New Zealand / Local Democracy Reporting

'Incredibly harmful' South Auckland pokies rake in millions

15:42 pm on 17 May 2024

South Auckland pokie machines raked in more than $20m in profit between October and December 2023. Photo: Supplied / Problem Gambling Foundation

Pokie machines raked in over $20 million in profits from Ōtara-Papatoetoe, Manurewa and Mangere-Ōtāhuhu in the December quarter of 2023, data from the Department of Internal Affairs showed.

Māngere-Ōtāhuhu local board chair Tauanu'u Nanai Nick Bakulich said gaming machine profits showed businesses were "creaming the top of a highly deprived community".

He said the local board had opposed and successfully closed down alcohol outlets recently that would have featured gaming machines.

"We'll continue to fight that fight at the appropriate times, like when there's an application to the district licensing committee," Bakulich says.

Ōtara-Papatoetoe pokies cashed in $8.2m last quarter, Māngere-Ōtāhuhu machines took $6.8m while Manurewa gaming machines made $5.5m in the same period.

Profits between October and December last year for electronic gaming machines hosted in pubs, clubs and TABs dropped 3.3 percent in South Auckland compared to the same period in 2022, according to the DIA.

All machines in South Auckland are either in medium-high or high deprivation areas.

A spokesperson from gambling advocacy group Feed Families Not Pokies (FFNPokies) told Local Democracy Reporting that pokie gambling was "incredibly harmful" and was most prevalent in Pacific, Māori and Asian communities.

The group aims to reduce the number of pokies and venues around the country.

"We know more money per capita of adults comes from people in south and west Auckland, where there is a high concentration of Pacific communities," the spokesperson said.

Salvation Army social policy analyst Ana Ika said South Auckland pokie machines remained some of the most profitable in the country.

Ana Ika. Photo: Salvation Army

"Even though we have less pokie machines, the machines we do have make more money," Ika said.

Ōtara-Papatoetoe local board chair Apulu Reece Autagavaia said the Manukau ward had a sinking lid policy for gaming machines, which meant old machines no longer functional or belonging to one business could not be replaced.

Autagavaia said the policy meant gaming machine numbers would reduce over time.

But liquor licencing compounded the issue, as a lot of bars in the area had gaming machines, he said.

"[Business owners] know how profitable keeping those machines are," Autagavaia said.

"It's frustrating that the sinking lid policy isn't shrinking [gaming machine numbers] fast enough and that there's always people trying to buy those properties that would otherwise lose gaming machines."

However, he said there was a wider issue "about why our people want to gamble".

"That's because of poverty and not having a living wage," Autagavaia said.

"People feel like they need to find out the best way to make money, and one of the ways is through gambling."

"It is frustrating that those machines are still in our community."

He said the sinking lid was the best way to reduce access to gaming machines in the community.

The Gaming Machine Association of New Zealand did not respond to a request for a comment.

LDR is local body journalism co-funded by RNZ and NZ On Air.