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Sinking lids and rising profits: New Zealand’s pokie machine dilemma

“We don’t think children should be buying tickets for gambling.” 

Summarised by Centrist

Despite stricter regulations and fewer pokie machines in New Zealand, these devices still generate over $1 billion annually. 

Councils like Porirua have implemented “sinking lid” policies, which are meant to reduce machine numbers over time. Yet, critics say the profits and the social costs remain high.

Recent reforms are addressing gambling harm more broadly, including the government’s move to ban the sale of Lotto products to under-18s. 

Internal Affairs Minister Brooke van Velden called the change “simple” and necessary, saying, “We don’t think children should be buying tickets for gambling.” 

Fines of up to $1,000 will be imposed on retailers who break the law. Advocates, including the Problem Gambling Foundation, praised the amendment, which aligns Lotto with other adult-only products like alcohol and cigarettes.

Porirua councillor Geoff Hayward, who has witnessed pokie harm first-hand, argues the machines exploit users and hurt low-income families. 

While 40% of pokie profits fund community initiatives, Hayward says that this disproportionately benefits wealthier groups, labelling it a “transfer of wealth from poorer to wealthier people.”

AUT professor Gail Pacheco’s research found sinking lid policies reduced gambling spend by 13% in affected regions, but their broader effectiveness remains unclear. Critics also argue these policies drive players online, where regulation is weaker, and profits leave the country. Hayward and others are calling for urgent updates to the outdated 2003 Gambling Act to address online gambling and addictive machine features.

While pokie trusts defend their contributions to community funding, detractors question the ethics of profiting from addiction. As Hayward bluntly puts it, “You’re just getting people addicted.”

Read more over at The Spinoff and 1News

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