A discussion document has been released seeking views about the issues and challenges of gaming machine (pokie) funding and ideas about how things might be improved.

Read the Minister of Internal Affairs’ media release click here

TTCF Funding Application Information Evening

Monday 4^th May 2015, Rosebank Lodge, 265 Clyde Street, Balclutha, commencing at 5.30pm

Are you a member of an amateur sports club, school or community organisation in Balclutha, Milton, Clinton, Owaka, Kaitangata or Lawrence?

Help may be just an application away.

Come along and find out how to make an effective TTCF Grant Application

Internal Affairs Minister Peter Dunne says changes to the gambling sector will see more money returned to communities, the tightening up of potential dishonest gaming activities and a reduction of red tape.

“Large sums of money are at stake in the Class 4 sector and it is important to ensure, as far as possible, that the maximum amoung of gaming machine funds is returned to the community,” says Mr Dunne.

The changes are contained in a new Gambling Amendment Bill (the No 3 Bill) and additions to the Gambling Amendment Bill (No 2) which Cabinet signed off last week. The changes also include new regulations approved by Cabinet last month enabled in part by the Gambling (Gambling Harm Reduction) Amendment Act 2013.

“The No 3 Bill will give communities better information on grant-making decisions; strengthen provisions that deal with conflict of interest and reduce the regulatory complexity and cost for gambling operators.

“These provisions help to ensure that gambling is undertaken to benefit the community and ensure every cent possible goes to worthy causes,” says Mr Dunne.

The Supplementary Order Paper to the Gambling Amendment Bill (No 2) provides clarification in key areas including the regulation and enforcement powers of the Department of Internal Affairs.The new regulations mean non-club gaming societies, which operate pokie machines in pubs and bars, will be required to distribute more of their gambling proceeds to the community.

The change will see the distribution of funds to the community by way of grants rise over a five year period, from the current minimum rate of return of 37.12 per cent of (GST exclusive) gaming machine gross proceeds up to a minimum of 42 per cent.

“Current annual returns to the community are approximately $260 million. This figure could increase by a further $10 million because of the rate of return,” says Mr Dunne.

“The staggered increase will commence in the first financial year after the regulations come into force – 40 per cent in the first year, 41 per cent in the third financial year and 42 per cent in year five. It is anticipated that the new regulations will come into force around September 2014.”

There are currently 44 non-club societies and the average rate of return is close to 41 per cent so about half will have to make some adjustment to meet the new minimum. By staggering the increase, societies will have more time to adapt to the new requirements. Societies will also have to distribute 80 per cent of gaming machine net proceeds in the same regional council area in which the proceeds were generated.

Cabinet also gave the go-ahead to develop proposals to increase the transparency of grant decision-making and reform the system for paying the venues that host gaming machines. These changes are included in the No 3 Bill.

“Under the new transparency requirements societies will have to publish additional information that may include the purpose of the grant, the geographical location of grant recipients and whether a grant applicant is a local, regional or national organisation.

“On venue payments, I propose proceeding with the development of a commission-based system because it will be simpler than the status quo and has the potential to reduce societies’ overall costs. The Department will work with representatives of the Class 4 gambling sector to come up with the best solution,” says Mr Dunne.

The Gambling Amendment Bill (No 2) is before the committee of the whole House. http://www.legislation.govt.nz/bill/government/2007/0131/latest/DLM1170601.html?src=qs

The Gambling Amendment Bill (No 3) was introduced today. http://www.legislation.govt.nz/bill/government/2014/0216/latest/DLM6117613.html?src=qs

Media Contact: Rob Eaddy 0274 596 200

Wednesday 4 September 2013
Westport Bowling Club,
Cnr Lyndhurst & Romilly Streets
Westport
7.00pm

Are you a member of an amateur sports club,
school or community organisation in Westport?

Help may be just an application away

Come along and find out how to make an effective
TTCF Grant Application

The Trusts Community Foundation Ltd has committed itself to work more closely with the Government to improve compliance with the Gambling Act.

A recent audit of TTCF Ltd showed few compliance issues but the company, in meetings with Gambling Compliance, has discussed ways of improving the company’s performance and its relationship with the Department of Internal Affairs.

The society has made considerable progress since the Gambling Commission suspended the old TTCF Inc in 2010 for using pokie money to compete for venues and unnecessary entertainment expenditure.

The not-for-profit TTCF Ltd is now returning much more to the community in grant money – the current return to authorised purposes is 46.06%. It is also gradually changing its board of Directors. The company is introducing a retirement rotation policy, as a result of which two directors have retired so far, and licensing trust-nominated directors will be linked to the local bodies’ three year electoral cycle. An independent Director will be appointed to bolster board competencies, skills and diversity.

The new society also now has clearer policy and processes in place to ensure venue operators do not receive credit for TTCFL grants.

Following the windup of TTCF Inc, more than $700,000 was recovered by the Trustees and has been returned to the community funding pool, including previous grants that were not spent on the stated purpose or were no longer needed. These were redistributed as part of the former Trust’s windup including $219,000 to Wellington Neonatal Trust and $489,657.21 to the Totara Hospice South Auckland (to double the size of the hospice).

Internal Affairs Gambling Compliance Director, Debbie Despard, welcomed the approach taken by TTCFL.

“The recovery they have made is a good example of what is expected of a society and the Department looks forward to supporting TTCFL maintain progress.”

Gambits December 2012 Issue