Invercargill city councillors have not backed a sinking-lid policy for gambling, despite a staff report saying it was the best option for reducing harm.

This week, a council committee was tasked with selecting either a sinking lid or status quo cap policy for consultation as part of a three-year review.

Both options reduced harm, but the sinking lid arguably went further by not allowing relocations, venue mergers or machine transfers, the report said.

A sinking lid was also backed by the Problem Gambling Foundation and the National Public Health Service.

The report showed that across the three years to June 2026, the amount lost on gaming machines annually in Invercargill had risen 8% from $17.5 million to $18.9m.

Cr Lisa Tou-McNaughton supported a sinking lid, saying community wellbeing should be at the heart of council decisions.

She acknowledged there would be concern over community funding, but said ways should be sought for supporting clubs and organisations which did not depend on family harm.

“A sinking-lid policy puts community wellbeing first as a gradual approach, reducing access over time.”

Cr Marcus Lush also supported the sinking lid, saying he had walked through the bars of Invercargill, and they were not happy places.

“I’m no fan of pokie machines. I believe they are a tax on the poor for the rich.”

Meanwhile, Mayor Tom Campbell said he backed the cap, as old venues could be hung onto under a sinking lid.

Cr Steve Broad said he leaned towards the status quo, despite acknowledging the sinking lid was “potentially more defensible”.

A decision was ultimately made to adopt the draft gambling venues policy for consultation with a cap option, pending approval from full council.

According to the council report, there are currently 226 gaming machines and 15 class 4 venues in Invercargill, with no change to numbers since September 2020.

Gaming machines and class 4 venues had decreased across the country by 8% and 11% respectively for that same period.

Player losses totalled $2.71 billion across the country for the year 2024/25, which included Lotto, TAB, casinos and class 4 gaming machines, the report said.

The Ministry of Health reported around one in five New Zealanders experienced gambling harm in their lifetime, the report said, and harm was almost three times worse for Māori and Pacific communities.

The council has previously used a sinking lid but rejected returning to that option at the last review.

Consultation is set for October 28 to November 29 and will include a hearing.

LDR is local body journalism co-funded by RNZ and NZ On Air.