What about the community benefits?
The money spent on gambling comes from people in the community, and some of that money goes back to the community. But how much is returned to the community and where does it actually go?
How much is spent on gambling?
New Zealanders lose around $2 billion on gambling each year, $5.5 million every day. Half of this, around $1 billion, is lost on pokie machines.
Where does that money go?
The money is split three ways.
- 31 percent goes to the Government as tax
- 36 percent is taken in profits – a very small portion of that money (0.2 Lotto-1.7 percent pubs and clubs) is taken by the Government to fund problem gambling services and harm prevention. This is referred to as the problem gambling levy
- 33 percent is paid in the form of grants.
Who receives grants?
The Gambling Act requires that one-third of gambling money is given away in grants. However, there is no requirement for the money to go back to the community it came from, and no guarantee that those who apply for a grant will receive it. Grants are often given to sports groups, racing or community organisations.
The Department of Internal Affairs provides information about these grants.