11 October 2007

More gaming machine money to the community

The social and community services sector received a much larger share of gaming machine money in 2005 than in 2000 while sport and physical activities’ proportion dropped. But sport and physical activity remained the largest single category recipient of funds from societies that operate gaming machines in commercial venues, and all sectors received much more money even in real terms in 2005 than they did in 2000.

Research into the allocation of gaming machine profits, released today by the Department of Internal Affairs, shows that the social and community services sector’s share of the funding from societies that operate machines in commercial venues was up from 29 per cent in 2000 ($37.6m in 2005 dollars i.e. inflation-adjusted) to 40 per cent in 2005 ($108.5m). Sport and physical activities’ share was down from 60 per cent in 2000 ($78.8m in 2005 dollars i.e. inflation-adjusted) to 47 per cent in 2005 ($127.3m).

The amount gaming machine societies allocated to authorised purposes increased from more than $151 million in 1999-2000 (the equivalent of over $169 million in 2005 dollars i.e. inflation-adjusted) to more than $317 million in 2005. Around 85 per cent was from societies with gaming machines in commercial venues. Clubs accounted for the remainder with almost all their money used for the benefit of members such as meeting club operating costs. Because clubs are community organisations, these purposes are community purposes.

The report, Where Do Gaming Machine Profits Go? A Survey of the Allocation for Authorised Purposes of Non-Casino Gaming Machine Profits in 2005, is available at: www.dia.govt.nz

ENDS

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