War declared on ‘worst N.Z. gambling problem’

Press, 1 February 1986, Page 8

War declared on ‘worst N.Z. gambling problem’

PA Wellington Illegal gambling machines in New Zealand’s hotels and clubs are taking so much money — up to $lOO million a year — that authorities fear “heavies” could take them over, the "New Zealand Herald” reported yesterday. The “Herald” quoted Internal Affairs Department inspectors, who control gaming in New Zealand, as saying coin-oper-ated machines have caused New Zealand’s worst gambling problem.

Police sources estimate that those running the machines made a profit in the tens of millions last year.

One said: “When you get an industry like that, with easy money . from little effort, the next thing you get is parlours, and the next thing, they are run by crooks.” The police and Internal Affairs officials have met to consider Government recommendations for either registering the machines or trying to remove them.

A crackdown on coinoperated machines was ordered by the Minister of Internal Affairs, Mr Tapsell, earlier this month.

But the “Herald” quoted officials as saying privately there are too few staff members to stem the flow of

machines. The owners often take a belligerent stance, challenging authorities to start a lengthy prosecution.

The Internal Affairs Department’s executive director for gaming and racing, Mr Rodger Beatty, said more than 1000 of the illegal machines were in use in hotels, social or sports clubs, and shops.

Some clubs had said they made $20,000 a year profit from each machine on their premises. A central North Island club netted $66,000 from its three machines last year, the "Herald” said.

Although some of the machines were run on the pretence of being lotteries, clearly many were illegal.

"One-armed bandit” machines, now outmoded in Australia, have appeared throughout the North Island.

Asked if his department feared criminal underworld moves to earn easy money from the machines, Mr Beatty said: “It appears that there is that background involved in this type of gaming in other countries ... There are a lot of people who want the money.” The department conservatively estimated the machines made $5O million a year. “Industry sources say that that is very conservative," Mr Beatty said. “They would just about double it.”

Prosecutions brought against distributors and owners of machines had not prevented their proliferation. •

“From the feedback we get, the problem seems to have exploded in the last six months,” Mr Beatty said.

A report on the size and scope of the gambling problem will go to Mr Tapsell at the end of next month.

The police said that the burgeoning industry was under scrutiny. A legal adviser at police headquarters in Wellington, Mr John Crookston, said discussions had been held with Internal Affairs staff. The Auckland district legal adviser, Chief Inspector Darrell Shields, said: "I can confirm that we are quietly looking at the situation. It is the preserve mainly of the Internal Affairs Department, but we have an enforcement role which we do not intend to ignor."

The penalties for organising illegal games of chance range up to three months imprisonment or a $2OOO fine. Authorities also have the power to obtain search warrants and seize machines. Mr Shields said: "If a person operates a machine outside the law, he or she could well be advised that their illegal adventures may be coming to an end in the not too distant future.”