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New Zealand – Problem Gambling Foundation claims casino slots are more dangerous

By - 2 October 2013

New Zealand’s Problem Gambling Foundation has told the Commerce Select Committee looking at the Sky City deal that would bring more casino games in exchange for the construction of the New Zealand International Convention that slot machines in casinos are more likely to lead to cases of problem gambling.

If approved, the New Zealand International Convention Centre Bill would give Sky City 230 extra slots, another 52 gaming tables and a licence extension to 2048 in exchange for building the convention centre in Auckland.

Foundation Chief Executive Graeme Ramsey said that because casinos were designed to keep players playing, players were at a greater risk. He said: “In Sky City each machine takes on average, by our calculation, $141,000 per annum net. That is the losses on a machine. That is double the highest level of take, generally speaking, in a pub or club environment.”

Mr Ramsey demanded that the Gambling Act should have reviews of casinos including an independent examination of its costs and benefits.

Sky City could also be refused permission to allow smoking in its high-roller lounge after it was challenged in the High Court.

A judge has ruled that the technique used by the Ministry of Health tested to ascertain if the Diamond Lounge was an open space contravened the Smoke Free Environments Act.

The technique brings into play factors such as floor space, air flow and openings to determine if a space is open or enclosed. Complainants suggested that the lounge, a roofed area ventilated by a wall of louvres, was substantially enclosed.

Justice Rodney Hansen said: “The simple factual question of whether or not a space is substantially enclosed is replaced by a calculation intended to assess airflow through the space. That is contrary to the clear scheme and purpose of the statute.”

SkyCity’s General Counsel Peter Treacy said the ruling could have far reaching effects for many properties across New Zealand where the Ministry of Health had used the open areas calculator.

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