Gambling Venue Policy

Gambling Venue Policy

Submissions are now closed on this policy

What is being proposed?

Timaru District Council is proposing a number of changes to our current Class 4 Gambling Venue and Board Venue Policy. These changes have been included in the draft policy and the rationale for their inclusion is discussed below. There are a number of other policy options which can be taken into account. The advantages and disadvantages of these options are discussed on below.

Background

The Gambling Act 2003 and the Racing Act 2003 require all territorial authorities (city and district councils) to have a policies relating to Class 4 gambling venues and Racing Industry Transition Agency* (TAB) venues in their district. These policies must be reviewed every three years, taking into account the social impacts of gambling. Council’s current policy combines both Class 4 and Agency venues . The oversight of Class 4 gambling venues and Agency (TAB) venues sits with the Department of Internal Affairs (DIA). However, territorial authorities are responsible for issuing consent to venues that wish to provide Class 4 or TAB gambling. Essentially, DIA may issue a licence to a venue once Council has issued consent for that particular venue in accordance with this policy. *Formerly the New Zealand Racing Board

Frequently Asked Questions

What is Class 4 gambling?

Class 4 gambling covers gaming machines, commonly known as pokie machines, in venues that are not casinos.

And Agency venues?

This deals with stand-alone Racing Industry Transition Agency venues, or TAB, venues. It does not cover TAB outlets.

Gambling venues in the Timaru District

There are currently 14 Class 4 gambling venues in the Timaru District and a total of 165 gaming machines.*

There are no Agency venues in the District.*

*DIA gambling statistics as at 30 June 2019. www.dia.govt.nz

What does the Policy deal with?

Under the Gambling Act 2003 Council’s policy:

  • must specify whether or not a Class 4 venues may be established and, if so, where they may be located within the District; and
  • may specify any restrictions on the maximum number of gaming machines that may be operated at a venue; and
  • may include a relocation policy.

The Gambling Act 2003 sets a maximum limit of nine machines for new venues. Council is able to set a lower limit through its policy. Under the Racing Act 2003, Council’s policy:

  • must specify whether or not new TAB venues may be established and, if so, where they may be located within the District.

What doesn't the Policy cover?

Council’s policy cannot:

  • reduce the number of machines in existing venues;
  • control the hours of operation for gambling venues;
  • close down an existing gambling venue;
  • control what happens to the proceeds of gambling - i.e. where, and to whom the proceeds are distributed; or
  • regulate casinos, internet gambling, or Lotto outlets

Proposed Changes

Council is proposing a number of changes to ensure the policy is fit for purpose and continues meeting its objectives. These changes include:

Including a relocation policy

  • The current Policy does not allow for the relocation of Class 4 gambling venues in accordance with Section 97A of the Gambling Act. Under this section, if councils consent to a venue relocation, the maximum number of gaming machines permitted at the new venue would be the same as the number permitted at the original venue (up to a maximum of 18 machines).
  • Council is proposing to include a policy which allows venues to relocate in instances where they are unable to continue operating at the existing site, for example, the expiration of a lease, due to a fire, or the building being deemed earthquake-prone, dangerous, affected or insanitary. Venues must meet all other conditions of the Policy.
  • This would mean the Gambling Venue Policy does not negatively impact existing businesses when events beyond their control mean they must relocate. While this would not increase the overall number of gaming machines in the District, it will not decrease them either.

Removing “Recreation Zones” from areas where gambling venues may be established

  • The inclusion of “Recreation Zones used for organised sporting purposes or recreational non-profit purposes” in the areas where gambling venues may be established is inconsistent with the intent of the Policy.
  • The policy currently excludes gambling venues from close proximity to places where children, families, community groups, and individuals congregate for physical, social, cultural or intellectual development and wellbeing: pre-schools; schools; places of worship; and community facilities; including playgrounds; halls; community centres; and swimming pools. As such, Recreation Zones used for organised sporting purposes or recreational non-profit purposes should also excluded from the locations where gambling venues may be established.

Removing exemption clause

  • This clause currently states that: “not all venues, including existing venues, will be able to comply with the policy requirements. For this reason Council will consider applications for exemption made in respect to specific sites.”
  • This clause creates unnecessary ambiguity for Council officers processing applications. Council believes that only venues who meet the criteria detailed in the Policy should be given consent to operate gaming machines
  • Further, as the Policy applies to new applications for consent, existing venues and their licences are not affected by this policy, unless the venue proposes to increase the number of gaming machines or to relocate.

Simplifying the wording of the Policy and clarifying definitions

  • The current Policy is quite wordy and in some places is unnecessarily complicated. Council believes all our policies should be easily understood. Apart from the proposed changes detailed below, these wording changes do not alter the meaning or intent of the Policy.

Change the policy title to “Gambling Venue Policy”

  • The current Policy is titled “Class 4 Gambling Venue and Board Venue Policy”, and it’s a bit of a mouthful. Council thinks “Gambling Venue Policy” covers the purpose of the Policy just nicely.

Draft Gambling Venue Policy

Click here to read the draft Gambling Policy

Other Options

While it is Council’s preferred option to adopt the draft policy as presented, there are other options available, taking into consideration the social impact of gambling within the Timaru District.  These are:

Status Quo

What is the Status Quo?
  • Maintain the current cap at 7 machines per venue.
  • Maintain the current location restrictions
  • No relocations policy
Advantages and Disadvantages
  • Under the current Policy the total number of gaming machines in the Timaru District has fallen. As at 30 June 2019 there were 165 machines, down from 213 in 2016. This may suggest that, through natural attrition, machine numbers will continue to decrease. Yet in the year ending 30 June 2019 over $38,000 more was spent on gaming machines than in the year ending 30 June 2016. This is to say, more money is being spent on less machines*.
  • The current policy may not be meeting its purpose to minimise harm caused to the community by gambling.
  • The level of funding available in the Timaru District from charitable trusts operating gambling machines is maintained.
  • Without a Relocation Policy, current venues are not able to relocate should circumstances require a change of venue. They need to apply for a new consent and the number of machines would be capped at 7, which may have adverse financial implications if the venue’s previous licence allowed for higher numbers of machines.

* DIA gambling statistics as at 30 June 2019. www.dia.govt.nz

Sinking Lid Policy

What is a Sinking Lid Policy?
  • No new consents will be issued by Council.
  • Venues will not be able to increase their number of machines.
  • Gaming machines will not be able to be transferred to another venue if one venue closes.
  • Consent will not be given for venue relocations.
Advantages and Disadvantages
  • Over time, this would lead to a decrease in the number of venues and machines in the Timaru District, potentially reducing the harm caused by problem gambling, while still allowing for existing venues to continue to operate.
  • If a venue is unable to continue operating in its current location (for example, due to a fire, or a building lease is not renewed), the venue would not be able to relocate its machines to any other venue.
  • A sinking lid policy takes time to have an effect on the total number of gaming machines and is reliant on current venues closing down.
  • May discourage some hospitality businesses from establishing within the District if they are unable to have gaming machines and negatively affect employment opportunities in the hospitality industry.
  • May reduce over time the level of funding available in the Timaru District from charitable trusts operating gambling machines.

Other Capping options

What would Capping options look like?
  • Capping the total number of gaming machines in the District
  • Reduce the cap on the number of machines each new venue may operate.
Advantages and Disadvantages
  • A district wide cap of machines would ensure no further potential for gambling harm is created.
  • A reduction in the cap on machines per venue may further reduce the potential for problem gambling by minimising any potential proliferation of machines in the District.
  • May discourage some hospitality businesses from establishing within the District if they are unable to have gaming machines and negatively affect employment opportunities in the hospitality industry.
  • May reduce over time the level of funding available in the Timaru District from charitable trusts operating gambling machines.

Ease Restrictions

What about Easing Restrictions?
  • Increase the number of machines allowed at each venue to the legislative maximum.*

*18 machines for those venues which holding such a licence prior to 17 Oct 2017, 9 machines for those with such a licence issued after this date.

Advantages and Disadvantages
  • This approach would be more enabling for businesses, allowing a greater number of machines within the District as a whole, and possibly in each venue. As such, it may help enhance the benefits of gambling, including the economic success of local businesses, social enjoyment, and the availability of funding for the District.
  • However, this option might result in  an increase in the current levels of gambling risk, which is not consistent with the general objectives of this policy.

Last updated: 20 Jul 2021