Convention centre a $350m roll of the dice

The Problem Gambling Foundation has no problem with a new centre but it doesn't want more gambling to fund it. Photo / APN

Even on a quiet Wednesday afternoon at SkyCity Casino the business of gambling never stops.

"Do you see anyone laughing and having fun?" Graham Aitken from the Problem Gambling Foundation asks rhetorically.

He has a point. Few look to be having a terrific time, not the scattering of pokie players at the entrance to the main gaming hall, nor the sea of Asian faces gathered around the blackjack and roulette tables where most of the afternoon action is taking place.

Aitken agreed to come to the casino to outline why his organisation objects to any further gaming machines (the casino already has 1647) and tables in return for SkyCity's offer to build a $350 million convention centre in Auckland City which many say the city desperately needs.

The economic benefits, say Prime Minister John Key and Auckland City mayor Len Brown, will be considerable - 1000 jobs to build the 3500-seat centre, 800 jobs afterwards, $90 million in new visitor spending and a $49 million increase in GDP. All this for free - not a cent to be paid for by taxpayers.

What does it matter if there is a law change to extend the casino licence and allow more pokie machines and gaming tables as a trade-off for a free convention centre in the city?

Aitken, who has a long history in the health sector, says without hesitation, "Well, it's not free."

The people who will really pay for the centre, he says, are gamblers and many of them problem gamblers.

The foundation quotes research which says 40 per cent of casino money comes from problem gamblers. Aitken says while they might be fewer in number than non-problem gamblers, they spend way more.

They sit longer at pokie machines, spend all their cash and go to the cashier for more.

We don't know how many problem gamblers we have in this country, he says, but going on the numbers who present with problems (in the order of 3000 to 4000 people a year) there could be between 80,000 and 100,000.

They gamble away their mortgage or rent money, their grocery money, their children's school uniform money and sometimes leave their children in the carpark - the tentacles of harm are far-reaching.

The foundation has no problem with a new convention centre, Aitken points out, and neither are they party poopers. "But if they [SkyCity] are going to use the business of gambling largely to fund it then a large amount of that is going to come from people who have got problems and [are] causing problems for their families and businesses."

The foundation cites research - including New Zealand research - which says for each new machine you get 0.8 per cent of a new problem gambler, another report which says 25 per cent of New Zealanders involved in criminal activity put that down to gambling and more research showing one in six New Zealanders go without as a result of someone's gambling.

SkyCity isn't saying how many new tables and machines it wants- this is being negotiated with the Government, with the request to extend the existing casino licence - but Aitken says if more pokie machines are granted they should at least come with more safety features.

Alan Trotter, who represents the convention industry in New Zealand, describes the SkyCity offer as a gift from heaven. Demand for big conventions is high but New Zealand does not have the facilities - the SkyCity deal is the only deal in town and would deliver benefits not just to Auckland but around the country.

He is not without sympathy for problem gamblers but says he understands SkyCity wants to attract high- rollers out of Asia.

"My understanding, and I've done a bit of digging on this, is that, look, they have enough of the South Auckland market, it's not really where they want to position themselves.

"I think what they want to do is add value in terms of enticing these high net individuals who, stupidly in my opinion, fly around the world and lose vast amounts of money and get treated royally for doing so."

The convention business is lucrative but we have missed out on big scientific and medical and other professional conferences - lawyers, patent attorneys, "you name it".

His organisation has dealt with large international associations who have expressed interest in coming here but could not fit in the 2500 or more delegates. "So there's quite a pent-up demand and this is what this facility will actually address.

"But I'll tell you why New Zealand is a winner from this and I think people have lost this point.

"The average length of stay of a convention delegate in New Zealand is about 10 days but the average length of the convention is between four or five." The rest of the time the delegate, who may have brought a partner and children, wants to have fun in New Zealand, says Trotter.

"I mean, you're not going to come down from the UK or Paris, North America or Japan to spend four days in Auckland and then fly back again.

"You'll take time out because your airfare's paid for and you'll go to the South Island, for instance, so someone with a bed-and-breakfast in Westport ironically will be the beneficiary of this proposed facility."

Trotter says about 60 per cent of all international delegates do stay on.

Figures show international conference delegates spend an average of $440 a night, about four times more than other international visitors.

Not all of them will stay at SkyCity but in various levels of hotels throughout Auckland and they will also eat in restaurants in the city.

Trotter is asking the critics to hang fire, saying there will be plenty of discussion over the deal.

"It's been offered to New Zealand on very favourable terms by a privately listed company and, yes, there are issues around the quantum of what they're asking for in terms of extra gaming facilities and that needs to be taken into consideration.

"But in the scheme of things, whilst it is a consideration, I think it's dwarfed by the opportunity that has been presented to us."

Should SkyCity get more poker machines?

The case for:
* 1000 construction jobs and 800 permanent jobs at the casino's convention centre
* Plus an extra $90 million in new visitor spending each year

The case against:
* 0.8 per cent of a new problem gambler for each machine
* One in six New Zealanders go without as a result of someone's gambling

Smart way to stop problem gamblers

A controversial new tactic for beating problem gambling is being investigated in Australia.

And SkyCity in Auckland says it has been looking at the possibility of a similar scheme for some time.

The Australian Government wants to bring in controversial technology for a pre-commit system, in which players agree to a set limit and access gaming machines with smart cards.

When the registered limit is reached, the machine shuts down.

But the move has angered clubs that rely on pokie money and they have vowed to fight legislation.

In Melbourne this week, community health counsellor Trish Rossi was quoted as saying: "I think having pre-commitment cards will help to give people back their dignity."

SkyCity in Auckland says it has been watching with interest what is happening in Australia. Company secretary Peter Treacy says SkyCity is open-minded about introducing a voluntary pre-commitment system where customers could set a daily spending limit.

"Effectively they would set a limit on the amount of time and/or money they spend on a gaming machine."

He could not say when such a system might be implemented but he pointed out that SkyCity was already known for having one of the most comprehensive host responsibility policies in the world.