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Insight


NEW ZEALAND Market Analysis


Jarrod True Director, True Legal


Jarrod is New Zealand’s leading expert on gambling law. His firm, True Legal (truelgeal.co.nz) acts for a large number of New Zealand’s gambling operators. Jarrod is the author of the New Zealand Gambling Law Guide (www.gamblinglaw.co.nz), and the author of Gambling Law (a Thomson Reuters publication). Jarrod regularly advises clients on gambling compliance issues. He has argued many successful Gambling Commission appeals and is familiar with all the Commission’s prior decisions and High Court and Court of Appeal decisions on gambling- related matters.


Jarrod has weekly dealings with the Department of Internal Affairs’ senior gambling compliance management team. This working relationship helps client matters to be resolved promptly and economically.


Earlier this year, the regulator, the Department of Internal Affairs, announced its desire to impose a compulsory cashless system on all non-casino gaming machines. The system would be entirely cashless, with players putting credit on their machines via a card, and having winnings credited back to a card. The machines would have no ability whatsoever to accept notes or coins.


New Zealand’s community funding gambling model is under threat from the regulator’s bold plan to go 100 per cent cashless.


“New Zealand is incredibly fortunate to have a gambling framework that is focused on raising funds for community purposes. Approximately $2.3bn is spent each year in New Zealand on gambling. Te largest share of this, approximately $895m, is the money spent on gaming machines located outside of New Zealand’s six casinos (gaming machines in pubs and clubs).


All the profits from the non-casino gaming machines are used for community purposes. Every year, grants totalling approximately $300m are made. In addition to the external grants, clubs such as RSAs and Workingmen’s Clubs receive approximately $50m each year in gaming proceeds to assist with meeting the clubs’ operating costs.


We are also fortunate in New Zealand to have a very low problem gambling rate by international standards. Te most recent New Zealand National Gambling Study found the problem gambling rate was only 0.2 per cent of people aged 18 years and over.


Te future of the non-casino gaming machine sector is, however, in jeopardy. Te sector has been in natural decline since 2003. In June 2003, New


P130 NEWSWIRE / INTERACTIVE / MARKET DATA


Zealand had 25,221 non-casino gaming machines. In December 2018, there were only 15,257 machines, a 39.5 per cent decrease. Te sector faces fierce competition from offshore-based online gambling providers, who are able to offer higher prizes and unregulated inducements to gamble. Te online gambling market is so lucrative that New Zealand’s main casino operator, SkyCity, recently announced that it too would launch an offshore-based online casino.


Te community fundraising model now faces a further threat to its existence, which is more serious than the other external market forces. Earlier this year, the regulator, the Department of Internal Affairs, announced its desire to impose a compulsory cashless system on all non-casino gaming machines. Te system would be entirely cashless, with players putting credit on their machines via a card, and having winnings credited back to a card. Te machines would have no ability whatsoever to accept notes or coins.


Te prohibition on using cash was advanced as being desirable for harm minimisation reasons. Te requirement for players to identify themselves as part


New Zealand’s community funding model is under threat


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