Class 4 Regulatory Proposals Presentation on the Class

Class 4 Regulatory Proposals Presentation on the Class 4 regulatory proposals to regional forums Joanna Gould, Jayne Beggs and Ben Goodchild Policy Group

Introduction: Minister’s priorities • The Minister of Internal Affairs has several priorities for Class 4 gambling: • • • Increasing the proportion of funding the community receives Delivering more funding to the community where the proceeds were generated Lowering compliance costs Increasing transparency and compliance Enhancing protections for problem gamblers Hon Chris Tremain Department of Internal Affairs

The four proposals • • Transparency of grant-making decisions Increasing the minimum rate of return Localised return of proceeds Venue payment systems Department of Internal Affairs

Consultation process • Submissions are open until 25 October 2013 • All proposals in the consultation document are • • • open for discussion DIA needs to know how the proposals will affect you and in what way Cabinet approval is required for decisions on any new policy before regulations are made We want to hear from you! Department of Internal Affairs

Transparency of grant-making • What’s the problem? • Information about grants made is not always clear or comprehensive • What’s the objective? • To increase the transparency of Class 4 grantmaking decisions • Proposed solution • Introduce new regulatory requirements for societies to publish particular information Department of Internal Affairs

Transparency of grant-making (cont. ) • What type of information? • • • Geographic location of applicants Whether the applicant is national, regional or local Purpose of the grant Geographic area where the funding will be used Amount sought by the applicant Amount granted (or not) if the applicant was successful or unsuccessful • Newspaper vs. website Department of Internal Affairs

Questions? Comments? Department of Internal Affairs

Increasing the minimum rate of return • What’s the problem? • Large variability in current return rates, suggests that overall there could be an improvement • What’s the objective? • To deliver an increased rate of return to the community through Class 4 gambling • Proposed solution • Increase the rate of return from 37. 12% to at least 40% and possibly higher Department of Internal Affairs

Increasing the minimum rate of return (cont. ) • We are considering rates of between 40% and • • 43% There could be a one-off increase or an incremental increase If changes are made to the current rate of return, new return rates would be in place for the first financial year commencing after the regulations come into force (different for each society) Department of Internal Affairs

Questions? Comments? Department of Internal Affairs

Localised return of gambling proceeds • What’s the problem? • Money returned to particular areas can be disproportionately low compared to the amount spent on the gaming machines in those areas • What’s the objective? • Balance the potential harm that can come from gambling against the benefit of returning proceeds to the areas that generated the proceeds • Proposed solution • Define both what “local” return means and the rate of local return Department of Internal Affairs

Localised return: two key questions • What does “local return mean? • - Territorial Authority district, region or something else? How much should be returned “locally”? - 60%, 70%, 80% or more? Department of Internal Affairs

Districts and regions Department of Internal Affairs

Questions? Comments? Department of Internal Affairs

Venue payments system • What’s the problem? • Venue cost schedules are time consuming, cumbersome and costly to administer • What’s the objective? • To maximise the money available to be returned to community by developing a more efficient venue compensation model Department of Internal Affairs

Venue payment system (cont. ) • Proposed options • Review the Gazette notice • Fixed payment per machine Main Urban Other Urban Rural Number of gaming machines 10 – 18 1– 9 Per machine, per week payment ranges ($ ex GST) 95 – 200 80 – 200 10 – 18 1– 9 55 – 170 80 – 170 95 – 150 85 – 150 Department of Internal Affairs

Venue payment system (cont. ) • Commission-based payment system Gaming Machine Proceeds (ex GST) per week $1 -$1750 % of 40% GMP payments $1751$3500 $3501$8700 $8701$15, 550 $15, 551$30, 000 $30, 001+ 23% 12. 5% 10% 8% 0% Department of Internal Affairs

Questions? Comments? Department of Internal Affairs

Next steps • How to submit • If you want to make a submission on any or all of these proposals, you can email your input to class 4 submissions@dia. govt. nz • The submission period closes on 25 October • 2013 Any further questions? Department of Internal Affairs