Source: Hāpai Te Hauora
Hāpai Te Hauora says the misuse of up to $28 million in community money by pokie trusts exposes a funding model that allows communities to be harmed twice.
The Department of Internal Affairs found money that should have been available for community grants was instead used to cover trust expenses, including purchasing gaming machines.
Hāpai Te Hauora Chief Operating Officer Jason Alexander says the findings expose the reality behind pokie funding.
“This is not free community money. It comes from people losing money on pokies – one of the most harmful and addictive forms of gambling available in Aotearoa.
“Māori, low-income communities and whānau already carry a disproportionate share of that harm. They should not then discover that money intended to return to their communities has been used to buy more gambling machines.”
Department of Internal Affairs Director of Gambling Vicki Scott told RNZ that three-quarters of the country’s 32 pokie trusts were non-compliant to some degree.
About one-third had engaged in deliberate/cynical behaviour, with some trusts prioritising their own growth and competitive advantage over the interests of communities.
Alexander says this cannot be dismissed as an administrative mistake.
“Pokie trusts were entrusted with money intended for communities. Some chose to prioritise their own growth instead.
“Giving back money that should never have been misspent is not a penalty. It is the bare minimum.”
The Department has secured commitments to return an additional $11.5 million to community organisations through gambling grants. Work is continuing to recover further funding.
Hāpai says serious or deliberate non-compliance must carry strong and meaningful consequences.
“If trusts cannot be trusted to put communities ahead of their own interests, they should not be trusted with a licence,” Alexander says.
“These findings should also force us to confront the model itself. Communities lose money through pokies, carry the harm that follows and are then expected to compete for a portion of those losses through grants.
“We cannot keep calling that a community benefit without being honest about who is paying the price.”