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Gamblers are being given easier access to their money through automatic teller machines installed in gaming lounges.
Introduction of a pilot scheme has outraged problem gambling groups and sparked an immediate review by the Manukau City Council.
Internal Affairs, which regulates gambling, is aware of the trial and has legislation before Parliament to clamp down on it. But many gaming venues are in bars and there is no legislation to prevent ATMs there.
The money-vending machines are owned by the NZ ATM and ATM Plus companies, which have introduced machines in several locations, including gambling venues and convenience stores.
Brent Diack, manager of the Salvation Army-run Oasis Centre for treatment of problem gambling, is opposed to anything that gives gaming-machine players easier access to money.
"This is a harm-maximising practice," he said. "These pokie machines are designed to attract people and keep them playing. Providing easier access to money is absolutely diabolical."
But Stephen Goodier of ATM Plus said his company had no particular target audience, and he was following overseas practice.
"I have machines deployed in Class 4 gaming venues the pubs and clubs," he said. "Class 4 gaming is covered by the Gambling Act."
The pilot programme is being run in conjunction with Paymark and when it finishes will depend on how many people use it.
Only half the debit cards in use in New Zealand work with the machines.
NZ ATM spokeswoman Wendy Anderson recognised the concerns raised by the location of the machines.
"We are a self-regulating organisation," she said.
"We have taken the limit of our machines in gambling venues down to $200 from $800 and we are also putting an 0800 gambling helpline number on receipts."
Ms Anderson said having ATMs in gambling venues created a safer environment because staff did not have to handle large quantities of cash and people playing the machines were able to keep the amount of cash they withdraw private.
Problem Gambling Foundation chief executive Graeme Ramsey , said gambling was a secretive act, made more difficult to detect when gamblers used the cash machines.
"ATMs make it impossible for good host responsibility. I can see advantages to venues for cash management but, from a problem gambling perspective, it is not a good idea."
Manukau City councillor Dick Quax is raising the subject of ATMs at gaming venues at the council's policy and activities committee meeting today.
"Obviously, there are already ATMs operated by banks," he said. "This has nothing to do with that.
"My concern is these are going into small venues that don't have them now."
An Internal Affairs spokesman said present regulations require the holder of a class 4 venue licence or casino operator's licence to ensure no ATMs are available in gambling areas.
"The Gambling Amendment Bill (No 2) currently before Parliament would allow for regulations to restrict the availability of eftpos devices close to gambling machines," he said.
"The intention is to require a player to walk away from the gaming machine to obtain additional money from an eftpos device," he said.
The department knew of the pilot.
An Australian study has explored the introduction of ATMs in Australian Capital Territory gaming venues. The study found that convenience ATMs appeared to be related to higher gambling spending.
- THE AUCKLANDER