Blue Jackie: Gambling Amendment Bill (No 2) — Second Reading 
Blue Jackie: Gambling Amendment Bill (No 2) — Second Reading 
[Volume:654;Page:3122] 
Dr JACKIE BLUE (National) 
: 
 I am pleased to speak on the second reading of the Gambling Amendment Bill (No 2). Gambling is a growth industry in New Zealand. It is an industry that can cause great harm and devastation to individuals and families. New Zealanders have a reputation as some of the world’s heaviest gamblers. Gambling a tradition in New Zealand has gained strength over the last 10 years through the rapid growth and expansion of the gambling industry. For many people gambling is an enjoyable recreational activity. For some it may be once a year—a bet on the Melbourne Cup—but for many it is a normal part of their week’s activity. Those who have serious interests in gambling usually devote a great deal of money and time to it. Unfortunately problem gambling can result in relationship problems including separation and divorce; job problems such as absenteeism and loss of employment; financial stress such as bankruptcy; legal problems such as stealing and other illegal acts to finance gambling; and family problems including domestic violence and neglect of family life. 
I will talk for a short time on problem gambling and domestic violence. There is a link. There is evidence that domestic violence is more prevalent among problem gamblers than the general population. A number of studies support this conclusion. A few years ago a survey of 144 spouses of compulsive gamblers indicated that half of them were physically and verbally abused by their spouses and 12 percent had attempted suicide. A 1993 study found that 23 percent of pathologic gamblers admitted to hitting or throwing things at their spouse or partner more than once. One in 10 gamblers in counselling reported domestic or other violent incidents related to their gambling. There is no doubt that gambling affects family members. A 1999 survey of 215 spouses of pathological gamblers indicated that they suffered from symptoms such as headaches stomach problems dizziness and breathing difficulties in addition to emotional problems of anger depression and isolation. These symptoms were usually due to psychological abuse. The children of problem gamblers were reported to be two to three times more likely to be abused by the gambler and his or her spouse than their peers were. This is a tragedy. Gambling affects families; it rips them apart. 
This bill goes some way to address these serious issues of gambling. The proposed amendments to the Act tighten the regulations around monitoring gaming. Importantly with the proposed amendments organisations or people who receive grants from gambling societies will need to be accountable for how they spend that money. Gambling is a money-making business—there is no doubt about that. As a result of the increases in expenditure on non-casino gaming machines racing and sports betting and Lotteries Commission products gambling expenditure in 2006-07 increased for the first time in 3 years to just over $2 billion which matched the 2003-04 figure. As a result of the electronic monitoring that all non-casino gaming machines have now been connected to since March 2007 we have accurate and up-to-date figures for that part of the sector. Expenditure on these machines was almost $1 billion to the end of June 2007. In the 2006-07 year turnover exceeded $14 billion; expenditure was just over $2 billion. Gambling provided $400 million to community purposes almost $90 million to racing clubs and over $285 million in sector-specific taxation. In the calendar year 2007 problem gambling intervention services funded by the Ministry of Health assisted over 5500 first-time clients with gambling problems. Gambling is epidemic. 
The purpose of this bill is to update the Gambling Act 2003 which took effect on 1 July 2004. The Act brought major reforms and in particular changed the focus towards the minimisation of harm associated with gambling. However since it came into effect a number of issues have emerged and are addressed by this bill. The bill was introduced in August 2007 and was reported back by the Government Administration Committee in May 2008. The Government has elected to progress this bill with a number of minor policy and technical amendments. The amendments to the Act will tighten the regulations around the monitoring of gaming. 
Organisations or people who receive grants from gambling societies need to be accountable for how that money is spent. This bill addresses that. There are concerns that there have been instances where gaming profits have been used to ease an organisation’s or a person’s cash flow and then have been unable to be accounted for. That is not satisfactory. Therefore an amendment requires that gaming-machine profits be banked directly into the gaming-machine society’s back account. There is also a requirement that community grant recipients use grants only for the specifically authorised purpose for which the grant was made. Importantly the justification for requesting the grant cannot be changed and I am sure members will not have any issues with that particular amendment. Specifically there is an amendment that sets out the circumstances where a gaming-machine society may use proceeds for its own authorised purpose rather than distributing grants to the wider community. 
There will be an absolute duty for gambling venues to assist suspected problem gamblers. Those venues cannot turn their backs on those people. It will not be sufficient for gambling organisations to approach a person on one occasion provide information then do nothing. Further if the person’s gambling behaviour continues to be of concern gambling organisations will have to be accountable. There are regulation-making powers that will enhance harm prevention and minimisation measures. For example mobile eftpos devices will be prevented from being placed close to gaming machines and players. This means that a player would have to walk away from a gaming machine to obtain additional cash from an eftpos device. 
Currently the Secretary for Internal Affairs can collect information from people involved in the conduct of gambling to facilitate the objectives of the Act. The new clause 99A enables the secretary to specify what information should be collected how often and the manner and form in which the information should be provided. This information may include details about how gambling profits are distributed or granted. The amendment further requires the secretary to publish any resulting statistical information on the Department of Internal Affairs’ website or in another publicly accessible electronic form. The bill gives the secretary the power to conduct gambling equipment research in gambling venues. Currently the secretary is not authorised to test gambling equipment in a real-life gambling environment which makes it difficult to assess the likely impact of equipment. 
A number of technical amendments have been included in the bill. There will be a clearer definition of the term “gaming machine” to ensure that equipment associated with gambling is not captured. For instance electronic card shufflers do not need the same level of regulation as gaming machines. The insertion of clause 80(1AA) will provide that rather than the holder of the venue licence a venue manager will be liable for the failure to display a notice in the gambling area that advises customers that the venue has a policy of identifying problem gamblers. Most of all this bill addresses some serious issues in regard to problem gambling. Under this bill a licence holder or casino operator will be required to keep a record of every person excluded from their venue and to provide this information to the Secretary for Internal Affairs on request. 
In summary gambling damages homes and communities. This amendment to the Act will tighten the regulations around the monitoring of gaming. Licensed venues and the people who work in them will be responsible for the monitoring of people who come to gamble. The people who work in gaming venues at casinos will now be vetted more strictly. The bill allows for regulation of the collection of important information around the gaming industry—the people the money and the organisations involved. The amendments are consistent with the intent of this Act which is to minimise harm. I commend this bill to the House.