The Ministry of Health has released its latest triennial plan in response to the significant gambling expenditure in New Zealand. In 2020-21 alone, a total of $2.62bn was spent on non-casino gaming machine operators (NCGMs), Lotto NZ, TAB NZ, and casinos combined. To address this issue, the ministry will increase its expenditure on gambling services by 24.6% between 2022-25.
Despite the fact that the proportion of the population at risk of gambling harm is currently at its lowest since the early 1990s, the actual number of individuals experiencing gambling-related harm has increased due to the growth of the adult population. The ministry aims to improve various aspects, including the disproportionate level of harm experienced by Māori, Pacific peoples, some segments of the Asian population, and individuals living in areas with high social deprivation scores. Additionally, the ministry anticipates a significant increase in online gambling.
Over the next three years, from 2022-25, the ministry plans to allocate NZ$76.12m ($48.0m/£39.0m/€45.5m) to its strategic plan, which represents an increase of $15.8m compared to the previous period from 2019-22. To fund this, the levy on NCGMs, Lotto NZ, TAB NZ, and casinos will be raised. Gaming machine operators will pay a levy rate of 1.08% of player expenditure, up from 0.78% previously, while casinos will see an increase from 0.56% of win to 0.87%. TAB NZ will contribute 0.76% of betting profits compared to 0.52% previously, and Lotto NZ will slightly increase its contribution from 0.43% of turnover less prizes paid to 0.44%.
The allocated budget will be used for various purposes, including $34.2m for clinical intervention and support, which is almost $9m more than the previous period. Public health services will receive $24.8m, $7.9m will be allocated to new services and innovation, and $3.4m will cover operating costs. The only area with decreased funding is research and evaluation, which will receive $5.6m, a reduction of $971,000.
Andrew Little, the minister of health, stated that the new funding and strategy align with the ongoing reforms in the health and disability system and the new mental health system being developed. The strategies outlined in the 2022-25 plan align with the broader reforms taking place in the health and disability system and are guided by the $1.9bn Kia Manawanui action plan for the transformation of the mental health and addiction sector.
The key strategic changes aim to strengthen partnership approaches to service design and delivery, increase awareness and engagement for those at risk, and focus on targeted public health initiatives developed in collaboration with priority populations, particularly young people. Other initiatives include the development and expansion of digital services and support, as well as the evaluation of new services to enhance choice and evidence-based service improvements through action research methods.
Jan Tinetti, the Internal Affairs Minister, emphasized the importance of effective gambling regulation to address harms such as financial problems, relationship issues, family violence, and alcohol abuse. The new investment and strategy demonstrate the government’s commitment to protecting New Zealand from these harms. The strategy was developed following public consultation and ensures that services are co-designed with individuals who have experienced gambling harm, service providers, community groups, and industry bodies.
The levy increase, however, received criticism from Clubs New Zealand, a trade group representing over 300 clubs in the country. The group believes that the ministry’s approach remains largely unchanged despite the increased cost. In their submission on the levy review, they argued that the current strategy has not effectively reduced harm since 2012, services are underutilized, and objectives are not being met. Clubs New Zealand also pointed out that the previously allocated funds for harm minimization technology have not been fully utilized yet. They support the gambling levy but advocate for a reasonable level with clear, defined, and achievable objectives.
