New Zealand Government Invests in the Reduction of Gambling Harm

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

• Twitter
• Email

More About John Isaac

Last updated: June 27, 2022

Recently, the government of New Zealand has initiated an investment in the direction of potential gambling harm reduction. The project is set to run till 2025, and about 76.1 million NZD (48 million USD) has been allocated to it.

The project named SPGH – Strategy to Prevent Gambling Harm was created by the Ministry of Health and it is created as a campaign for the elimination of gambling harm. This project follows a landmark record in the gambling industry of New Zealand after it was announced that gamblers spent about 2.62 billion NZD (1.06 billion USD) on Lotto, Casinos, TAB NZ, and NCGM – Non-Casino Gaming Machines.

In the recent announcement from the Ministry of Health, the current investment in the project is about 25% higher than the previous amount allocated (15.8 million NZD). The minister asserted that the increment is very essential because citizens are at a huge risk of gambling harm. Another reason as claimed by the ministry is the increase in the total population of the country which means there are more people at risk of harm.

Increase in Risk

The government of New Zealand believes that the population growth in the country will lead to an increase in the issues in the gambling industry. The government estimated that one in five citizens is in danger of gambling harm, but the assertion could not be supported by tangible data.

Currently, in the country, the problem associated with gambling is gauged by PGSI – Problem Gambling Severity Index. This index is the most adopted screening tool in various industries for researching the gambling industry, even though, there is no standard application of the index. In a report by the National Library of Medicine, it was stated that the index is weak and cannot be used to assess the severity of the problems in the gambling industry, which has been a limitation to every gambling screening.

However, through the SPGH project, the ministry has identified the ways the index can be improved. The project highlighted the various strategies the ministry will use, and it includes an action plan named “Kia Manawanui,” which will cost about 1.9 billion NZD.

Operators to Suffer the Increase

It was said the levy rate on different gambling segments in the country will be used to cater to the increase in the allocated funds. Currently, the levy rate in the gaming machine segment is 0.788%, but it will now be 1.08%. Casinos will now be levied 0.87% of their winnings. Instead of 0.522%, TAB NZ will now be paying 0.76%, and Lotto NZ will be paying 0.444% compared to 0.433%.

However, this change in the levy is not accepted by all stakeholders in the industry. There is a substantial degree of skepticism about the changes as shown by Clubs New Zealand, a group that represents over 300 clubs in the country. Even though the group is not against the idea, it is against the way the government wants to implement it.