Gaming machine numbers continue to decrease

13/01/2004

Figures released by the Department of Internal Affairs today confirm that the number of gaming machines licensed to operate in pubs and clubs has decreased for the second consecutive quarter.



Gaming machine operations licensed as at	Societies	Venues	Gaming machines
30 June 2003	699	2,122	25,221
22 September 2003	685	2,100	23,083
31 December 2003	672	2,031	22,734


The General Manager of the Department’s Gaming and Censorship Regulation Group, Keith Manch, said that since gaming machines were first licensed in 1988, numbers had increased significantly every quarter until 31 December 2002. In the first half of 2003 the numbers increased more slowly and in the second half they, for the first time ever, began to decrease.

“I think it is fair to assume that anticipation of the Gambling Act led to the slower increase at the start of the year,” Mr Manch said, “while the subsequent decreases are the result of the Act being passed.”

Some provisions of the Act became law in September 2003. Other provisions have lead in times, with all to be in force by July 1 this year.

The December 31 statistics also confirm that the rapid decrease in the number of gaming machine societies is continuing, while the number of venues is remaining about the same or decreasing slightly. At 30 June 1999 there were 947 societies and 2,137 venues.

Fewer machines does NOT mean the community must get less money

Mr Manch said there is often confusion that fewer gaming machines must mean less money for community groups.

“The statistics do not support this argument,” Mr Manch said.

From 1999 to 2003 gaming machine societies’ annual profits almost trebled to $941 million a year, while at the same time the number of machines doubled and the number of societies decreased by almost a third.

“Probably the only conclusion you can justifiably reach from the statistics is that as the gambling sector becomes more efficiently organised its profits increase,” Mr Manch said.

Another important factor to consider is gamblers’ behaviour. Gambling on gaming machines is now entrenched in New Zealand – in the last year alone gamblers lost $941 million in pubs and clubs. If a pub or club turns off its machines, then gamblers simply go to another venue.

“Key outcomes of the Gambling Act will be to ensure that gaming machine societies maximise their returns to the community and take the necessary steps to prevent harm.

“It is quite possible that even if the amount of money lost by gamblers decreased, continued increases in the sector’s efficiency and integrity could mean more money going to community organisations.”

Background

More detailed information about gaming machine numbers, including local figures, will be available from the Department’s website soon at: Gaming Statistics