Pokies the 'crack cocaine' of gambling, says watchdog

By CHRIS ORMOND Gambling watchdogs are concerned about another across the board rise in gambling expenditure, with pokie machines receiving the lion's share of criticism. Internal Affairs figures released yesterday show total spending by gamblers in New Zealand increased by 9 per cent to $2.039 billion in the 2003/2004 year. The biggest increase came in spending on Lotteries Commission products - up 18 per cent to $282 million. Of the other forms of gambling, spending on gaming machines (pokies) in pubs and clubs rose 10 per cent to $1.035 billion, casinos were up 6 per cent to $484 million, while racing and sports betting showed the smallest increase - up 2.1 per cent to $239 million. The department said the effects of the new Gambling Act, passed in September last year and not fully in force until July 1, would not be fully reflected in the statistics until the end of the 2004/2005 year. The number of gaming machine has fallen markedly since the legislation was introduced. Problem Gambling Foundation chief executive John Stansfield told NZPA that in effect, New Zealand's poorest households were putting nearly $40m a week into gaming machines. Advertisement Advertisement That the spending was still rising despite a drop in the number of machines being operated was concerning, he said. Increased spending on Lotteries Commission products went against world trends, but the figure was off a low base. "The undisputed kings of harm in gambling in New Zealand are pokie machines. They are the crack cocaine of gambling." Mr Stansfield said 43 per cent of families at food-banks had a problem gambler in the family. Pokies were causing "social mayhem", he said. "We're about eliminating the harm from gambling. If it can be shown to me that we can make pokies safe to an acceptable level... then I'd be all for it. I'd never take the fun off someone, but the harm and social cost is out of control." He predicted the smokefree legislation would have an initial impact on pokies gambling, but that would abate. He said he wouldn't be surprised to see another rise in pokies spending again next year. But Charity Gaming Association chairman Paul East disagreed, saying the effects of tightened legislation in the industry would result in less turnover . "For the same period next year the industry would be extraordinarily surprised if there wasn't a downturn." The industry has also responded to recent legislation limiting the expenses venue operators can be paid for running the machines by saying there will now be less funding to go to community organisations. The industry would also suffer from new smoking legislation and operators would reduce opening hours, Mr East said. Internal Affairs and watchdogs have dismissed the claims. GamblingWatch co-ordinator Dave MacPherson said each gaming machine was now making about $45,000 profit every year, and 80 per cent of all gamblers seeking help were gaming machine users. The racing industry wasn't such a concern and had upsides with significant employment and positive spin-offs without social costs. There were some concerns about the Lotteries Commission increasing advertising, and casinos operated pokie machines and so, to a lesser extent, were also part of the problem.