Hon Peter Dunne

Minister of Internal Affairs

13 May 2016 Media Statement

New payments system for hosting pokie machines

The Government has agreed to a new payments system for venues hosting pokie machines in bars and pubs, Internal Affairs Minister Peter Dunne said today.

The new commission-based system will be much simpler. Each venue will be paid up to 1.28 per cent of weekly gaming machine turnover. Total annual payments for each venue must not exceed 16 per cent of a venue’s gross gaming machine proceeds (GMP) excluding GST.

“The current venue payments system is complex, time-consuming and costly to operate. The gambling sector and the Department of Internal Affairs have come up with a more efficient model that reduces red tape and compliance costs.

“The current system specifies and sets limits on three types of cost a society pays a venue for hosting its gaming machines. Guidelines for calculating these payments cover almost 15 A4 pages.

“The new regime was co-designed by the Department and a Class 4 gambling working group, made up of members from societies, venues and problem gambling service providers,” says Mr Dunne.

The new payments system will be introduced on 3 October 2016. Draft regulations, implementing the change, will be circulated next month for sector comment before Mr Dunne reports back to the Cabinet.

The Department and sector working group members will prepare guidance material to ensure the transition to the new regime is as smooth as possible.

“I am confident that the new regime will be significantly easier and cheaper to comply with for the sector and the regulator,” said Mr Dunne.

Further information can be found here: https://www.dia.govt.nz/diawebsite.nsf/wpg_URL/Resource-material-Regulatory-Impact-Statements-Index?OpenDocument#three

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