Moratorium On Casinos

Dorothy – 13/11/97

Moratorium on approval for further Casinos The bill proposing a moratorium on approval for further casinos in New Zealand received enough support in Parliament for it to be referred to a Select Committee. That committee is expected to report back by the end of this month (November).

There are widely divergent views on this topic among New Zealanders all around the country.

Why did the Casino Control Act of 1990 sanction the opening of casinos in New Zealand? Reasons given were:

  • Casinos would offer Kiwis a great new place of entertainment and an attractive environment in which to gamble.

  • Casinos would increase the flow of tourists to New Zealand.

  • Many more jobs would be created in the casinos themselves and through the boost that they would give to businesses in the area and to tourism.

What has been the experience at the Christchurch Casino? Kiwis obviously enjoy the chance to go to the casino. It is estimated that 60% of visitors come from Canterbury, 25% are Kiwis from outside Canterbury and 15% are tourists. The majority of the tourists seem to be Asian visitors. It has proved immensely popular.

The minimum age for visitors
is twenty, but there is no upper limit. Senior citizens are among the regular patrons. A friend of mine visited the casino when she was a hundred and cut the casino birthday cake.

Read her story – the story of a woman born when Queen Victoria was on the throne and still taking a vital interest in New Zealand affairs.

Kiwis have always enjoyed gambling. Records show that even on the voyage to this country the new settlers had set up gambling games and sweepstakes to help pass the time. Betting on horse racing, lotteries and raffles have long been a recognised way of gambling in New Zealand. The bookmakers taking bets illegally off-course did well until the opening of the TAB legalised off-course betting. The introduction of Lotto in 1987, the opening of the first casino in 1994 and the introduction of sports betting through the TAB in 1996 have opened up new opportunities for gamblers.

Over five hundred jobs have been created at the Christchurch Casino. Some of these jobs have given employees a new view of people and their reactions to loss at the gaming tables. For the opinion of one former employee read “All That Glitters“.

The Casino has become one of the most popular attractions for tourists to the region, proving more popular than bungy jumping.

In the first year the Christchurch Casino paid out $15 million in wages and winnings. Adjacent businesses did not benefit from the increased traffic in the area. Restaurants and bars suffered from the competition from those facilities being provided at the casino.

The impact of the casino on the community Law and order The serious problems with law and order that were forecast have not eventuated at the casino itself. The staff are well trained in dealing with problems and their skills, combined with the dress and behaviour codes, have meant that the Christchurch Casino has averaged one arrest for every 200,000 visitors. (At the end of 1996 the figure for the Auckland Casino was given as one arrest in every 20.000 visitors.)

Problem gamblers Estimates from counsellors who deal with problem gamblers range from between 20% and 40% of clients having problems related to the casino. Although men outnumber women visitors to the casino there has been a marked increase in the number of female clients needing counselling, up 30% since the opening of the casino. The pleasant surroundings and the social acceptability of visiting the casino may well account for this.

The casino has no powers to evict anyone who seems to staff to be gambling excessively. As they have no knowledge of the punters’ circumstances they cannot judge whether people are at serious risk.

Those who recognise that their gambling at the casino has become a significant problem can sign a self-barring order to have themselves barred from the casino. If they attempt to enter they face a trespass charge.

The Christchurch Casino has set up a charitable trust under which $200,000 will be given to organisations treating compulsive behaviours including gambling. $40,000 has been given to the Salvation Army to set up a counselling service.

The effect of the addiction to gambling can be widespread, affecting the gamblers’ families and sometimes leading to criminal behaviour, especially fraud, to finance the addiction.

People value their anonymity at the casino and some have admitted when interviewed that they do not wish their names to be published as spouses and families do not approve of their visits.

Profits and tax The government coffers benefit through the 4% casino duty paid each year on their gross profit by the two casinos – $10 million per year. The Lotteries Commission which operates Lotto, Instant Kiwi, and others pays about $35 million a year in tax and the racing industry pays close to $40 million in totalisator duty in a year.

While hotels and clubs which have gaming machines are compelled by law to give a proportion of their profits to charity there is no compulsion on casinos to give away a fixed proportion of their profits. The Christchurch Casino does sponsor a number of functions, but this is not mandatory. Lotto has been a major source of sponsorship for community organisations, but the sum available to support community groups has decreased as people spend an increasing proportion of their gambling dollar at the casino.

The moratorium When Parliament voted on the moratorium there were four applications for licences for new casino premises awaiting approval. A fifth, from Wellington city, was received the day after the bill was introduced into Parliament and could not be processed.

These applicants, who have spent many thousands preparing their applications are anxiously awaiting the recommendation of the Select Committee and the vote in Parliament. Naturally they do not want to see a moratorium come into effect.

In Australia where there are fourteen casinos for a population of 18 million not all are proving financially viable. How many do we need for a population of three million?

Do give us your views on this topic.