Total “gaming machine profits” (GMP) for the past 12 months crossed the NZD$1 billion mark in September 2023. Gaming machine profits also reached $1bn per year in 2022, however the real value of gaming machine profit has dropped about $600m since 2003 – or 63 percent – due to inflation.
Independent chair of the Gaming Machine Association of New Zealand (GMANZ), Peter Dengate Thrush, says he is pleased that the Class 4 industry will be able to offer more surety to community groups applying for grants in the next 12 months.
“It’s not really “profits” as this $1bn total is first used to pay out prizes, government fees, GST, operating costs of venues and a contribution to the Problem Gambling Levy. Then, one hundred percent of what’s remaining – roughly $330m – goes back to the community in the form of grants. We’re really happy that we will be able to meet many of the needs of the community groups that rely on Class 4-funded grants this year. Any industry that manages to bring in $1 billion dollars should be pleased.”
“Our members are responsible for getting roughly $330m per year into nearly 10,000 community groups around the country. These community grants, funded by Class 4 gaming, are used to pay for rescue helicopters, sports and cultural groups, disability support groups, and vital services like ambulances and defibrillators.”
“Last year we surveyed community grant recipients and the results showed nearly all – over 90 percent – could not replace this funding from other sources. We’re honoured to be able to support local initiatives around New Zealand because we know how much they matter.”
“We are also very pleased to report that there’s been no increase in problem gambling in well over a decade. The rate still rests at 0.02% of the adult population, of which less than half relates to Class 4. So to see the volume of community grants go up while harm doesn’t is a good sign. Of course, there are those who still are at risk of harm and we hope that the increase in our levy contribution will mean more people can get access to the help they need.”