‘Social cost’ seen in gambling machines

Press, 11 October 1986, Page 5

‘Social cost’ seen in gambling machines

PA Hamilton A Government proposal to legalise some gambling machines has not taken in the social cost of the move, according to the president of the National Council of Women, Mrs Jocelyn Fish. The Minister of Internal Affairs, Mr Tapsell, has proposed the legalisation of some gambling machines in hotels and sports clubs because of the high money turnover, and because attempts to control these have not been successful. Mrs Fish said the National Council of Women endorsed comments by the director of the Mental Health Foundation, Dr Max Abbott, that the social cost of such a move was likely to be very high. The logic behind the move was akin to legalising murder if there were an increase in unsolved murders, she said. Minimum standards for gambling machines are being formulated by the authorities in readiness for the law change that will legalise use in New Zealand. Security would be an important aspect of the requirements, said the head of the Internal Affairs’ gaming branch, Mr Rodger Beatty. “What we need is a machine that can be reasonably tamper-proof.” The general specification would need to be approved by the Minister of Internal Affairs, Mr Tapsell, before the law change, expected next year. Commercialisation of machines would not be

allowed. • “The aim is to keep within the Gaming and Lotteries Act where the maximum . contribution goes to a cultural, charitable or sporting organisation,” Mr Beatty said. There would be no semi-casino with rows of “pokies” as in Australia. There would be a controlled pay-out system although the amount had yet to be determined. At each place there might be two or three machines. Traditional poker machines were likely still to be illegal.

. Clubs or societies would be able to apply for a licence to set up an approved gambling machine in a hotel, for example, to raise funds in the same way as a lottery or housie. The Government would get revenue from the machines through GST. The tax would apply on about 20 per cent of the takings — the net after the prize dividend was paid. The same already applied to lotteries and Housie if the group running these was a registered society, he said.