Monday, 10 August 2020, 4:57 pmPress Release: Problem Gambling Foundation

A recent New Zealand Institute of Economic Research(NZIER) report commissioned by The Salvation Army and theProblem Gambling Foundation estimates that if householdexpenditure on Class 4 pokie gambling was diverted to otheruses, the retail sector could have gained an estimated $445million in 2018/19.

Paula Snowden, Problem GamblingFoundation CEO, says the report highlights the surprisingextent of the drain on the retail sector from gambling onpokies in pubs, clubs and TABs.

With the retail andhospitality sector still hurting from the COVID-19 lockdown,it is time to acknowledge that Class 4 gambling not only hasa significant social cost, but it is also a drain on thewider economy, she says.

NZIER analysis suggeststhat the increased retail sales would generate an additional1,127 full-time equivalent jobs for 1,724 workers, worthapproximately $50 million in wages and salaries. These jobswould be in the food and beverage services, specialised foodretailing, supermarkets and grocery stores.

Withlosses on pokie machines trending upwards year by year, thisreport shows how the economy could benefit from divertingthose gambling losses into spending elsewhere in localcommunities, Ms Snowden says.

Lynette Hutson,National Director, The Salvation Army Addiction Services,says community groups are struggling with the ethics ofbeing forced to rely on pokie money.

Communitiesand community sport are desperate for funding yet rely ongrants from a mere 40 percent of the $939 million lost onpokies in pubs, clubs and TABs in 2019.

If thosetotal losses were spent in local economies, business coulddirectly support their own community interests without theheavy toll being borne by the most deprived communities inNew Zealand, Ms Hutson says.

Jason Alexander,Interim CEO, Hpai Te Hauora Tapui, says Mori aredisproportionately impacted by gambling because 50 percentof the pokie machines are located in areas where Maori andPasifika people live.

We see the effect of gamblingon whnau and children, yet we are using money from pokiemachines to fund communities, with 60 percent of it goingtowards the cost of running the system. Mori have nocontrol on the density of these machines in theircommunities yet experience 2.5 times the rate of gamblingharm, he says.

The report suggests that additionalGST revenue is estimated to be $58.01 million and income taxcollected from additional retail sector workers is expectedto be between $7 million and $7.6 million.

PaulaSnowden says as a nation we need to start thinking aboutwhere the gambling losses that support our good causes areactually coming from.

It is encouraging that ifgambling losses were diverted into the retail and serviceindustries, there would be more employment, more tax andmore business revenue available to sponsor and supportcommunity interests and community sport, shesays.

The full report is attached.

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Pokie Gambling In New Zealand Pubs And Clubs Costing Retail Sector Over $400 Million A Year - Scoop.co.nz