Problem gambling: Council asks government to do more to ‘minimise harm’

Photo: BRUCE MERCER/STUFF

Christchurch City Council will call on central government to do more to tackle the harm caused by problem gambling, but decisions on its own gambling policy have been postponed until later this year.

The council was due to vote on the gambling and TAB venues policy on Wednesday following a staff review. However, after a series of deputations, the council decided to shelve the report and seek further advice from staff before the end of the year.

Council staff recommended keeping the current policy, which had been in place since 2004, and implementing a policy that limited slot machines. No new locations could be opened and locations could not be moved.

Christchurch Mayor Phil Mauger wrote in a letter to Home Affairs Minister Brooke van Velden that the council’s policy review has raised concerns about the rise in online gambling, particularly from overseas providers that are not regulated in New Zealand.

“We understand that the Department of Home Affairs is working on a regulatory framework for online gambling. We have also noted your recently announced proposal to regulate online casinos to minimise harm, support tax collection and provide consumer protection for New Zealanders,” Mauger said.

“The Council urges central government to be more ambitious in their approach to minimising gambling harm. We would welcome the opportunity to work with central government agencies to explore policy options to better address an issue that has a significant impact on those who can least afford it.”

The letter also noted the council’s policy of setting the bar low and, despite this, the rate of problem gambling in the city remains high.

The government was called upon to provide municipalities with more instruments to tackle this problem.

“The council is concerned that not enough is being done to address the harm associated with electronic gambling machines. We encourage the Home Office to explore how we can better reduce the risk of harm to our most vulnerable communities,” Mauger said.

“We believe this should include a rethink of jackpot settings and prioritization of host accountability enforcement. Despite a moratorium on new gambling venues and machines, Class 4 gambling losses have been stable for years, even as machine and venue numbers have declined.

“This is of great concern to the Council and we urge central government to investigate more effective tools to better tackle problem gambling.

“While the council’s policy prevents the creation of additional venues in areas at higher risk of gambling harm, it cannot meaningfully address the continued presence and concentration of existing venues in such areas. The council would welcome any opportunity to work with central government to explore options to better address the concentration of Tier 4 gambling venues in communities with high levels of deprivation.

“The Council notes that there is limited research available on the effectiveness of territorial authority gambling policies in terms of harm minimisation. We believe further research is worthwhile, given the significantly higher risk associated with Class 4 slot machines and want to make a meaningful contribution to minimising gambling-related harm through our Class 4 location policy.”

Phil Mauger
Photo: RNZ / Nate McKinnon

Christchurch has a higher number of gaming machines per capita than any other major centre in Aotearoa.

The study found that $93.4 million was lost to slot machines in the city last year.

Public opinion was divided. The Problem Gambling Foundation and Te Whatu Ora called on Christchurch City Council to maintain the current policy, while the Gaming Machine Association, the Community Trust and the hospitality industry called for liberalisation.

Jarrod True of the Gaming Machine Association called on the council to put the policy out to public consultation and include an option for sites to relocate from deprived areas.

“If we ban relocation, it will not result in fewer machines, but current locations will remain in undesirable and unsafe places,” he said.

Jake McLellan, Central Ward councillor, expressed doubts about this, calling it a “relatively blatant assertion that if we allow hospitality venues to move their gaming machines, they’re likely to move to Fendalton and sell craft beer there”.

Community Trust board member Lesley Murdoch said amateur clubs rely on money from slot machines to survive.

Dr Charles Egwuba of Problem Gambling Foundation Services said the council should maintain the current policy.

“The evidence shows that a sinking lid policy is one of the best available policies to take a public health approach to reducing gambling losses and harm,” he said. “Not allowing movement reinforces a sinking lid policy by making it harder for venues to move around the community, thereby reducing access to harmful products.”

According to Egwuba, slot machines are the most harmful form of gambling in New Zealand and highly addictive.

The foundation also supported the reform of gambling legislation to make it more suitable for online gambling.

Hebe Gibson, public health policy and community advisor at Te Whatu Ora, said Te Whatu Ora supported maintaining the sinking lid policy but also wanted the council to explore making the policy stricter, including the possibility of banning club mergers.

“Pokies cause harm and are the most harmful form of gambling in Aotearoa New Zealand. In Christchurch, approximately half of all clients seeking problem gambling services reported pokies as their primary form of gambling,” she said.

“Class 4 locations are often in areas of socio-economic deprivation and this means that the people living in those areas are inevitably exposed to gambling. There is also evidence that Class 4 gambling increases socio-economic deprivation by transferring wealth from more deprived communities to less deprived communities, and this is because Class 4 grants are less likely to return to the communities in which they grew up.”

Hospitality New Zealand Canterbury branch committee member Genaea Calvert said the council should move from a sinking lid to a limited guest count policy.

“The sinking lid policy… may have unintended consequences due to the stricter restrictions and general ideological stance rather than an evidence-based approach. Natural wear and tear on sites and machinery will significantly reduce the funding available to community groups.

“Instead of the sinking member approach, we propose to implement a pro rata system. The system would allocate a specific number of slot machines based on a percentage of the 18-plus population.”