In its drive to reduce problem gambling numbers, reported to be around 100,000 or 2.5% of the population, New Zealand is bringing in tough new measures that will see casino profits fall. A reduction in slot machines last year, a smoking ban and a NZ$20 limit to banknotes accepted by machines have all contributed to a drop in gaming company share prices, and now there will be messages on the machines to tell gamblers how long they have played and how much they have lost.

Yesterday a Parliamentary Regulatory Committee rejected an appeal against the introduction of machine messaging, saying that it was consistent with the aim of minimizing harm and that the Department of Internal Affairs had undertaken sufficient consultation. Sky City Entertainment Group and several slot machine manufacturers had protested, including Aristocrat Leisure, Ainsworth Game Technology, Stargames and Japan’s Konami Corp.

According to Sky City, New Zealand’s biggest casino company with over 2,000 slot machines, the plan to introduce the messaging on new machines after October 1 and all machines by 2009 is an ‘extreme measure’ that would affect the company’s business. Konami have apparently assessed the cost of altering the machines to be in the region of US$1.8 million.

A government study shows that a third of people seeking assistance for problems with slot machine gambling think they would play less if there were warning messages on the screens. The requirement for the machine message to recur every thirty minutes and interrupt play will be part of New Zealand’s Gambling Act.

After seven years of rising share prices, Sky City this year has seen its price decline by 19% as the tougher gaming regulations and anti-smoking laws have affected revenues. The company has already cut its profit forecast for the year. (E-05.24.05)

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