Number of poker and gaming machines

IBISWorld forecasts the number of poker and gaming machines to decline by 0.6% in 2023-24, to total 14,497 machines. The number of electronic gaming machines in New Zealand has been in long-term decline, a trend expected to continue in the current year. Continued pressure on regional governments to mitigate the negative social effects of gambling is projected to limit the number of new gaming machine approvals, while some existing gaming machines are discontinued. However, participation in the Pubs, Bars and Nightclubs industry is expected to rise in the current year. This is expected to support demand for poker and gaming machines in 2023-24, limiting the overall decline in the number of electronic gaming machines.

The number of poker and gaming machines in New Zealand has been falling since 2003-04. This decline is primarily due to the Gambling Act 2003, which placed restrictive pressure on gaming machine numbers. For instance, the Act caps the number of gaming machines per location at nine, if the licence was granted after October 2001. As venues with licences close down or exit gaming operations, the overall number of gaming machines has trended downwards. In addition, the Gambling Act 2003 also provided regional governments with power to approve new gaming machines and restrict overall machine numbers. Rising public awareness regarding problem gambling has led many regional governments to cap or actively reduce gaming machine numbers under their constituency.

Non-casino electronic gaming machines hosted in pubs and clubs are classified as class 4 gambling. This class of gambling has additional regulation placed upon wagers. A proportion of the money gamblers lose must be distributed to community groups by way of grants. For gamblers, gaming machines are legislated to return 85% of expenditure as winnings. For venues, commission revenue is limited to 16.0% of annual gaming machine profits. In addition, 40.0% of profits must be returned to approved community associations and projects, while an additional 23.0% of profit attracts a gaming duty, according to the Department of Internal Affairs. Disincentivising financial gains has contributed to the overall decline in gaming machines over the past five years. Overall, IBISWorld forecasts the number of poker and gaming machines in New Zealand to weaken at a compound annual rate of 1.1% over the five years through 2023-24.