Pokies handout fund blames ban on errors

A PAIHIA-based society which has distributed more than $800,000 to the community from gaming machines has lost its licence following a Department of Internal Affairs audit.
The Bay Foundation owns 39 pokie machines, including 12 operated at the Waipapakauri Hotel. The others are in Rotorua and Mt Maunganui.
In the 12 months to October, it distributed $806,000 to sport and community groups.
But the Department of Internal Affairs has refused to renew the foundation's licence, citing failings found during a recent audit.
It is only the third society to have its licence revoked since tighter gaming laws came into force in 2004.
A spokesman for the department said the foundation would have to be wound up and any surplus money distributed to the community.
The department said the reasons for not renewing the licence included:
• The foundation returning less than 23 per cent of gaming machine proceeds to the community when they were required by law to return 37.12 per cent to the community
• Paying too much in venue costs and other fees
• Issues with the foundation's finances.
Mike Hill, the department's director of gaming compliance, said the case was a reminder to all societies about their responsibilities.
But Bay Foundation trustee Bruce Marshall said the society disputed those claims and had planned to appeal against the department's ruling. However, a communication breakdown meant they missed the deadline for filing information for that appeal.
Mr Marshall said the society always intended to pay the required 37 per cent in grants, but claimed the department had taken action before it was able to do so. He said the society's venue costs were within the limits, but the society had mistakenly supplied the wrong figure.
Mr Marshall said the society was in discussions with another trust to take over and run its machines.
The focus was to finalise those arrangements so they could get the machines running again, he said.
• Northlanders have spent more than $18 million on pokie machines in the past six months, according to figures from the Department of Internal Affairs.
The figures show that between April and September $18,663,540 was spent on gaming machines.
Gamblers in the Far North district spent $9,026,709, Whangarei district $8,309,289, and Kaipara district $1,327,542.