Eureka Trust pokies use community funding for gambling [07.02.07]

"It is staggering that out of the 5.2million dollars distributed by Eureka Trust, which is money received from Pokie Machines, 20% of it was given back to another form of gambling - horse racing", says David Coom, South Island Regional Manager for the Problem Gambling Foundation of New Zealand (PGF).

"The main justification we were given for the introduction of pokies to our communities some years ago, was that profits could be returned for community activities. This is clearly not happening in the case of Eureka trust", says Mr Coom

"Of the $5.2m distributed, only approximately $1.3m was given to arts. Clubs and societies, social services and festivals - this is only 25% of the total funding pool available, leaving the remaining 75% to be returned to horse racing and sporting organisations," he says.

Whilst the vast majority of pokie machines are concentrated in the lower socio-economic areas, there appears to be no recognition of this in the distribution of community grants.

"The pokie machines continue to act as a regressive taxation, redistributing money from the poor to the better off areas. The prizes are going to the most deserving class - the race horse owners. Over 60% of problem gamblers live in low socio-economic areas, yet 75% of this grant money will probably not benefit those same communities from which is was taken from."

Lauren Cundall, Youth Services Team Leader highlights the need for a re-evaluation of the way that pokie grants are distributed. "In our opinion, this disbursement of funds does not reflect the intentions of the gambling act 2003, which is to fairly and equitably return gambling proceeds to the community."

"The communities are suffering because of people committing fraud and theft to fund their gambling, relationships are being destroyed and children neglected, and yet those organisations who work so hard to rebuild our broken communities are neglected when it comes to community funding" says Lauren Cundall, PGF's Youth Services Team Leader.

Geoff Lumb, counsellor at PGF was alerted to the funding concerns by a client. "Those individuals and families who have been harmed by gambling are completely outraged that what little money is given back to communities is being siphoned down and going back into the pockets of the gambling industry through the racing boards.

ENDS

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