Poker machines in New Zealand donate millions of dollars every year to local community groups and sports organizations. A significant portion of pokies profits is donated to these groups to keep them running effectively, ultimately benefitting the community at large. Now, the New Zealand Racing Board has put an end to all that, taking over ownership of more than 300 TABCorp poker machines across the country.
These poker machines were previously owned by the Trusts Charitable Foundation, which ensured that pokies profits funded a wide range of community and sports groups. After the foundation started to fail, it was forced into restructuring and being renamed. During this process, the Racing Board acquired the majority of the trusts’ poker machines. Now, the $20 million in funding that was previously allocated to all sorts of community initiatives will go to the racing industry.
According to Michael Wemyss of the Racing Board, the new poker machines will yield upwards of $18 million. This amount has been calculated post taxes and operating costs, meaning that the Racing Board will experience a multi-million dollar boost in funding next year.
Local politicians are not pleased with the development. MP Te Ururoa Flavell, who recently proposed the new Harm Reduction Bill, has taken issue with the plan to divert $20 million in funding from community groups to the racing industry. He would like to see more information published about the deal, ensuring that everything is above board.
Flavell also wants to see stricter regulations imposed on how the money will be spent. There is the possibility that the Racing Board will keep 80% of the funding for itself while allocating the remaining 20% to local sports groups. While it seems quite generous, this still means that many community groups will be missing out on funding and will be forced to seek out donations from other sources in order to continue operating.
