Consultation on proposed gambling fee changes
Internal AffairsThe gambling sector and the public are being consulted on proposed changes to gambling fees, Internal Affairs Minister Peter Dunne said today. The changes are necessary because it is costing more to regulate gambling than the revenue from current fees charged since 2008.
“Gaming machines in pubs and clubs produce most of the fees’ revenue but pokie numbers have fallen further than forecast and this decline has not corresponded with a decline in the need to regulate the Class 4 gambling sector,” says Mr Dunne.
The number of pub and club gaming machine numbers have been declining at a steady rate and have dropped from 20,120 in June 2007 to 16,717 at the end of 2014.
“Regrettably levels of non-compliance with the Gambling Act in the Class 4 sector are still quite high. Through routine audits, venue inspections and inquiries, the Department identifies breaches or non-compliance with the Gambling Act about 50 per cent of the time, with varying degrees of severity.”
“The Department has contained costs as far as possible with two structural reviews since 2007, including a reduction in 20 staff. It is now facing a deficit of $3.8 million this financial year,” Mr Dunne said.
The proposed new fees impact mainly on the Class 4 sector where fees are proposed to increase overall by 53.62 per cent. Lower annual compliance fees are proposed for small club societies to reflect their lower compliance costs to the Department. Class 4 fees currently account for approximately 2.06 per cent of societies’ GST-exclusive gross gaming machine proceeds. With the proposed fees this is forecast to increase to 3.16 per cent of societies’ GST-exclusive gross proceeds in 2015/16.
Total revenue from casino fees is not proposed to change, but some casinos will pay more or less than currently, based on their relative size and the estimated costs of regulating each casino.
Full details of the proposed changes are in the document Consultation: Proposed changes to gambling fees:
Consultation on the proposed changes and alternative options is open till 13 April 2015.