Read a plain text version of this newsletter.

Internal Affairs Minister Peter Dunne today announced that the Government has agreed to a new payments system for venues hosting pokie machines in bars and pubs.

Read the Minister’s media release

In February, we let you know that a new system for paying venues for hosting gaming machines was under development.

On 9 May 2016, Cabinet confirmed that under the new system, each venue will be paid up to 1.28 per cent of weekly gaming machine turnover. Total annual payments for each venue must not exceed 16 per cent of a venue’s gross gaming machine proceeds (GMP) excluding GST.

The new system will come into force on Monday 3 October 2016.

In the lead up to 3 October, we will be working on the implementation of the new system to ensure a smooth transition process.

Draft regulations will be circulated for sector comment in June, and the Department will report back to Cabinet with the proposed regulations in August.

The Department and sector working group members will prepare guidance material to ensure the transition to the new regime is as smooth as possible.

What do I need to do about this?

Nothing right now. The new payment system will come into force in early October. Between now and then we will be working with societies to identify any transitional issues and develop some resources to help you with implementation.

Will we get any help to implement the new system? How will I calculate the payments to venues?

We will be working with societies to help them with implementation and work out what information they need in advance of the new system. In the meantime please send us your questions so we know what information and help you need.

Do I have to change all the venue agreements?

Not immediately. The Act provides that when the new system comes into force existing venue agreements (so long as they are current and have not expired) will be deemed to comply with the new regulations. You can change your venue agreements as licences come up for renewal or you can do them earlier if you prefer.

Will there be a transition period? When do I have to start paying under the new system? What happens to any venue expenses that haven’t been paid when the new system starts?

We are currently working through the details of implementation and working to identify any transition issues. We will provide information on specific issues as these details are developed.

Keep an eye out for Gambits updates and feel free to send us your specific questions.

Where do I get more information?

Information will be issued in Gambits updates as we work through various issues. You can also contact us with specific questions that you would like answered.

Will venues and/or societies be able to purchase air con units under the new regime?

We are looking at some issues around capital expenditure and development, enhancements and maintenance (DEM) costs and will provide more information about this later.

In the meantime, nothing has changed. The new system does not come into force until October. Until then the current rules continue to apply.

Any other questions?

If you have any questions about the new venue payments system, email us at gambling.compliance@dia.govt.nz