New Zealand's Southern District Council is reviewing its gambling policy
New Zealand's Southland region wants to know whether its gambling regulations are accepted by the public. The company is currently accepting feedback on a "soft sunk lid" scheme that would reduce the number of pokies in the area.
Gaming machines have fallen out of favor with regulators in many countries. But Australia and New Zealand are leading the way. In New Zealand's southern region, the number of machines has dropped from 133 in 2013 to 88 in September last year.
This is intentional as the district has long-term plans to eliminate these machines. Its "soft-sink lid" system allows current video game equipment to remain in place but prevents new licenses from being issued. The Southern District Council now wants to know what residents think of the plan, the Otago Daily Times reports.
Promote community
The committee believes the project will make a difference. It shows a decline in the number of gambling venues and slot machines since 2013. While volumes are down, revenue is not. Revenue remained "relatively neutral" during the reporting period.
At the same time, this decline has had no impact on problem gambling activity. As markets continue to fluctuate, "the number of people seeking help for gambling problems is neither increasing nor decreasing".
However, councils need to listen to local communities. This is part of current guidance, which under New Zealand law requires review and public consultation every three years. Residents have until the middle of next month to provide feedback.
The soft sinking cap approach is beneficial because it allows the market to shift gradually. This means a slow transition occurs without sudden jolts. This means business companies and governments are better able to promote new business activities to generate revenue. At the same time, gambling consumers will not feel any sudden impact following the major changes.
While the South Zone will not issue new licenses, existing licenses will be allowed to be transferred between businesses. In the event of a failure, existing machines that are licensed to operate can be replaced.
Acceptable Scenarios
Southland County is unlikely to receive much negative feedback during the TAB and venue policy consultation period. TAB is the official organization providing gambling services in New Zealand and has a legal monopoly.
Over the years the council has made some minor adjustments and residents of the borough seem content with the status quo and have mostly forgotten about the pokies.
There are no TAB branches in the area, which limits the exposure of the machinery. However, public places such as bars have TAB facilities.
Over the past three years, the commission has not received any requests from entities wishing to operate gaming machines. This seems to be a good sign that they are no longer a lucrative commercial enterprise in the area.
The Southland region is located in the South Island and is a sparsely populated area, which may contribute to a lack of interest. The area has approximately 32,700 residents. Based on its area of nearly 11,500 square miles, this means the population density is only about 0.5 people per square mile.
After the consultation period, a public hearing will be held. The event will be held on June 23, after which the Council will consider all written and oral submissions. New draft guidance could be released as early as July 13.
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Source: www.casino.org