“Harmful” pokie machines that raise funds for community organisations will not be phased out in Waitaki, but numbers are set to be capped under a policy switch backed by councillors. More than $4 million was being lost per year by playing the “addictive” gaming machines in the district, recent figures show — compared to just under $1m in grants handed out last year. At a Waitaki District Council hearing in Oamaru on Tuesday, councillors questioned whether a more sustainable funding model needed to be found. Councillors instructed officers to ditch the current “sinking lid” approach — a policy introduced four years ago whereby the council would not issue new licences for class four gambling venues once an establishment closed down. Instead councillors wanted current numbers capped — 11 venues and 107 machines. The decision will come back to council for final approval next month. Councillors raised concerns about the potential “unintended consequences” of reducing the number of gaming machines and whether this could push more people to gamble online, where profits went to offshore companies and not back into the community. It was highlighted that since the sinking lid policy was introduced in 2022 there had been no closures of venues or subsequent reductions in gaming machines. Submissions on Tuesday included both those who highlighted the harm the gambling machines caused as well as those who benefited from the funds they raised. Cr Frans Schlack, who initiated the policy switch, said it was ultimately about choice and “taking responsibility”. “I really believe that we live in a democratic country and we can make choices for ourselves”. Cr Courtney Linwood disagreed. “I just think it’s worth acknowledging that in some cases it’s not a choice. “I grew up in a home where gambling was very prevalent and it certainly wasn’t a choice. “It was like a mental health addiction and it can have really severe outcomes for people.” She also questioned what return the community was getting if the district was losing $4m to pokie machines and receiving $1m in grants in turn, which “doesn’t quite add up”. Deputy mayor Rebecca Ryan said the district needed to find “more sustainable funding models”. Health New Zealand Te Whatu Ora (HNZ) medical officer of health Michael Butchard told councillors that pokies were the “most harmful form of gambling” and disproportionately affected vulnerable and disadvantaged communities, resulting in an “inverse Robin Hood” situation where money was stolen from the poor. Pokies were often located in areas of socio-economic deprivation although he said this was less so in Waitaki than nationally. In its submission, gaming group New Zealand Community Trust (NZCT) recommended a “modest” increase in gaming “in keeping with population growth” in the district: up to 12 venues and 116 machines. Council grants, marketing and communications general manager Ben Hodges told councillors grants totalling more than $640,000 were awarded in 2024 and recently released figures for 2025 were even higher, just shy of $1m. If funding was replaced by the council, Mr Hodges estimated this would equate to a 1.3% rates rise. He also questioned whether class four gambling transferred money from poorer to wealthier communities and called this a “blunt” analysis. NZCT, Lion Foundation, Gaming Machine Association of New Zealand, Sport Otago, Musical Theatre Oamaru and others were opposed to the sinking lid policy and “generally” advocated for replacing the sinking lid with a capped model, consistent with population growth, a report prepared for the hearing stated. Musical Theatre Oamaru member Daniel Martin wrote the organisation “benefits greatly” from funds raised by pokies but “only benefit from those machines while they exist in our district”. Sport Otago had been a recipient of gaming funding for over 43 years which had contributed to “more physically active lives for everyone across our region”. Lion Foundation chief executive officer Tony Goldfinch was supportive of a cap in line with population growth. Gaming Machine Association of New Zealand counsel Jarrod True said there may be “unintended consequences” of any reduction in local games machine offering, which “may simply lead to a migration of gambling spend” to online offshore providers which did not generate any community funding for New Zealanders. Mr True said only two new clients had presented at help services for problem gambling in a 12-month period. A quarter of machines had been lost in a decade but problem gambling rates had “plateaued”. Cr Ryan voted against the motion to change the sinking lid policy. Cr Brent Cowles sat out of the hearings due to a conflict of interest while Cr Ryan sat out of the discussions on Sport Otago. charley-kai.john@alliedmedia.co.nz
