Class 4 Regulatory Proposals

1
Class 4 Regulatory Proposals

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

2
Introduction Ministers 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

3
The four proposals

• Transparency of grant-making decisions
• Increasing the minimum rate of return
• Localised return of proceeds
• Venue payment systems

4
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!

5
Transparency of grant-making

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

6
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

7
Questions? Comments?
8
Increasing the minimum rate of return

• Whats the problem?
• Large variability in current return rates,
  suggests that overall there could be an
  improvement
• Whats 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

9
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)

10
Questions? Comments?
11
Localised return of gambling proceeds

• Whats the problem?
• Money returned to particular areas can be
  disproportionately low compared to the amount
  spent on the gaming machines in those areas
• Whats 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

12
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?

13
Districts and regions
14
Questions? Comments?
15
Venue payments system

• Whats the problem?
• Venue cost schedules are time consuming,
  cumbersome and costly to administer
• Whats the objective?
• To maximise the money available to be returned to
  community by developing a more efficient venue
  compensation model

16
Venue payment system (cont.)

• Proposed options
• Review the Gazette notice
• Fixed payment per machine

  Number of gaming machines Per machine, per week payment ranges ( ex GST)
Main Urban 10 18 1 9 95 200 80 200  
Other Urban 10 18 1 9 55 170 80 170
Rural 10 18 1 9 95 150 85 150
17
Venue payment system (cont.)

• Commission-based payment system

Gaming Machine Proceeds (ex GST) per week 1-1750 1751-3500 3501-8700 8701-15,550 15,551-30,000 30,001
of GMP payments 40 23 12.5 10 8 0
18
Questions? Comments?
19
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
  class4submissions_at_dia.govt.nz
• The submission period closes on 25 October 2013
• Any further questions?