A Turning Point for New Zealand Pokies: Tackling Problem Gambling + 2022 Revenue Stats

Changing New Zealand pokies regulations targeting problem gambling & explore 2022 revenue in the nation’s evolving gambling landscape. (Photo by Artem Podrez on Pexels)

Get ready for a game-changing move in New Zealand’s gambling landscape!

The government is gearing up to introduce a series of new regulations aimed specifically at pokies, in a determined effort to combat problem gambling. With clearer, stronger, and more enforceable host responsibility requirements, these changes are set to revolutionize the way venues manage and monitor pokies.

But will this bold initiative affect profits and revenues? You bet!

As the nation’s land-based pokies industry bounces back from the pandemic’s devastating impact, the government is convinced that the time is ripe for decisive action. Keep reading to discover the thrilling details behind these upcoming regulations and their potential effects on the industry, as well as the latest gambling statistics for New Zealand in 2022.

New Regulations to Target New Zealand Pokies

The government intends to introduce new regulations targeting venues featuring poker machines, aiming to combat problem gambling. These proposed rules will clarify, reinforce, and make more enforceable the host responsibility requirements for pokies. Venues that do not comply will face a series of new infringement penalties.

With the proposed changes, staff members will be required to undergo annual training to recognize the signs of harmful gambling. Furthermore, venues must perform routine checks and document instances of gambling harm. Modifications to venue layouts will also be implemented to improve staff monitoring of ATMs and reduce the visibility of gaming machines.

These harm reduction regulations are anticipated to take effect during the first half of 2023. The goal is to ensure that pokies venues consistently identify and address problem gambling more effectively. This initiative has been well-received by organizations dedicated to minimizing the negative impacts of gambling.

Will new regs affect profits & revenues: Yes, they may harm revenues, but as New Zealand’s land-based pokies industry recovers from the disastrous effects of the pandemic, the government feels confident enough that this is the right time to bring in new regulations.

New Zealand Gambling Stats for Pokies 2022

The government in New Zealand has released some interesting stats related to its land-based gambling industry. These figures are from the data.govt.nz and cover the total ‘Gaming Machine Profits’ (GMP) quarter-by-quarter for 2022.

• Q4: October to December 2022 Trends – 1.09% quarter-on-quarter fall in GMP

To finish the year, the New Zealand pokie business reeled in a GMP of NZ$ 273 million. This was in fact lower than Q3 below by 1.09%. The drop is not a huge concern for the pokies industry, and instead this is an indicator as to where the market is at this time. If January to March Q1 2023 results are withing a +5% to -5% range, we can reasonably predict this is the current market’s GMP level and a full recovery from the pandemic has been made.

• Q3: July to September 2022 Trends – 7% quarter-on-quarter rise in GMP

These figures are what the government calls the GMP and they relate to online pokies and other gambling machines legally operating in land-based gambling venues in the country.

In Q3 recorded profits came to NZ$ 276 million. The last time these numbers were hit was around half a decade ago. Some were surprised to see profits so high because there has been a reduction in venues, pokies and other gambling machines.

Profits reported came mainly via pool halls and bowling venues that also feature sections for those that want to play pokies and virtual table games. Compared to other countries where pokies are legal, such as the UK, it is normally pubs, bars and clubs that contribute to the lion’s share of profits and reviews. However, in New Zealand, the trend is for people to gamble at venues that also offer other forms of entertainment.

• Q2: April to June 2022 – 23.6% quarter-on-quarter rise in GMP

In Q2 2022, GMP hit a remarkable NZ$ 257 million. The figure confirmed the continuation of post-covid recovery to pre-covid figures. The figures are much higher than the previous creating a massive 23.6% rise. This was due to the relaxation of New Zealand’s Red Light setting and vaccination pass allowing people to enter entertainment venues in the country.

• Q1: January to March 2022

Q1 was the lowest income quarter for the year. Figures show a GMP of NZ$ 208 million. Covid restrictions and certifications were in full force, which now in hindsight seems like a complete waste of time. There are of course many different views on the topic and how governments should have handled it.

2022 Total GMP: The total GMP in New Zealand for the year came to NZ$ 1.01 billion for the entire year.