Rules get blame for cut in pokie income

Gaming machine venues are already noticing an impact a week after the introduction of new rules limiting the expenses they can be paid for running the machines, says the Charity Gaming Association.

The Department of Internal Affairs has dismissed claims that community groups could lose up to $28 million a year in funding as a result of the December 1 rules limiting how much pubs can be paid to run gaming machines.

But Paul East, chairman of the association, said the $20 million to $28 million forecast had been carefully audited and early indications since the rules came into force were that it was not inaccurate.

"This estimate matches very closely the experience of sites the [association] has monitored since the new rules were introduced," Mr East said.

"Even in that short a time, the trend is obvious and high turnover sites are reducing hours in response to the limits on the costs they can claim."

Mr East was disappointed Internal Affairs had sent a letter to clubs and community groups dismissing claims there would be a sharp decline as "pure speculation".

"The Charity Gaming Association is disappointed the Department of Internal Affairs is relying on pure speculation to defend rules which are harming community groups," he said.

"We have done the responsible thing and told community groups - to which our members provide funding - they will have to budget for less in the coming year. We do not believe the department intended this harm when they introduced the rules."

Internal Affairs said the new rules would ensure a higher portion of gambling profits were returned to the community - but that would come from reduced fees to gaming machine operators.

Mr East said the rules could force some venues to shut down their machines, meaning there would be fewer operators whose machines provided community funding.

"The only other gaming venues that will be open are casinos which return profits to their shareholders."

- NZPA