18 May 2007

Levy combats harm from problem gambling

The continuation of funding to address problem gambling will go a long way to reducing its impact on the community, Internal Affairs Minister Rick Barker and Associate Health Minister Damien O'Connor say.

The Problem Gambling Levy Regulations 2007 became law last night. The regulations set the levy for the $1.9 billion-a-year profit gambling industry at an average of $18.6 million a year for the next three years plus $9.045 million under-recovery from the industry since 2004. They replace the 2004 regulations.

The levy is recovered under the Gambling Act 2003 and is based on recommendations from the Gambling Commission and the Ministry of Health, the ministers said. The money helps the Government support research into problem gambling, raise public awareness and provide services for those affected by problem gambling.

"The Cabinet has taken a very fair approach. It has listened carefully to advice and accepted recommendations from both the Gambling Commission and the ministry," the ministers said.

The levy, shared between four gambling sectors: casinos, non-casino gaming machines, New Zealand Lotteries Commission and the New Zealand Racing Board, is due to come into force on 1 July 2007. It will continue until 30 June 2010.

Mr Barker said the levy weighting formula remains the same as for the 2004-2007 period – at 90 per cent weighted on the number of people presenting to problem gambling providers and 10 per cent weighting on the amount of money lost gambling.

Mr O'Connor said the levy is extremely important in the battle to reduce harm from gambling.

"We know about the devastating effects of problem gambling on families, but we are still learning about what lies behind it and new research is vital. Data shows that more than 80 per cent of problem gamblers are not even aware that they have a problem, so the levy takes into account this unmet need.

"Government and organisations – including service providers and the gambling industry – must work together to successfully address gambling harm in the long term.”

Mr O'Connor said he expected a recent audit of problem gambling providers and the reworking of their contracts with the Ministry of Health would lead to more efficient and effective services.

"The public has every right to expect efficient utilisation of levy money."

ENDS

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