regulatory reform of class 4 gambling n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Regulatory reform of Class 4 gambling PowerPoint Presentation
Download Presentation
Regulatory reform of Class 4 gambling

Loading in 2 Seconds...

play fullscreen
1 / 15

Regulatory reform of Class 4 gambling - PowerPoint PPT Presentation


  • 79 Views
  • Uploaded on

Regulatory reform of Class 4 gambling. Presentation to the regional forums Joanna Gould and Ben Goodchild Policy Grou p May 2014. Introduction: Main points of discussion.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Regulatory reform of Class 4 gambling


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
regulatory reform of class 4 gambling

Regulatory reform of Class 4 gambling

Presentation to the regional forums

Joanna Gould and Ben Goodchild

Policy Group

May 2014

introduction main points of discussion
Introduction: Main points of discussion
  • The Department of Internal Affairs has been working to address key issues discussed in last year’s consultation document.
  • As a result, Cabinet has agreed to:
    • new regulations to increase the minimum rate of return and require localised return of net proceeds;
    • new legislation including a new Gambling Amendment Bill (No 3) and amendments to the Gambling Amendment Bill (No 2).
  • The Department has also undertaken a review of possible regulatory responses to prevent and minimise gambling harm.
part 1 new regulations increasing the minimum rate of return
Part 1: New Regulations - Increasing the minimum rate of return
    • The objective of reform is to maximise the proportion of funding returned to the community.
  • During public consultation, the majority of societies considered that an increase to 40% was achievable, though challenging.
  • Common society concerns included:
    • Societies may close low-turnover venues in order to meet the new minimum rate;
    • Overall returns to communities may decline; and
    • There may be increased competition for the scarce number of high-turnover venues.
increasing the minimum rate of return cont
Increasing the minimum rate of return (cont)
  • Cabinet has agreed to increase the rate of return from 37.12% to:
    • 40% in the 1stfinancial year after the regulations come into force;
    • 41% in the 3rd financial year after the regulations come into force; and
    • 42% in the 5th financial year after the regulations come into force.
localised return of gambling proceeds
Localised return of gambling proceeds
  • This objective of reform is to ensure that a significant proportion of GMP raised in a geographic area is distributed within that area.
  • During consultation, there was broad support for returning funds to where they were generated.
  • Cabinet has agreed that a minimum of 80% of net proceeds must be distributed in the same regional council area that generated them.
localised return defining local net proceeds
Localised return: Defining “local” Net Proceeds
  • The Department is considering two main options for defining local net proceeds
  • Option 1: Local GMP divided by the minimum rate of return (i.e. 80% of 40% of regional GMP is required to be distributed locally).
  • Example: A society raises $3 million in GMP in Auckland over the financial year.
  • Auckland’s minimum “local” return is $0.960 million (40% of $3 million x 0.8).
localised return defining local net proceeds cont
Localised return: Defining “local” Net Proceeds (cont.)
  • Option 2 (preferred): The distribution of net proceeds across the regions is dependent on the proportion of total GMP that is raised locally.
  • Example: a society raises $10 million in GMP nationwide, of which $3 million (30%) is raised in Auckland.
  • The societies distributes 45% of GMP ($4.5 million) in net proceeds to authorised purposes.
  • Auckland’s minimum “local” return is $1.08 million (30% of $4.5 million x 0.8).
localised return other issues
Localised return: Other issues
  • How should it be determined whether net proceeds have been “distributed in the same area that generated them”?

The regulations will require that a grant is, in the main, demonstrably for the benefit of the residents of the region

  • How long should a society have to distribute 80% of their net proceeds?

Societies will be required to distribute 80% of their net proceeds locally during each financial year

part 2 gambling amendment bills
Part 2: Gambling Amendment Bills
  • Cabinet has recently approved:
    • The tabling of a Supplementary Order Paper to the Gambling Amendment Bill (No 2); and
    • The introduction of a Gambling Amendment Bill (No 3).
sop to the gambling amendment bill no 2
SOP to the Gambling Amendment Bill (No 2)
  • The No 2 Bill makes mostly technical changes to the Gambling Act.
  • The SOP to the No 2 Bill proposes some further changes to clarify the intent of the Act, including:
    • Establishing that societies have ongoing obligations (e.g. minimising costs and maximising returns, and minimising the risks of problem gambling);
    • Clarifying that societies must incur only actual, reasonable and necessary costs;
    • Clarifying that the Secretary can suspend or cancel a licence for past, one-off breaches of the Act; and
    • Ensuring that the calculation of net proceeds bysocieties aligns with generally accepted accounting practice.
gambling amendment bill no 3
Gambling Amendment Bill (No 3)
  • The No 3 Bill makes a small number of important improvements to help fulfill the purposes of the Act.
  • The changes in the Bill aim to:
    • Reduce red tape by reforming venue payments;
    • Require more information on grant decisions and operational efficiency;
    • Strengthen the conflict of interest provisions;
    • Reduce compliance costs; and
    • Ensure the efficiency of the appeals process is not undermined.
part 3 preliminary review of gambling harm prevention and minimisation regulations
Part 3: Preliminary review of Gambling Harm Prevention and Minimisation Regulations
  • The Department has undertaken a preliminary review of possible regulatory responses to prevent and minimise gambling harm.
  • The review followed the passing of the Gambling (Gambling Harm Reduction) Amendment Bill 2013
  • The review analysed available evidence and research to assess whether there is a need to develop new regulations, or amend regulations already in place.
results of investigation into pre commitment technology
Results of investigation into Pre-commitment technology
  • Existing pre-commitment systems vary considerably across jurisdictions.
  • Often the more effective systems have been costly to implement.
  • The review found that there is potential for pre-commitment to provide benefits.
  • At this stage, further research is required to understand the benefits that pre-commitment could provide in a New Zealand context.
current harm minimisation regulations and unused regulation making powers
Current harm minimisation regulations and unused regulation-making powers
  • Research has been undertaken on the current regulations and their efficacy.
  • The Department will continue to monitor the evidence base to ensure the regulations are working as intended.
  • The Gambling Amendment Bill (No 2) has additional harm minimisation regulation-making powers that could be explored.