Council puts gaming societies on notice

A direction has been set for the district’s gambling policy for the next three years, with elected members sending a clear message to gaming societies to increase their transparency and to increase the level of funding granted in the district.

At the meeting today (Wednesday 30 April 2025) the Central Otago District Council considered retaining class 4 gambling machines in pubs and clubs under current settings, or introducing a 'sinking lid' approach where gaming machines would reduce over time.

Gaming machine societies, which operate gaming machines, are legally mandated to return 40% of the proceeds by way of community grants. These grants are not ringfenced to their district of origin. In a five-year period, Central Otago received an average of just 27% of gaming machine funding returned as grant funding per year.

"It's hard to prove there is a benefit coming back to the community, and whether that benefit would outweigh the harm," Mayor Tamah Alley summarised, asking that the societies return, at the next review, with clear benefits, data and evidence of an increase in return.

Due to the high-risk, high-stake nature of machine gambling and the potential for harm, the sinking lid alternative was the preferred option for public health providers and groups.

Members supported retaining the status quo, citing concerns about the risk to community funding, and the lack of alternative funding sources.

As well as asking gaming societies reflect an increase in return to the district, Council asked public health providers address the lack of mental health, addiction, and problem gambling services locally.

The policy was subject to a community consultation and bundled with two other regulatory matters – the Alcohol Restrictions in Public Places Bylaw and Psychoactive Substances Policy to reduce the associated marketing costs. This consultation was marketed as ‘Moderation Matters’ and advertised in accordance with the requirements of the Special Consultative Procedure of the Local Government Act 2002.

The policy will next be reviewed, based on any of these changes, in 2028.