section 53 of the Act).
Territorial authority must adopt a class 4 venue policy
The Bill provides that a territorial authority may, when reviewing its class 4 venue policy, specify that class 4 venues are prohibited or that there must be reduced in numbers in all or specified parts of the district and that any prohibition or reduction shall apply to existing venues, including venues that operated on the date this Act came into force.
The Bill also provides that in implementing a class 4 venue policy, the territorial authority must, in respect of the territorial authority district, have regard to:
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the social impact of gambling; and
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evidence of harm from gambling; and
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public sentiment about the extent and location of gambling venues (Clause 8, amending Section 101 by substituting subsection (2)).
When territorial authority consent is required
The Bill intends to provide for the expiry of all class 4 licences that are subject to a class 4 venue policy prohibiting class 4 venues or reducing the numbers of class 4 venues under Section 101 one year after the class 4 venue policy comes into force. All replacement class 4 venue licences are to have a maximum term of three years (Clause 7, amending Section 98).
Class 4 gambling proceeds to be applied for authorised purpose
The Bill provides that a corporate society operating under a class 4 venue licence must apply at least 80% of its net proceeds to societies or for purposes located in the same territorial authority district or, where such electoral subdivisions exist, to the smallest of the local council ward, local board subdivision, or community board area, as that in which the class 4 venue from which the proceeds originated is located (Clause 9, amending Section 106 by inserting new subsection (1A)).
Removal of corporate societies
The Bill provides that any corporate society whose principal purpose or activity is to distribute proceeds from class 4 gambling must cease to distribute proceeds from class 4 gambling and must have distributed all its proceeds from class 4 gambling by 30 June 2012.
The Bill provides that a territorial authority is responsible for the distribution of proceeds from class 4 gambling venues located in its district from 1 July 2012.
The territorial authority must consult the community, iwi, and community organisations about suitable members of the council or a local board committee which shall be be responsible for the distribution of the proceeds for community purposes. The council committee responsible for the distribution of such proceeds must have a majority of its members who live or are active in the local district and are not members of the local council, local board, or community board.
In respect of Auckland, the Bill provides that the Auckland Council must ensure that at least 80% of the proceeds from class 4 gambling are distributed by committees of the local boards from whose area the class 4 gambling proceeds originated, and such local board committees must have a majority of members who live or are active in the local board area and are not members of the Auckland Council or local board (Clause 10, inserting New Sections 110A and 110B into the Act).
