How Much Does A Poker Machine Cost In NZ?

How Much A Poker Machine Cost In NZ
How Much A Poker Machine Cost In NZ

Poker machines, also known as gaming machines or pokies, are ubiquitous in New Zealand’s gambling landscape. With over 14,000 machines spread across pubs, clubs, and other venues, pokies generate significant revenue for the gaming industry and the community.

However, alongside their popularity come concerns about harm, particularly about the financial and social costs associated with excessive gambling. Here, you will learn how much a poker machine costs in NZ.

This blog post will provide a comprehensive overview of poker machines in New Zealand, including their history, regulation, and impact on communities. We will also discuss the costs associated with poker machines for operators and society.

Also, read about the Gold Rush Poker Machine

History Of Poker Machines In New Zealand

History Of Poker Machines In New Zealand
History Of Poker Machines In New Zealand

Poker machines were first introduced to New Zealand in the 1980s. They quickly became popular, and by the early 1990s, there were over 20,000 machines in operation. The number of machines has since declined, but they remain a significant part of the New Zealand gambling industry.

Purchase Costs For Operators

Purchase Costs For Operators
Purchase Costs For Operators

The purchase price of a poker machine can vary depending on factors such as the brand, model, and features. Generally, new machines can range from $10,000 to $20,000, while used machines may be cheaper. Additionally, operators may incur installation, maintenance, and software update costs.

The initial purchase price of a poker machine can vary depending on several factors, including:

  • Brand: Different brands of poker machines have different price points. For example, a machine from a well-known brand like Aristocrat or IGT will typically be more expensive than a lesser-known one.
  • Model: Newer models of poker machines tend to be more expensive than older models. This is because newer models typically have more advanced features and technology.
  • Features: The specific features of a poker machine can also affect its price. For example, a machine with a bonus game or a progressive jackpot will typically be more expensive than a machine without these features.

Suggested read – Introducing the IGT Crystal Dual-i: Revolutionizing Gaming with Dynamic Fun

In addition to the purchase price, operators may also incur costs related to:

  • Installation: The cost of installing a poker machine can vary depending on the complexity of the installation.
  • Maintenance: Poker machines require regular maintenance to ensure they function properly.
  • Software updates: Poker machines must be updated regularly with new software to prevent security breaches and fix bugs.

Ongoing Expenses for Operators

Operators also face several ongoing expenses associated with poker machines, including:

  • Daily monitoring fees: The Department of Internal Affairs (DIA) charges operators a daily monitoring fee for each poker machine they operate. The fee is based on the number of machines operated and the type of machine.
  • Gaming machine duty: Operators must pay a gaming machine duty on the gross revenue generated by their poker machines. The government sets the duty rate and is currently 20%.
  • Licensing fees: Operators must pay annual licensing fees to the DIA. The fee is based on the number of machines operated and the type of venue in which the machines are located.
  • Operating costs: Operators also incur operating costs such as electricity, rent, and staff wages.

The total cost of operating poker machines can vary depending on the abovementioned factors. However, it is estimated that the average annual cost of operating a poker machine in New Zealand is around $6,000.

Also, find – Which Country Has The Most Poker Machines?

Financial Impact On Communities

Financial Impact On Communities
Financial Impact On Communities

While poker machines generate significant revenue for operators, they can also have a substantial financial impact on communities. A portion of the revenue generated by pokies is returned to communities through grants and donations.

However, a significant portion of the money spent on pokies is lost by gamblers, potentially leading to financial hardship and social problems.

A study by the DIA found that in 2018, New Zealanders lost a total of $639 million on poker machines. This represents an average of $130 per adult New Zealander. The study also found that the most disadvantaged communities in New Zealand lose the most money on pokies, with the average loss per adult in these communities being $245.

The financial losses associated with poker machines can have several negative consequences for individuals and communities, including:

  • Increased Poverty: The money lost on pokies could be used to cover essential expenses such as food, rent, and utilities.
  • Increased Indebtedness: People who gamble excessively on pokies are more likely to develop problem gambling and take on debt to finance their gambling.
  • Social Problems: Gambling-related problems can lead to social problems such as relationship breakdown, domestic violence, and crime.

Regulatory Framework For Poker Machines In New Zealand

Regulatory Framework For Poker Machines In New Zealand
Regulatory Framework For Poker Machines In New Zealand

The New Zealand government has implemented a comprehensive framework to regulate poker machines and minimize the potential harm of excessive gambling. This framework encompasses various measures, including:

  • Age Restrictions: To protect minors and promote responsible gambling, individuals must be 18 years or older to play poker machines in New Zealand. This restriction ensures that gambling remains an activity for adults and prevents the exposure of minors to potential gambling risks.
  • Limits on Maximum Bets and Losses: To curb excessive gambling and financial losses, the government has limits the maximum bets and losses per spin on poker machines. These limits help individuals manage their gambling expenses and prevent them from risking significant amounts of money quickly.
  • Harm Minimization Measures: Recognizing the potential for harm associated with poker machines, the government has implemented various harm minimization measures. These measures include:
  • Responsible Gambling Policies: Gambling venues and operators are mandated to implement responsible gambling policies that promote responsible gambling practices and provide information about potential risks.
  • Self-Exclusion Programs: Individuals with gambling concerns can voluntarily enroll in self-exclusion programs, which prevent them from accessing gambling venues and playing poker machines for a specified period.
  • Funding for Gambling Support Services: The government provides funding for gambling support services that offer counselling, treatment, and other forms of assistance to individuals struggling with gambling problems.
  • Machine Design and Operation Standards: The government has established standards for designing and operating poker machines to ensure fairness and transparency. These standards include:
  • Random Number Generators: Poker machines must utilize certified random number generators to ensure that outcomes are unbiased and unpredictable.
  • Payout Percentages: Poker machines must have a minimum payout percentage, ensuring that a portion of the money gambled is returned to players.
  • Display Requirements: Machines must display information about bet amounts, payout percentages, and game rules.
  • Monitoring and Enforcement: The Department of Internal Affairs (DIA) is responsible for monitoring the operation of poker machines and ensuring compliance with regulations. The DIA conducts regular audits and investigations to identify and address any non-compliance issues.
  • Community Consultation and Engagement: The government engages with communities to gather feedback on poker machine regulations and the impact of poker machines on their lives. This feedback informs decision-making and ensures that regulations are responsive to community concerns.
  • Research and Evaluation: The government supports research and evaluation initiatives to gain a deeper understanding of the impact of poker machines on individuals, communities, and society as a whole. This research informs the development and effectiveness of harm minimization measures and regulatory frameworks.

The New Zealand government’s regulatory framework for poker machines strikes a balance between mitigating potential harm and allowing responsible adults to enjoy gambling activities.

Through a combination of age restrictions, limits on bets and losses, harm minimization measures, machine design standards, monitoring and enforcement, community engagement, and research, the government aims to minimize the negative.

Also read: What Is The Best Pokie Machine To Play In NZ?

Impact Of Poker Machines On Communities

Impact Of Poker Machines On Communities
Impact Of Poker Machines On Communities

Poker machines can significantly impact communities, both positive and negative. On the positive side, poker machines generate revenue that can be used to fund community projects and services. They can also provide employment opportunities and attract tourists to an area.

However, poker machines can also have several negative impacts on communities, including:

  • Increased crime: Studies have shown that areas with a high density of poker machines are associated with increased crime rates.
  • Social problems: Gambling-related problems can lead to social problems such as relationship breakdown, domestic violence, and addiction.
  • Financial hardship: The money lost on pokies could be used to cover essential expenses such as food, rent, and utilities.

Also read: How to Select the Right Video Poker Game

Synopsis

The cost of poker machines in New Zealand is significant for operators and communities. Operators face initial purchase and ongoing expenses, while communities bear substantial costs associated with lost revenue and social problems.

The government has implemented a regulatory framework to mitigate potential harm, which should continue to evolve based on research, community feedback, and ongoing evaluation.

FAQs

1. How much do poker machines cost?

The cost of poker machines in New Zealand can vary depending on several factors, including the brand, model, and features. However, new machines typically cost between $10,000 and $20,000. Operators also face ongoing costs such as maintenance, software updates, daily monitoring fees, gaming machine duty, licensing fees, and operating costs.

2. What are the impacts of poker machines on communities?

Poker machines can significantly impact communities, both positive and negative. On the positive side, poker machines generate revenue that can be used to fund community projects and services. They can also provide employment opportunities and attract tourists to an area.

However, poker machines can also have several negative impacts on communities, including:

Increased crime: Studies have shown that areas with a high density of poker machines are associated with increased crime rates.

Social problems: Gambling-related problems can lead to social problems such as relationship breakdown, domestic violence, and addiction.

Financial hardship: The money lost on pokies could be used to cover essential expenses such as food, rent, and utilities.

3. What are the regulations for poker machines in New Zealand?

Poker machines in New Zealand are regulated by the Department of Internal Affairs (DIA). The DIA sets several rules and regulations governing the operation of poker machines, including:

The maximum bet and loss per spin

The minimum payout percentage

The number of machines that can be operated in each venue

The hours of operation

The DIA also monitors the operation of poker machines to ensure that they comply with the law.

4. Is it legal to gamble on poker machines in New Zealand?

Yes, it is legal for individuals who are 18 years of age or older to gamble on poker machines in New Zealand. However, there are many regulations and restrictions in place to minimize the potential harm associated with gambling.

5. Can I become addicted to poker machines?

Yes, it is possible to become addicted to poker machines. Poker machines are designed to be addictive, with bright lights, flashing sounds, and a constant stream of potential wins. This can make it difficult for some people to control their gambling urges and can lead to addiction.

6. If I am addicted to poker machines, what can I do?

If you are concerned that you may be addicted to poker machines, there are several resources available to help you. You can contact the Problem Gambling Foundation of New Zealand (PGFNZ) for information and support.

7. How can I gamble responsibly?

If you are considering gambling on poker machines, there are several things you can do to gamble responsibly:

Set a budget for gambling and stick to it.

Take breaks between sessions.

Recognize the signs of addiction and seek help if you need it.

Gamble only for entertainment, not to win money.

Mamta Sharma

Mamta is a spirited writer hailing from Wellington, bringing a youthful zest to the world of digital content. Merging her love for narrative with an eye for detail, Ella crafts stories that resonate and engage the modern reader.