Class 4 Regulatory Proposals

Class 4 Regulatory Proposals

Presentation on the Class 4 regulatory proposals to regional forums

Joanna Gould, Jayne Beggs and Ben Goodchild

Policy Group

Department of Internal Affairs

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


The four proposals

• Transparency of grant-making decisions

• Increasing the minimum rate of return

• Localised return of proceeds

• Venue payment systems


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!


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 grant-

making decisions

• Proposed solution• Introduce new regulatory requirements for

societies to publish particular information


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


Questions? Comments?


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


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)




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


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?


Districts and regions




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


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 – 181 – 9

95 – 20080 – 200

Other Urban 10 – 181 – 9

55 – 17080 – 170

Rural 10 – 181 – 9

95 – 15085 – 150


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%




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 [email protected]

• The submission period closes on 25 October 2013

• Any further questions?

Documents

Class 4 Regulatory Proposals