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The Department of Internal Affairs

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Resource material › Information We Provide › Gambits - March 2012

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TST lifts rate of return to community

The Southern Trust (TST) is an example of a society working hard to increase community funding from the proceeds of gaming machines (GMP).


Under the Gambling Act 2003 societies must return a minimum of 37.12 per cent of GMP to the community. Societies report their returns to the Department at licence renewal time.

TST's returns to the community have risen steadily from 38.73 per cent in 2008 to 45.25 per cent in 2009 and 45.57 per cent in 2010. The return in the last financial year was 42.98 per cent.

While the percentage figures show a community return in excess of the required minimum, the dollar amount declined in line with the national trend of diminishing GMP.

Gambling Compliance Director, Debbie Despard, says TST illustrates that societies' primary role is to maximise the amount of gaming machine money they return to authorised purposes and emphasises the importance of ensuring that costs claimed are actual, reasonable and necessary.

TST Chief Executive, Karen Shea, said the trustees understand TST's core function is to maximise the return to the community.

"The Trust has explored all options to reduce administrative overheads where possible to ensure the maximum possible is distributed to a wide variety of community organisations."


Rates of return to community

The following table is a recent snapshot of non-club societies' returns of gaming machine proceeds to the community.


The figures are self reported, therefore indicative only and are subject to individual follow-up and checking by the Department. They are based on the return that societies provide at licence renewal time and availability of data depends on when renewals are processed.

It is interesting to note that a number of smaller societies have achieved very high rates of return to the community and overall 17 societies have achieved rates of 40 per cent or higher. These societies are commended for achieving more than the absolute minimum of 37.12 per cent. It may also be timely to remember that the return to community remains the foremost concern of every society.

Name

Renewal Year

Financial Year

Total Proceeds

Return to AP

Rate of Return

RoR 2011

ILT FOUNDATION
30 June
31 March
$10,123,782
$6,368,118
62.90%
68.50%
THE RUNANGA COMMUNITY SWIMMING POOL TRUST
31 January
30 September
$102,410
$62,941
61.46%
56.40%
WHITEHOUSE TAVERN TRUST
31 December
30 September
$1,394,428
$708,317
50.80%
62.50%
MT WELLINGTON FOUNDATION LTD
30 June
31 March
$2,077,909
$1,012,721
48.74%
44.00%
MANUKAU COUNTIES COMMUNITY FACILITIES CHARITABLE TRUST
30 June
31 March
$5,927,316
$2,804,024
47.31%
37.90%
ST KILDA COMMUNITY SPORTS SOCIETY
31 December
30 September
$1,098,472
$517,271
47.09%
47.20%
OXFORD SPORTS TRUST INC
30 November
31 July
$10,429,969
$4,666,711
44.74%
41.20%
KAIWAKA SPORTS ASSOCIATION INCORPORATED
31 March
31 December
$180,968
$80,157
44.29%
45.70%
THE BRUNNER RUGBY LEAGUE CLUB INCORPORATED
31 March
31 December
$106,963
$46,878
43.83%
36.90%
TRUST HOUSE FOUNDATION
30 June
31 March
$7,386,568
$3,237,123
43.82%
MANA COMMUNITY GRANTS FOUNDATION
30 June
31 March
$5,793,000
$2,528,000
43.64%
42.50%
THE SOUTHERN TRUST
31 March
31 December
$34,558,854
$14,854,181
42.98%
45.20%
MAINLAND FOUNDATION LIMITED
31 October
31 July
$10,241,074
$4,377,575
42.75%
37.30%
HUCKLEBERRYS SPORTS & CHARITABLE SOCIETY INC
30 June
31 March
$602,991
$252,300
41.84%
55.00%
PUB CHARITY
31 December
30 September
$69,504,303
$28,124,000
40.46%
37.70%
NEW ZEALAND COMMUNITY TRUST
31 December
30 September
$87,133,000
$35,201,732
40.40%
49.10%
YOUTHTOWN INCORPORATED
30 April
31 December
$18,798,763
$7,539,199
40.10%
39.50%
BLUEGRASS TRUST
30 June
31 March
$4,007,803
$1,586,207
39.58%
THE TRUSTS COMMUNITY FOUNDATION LIMITED
31 July
31 March
$22,399,557
$8,746,264
39.05%
PRODUCERS TRUST INC
31 March
31 December
$2,868,367
$1,118,664
39.00%
37.20%
INFINITY FOUNDATION LTD
31 October
31 July
$31,013,002
$12,051,231
38.86%
38.00%
NAUTILUS FOUNDATION
31 July
31 March
$7,290,078
$2,828,657
38.80%
40.30%
PRIME COMMUNITY TRUST
31 January
30 September
$1,873,731
$724,693
38.68%
39.50%
TRUST AORAKI LIMITED
31 July
31 March
$2,201,718
$850,485
38.63%
39.20%
TRILLIAN TRUST
30 November
31 July
$14,508,240
$5,599,826
38.60%
39.00%
AHAURA/GREY VALLEY LIONS CLUB INC
30 September
30 June
$167,312
$64,537
38.57%
37.20%
THE BENDIGO VALLEY SPORTS AND CHARITY FOUNDATION
30 September
30 June
$3,407,899
$1,312,179
38.50%
38.20%
AIR RESCUE SERVICES LIMITED
31 October
30 June
$18,509,264
$7,026,863
37.96%
37.70%
BULLER COMMUNITY DEVELOPMENT COMPANY LIMITED
30 September
30 June
$127,743
$48,470
37.94%
38.70%
WATER SAFETY EDUCATION FOUNDATION
31 December
30 September
$5,760,248
$2,184,729
37.93%
37.10%
FIRST SOVEREIGN TRUST
30 September
30 June
$21,848,575
$8,285,903
37.92%
39.00%
CONSTELLATION COMMUNITIES TRUST INC
31 October
30 June
$1,961,903
$741,264
37.78%
37.20%
BLUE WATERS COMMUNITY TRUST
31 July
30 April
$3,391,654
$1,279,760
37.73%
38.20%
FOUR WINDS FOUNDATION LTD
25 March
31 December
$12,203,385
$4,593,453
37.64%
37.80%
SOUTHERN VICTORIAN CHARITABLE TRUST INC
28 February
30 November
$1,929,738
$724,648
37.55%
37.30%
PELORUS TRUST
31 January
30 September
$14,854,367
$5,569,301
37.49%
37.60%
AOTEAROA SPORTS FOUNDATION LIMITED
30 June
31 March
$1,315,000
$492,958
37.49%
28.01%
GRASSROOTS TRUST
30 June
31 March
$15,060,868
$5,596,410
37.16%
37.20%
THE LION FOUNDATION (2008)
31 July
31 March
$117,246,220
$43,520,540
37.12%
REDWOOD TRUST INCORPORATED
31 July
31 March
$953,434
$352,989
37.02%
*
37.50%
LIONS CLUB OF OHAI-NIGHTCAPS INCORPORATED
31 October
31 August
$136,166
$49,089
36.05%
**
37.20%
CUESPORTS FOUNDATION LIMITED
31 July
31 March
$2,383,433
$729,171
30.59%***
39.60%
THE NORTH & SOUTH TRUST LTD
30 June
31 March
Figures are currently under assessment
BLUESKY COMMUNITY TRUST LIMITED
31 October
Figures unavailable
CHRISTCHURCH EARTHQUAKE RECOVERY TRUST LIMITED
30 June
Figures unavailable
DRAGON COMMUNITY TRUST LIMITED
29 March
Figures unavailable
ENDEAVOUR COMMUNITY FOUNDATION LIMITED
31 August
Figures unavailable
FIRST SOVEREIGN TRUST LIMITED
30 June
Figures unavailable
NEW ZEALAND RACING BOARD
31 October
Figures unavailable
* Renewed based on acceptable forecast and distributions were only $925 short.
** $1,455.82 short. Appropriate sanction under consideration.
*** Under decision to cancel class 4 operator's licence.


Building stronger relationships

The Department is taking a fresh approach to managing relationships with key players in the Class 4 sector, according to Maarten Quivooy, General Manager of the Regulatory and Compliance Operations Group.


The Department recently established the Regulatory and Compliance Operations Group to bring together its compliance operations in gambling, censorship, anti-spam, anti-money laundering and private security services.

"My group has a wide remit of regulatory activity but, regardless of the sectors we regulate, our regulatory relationship must be built on integrity and trust," Maarten said.

"Societies and stakeholders in the Class 4 sector should expect the Department to demonstrate the hallmarks of an effective regulator.

"That means we need to be clear about the outcomes we are after, to make sure we are focused on the right things, that we are open and transparent in how we do the work, that we use all the tools we have to help people be compliant, and that we work closely with the regulated community so that they are clear about what is expected of them and we understand their issues and concerns.

"It also means that when we take enforcement action we are clear about why we are doing this, which is to enhance and promote compliance.

"I believe that ongoing and regular engagement between the Department and the Class 4 sector at a senior level is critical to building a strong regulatory relationship. This includes not just societies but also groups that focus on problem gambling. I have had the opportunity to meet a number of societies and groups in the sector and I look forward to continuing that process."

Debbie Despard, the Director for Gambling Compliance in the Regulatory and Compliance Operations Group, will lead the Department's engagement with the four major Class 4 societies (Lion, Pub Charity, NZCT, Southern Trust), the Community Gaming Association, Hotel Association, SkyCity Casino and the Problem Gambling Foundation. John Currie, Manager Licensing, will lead engagement with Clubs New Zealand.

"Our focus will be to influence the sector towards better compliance. Stakeholder management is a key tool for us in doing that," Debbie said.


Venue manager impresses

The Department has praised the knowledge and actions of a pub manager in an investigation it is conducting into syndicated play in the Wellington region.


Gambling Compliance Director, Debbie Despard, and Acting Regional Manager, Kevin Finnegan, visited the Occidental bar in central Wellington to see how it was dealing with reports of syndicated play, which is prohibited under Class 4 game rules.

"Venue manager, Kimberley Stanley, immediately responded with evidence that corroborated our investigation to date," Debbie said. "Kevin and I were most impressed with Kimberley's knowledge and the actions she had undertaken.

"It was very clear that she had been well trained and had an excellent knowledge of her role in relation to gambling. The information she provided gave us both comfort that the early identification of syndicated play at the Occidental was the reason why the culprits no longer attempt to enter those premises.

"Kimberley gave us the sense that the venue was well monitored and that from a host and harm prevention perspective she knew her customers well."

Debbie advised the NZ Community Trust, which operates the Occidental's gaming machines, that Kimberley impressed as an excellent host and well-trained operator and demonstrated the type of commitment to gambling activities that reflects venue best practice.


Regional forums

The Class 4 sector regional forums held in February were an effective way in presenting issues to the sector. Topics presented by the Department included:
  • Key messages on expectations both internally and externally
  • How engagement with the sector would work
  • Multi-venue exclusion orders
  • Recoveries, venue costs and DEM
  • IGP update and
  • Class 4 Game rules update.
Feedback was positive with most respondents finding the forum itself useful, the content just right and the regional forums generally an effective tool for sector engagement.

We are considering offering a range of options for the next round of regional forums including:
  • Talking to CEOs and GMs about any key changes and the Department's level of engagement
  • Presenting to Operational Managers and liaison staff decisions made by the High Court and Gambling Commission and the impact those decisions have on the sector
  • Presenting to society field representatives and venue managers on operational and technical matters at, for example, a venue level.
We are also considering taking the forums to regions rather than simply to the main centres and would welcome your feedback.

We continue to be interested in engaging with the sector on what best-practice initiatives they have implemented to achieve compliance in difficult areas of activity. As before, we welcome questions or specific topics that the sector would like discussed.

Any questions can be directed to John Currie, Licensing Manager. Contact details are: ph (04) 495 9415 or email john.currie@dia.govt.nz


IGP going live

The initial phase of the Integrated Gambling Platform (IGP) to enable electronic licensing is expected to go live later this year.


Phase I will replace the Department's current Licence Track system and will not impact on what the sector does currently - licence application forms will still be completed manually and sent to the Department for capture in the IGP.

Future phases will enable the sector to interact with the Department online and provide for case management.

While the system was initially planned to start in August 2011, this date has been extended so that additional compliance and licensing functionality can be included and older data from Licence Track integrated.

The delay will have no cost implications or impacts on the sector.

Progress

IGP is a joint collaboration between the Department and Intralot. Key achievements so far include:
  • The purchase and installation of required hardware
  • The completion of requirements-gathering for Phase I
  • Completion of development work for gaming technology modules such as machine and games licensing.
The Department has started testing the system and will contact the sector about their requirements and the functionality of Phase II later this year.

Any comments or questions about IGP can be directed to maarten.quivooy@dia.govt.nz


Venue inspections

Approved cost schedules are proving useful tools in venue inspections.


Some gambling inspectors have found significant differences between the operating hours stated on some venues' schedules and the actual opening hours, including venues claiming to operate on days they are not open.

Compliance inspections are carried out to ensure the Department understands what actually happens at a venue. That can involve inspectors talking to venue personnel and management. Thorough checks are made and information is verified.


Limit D breaches

Compliance with the Limits and Exclusions on Class 4 Venue Costs Notice, Gazetted in July 2008, is a fundamental requirement for complying with the Gambling Act 2003.


Audits and investigations since 2009 show that 10 societies have exceeded Limit D to the tune of more than $1.2 million, of which just under half a million dollars has been recovered.

Of the 10 societies:
  • One is the subject of a proposal to suspend
  • Eight have been sanctioned by the Department
  • One is appealing its sanction to the Gambling Commission.
The Gazette Notice states:

"A corporate society, when incurring costs (excluding GST) associated with class 4 venues, must not incur costs (excluding GST) of:
(d) more than 16% of gaming machine profits (as defined in section 104 of the Gambling Act 2003, but excluding GST), in any 12 month period (Limit D)".

If expenditure on Limit D exceeds the 16 per cent threshold, the Department will seek an explanation from the society and then undertake further enquiries to determine what sanction is appropriate.

In a recent decision on an appeal relating to a breach of Limit D, the Gambling Commission noted that such breaches should be preventable as operators should be looking forward, forecasting possible trends and adjusting costs accordingly.


Sanction decisions

The following list of decisions relate to sanctions imposed by the Department from 1 October to 31 December 2011.


Operator

Licence Type

Proposed Sanction

Breach/Reason

Date of Decision

Outcome/Status

Pub Charity Inc - McGinty's Turf and
Sports Bar
Class 4 Venue LicenceSuspension of Venue LicenceThe Department decided to suspend the Class 4 Venue Licence for breaches around harm minimisation.14 November 2011Currently under appeal with the Gambling Commission
Filthy Few Motorcycle Club Tauranga Inc.Class 3 LicenceRefusal of licence applicationThe Department refused the application submitted by the Filthy Few Motorcycle Club because the Department was not satisfied the key people met the requirements of suitability under the Act.18 November 2011Currently under appeal with the Gambling
Commission
Trillian Trust Incorporated - Brewers Bar, NelsonClass 4 Venue LicenceCancellation of Class 4 Venue LicenceThe Department decided to cancel the Class 4 Venue licence for Brewers Bar in Nelson following a court decision on the TA consent process and the overturning of the TA consent.30 November 2011Currently under appeal with the Gambling
Commission
Grassroots TrustClass 4 Operator's LicenceCancellation of Operator's LicenceThe Department decided to cancel the Class 4 Operator's licence - failure to meet 37.12% and concurrent failure to meet Limit D.20 December 2011Currently under appeal with the Gambling
Commission


Gambling Commission Appeals

This table provides a breakdown of appeals that have been resolved recently and appeals that are currently in process as at 29 February 2012.


Operator and Venue

Department Decision

Appeal (Current)

Update

First Sovereign TrustThe Department decided to refuse to renew the Class 4 operator's licence for 09/10. The Secretary is not satisfied that costs are being minimised and also has concerns with key person suitability.The society has appealed the decision to the Gambling Commission arguing that the decision was illegalThis appeal will be considered with the other appeal (see below) for First Sovereign Trust.
First Sovereign TrustThe Department decided to refuse to renew the Class 4 operator's licence for First Sovereign Trust 10/11. The Department is not satisfied that the society is incurring costs that are actual, reasonable and necessary and that costs have not been minimised particularly in regards to venue costs. The Department also has concerns with key person suitability.The society appealed the decision to the Gambling Commission arguing the decision is erroneous and contrary to the purpose and intention of the Act.In process
Southern Trust Incorporated - The SailThe Department proposed a condition requiring the closure of an internal access door to the gaming area.The society appealed the proposal to the Gambling Commission arguing the condition is not necessary as supervision is adequate and the condition is disproportionate and unfairIn process
Bula Ba Limited – HiptonixThe Department decided to cancel the venue licence for Hiptonix following a routine inspection of the premises. The Department is concerned with the failure to comply with licence conditions and the main use of the venue.The venue operator has appealed the decision on the basis that they should not be held responsible for any failure of licence conditions and that all other matters can be remedied.In process
Pub Charity Incorporated - McGinty's Turf and Sports BarThe Department decided to suspend the venue licence for one day following the breach of regulation 12 - failure to have a person trained in harm minimisation on the premises.The society has appealed the decision saying they did not breach regulation 12 of the Harm Prevention and Minimisation Regulations 2004.In process
Filthy Few Motorcycle Club Tauranga IncThe Department decided to refuse to grant a Class 3 operator's licence to Filthy Few Motorcycle Club Tauranga Incorporated.The appellant has appealed on the basis that the Department gave undue weight to Information provided by other Government Departments. The appellant argues that the decision the Department made was unreasonable and wrong. The decision on the application has been withdrawn by the Department.In process
Trillian Trust Incorporated - Brewers Bar, NelsonThe Department decided to cancel the Class 4 Venue licence for Brewers Bar in Nelson following a court decision on the TA consent process and the overturning of the TA consent.The appellant has appealed the decision on the basis that sections 74(1) (a) and 67(1) (f) do not justify the cancellation of the venue licence.In process
Grassroots TrustThe Department decided to cancel the Class 4 Operator's licence - failure to meet 37.12% and concurrent failure to meet Limit D.The appellant has appealed the decision on the basis that the breaches are of regulations rather than the Gambling Act and are not subject to the sanctions afforded under section 58 of the Act. The appellant also argues that the decision is not consistent with previous decisions made by the Department.In process

Operator and Venue

Department Decision

Appeal (Closed)

Update

Pub Charity IncorporatedThe Department decided to impose a one day suspension to the Class 4 operator's licence of Pub Charity Incorporated for a breach of Limit D.The society appealed the decision to the Gambling Commission disputing that the society was noncompliant with Limit D under the Gazette notice.Appeal dismissed
Hell's Angels Nomads Motorcycle Club IncorporatedThe Department decided to refuse to grant a Class 3 operator's licence to Hell's Angels Nomads Motorcycle Club Incorporated.The club appealed the decision to the Gambling Commission arguing that the conclusion the key persons were not suitable was wrong and that the Department acted outside the scope of the Gambling Act 2003 in placing weight on other members not actively involved in the application while not applying sufficient weight to previous approved applications.Appeal dismissed
Youthtown - Mo's Bar, Kasper's Bar and Westbrook TavernThe Department refused to grant Class 4 venue licences for these venues. The venue costs for all three venues were considered through the normal process and did not meet the requirements of actual, reasonable and necessary costs.The society appealed the decision to the Gambling Commission arguing that the venue costs submitted by the society are actual, reasonable and necessary, that the Secretary has considered information not available to the appellant in making the decision.Appeal withdrawn by Youthtown.
Blue Waters Community TrustThe Department decided to impose a three-day suspension to the Class 4 operator's licence of Blue Waters Community Trust for a breach of Limit DThe society appealed the decision to the Gambling Commission arguing that there is no jurisdiction to impose a suspension and that the suspension in this case is excessive.Gambling Commission decision GC01/12 Class 4 Operator's licence suspended for one day.
Air Rescue Services Limited - Lord BarringtonThe Department decided to refuse to licence the Lord Barrington venue.The society appealed the decision to the Gambling Commission arguing that the decision is erroneous, contrary to the intent of the Gambling Act 2003 and that the Department has failed to consider all relevant facts.Gambling Commission decision GC35/11 in favour of appellant.
Southern Trust Incorporated - The CreekThe Department decided to suspend the Class 4 venue licence for The Creek for a period of four days following a breach of an access condition imposed to ensure a door to the gaming room was locked at all times.The society has appealed the decision acknowledging the breach occurred but that it was not "serious" and the sanction was excessive.Appeal withdrawn following the Department's decision to withdraw the suspension imposed.


Section 118 charges dismissed

Charges brought by the Department against the former Chief Executive Officer of Caversham Foundation, Kevin Martin Coffey, for two alleged offences against section 118 of the Gambling Act 2003, have been dismissed. Section 118 prohibits the offering of benefits with conditions attached.


The case was heard in the District Court at Auckland in late November by Judge Philippa Cunningham who delivered her reserved decision earlier this month.

In her 13-page judgement, Judge Cunningham accepted that Mr Coffey had knowingly offered a benefit (favourable consideration of grant applications) to a potential grant recipient (Counties Manukau Bowls). However, she was not satisfied that the receipt of the benefit had an indirect condition attached to it, and dismissed the charges.

The Department is considering the decision and its potential implications for the Department's regulatory role and practice.


Guilty plea over fraudulent grant applications

An Internal Affairs investigation revealed that numerous applications from Counties Manukau Bowls (CMB), an umbrella organisation for South Auckland bowling clubs, to Class 4 gaming societies for grants were fraudulent.


From late 2006 to September 2009 CMB employed Noel Henry Gibbons, 79, of Manurewa, to apply for gaming machine grants. He pleaded guilty in the Manukau District Court in January to charges of obtaining $605,550 by deception and of using forged documents.

In order to increase potential grants Mr Gibbons implemented a scheme by which constituent clubs or CMB itself would invest indirectly in gaming machine venues. He then obtained grants from gaming machine societies for "bowling green maintenance" but some of the money was used illegally to repay loans for the purchase of pubs - the commercial use of money is not an authorised purpose.

Mr Gibbons fabricated quotes and invoices from "green keeping contractors" to support grant applications and the provision of services. None of those named in the invoices as billing for a service knew anything about the purported work. He will be sentenced in the District Court at Manukau on 11 April.


Christchurch Casino earthquake response praised

All organisations and businesses should have disaster recovery plans, but few ever need to use them.


Canterbury's earthquake on 22 February 2011 changed that for many Christchurch organisations and businesses including gambling operators. The unprecedented event not only saw business premises destroyed, but a cordon prevented owners and the public visiting otherwise undamaged buildings. One year on a cordon still prevents access to parts of the Christchurch CBD, and the rebuild of other affected premises is only just beginning.

In regulated environments such as casinos, legislation dictates aspects of a disaster recovery plan. Disaster recovery is included in Casino Minimum Operating Standards (MOS), especially for Information Services (approved gaming systems like the electronic monitoring system for casino gaming machines), Security (emergency evacuations and processes), the Cash Desk and Surveillance.

The 22 February earthquake was unique in the 16-year history of casinos in New Zealand. The cordon meant any access to Christchurch Casino's 24/7 operation was denied for six weeks, followed by very limited access for another four weeks. Full access was allowed in early May following a reduction of the cordon.

Response

The earthquake response of individual casino staff on 22 February was excellent, perhaps helped by the awareness gained from the 4 September earthquake the previous year. All patrons and staff were evacuated successfully and limited areas and money and chips secured during the evacuation.


From a regulatory viewpoint the organisational response over the next three months till the casino re-opened in late May was also excellent. In the first week Civil Defence allowed limited access so that casino money and chips could be secured and banked or stored. This also enabled snapshots of the EMS and other computer systems to be made and surveillance information secured.

Casino management developed a plan for re-entry to the building that included structural and engineering assessments, building repairs, reconciliations of all the cash and chips, and detailing any unclaimed money left on gaming tables or as credits in the electronic gaming machines. The Department's Gambling Inspectors were kept advised of the plan and progress.

Reconciliation

As soon as full access was granted around 9 May the plan was implemented. Gaming table and EGM cash and chips were reconciled; unclaimed money, chips or credits detailed and logged against patrons' names where known, or in a register as 'unknown', to allow for claims after the casino re-opened. The banking information was checked against the last day's gambling activities and the float and chip stock information available as at 22 February. In the end there was a variance of 0.003 per cent in the banking - an outstanding result considering the circumstances surrounding the recovery of money and banking in the week following the earthquake. Department Gambling Inspectors were back on site on 9 May and monitored and audited the reconciliations.


In the Information Services area all systems were checked and the Gambling Inspectors verified approved systems against master copies held by the Department.

Reintegration

All 500 gaming machines were checked and reintegrated with the electronic monitoring system. This work had to be undertaken around the ongoing building repairs, which included bolting each gaming machine to the base, and each base to the floor. All table games equipment was checked with roulette wheels balanced and automatic shufflers and chippers checked and tested. The majority of this work was undertaken in the last week before the reopening on 26 May. Department Gambling Inspectors were involved throughout the process auditing the checks made to ensure that the casino was fully compliant before the opening.


The disaster recovery and emergency procedures enshrined in the casino MOS along with the Christchurch Casino's own organisational disaster recovery planning allowed it to reopen successfully on 26 May.

As regulator, the Department was well pleased with the casino's disaster recovery response and systems. All gambling operators should review their disaster recovery plans and plan for the unexpected - it does happen!


Multi-venue self exclusion

Self exclusion under section 310 of the Gambling Act 2003 can be very effective and liberating for clients with a gambling problem. Self exclusion allows a person to ask a Class 4 pokie venue manager to ban them, while multi-venue exclusion (MVE) allows a person to exclude from several venues, without having to visit them personally.


A working group was established to support the smooth implementation of MVEs across the country. The group is developing a sustainable national framework that would combine the many exclusion processes around the country and support the manageable and consistent use of exclusion as an effective intervention tool for problem gamblers. This will also enable the collection of national MVE information and statistics.

The MVE working group includes:
  • Neove Christoforou (Department of Internal Affairs - Coordinator, Operational Policy),
  • Mathew McMillan (Te Kahui Hauora o Ngāti Koata - Nelson),
  • Philip Townshend (Problem Gambling Foundation of NZ - Nelson)
  • Chris Watkins (Salvation Army Oasis Centre for Problem Gambling - Dunedin),
  • Eru Loach (Ngā Kete Mātauranga Pounamu Trust - Invercargill) and
  • Lisa Campbell-Dumlu (Salvation Army, National Operations Manager - Problem Gambling)

Roles identified

The MVE group has met regularly with a broad range of stakeholders since early 2011 and worked through the questions, challenges and issues that have arisen.


These meetings have helped to identify that a successful MVE programme requires local coordination supported by a separate administrative role. The local coordination role provides the 'go to' person and font of knowledge on exclusion in any particular area. The administrative role involves the 'back office' administration including photocopying, distribution, and record keeping at each stage of the process - creating a national database of MVE information. It is anticipated that the bulk of administration will one day be replaced by an online version; however no system is currently available.

Best practice

Some areas of best practice for treatment providers have emerged that can improve the effectiveness of exclusion orders; perhaps the most important is to regard exclusion as a process not an event. Rather than thinking of exclusion as a one-off, fix-it solution, think of it as a treatment tool that will be used as part of an ongoing treatment plan for the gambler that requires active review and may require renewal and tweaking of the venues involved.


One of the key areas to arise is the importance of limiting the number of venues that the problem gambler will be excluded from. Exclusion orders will always work best when the client is confident that they will be enforced by venue staff. From this it follows that they will be most effective in venues where the gambler is known and frequents the most. As well as venues where the gambler often gambles, the orders can be useful in preventing the gambler from gambling in other likely or at risk venues.

However the practice of large scale or 'blanket' exclusions should be discouraged as this may dilute the effectiveness of the orders for both current and future clients by making them unenforceable by venues. The counsellor or MVE coordinator should encourage the client to first identify venues where they are regulars or at risk and initially go with as few venues as possible.

Duration

Exclusions can be renewed as often as required. There are no limits, so it may be better to do shorter exclusions more frequently than a long exclusion. The rationale is that if a new exclusion request arrives at the venue every three to six months it will keep that person in the minds of staff and staff will be more likely to enforce it. It will also make the exclusion more prominent in the gambler's mind making it more likely they will comply with it. Once again "less is more" in that the shorter duration, the more benefit for the client. Durations of around three to six months is recommended as a working guide.


Members of the MVE working group, supported by the Ministry of Health, have recently completed a national tour talking to treatment providers and societies. They are working on resources to support MVE programmes, including implementation of MVE in new regions. More will be heard about this over the year.


Gambling regulators cooperate

Developing and enhancing international cooperation between members is critical for the effective management of regulatory requirements in the future, according to delegates at the inaugural conference of the International Association of Gaming Regulators (IAGR) in Cape Town, South Africa.


The conference was attended by more than 180 regulators from 31 jurisdictions, including New Zealand through the Department of Internal Affairs. Other jurisdictions include Europe, North America, Asia, Australia, South Africa, and the Caribbean.

The IAGR began in the 1980s but reorganised as an independent non-profit corporation last year. It works to advance the effectiveness and efficiency of gambling regulation throughout the world and provides a forum for gambling regulators from various countries to meet, exchange views and information, and discuss policy issues. In addition, IAGR fosters cooperation between gambling regulators in the performance of their official duties and is a central point of contact for inquiries from governments, gambling regulatory agencies and personnel, and representatives of the international gambling industry.

Among the topics covered at the Cape Town conference were Technological Developments and Challenges in Internet Gaming; Problem Gambling and the Impact of New Technology and Social Media; Best Practices on Testing and Certification of Gambling Equipment; Integrity in Sports Betting; Licensing Regimes; International Cooperation; Junket Operators: East vs West; Pre-Commitment of Gaming Machines and Central Monitoring Systems.

This year's conference will be held in Singapore in October.

Closer to home

The Department also participates in the Australasian Gambling Regulators Information Forum (AGRIF) and is chairing the group until the end of 2012.


AGRIF provides international information exchange between regulatory, licensing and law enforcement agencies. The forum is focused on gambling regulation and the continued provision of a consistently high standard of probity checks and investigations by these agencies.

The Director of Gambling Compliance, Debbie Despard, attended last month's forum in Sydney where discussion included mutual recognition of probity checks across jurisdictions, joint probity investigations, issues associated with 'junket' operations, organised crime threats and remote interactive gambling. The next meeting will be in Victoria later this year.


Gambling policy reviews

Officials advising territorial authorities (TAs) on gambling policies can find helpful information through the Department's website:
www.dia.govt.nz/Gambling

TAs in New Zealand must have a Class 4 gambling venue policy, which must be reviewed within three years of being adopted and thereafter every three years.

The website information is not intended as a substitute for independent legal advice, or independent research into regional issues. It includes useful tips for developing a Class 4 gambling venue and/or TAB venue policies.

The Ministry of Health worked with Internal Affairs and Local Government New Zealand to complete a resource to assist territorial authorities with their Class 4 and TAB gambling venue policy reviews. It is available on the Ministry's website.

This resource includes:
  • Information about gambling legislation and the roles of various Government departments in New Zealand
  • The role of territorial authorities in reviewing their gambling venue policies (including what they are required to do, what they may choose to do, and what they cannot do)
  • Gambling venue policy options for territorial authorities
  • Background information on the economic and social impacts of gambling and problem gambling in New Zealand
  • Guidance on the statistics that could be used to inform gambling policies, based on available and wellreferenced research
  • Guidance on how the territorial authority could best present the statistical information (using tables, graphs, and/or charts) so that it is easily understood.

Funding for Community Groups

For information about funding for community groups please visit
www.dia.govt.nz/Gambling


Pokie spend rose in 2011

Gaming machine expenditure in the country's 1400 pubs and clubs in the year ended 31 December 2011 was three per cent up on 2010, from $840.7 million to $866.8 million, according to figures released by the Department of Internal Affairs.

Annual Non-Casino Gaming Machine Expenditure by Calendar Year


Chart: Annual Non-Casino Gaming Machine Expenditure by Calendar Year: 2008, 912.5m;  2009, 865.5m; 2010, 840.7m; 2011, 866.8m.
Click image to enlarge.

The spending is captured through the electronic monitoring of non-casino gaming machines (EMS), which became fully operational in March 2007, enabling the Department to track and monitor operations, ensure the integrity of games and the accurate accounting of money.

Non-Casino GM Spending by Society Type - October to December 2011

Society TypeTotal GMP Quarter% of Total
NON-CLUB190,476,933.6186.4%
Sports Clubs4,268,962.321.9%
Chartered Clubs17,437,569.307.9%
RSAs8,168,357.183.7%
TOTAL CLUB29,874,888.8013.6%
TOTAL ALL220,351,822.41100.0%
Spending in the fourth quarter of 2011 was $1 million less than the September quarter with less spent in pubs and RSAs but more in sports and chartered clubs.

Quarterly Non-Casino Gaming Machine Expenditure: June 2007 - December 2011


Image: Quarterly Non-Casino Gaming Machine Expenditure: June 2007 - December 2011
Click image to enlarge.

There were fewer licence holders, gambling venues and gaming machines at the end of 2011 compared with 12 months earlier. Licence holders fell 1.9 per cent from 367 to 360, venues declined by 2.3 per cent from 1443 to 1410 and gaming machines decreased by 3 per cent from 18,681 to 18,133.

Licensed Gambling Operations in Pubs and Clubs

Date
Licensed Holders
Venues
Gaming Machines
31 Dec 2011
360
1410
18,133
30 Sept 2011
360
1409
18,167
30 June 2011
364
1421
18,309
31 March 2011
365
1430
18,484
31 Dec 2010
367
1443
18,681
30 Sept 2010
369
1438
18,601
30 June 2010
370
1455
18,944
31 March 2010
374
1470
19,115
31 Dec 2009
378
1491
19,359
30 Sept 2009
377
1486
19,296
30 June 2009
384
1501
19,479
31 March 2009
394
1527
19,739
31 Dec 2008
399
1537
19,879
30 Sept 2008
405
1551
20,025
30 June 2008
415
1552
19,856
31 March 2008
421
1569
20,018
31 Dec 2007
428
1585
20,182
30 Sept 2007
435
1593
20,163
30 June 2007
439
1598
20,120
Further information, including numbers of venues, machines and expenditure by territorial authority and changes in the quarter, is available from the Department's Gaming Statistics web page at: www.dia.govt.nz. The figures are based on territorial authority boundaries that existed prior to the new Auckland super city.


Gambling Helpline

Free phone: 0800 654 655


Open 24 hours a day.


Gaming machine societies' contacts

The Department's gambling compliance and licensing inspectors each have responsibilities for liaising with gaming machine societies.


If societies have issues to discuss, they may contact these inspectors first by phoning the Department's toll free number 0800 257 887.

Society

Compliance Inspector

Licensing Inspector

AHAURA/GREY VALLEY LIONS CLUB INCMark Thomson ext 3142Judy Rohloff ext 5466
AIR RESCUE SERVICES LTDPete Collins ext 7043Judy Rohloff ext 5466
AOTEAROA SPORTS FOUNDATION LTDStephen Balmer ext 7923Niall Miller ext 5485
BLUE WATERS COMMUNITY TRUSTArtie McClelland ext 7915Jasmine Rangiwhetu ext 5491
BLUEGRASS TRUSTDave Macdonald ext 3152Niall Miller ext 5485
BLUESKY COMMUNITY TRUST LTDStephen Balmer ext 7923Jasmine Rangiwhetu ext 5491
BULLER COMMUNITY DEVELOPMENT COY LTDGreg Clark ext 3153Anna Panchenko ext 5764
CHRISTCHURCH E'QUAKE RECOVERY TRUST LTDPete Collins ext 7043Rochelle Goodwin-Kanara ext 5350
CONSTELLATION COMMUNITIES TRUST INCArtie McClelland ext 7915Jasmine Rangiwhetu ext 5491
CUESPORTS FOUNDATION LTDJohn Hennebry ext 7939Niall Miller ext 5485
DRAGON COMMUNITY TRUST LTDArtie McClelland ext 7915Craig Holmes ext 5486
ENDEAVOUR COMMUNITY FOUNDATION LTDGarth Cherrington ext 5520Judy Rohloff ext 5466
FIRST SOVEREIGN TRUSTDavid Batenburg ext 3152Rochelle Goodwin-Kanara ext 5350
FIRST SOVEREIGN TRUST LTDDavid Batenburg ext 3152Rochelle Goodwin-Kanara ext 5350
FOUR WINDS FOUNDATION LTDDavid Batenburg ext 7922Brent Addison ext 5345
GRASSROOTS TRUSTStephen Balmer ext 7923Judy Rohloff ext 5466
HUCKLEBERRYS SPORTS & CHARITABLE SOC INCAnn Maxwell ext 5258Jasmine Rangiwhetu ext 5491
ILT FOUNDATIONTony Climo 03 409 2158Janet Wong ext 5505
INFINITY FOUNDATION LTDRick Mead ext 5667Brent Addison ext 5345
KAIWAKA SPORTS ASSOCIATION INCCliff Simpson ext 7937Rochelle Goodwin-Kanara ext 5350
LIONS CLUB OF OHAI-NIGHTCAPS INCTony Climo 03 409 2158Craig Holmes ext 5486
MAINLAND FOUNDATION LTDGreg Clark ext 3153Janet Wong ext 5505
MANA COMMUNITY GRANTS FNDNGarth Cherrington ext 5520Janet Wong ext 5505
MANUKAU COUNTIES COMMUNITY F'LITIES C TArtie McClelland ext 7915Kahill Madden ext 5630
MT WELLINGTON FOUNDATION LTDStephen Balmer ext 7923Anna Panchenko ext 5764
NAUTILUS FOUNDATION Cliff Simpson ext 7937Judy Rohloff ext 5466
NEW ZEALAND COMMUNITY TRUSTJason Hewett ext 5264Janet Wong ext 5505
NEW ZEALAND RACING BOARDJason Hewett ext 5264Niall Miller ext 5485
OXFORD SPORTS TRUST INCCliff Simpson ext 7937Kahill Madden ext 5630
PELORUS TRUSTAnn Maxwell ext 5258Niall Miller ext 5485
PRIME COMMUNITY TRUSTAnn Maxwell ext 5258Niall Miller ext 5485
PRODUCERS TRUST INCStephen Balmer ext 7923Jasmine Rangiwhetu ext 5491
PUB CHARITYRick Mead ext 5667Niall Miller ext 5485
REDWOOD TRUST INCORPORATEDDave Macdonald ext 3152Rochelle Goodwin-Kanara ext 5350
SOUTHERN VICTORIAN C T INCRon Grob ext 6603Niall Miller ext 5485
ST KILDA COMMUNITY SPORTS SOCRon Grob ext 6603Judy Rohloff ext 5466
THE BENDIGO VALLEY SPORTS & CHARITY FNDNRon Grob ext 6603Jasmine Rangiwhetu ext 5491
THE BRUNNER RUGBY LEAGUE CLUB INCMark Thomson ext 3142Brent Addison ext 5345
THE LION FOUNDATION (2008) John Hennebry ext 7939Craig Holmes ext 5486
THE NORTH & SOUTH TRUST LTDArtie McClelland ext 7915Janet Wong ext 5505
THE RUNANGA COM'Y SWIMMING POOL TRUST Greg Clark ext 3153Anna Panchenko ext 5764
THE SOUTHERN TRUSTDuane Calvert ext 6609Anna Panchenko ext 5764
THE TRUSTS COMMUNITY FNDN LTDMark Thomson ext 3142Brent Addison ext 5345
TRILLIAN TRUSTLance Daly ext 7921Kahill Madden ext 5630
TRUST AORAKI LTDDave Macdonald ext 3152Jasmine Rangiwhetu ext 5491
TRUST HOUSE FNDNAnn Maxwell ext 5258Kahill Madden ext 5630
WATER SAFETY EDUCATION FNDNGarth Cherrington ext 5520Janet Wong ext 5505
WHITEHOUSE TAVERN TRUSTDavid Batenburg ext 7922Craig Holmes ext 5486
YOUTHTOWN INCLance Daly ext 7921Kahill Madden ext 5630


Gambling issues key contacts

All gambling compliance staff can be contacted by phoning the Department's toll free number: 0800 257 887


Email: gambling.compliance@dia.govt.nz

Web: www.dia.govt.nz/Gambling

Postal address and fax numbers:

CASINO COMPLIANCE
PO Box 805, Wellington, Fax: (04) 494 0624

GAMBLING LICENSING
PO Box 10-095, Wellington 6140, Fax: (04) 494 0656

GAMBLING COMPLIANCE
Auckland
PO Box 2220, Auckland 1140, Fax: (09) 362 7945

Wellington
PO Box 10-095, Wellington 6140, Fax: (04) 495 7214

Christchurch
PO Box 1308, Christchurch 8140

Regulatory and Compliance Operations

Gambling compliance issues are covered by Regulatory and Compliance Operations which sits within the Department's Policy, Regulatory and Ethnic Affairs branch under Deputy Chief Executive, Paul James.


The branch encompasses all the roles where the Department is, in effect, the regulator of a sector of the economy. In addition to gambling, this includes censorship and anti-spam compliance, fire service policy, identity services policy, local government and community policy, civil defence and emergency management policy and crown entity monitoring functions, Office of Ethnic Affairs and the Office for the Community and Voluntary Sector

For the sake of simplicity, functions outside of the gambling sector are not included on this page.

Image: Regulatory and Compliance Operations structure chart - high level
Click image to enlarge.

Maarten Quivooy - General Manager Regulatory and Compliance Operations
This position covers all regulation and compliance operations (and operational policy) including anti-spam, censorship, gambling, racing, anti-money laundering and countering financing of terrorism.

Debbie Despard - Director of Gambling Compliance
This position is responsible for the Inspectors and other staff working with the gambling sector to bring about compliance with the law. The Director works closely with Policy so that there is a constant flow of information between the staff involved in applying the law and those who develop the law.

Alison Barrett - Director, Operations Support
This position provides support and assistance to operational compliance functions across the group and wider Department.

John Currie - Manager Licensing
This position has prime responsibility for Class 4 Licensing, championing a new electronic licensing regime and management oversight of the Electronic Monitoring System contract with Intralot.

Michael Cassidy - Manager Gaming Technology
This position oversees the technical integrity of gaming issues across casino and all other classes of gambling.

Heather McShane - Manager Operational Policy
Operational policy provides support and advice to the Gambling Inspectors and other staff working in the sector. It develops standards, game rules and other "deemed regulations". In broad terms, its role is to develop Department policies for how the law will be turned into the work done in the field.

Dave Sayers - Manager Investigations
The Investigations Unit is responsible for undertaking significant (complex, cross group, lengthy and sensitive) investigation projects involving criminal, legal and financial issues related to the governance and operation of gaming sector people and organisations. It also provides expertise and support to investigations and audits across the group.

Sanjay Sewambar - Manager Performance Assurance
This unit focuses on ensuring that the Gambling Compliance Group achieves both its strategic objectives (short and long-term) and its business goals. It coordinates strategic and business planning for GCG as well as providing robust analysis, monitoring and reporting around performance.

Kate Reid - Manager Anti-Money Laundering/Countering Financial Terrorism
Under The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 this unit monitors casinos, non-deposittaking lenders, money changers and reporting entities not covered by the other supervisors, The Reserve Bank and the Securities Commission.


Gambits' editor

If you have any questions about articles in Gambits, would like further information or have comments about what information we could provide to make Gambits more useful to you, please contact:


Trevor Henry
Ph: (04) 495 7211 or 0275 843 679
E-mail: trevor.henry@dia.govt.nz

Gambits is produced quarterly. Copies are distributed in March, June, September and December.

Gambits provides information about the Department's recent work and significant issues in the gambling sector.

It is intended for sector organisations and the community in general, to increase understanding of and compliance with the law.

Mailing list

Do you want to receive Departmental media releases and Gambits?


If you would like to have your organisation added to the Department's distribution list for media releases about gambling issues, or want to receive Gambits but are not currently on the mailing list, please email trevor.henry@dia.govt.nz or telephone (04) 495 7211 or fax (04) 495 7224.


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