October 18, 2007

Crooked bars in the gambling crime capital

The Problem Gambling Foundation is calling on the Department of Internal Affairs to clamp down on gaming trusts that allow pokie machine takings to be used to fund criminal activities.

The call follows reports that three Christchurch pokie bars are linked to the criminal underworld and were failing to bank weekly pokie takings as required under the law.

Problem Gambling Foundation CEO John Stansfield says that the Caversham Trust which owns the pokies in the bars should have pulled its pokies out of the bars immediately when the pub licensee fell behind with payments.

"It's good that DIA is considering prosecuting the publican," he said.

"But the gaming trust needs looking at too All fundraisers should take care they do not cause harm when raising money. The pokies are a particularly dangerous product and the gaming trusts should be exercising special care to see they are operated both within the law and as safely as possible.

"The gaming trusts enthusiasm to raise funds sometimes seems to get in the way of ensuring venues are acting legally and responsibly."

Mr Stansfield says that Christchurch residents clearly demonstrated their concern about the antics of the gambling industry at council hearings on gambling policy and it is time their wish to get rid of gambling related crime was taken seriously.

"People in Christchurch are fed up with damage that pokies are doing to their community and reputation. We need to send a clear message to the gaming trusts that they are in a privileged position and should act accordingly.

"These examples of poor behaviour by venue owners are not exceptional. There is a constant stream of people associated with the trusts and venues appearing before the courts."

Mr Stansfield congratulates the three agencies that were involved in investigating the bars and says the city council now has the opportunity to put it's sinking lid gambling policy into effect by ensuring that when the bars were closed the pokies were not allowed to be relocated or operated by a new owner.

Mr Stansfield says he is not surprised to see the pubs were running at loss.

"Pokies are not supposed to be the main source of income for bars," he said.

"Too many bars are getting away with running businesses that are really just gambling dens that sell the odd beer as a cover.

"Good, well run pubs are a community asset They don't need pokies to be profitable.

"The hospitality industry should be about providing people with a good experience not trying to clean them out financially regardless of the consequences."

ENDS

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