Sky City Gains at Community Groups’ Expense

News Release
For immediate release
May 13, 2013

Sky City Gains at Community Groups’ Expense

Community groups and clubs throughout New Zealand will be potential losers following the Government decision to allow a further 230 slot machines into Sky City as part of the convention centre deal, according to Community Gaming Association Executive Director Brian Corbett.

Corbett says while Trusts managing slot machines in local communities are required by law to return a minimum at least 37.5 percent of revenue to community groups (some Trusts manage over 40%), there is no such requirement for any revenue to go to the community from Sky City.

He says the deal represents a transfer of wealth from the community to the shareholders of a listed company.

“The reality is when sports clubs, schools, the arts and cultural groups make their applications for funding to their local trust, it is likely the pot will be much smaller and so groups will have to do without. I doubt central government or local councils are going to make up the shortfall,” he says.

Department of Internal Affairs figures published in the Gambits magazine March/April 2013 show gaming machine expenditure dropped from $866.8 million to $839.7 million with the loss of 29 gaming venues compared to a year earlier, resulting in less community funding.

Granting a license extension to operate 230 more slot machines in Sky City appears to be a triumph of lobbying over common sense and commercial interests over community funding. Certainly Auckland will benefit from an International convention centre but do not make a scapegoat of non-profit gaming operations in order to conclude this arrangement.

“At some time in the past some far-sighted individuals set up a system whereby a large proportion of revenue from gaming was to be diverted to direct community benefit. New Zealand is the only country in the world to have developed such an innovative system and it works. Any reduction in slot machines operating in the charitable sector through council intervention has a direct effect of local communities and jeopardises funding streams. This is something Auckland Council needs to weigh up in the coming months."

Corbett says whilst in principle he sees the merits and value of a convention centre he hopes the proposed Auckland City policy of adopting a sinking lid process to further reduce slot machines will take this Sky City decision into consideration during the submission process and not sacrifice charitable gaming at the expense of a commercial operation to balance the books and make the numbers look better.

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