GamblingPetipeti

The Gambling Act amended the Racing Act 2003 to require that councils adopt a Racing Board Venue Policy for their district. The policy must specify whether new New Zealand Racing Board venues (commonly referred to as standalone TAB agencies) may be established in the district and if so, where they may be located.

Under the Racing Act 2003, all local authorities must develop policies regarding Class 4 venues and board venues while taking into account the views of the community and the social impact of gambling on the local community. Council adopted a Class 4 Gambling and Board Venue Policy on 21 November 2021 and this is currently under review.

Why do we need to review this policy? 

The Gambling Act 2003 and Racing Industry Act 2020 require Council to have a Class 4 Venues Policy and a TAB Board Venue Policy. These polices must be reviewed every three years. Our next review of this policy is now due.

What is Class 4 gambling?

Class 4 Gambling refers to any activity that involves the use of gaming machines (also known as ‘pokies’) outside of a casino, such as in pubs and clubs, and may only be run by a licensed corporate society. Class 4 Gambling rules also state these machines can only be used to raise money for community organisations and for non-commercial purposes.

Council can use a policy to control the total number of machines in the district and per venue, and the location of these venues.

What is a TSB/board venue?

A board venue or TAB is a premise that is owned or leased by TAB New Zealand where its main business is providing racing betting or sports betting services. A council must develop a policy that specifies whether or not new TAB venues may be established in the district and if so, where they can be located. 

What influence does Council have on Class 4 Gambling?

There are limited ways Council can influence the harm caused by gambling. One way is to prevent new venues opening, therefore decreasing the opportunity for gambling to occur. This can be done by lowering the total number of machines that are allowed to operate in the district. Another is to limit the ability of existing venues to relocate within the district. 

What are we proposing to change and why?

When a review of a Class 4 Gambling and Board Venue Policy takes place, an assessment of the social impacts of gambling must be completed. We’ve recently completed a review that showed while the number of Class 4 gambling venues and machines has dropped in our district, the average spend has stayed relatively the same. 

The availability of funding to community and local sports groups is considered a key benefit to the district from having Class 4 gambling venues. This has also been considered as part of the review. 

There is currently a cap of one machine per 300 residents allowed in Central Hawke’s Bay at any time. We are proposing the 2021 policy adopts a 'sinking lid policy' and to increase the cap of machines to one machine per 500 residents, as this brings the ratio in line with the current population statistics for Central Hawke’s Bay. We are also proposing that Council adopt a no relocations policy. 

The implementation of a sinking lid means the number of gaming machines will not increase and if a venue closes, the machines cannot be transferred or relocated elsewhere. This will result in a natural attrition in the number of venues and machines over time but will not affect existing venues or current community grant funding in the short term as the decline occurs slowly.