New Zealand: GMANZ lambasts the DIA over newly-proposed regulations

The Gaming Machine Association of New Zealand is seeking a judicial review of the new gambling regulations outlined by the DIA. DISCLAIMER: This is sponsored content. All opinions and views are of the advertiser and do not reflect those of the publisher.
Association seeks judicial review of new gambling regulations. Picture - AdobeAssociation seeks judicial review of new gambling regulations. Picture - Adobe
Association seeks judicial review of new gambling regulations. Picture - Adobe

Criticising certain proposed amendments as “unreasonable, irrational, and impractical”, GMANZ’s independent chair, Pete Dengate Thrush, slammed the changes for being developed without proper consultation, suggesting they may do more harm than good.

Aimed at mitigating potential gambling harms, the newly updated regulations were expected to come into effect on the 1st of December. Meanwhile, GMANZ has applauded the DIA for its initiative to reduce potential gambling harm. After all, many New Zealanders eagerly search for new free spins no deposit for NZ players. Thus there is no debate that such activity needs to be monitored. According to GMANZ, the issue does not lie in the implementation of adequate regulation, but rather the fact that the body failed to address bigger problems relating to the Class 4 gambling regulation category.

An impossible task

The Gaming Machine Association of New Zealand is seeking a judicial review of the new gambling regulations outlined by the DIA. Picture - AdobeThe Gaming Machine Association of New Zealand is seeking a judicial review of the new gambling regulations outlined by the DIA. Picture - Adobe
The Gaming Machine Association of New Zealand is seeking a judicial review of the new gambling regulations outlined by the DIA. Picture - Adobe

The new amendments reveal that individuals displaying problem gambling behaviour will make more than two cash withdrawals inside a Class 4 venue in a single day. However, as highlighted by Dengate Thrust, these venues may also just be bars and pubs, so there is no way to know how individuals will spend their money there.

Furthermore, expecting venue staff to monitor each person in the gaming area every 20 minutes and document their details for future use is an unrealistic demand. Dengate Thrush pointed out that this would involve observing 20 individuals three times per hour throughout the 12 or 14 trading hours each day. He emphasised that such a requirement would result in 720 recordings daily, accumulating to approximately a quarter of a million annually.

In addition, staff will have to do this while carrying out the regular duties of their jobs, including pouring drinks, cleaning up, and monitoring intoxication, among other responsibilities. Dengate Thrust added that these concerns have been raised with the DIA on numerous occasions, including through workshops and webinars, but they have fallen on deaf ears.

Additional criticism

The New Zealand industry regulator has also faced criticism, with Dengate Thrust revealing that the problems with the newly proposed amendments expose underlying issues. Specifically, that the regulator is not functioning as effectively as it should and is unwilling to listen to the industry.

The recent rise in underage gambling serves as a example of this. Class 4 venues or their staff should not bear the sole responsibility for reducing problem gambling. Dengate Thrust stated that these regulations are simply not adequate and will not hold the responsible parties accountable.

On the other hand, GMANZ is actively engaged in leveraging problem gambling levy funds for training and technological investments aimed at mitigating the impact of gambling. This initiative includes the implementation of facial recognition technology for added protection and support. Dengate Thrust emphasises the importance of prioritizing the identification of gambling harm and providing assistance to those in need. None of the GMANZ members want to witness any harm befalling gamblers in any venues.

The association is also advocating for hosts to be held responsible for neglecting their duty to safeguard participants, with those failing to adhere to protocols subject to prosecution. However, it is crucial to note that these regulations may worsen the situation. Therefore, the significance of the Department of Internal Affairs collaborating with GMANZ cannot be overstated in order to achieve optimal results.

The Gambling landscape

Approximately 80% of Kiwis have reportedly engaged in gambling at least once in their lives, with casinos being the most popular entertainment option available to residents. Moreover, approximately over $347 million was spent on casinos in 2022, marking a notable decrease from the over $559 million spent in 2021. Locals also reportedly invested over $833 million in gaming machines, contributing to the country’s gambling market, projected to reach over $1.2 billion this year.

While domestic online casinos remain prohibited in New Zealand, offshore gaming establishments do not face any restrictions. Currently, they are only required to pay a consumption charge of around $4 million per annum, which is then utilized to fund community benefits and harm minimization efforts through the country’s sports and racing codes. However, the growing problem gambling rate remains of high concern. Therefore, it will be interesting to see how the DIA’s newly proposed regulations pan out and if GMANZ will be able to execute a judicial review.

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