Internal Affairs Response to NZ Chartered Clubs

Media Release 15.02.01

Internal Affairs Response to NZ Chartered Clubs Statement

Allegations by the Chief Executive of the NZ Chartered Clubs, Roger Parton, about high site rentals come at a time when the Department of Internal Affairs has just completed research into the levels of site expenses being paid to gaming machine hotel site operators.

The data shows that site expenses payments ranged from $0 to $250, with only 16 of the 1,117 sites receiving more than $250 per machine. The highest amount identified was $460 for a single site hotel-based trust.

Gaming Licencing manager Lois Markland says a payment of $1000 per machine, per week would undoubtedly be excessive.

"Since the research was conducted the Department has uncovered one site payment of an unprecedented size. Our Gaming Compliance unit is working with the society involved to rectify the situation."

The research into the levels of site expenses was initiated in response to gaming sector concerns that sites were being offered as much as $500 per machine per week for site rental and services.

Data from 1,117 sites (86% of all public premises sites) was collected from annual licence renewal financial summaries and directly from licensees. It covers the 1999/2000 licensing period.

There is no evidence to suggest that regulatory intervention, such as reinstating a cap on site rentals, is warranted. The Department believes that it's emphasis on all societies making a substantial return to community purposes, at least one-third of their income after prizes, is working.

Current licence conditions allow trusts to pay a reasonable amount for the goods and services they need to run their gaming machine operations.

For further information please contact Pamela Fleming, 025 575676.

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