web analytics

Key ignored advice to hike SkyCity levy

Written By: - Date published: 8:43 am, April 24th, 2012 - 27 comments
Categories: corruption, john key, national - Tags: , ,

Since 2004, the government has collected a problem gambling levy from all types of licenced gambling to fund the government’s spending on problem gambling. It was introduced along with the sinking lid on pokies (the more you look back, the better the fifth Labour Government looks, eh?).

The levy on SkyCity’s casinos is half what it is on pokies in pubs.

In 2010, officials recommended a rebalancing – more on TAB, Lotto, and casinos, less on pub pokies – to reflect both where the profits from gambling were being made and divert less money from community grants from pokies and Lotto. The Nats picked up the recommendations with one exception – SkyCity’s levy didn’t increase.

This was all going on at the same time as Key was personally approaching National’s old friends and some time donors at SkyCity to build a convention centre in exchange for relaxation of the restrictions on its cancerous activities and, then, not reviewing any of the competing bids before approving their offer.

In other news, SkyCity’s profits rose 17% to $78m last year.

Nothing to see here.

27 comments on “Key ignored advice to hike SkyCity levy ”

  1. vto 1

    .

    What a surprise

  2. marsman 2

    Corruption!

  3. Hilary 3

    An inquiry into all aspects of the gambling industry would be worthwhile to uncover what is really going on behind the scenes.

  4. muzza 4

    So when will the opposition be milked it hard in public domain…

    waiting…..

  5. ianmac 5

    But wait. Casinos employ thousands of people who would otherwise be bludging on the dole. We the taxpayers should actually be paying a levy to the Casinos for such great anti-dole support and we should pay a tax discount to every gambler in support of his generosity in donating huge lumps of his income to the Casino instead of spending it on foolish stuff like bread, and vegies or shoes for the kids. So you see, Mr Key is right in his support for Casinos as they assets for a healthy thriving community.

  6. Craig Glen Eden 6

    Its getting very smelly!!!!!

  7. DH 7

    There’s some interesting stats on gaming machines at Internal Affairs here, I didn’t realise the numbers were so big;

    http://www.dia.govt.nz/diawebsite.nsf/wpg_URL/Resource-material-Casino-and-Non-Casino-Gaming-Gambits-March-2012

    Archived stats here

    http://www.dia.govt.nz/diawebsite.nsf/wpg_URL/Resource-material-Information-We-Provide-Archived-Gaming-Statistics?OpenDocument

    Total revenue of the 18,000 non-casino gaming machines in 2011/2012 looks to be about $860 million, or an average of $48,000 per machine. If the 2070x SkyCity machines brought in the same sums they’d pull in $100million. $100million from non-casino machines would give a minimum of $37million to charity, how much do SkyCity give to charity from total operations?

    It’s easy to see why SkyCity want more pokies. Their’s are higher dollar value than the rest and they run 24hrs so they’d probably pull in double the $48k per machine. 500x at $48k is $24million, double it and you get the $49million that was quoted by Ernst & Young.

    • freedom 7.1

      since 1996 SkyCity Auckland Community Trust has donated approximately $25 million dollars. During that same period SkyCity had revenue of over $4 billion dollars.

      makes ya laugh eh? When you’re not screaming and pulling your hair out in utter frustration

      • Treetop 7.1.1

        … and stamping your feet in frustration with POOR Sky City not being able to expand there lucrative operation.

    • Treetop 7.2

      I like the way you have tried to crunch the revenue figure off a pokie machine.

      Is it too much to ask you what the max bet per spin is on every pokie machine at Sky City?

      It is really beginning to piss me off how people are comparing a casino machine to a non casino machine when it comes to the sinking lid policy. I think it is important to not lose sight of how quick a casino machine can empty out a wallet/purse compared to a non casino machine.

      It needs to be debated that a casino creates a more HARDENED pokie player than a pub as the stakes are much higher in a casino.

      • Colonial Viper 7.2.1

        Yeah its far harder for a concerned family member to head down to the casino and get you out of there somewhere, compared to finding you at the back room in the corner pub.

    • Carol 7.3

      I have heard that a lot of the money from non-Casino gambling machines doesn’t get back to the community as it should because of the way it’s filtered through trusts. Is it possible for this to be investigated?

      • DH 7.3.1

        That was mentioned in an earlier post Carol;

        Gaming industry whistleblower

        Looking at the DIA stats it does raise a lot of questions. Why are some returning only the minimum 37% when others are returning over 60%. You can bet there’s no shortage of white collar fat cats milking the system there.

        There’s massive sums of money involved, I had no idea gambling on pokies was that bad or that they made so much money out of them. They average nearly $1000 per week from a single pokie!

        • Carol 7.3.1.1

          Thanks. Of course, I did read that.

          Time for a full investigation into the Joyce- Key Boardwalk Empire!

          • DH 7.3.1.1.1

            Yes I agree, and hopefully the Audit Office will take it on. One only has to look at the numbers on the non-casino pokies to work out that what Key is offering SkyCity is worth far more than the cost of a Convention Centre. Not only is it unethical it’s not even a good deal for the taxpayer.

    • Treetop 7.4

      Pokie takings steady even as machine numbers cut
      http://www.nz herald.co.nz/politics/news/article.cfm?c_id=280&objectid=10801300

      2003: 25,221 non casino pokie machines
      2005: 21,343 non casino pokie machines
      2011: 18,167 non casino pokie machines

      2003 a non casino machine average intake was $37,310
      2011 a non casino machine average intake was $47,118

      “In contrast, each poker machine at SkyCity potentially earns $140,000 a year.”

      1647 casino machines at SkyCity pulled in $118 million in six months approximately $71,645 per machine

      • Treetop 7.4.1

        I think the problem with the link is due to a gap after nz and before herald.

      • DH 7.4.2

        It’s good to see the media doing their job for a change and picking apart all the lies on this deal one-by-one. Hopefully they’ll start thinking about the economics of it and figure out just how bad a deal it is from that perspective.

        Even if we put aside the moral & ethical considerations it is still a very bad deal. The market values an investment by the return it makes, a $350million investment of this type would be expected to return a nett profit before tax of around 8-9%. That’s about $30million. It’s been calculated that the extra pokies alone will return SkyCity $49million, making that deal by itself worth some $400-450million as an investment.

        Add in the casino licence extension which must be worth a few hundred $million at least, then factor in the other concessions like extra gaming tables etc, and you’re looking at a potential market value of more than $700million…. at least twice what Key has accepted. That difference will capitalise onto the share price of SkyCity because the market will sure know how much its worth, leaving the taxpayer hung out to dry.

        Everything about this deal sucks. It’s not even good business.

  8. You_Fool 8

    “Since 2004, the government has collected a problem gambling levy from all types of licenced gambling to fund the government’s spending on problem gambling. It was introduced along with the sinking lid on pokies (the more you look back, the better the fifth Labour Government looks, eh?).”

    John Key likes to take credit for this decrease in pokie machines anytime he can; every time I hear him speak on the subject he seems to bring up the facts surrounding the drop in pokie machines since 2008 and makes it sound as though the number of pokie machines was static or increasing before that with the decrease in machines all because of the Nats, and that any extra would be still well below the 2008 level. DPF also likes to make this point…

  9. BLiP 9

    Well, not surprising, really. John Key hasn’t been able to differentiate between a casino operation and Government itself for most of his adult life. In this instance, lucky him as PM gets a peek at the “burn card”, his “hole” cards are, of course, secret, the “flop” as dealt by his advisers hasn’t been much use and now its down to the “bluff”. But, really, he doesn’t give a fuck which way this hand goes, its just a side bet which might get a cheap deal for the next National Ltd™ conference. Meanwhile, he’s still got Parata doing the Black Jack Charter, bruiser over at the Christchurch roulette wheel, Joyce at the mega public service raffle, and Blinglish wandering around the floor dispensing great wads of borrowed cash to the players. High stakes, sure, but it ain’t his money and he’s outta here soon anyway.

    • felix 9.1

      “High stakes, sure, but it ain’t his money and he’s outta here soon anyway.”

      Exactly as he’s always done. Go figure, NZ.

  10. Carol 10

    Metiria Turei has formally requested that the Auditor General investigate the deal, and shonkey’s part in it.

    http://www.stuff.co.nz/national/politics/6799816/SkyCity-deal-Call-for-Auditor-General-investigation

  11. To me the whole idea of Pokies supporting the community via trusts seems fundamentally flawed, and at best a way to legitimize the harm done. The best way to support communities would be to remove all pokies from communities.

    • Draco T Bastard 11.1

      +1

      Committing harm to the community to support the community doesn’t add up.

    • Treetop 12.1

      Read the link in 12 and you can see how Sky City (Auckland) has to be carefully managed politically.

      “Auckland accounted for 60 per cent of the group earnings, they said, exposing the business to booms and busts in one area.”

      DTB thank you for posting a correction of my error in 7.4 re a link.

Recent Comments

Recent Posts

  • Tuvalu language revival and COVID-19
    Te Vaiaso o te Gana Tuvalu 2021 - Tuvalu Language Week moves online due to the uncertainty around COVID-19 said the Minister for Pacific Peoples Aupito William Sio.  “However it is a timely reminder of the power of embracing both traditional and new ways of doing things. It has been ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • United Nations General Assembly: 76th General Debate Statement
    E ngā Mana, e ngā Reo, Rau Rangatira mā o tēnei Whare Nui o te Ao Prestigious people, Speakers of note, Chiefs one and all of this General Assembly Ngā mihi mahana ki o koutou katoa, mai i toku Whenua o Aotearoa Warm greetings to you all from my home ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • APEC 2021 Women and the Economy Forum prioritises women’s economic empowerment
    Minister for Women Jan Tinetti today chaired the virtual APEC 2021 Women and the Economy Forum, which is working to address outstanding issues for women and girls across the region as it recovers from the COVID-19 pandemic. The forum brought together Ministers and representatives from 21 economies to discuss gender ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Upper Hauraki to move to Alert Level 2
    Upper Hauraki will move to Alert Level 2 from 11:59pm tomorrow, 25 September, COVID-19 Response Minister Chris Hipkins confirmed today. After positive cases were detected in the Upper Hauraki area on Sunday, extra Alert Level restrictions were put in place to immediately prevent any wider transmission of the virus.  “We’ve ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Report into Aotearoa New Zealand’s export controls system released
    Foreign Affairs Minister Nanaia Mahuta today welcomed the findings of an independent review into Aotearoa New Zealand’s export controls system, which regulates the export of goods to foreign militaries, police forces or paramilitaries. Produced by David Smol, a former Chief Executive of the Ministry of Business, Innovation and Employment, the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New District Court Judge appointed
    Attorney-General David Parker has announced the appointment of Brett Crowley of Wellington as a District Court Judge.  He is currently the Wellington Public Defender and started his career as a staff solicitor working in a range of litigation including criminal defence work. He went to the bar in 1999 specialising ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Mental health stocktake shows strong progress
    The first report of the Government’s Implementation Unit has found strong progress has been made since the Mental Health and Addictions Package was announced in 2019. “The report notes most initiatives funded in the Budget 2019 package are on track to deliver what is expected by 2023/24,” Grant Robertson said. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Working together to grow the West Coast
    A project that has been crucial in allowing businesses to continue during the tourism downturn is among a number of initiatives to receive a boost from the Government’s Jobs For Nature programme, Conservation Minister Kiri Allan says. Sustaining South Westland is an extension of an initiative set up last year ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Next steps to improve safety in wake of Whakaari White Island tragedy
    The Government is moving to improve safety in light of the Whakaari White Island tragedy and has released proposals to reinforce safety standards in registered adventure activities. The package of proposals includes: Strengthening requirements for how operators, landowners and the regulator manage natural hazard risks Improving how risks are monitored, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand donates more COVID-19 vaccines to COVAX and the Pacific
    Foreign Affairs Minister Hon Nanaia Mahuta and Associate Health Minister Aupito William Sio announced today that New Zealand is donating additional Pfizer vaccines to the Pacific and AstraZeneca vaccines to the COVAX Facility, to support equitable access to COVID-19 vaccines. “New Zealand is donating 708,000 doses of the AstraZeneca COVID-19 vaccine ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to the Property Council of New Zealand
    Kia ora koutou katoa   Is it a pleasure to be able to speak with you today, and to be able to answer some questions you may have. I would like to acknowledge the organisers of this event, the Property Council. The theme of this year’s conference is City Shapers. Together ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Additional MIQ for Christchurch
    An additional hotel will be added to our network of managed isolation and quarantine facilities, COVID-19 Response Minister Chris Hipkins said today. “I have approved and Cabinet is in the final stages of signing off The Quality Hotel Elms in Christchurch as a new managed isolation facility,” Chris Hipkins said. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ COVID-19 response earns another major digital investment
    Minister for the Digital Economy and Communications Dr David Clark welcomes Amazon’s Web Services’ (AWS) decision to establish a Cloud Region on New Zealand shores, further boosting New Zealand’s growing digital sector, and providing a vote of confidence in the direction of New Zealand’s economic recovery. “Amazon is the second ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Zealand invests in cutting edge cancer R&D
    Scaling up the manufacture of CAR T-cell cancer therapy for clinical trials Advancing New Zealand’s biomedical manufacturing capability Supporting future international scientific collaborations Transforming cancer care with targeted, affordable solutions Research, Science and Innovation Minister Hon Dr Megan Woods has announced that the fight against COVID-19 will not stop the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Expert group appointed to lead New Zealand’s future health system
    An outstanding group of people with extensive and wide-ranging governance and health experience have been appointed to lead the Māori Health Authority and Health New Zealand, Health Minister Andrew Little says. “This Government is building a truly national health system to provide consistent, high-quality health services right across the country. This ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Funding to help clean up contaminated sites
    The Government is supporting the clean-up of contaminated sites in Northland, Dunedin and Southland to reduce risk to people’s health and protect the environment. Environment Minister David Parker said the funding announced today, through the Contaminated Sites Remediation Fund, will help us turn previously hazardous sites into safe, usable public ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Predator Free apprenticeships open up new job opportunities
    The expansion of a predator free apprenticeship programme is an opportunity for more people to kick-start a conservation career, Conservation Minister Kiri Allan says. “The Predator Free Apprenticeship Programme is focused on increasing the number of skilled predator control operators in New Zealand through a two-year training programme. “The Trust ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Further NCEA support confirmed for Auckland students
    The number of Learning Recognition Credits for senior secondary school students will be increased for Auckland students, Education Minister Chris Hipkins confirmed today. This recognises the extended time these students will spend in Alert Levels 3 and 4. “It means students in Auckland will have a fair opportunity to attain ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Long-term pathway next step to better mental wellbeing for New Zealanders
    The Government is taking a new approach to support people who experience mental distress, Health Minister Andrew Little says. “Kia Manawanui Aotearoa – Long-term pathway to mental wellbeing (Kia Manawanui) is the first 10-year plan of its kind that targets the cause of mental distress and also sets out how ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Keeping our Police safe to keep our communities safe
    The Government is committed to keeping our frontline police officers safe, so they in turn can keep New Zealanders safe – with one of the largest investments in frontline safety announced by Police Minister Poto Williams at the Police College today.   The $45 million investment includes $15.496 million in ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Clean Vehicles Bill passes first checkpoint
    The Land Transport (Clean Vehicles) Amendment Bill will help New Zealand drive down transport emissions by cleaning up the light vehicle fleet, Transport Minister Michael Wood says. The Bill passed its first reading today and will establish the legislative framework for key parts of the Government’s Clean Car Package, including ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Funding boost supports ongoing Māori COVID-19 response
    The Government is responding to the need by whānau Māori and Māori Health providers to support their ongoing work responding to COVID-19 and to continue increasing rates of Māori vaccination, Associate Minister for Health (Māori Health), Peeni Henare and Minister for Māori Development Willie Jackson announced today.   This increased ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Significant increase to COVID-19 penalties
    Penalties for breaches of COVID-19 orders are set to significantly increase from early November 2021 to better reflect the seriousness of any behaviour that threatens New Zealand’s response to the virus, COVID-19 Response Minister Chris Hipkins said today. “Throughout this Delta outbreak we’ve seen the overwhelming majority of people doing ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Counter-Terrorism Legislation Bill returns to Parliament
    The Counter-Terrorism Legislation Bill has returned to Parliament for its second reading in an important step towards giving enforcement agencies greater power to protect New Zealanders from terrorist activity. “The Bill addresses longstanding gaps in our counter terrorism legislation that seek to protect New Zealanders and make us safer,” Justice ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Joint Statement: New Zealand and Australian Trade Ministers
    Hon Damien O'Connor MP, New Zealand Minister for Trade and Export Growth, and Hon Dan Tehan MP, Australian Minister for Trade, Tourism and Investment, met virtually on Monday 20 September to advance trans-Tasman cooperation under the Australia-New Zealand Closer Economic Relations Trade Agreement (CER). CER is one of the most ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Prime Minister’s Post Cabinet Press Conference/COVID-19 Update opening statement
    ***Please check against delivery***   E te tī, e te tā, nau mai rā [To all, I bid you welcome]   As you will have seen earlier, today there are 22 new community cases to report; three of which are in Whakatiwai in the Hauraki area, and the remainder in ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Major milestones for Māori COVID-19 vaccine rollout as new campaign launches
    Whānau Ora and Associate Health (Māori Health) Minister Peeni Henare acknowledges two major milestones in the rollout of the COVID-19 vaccination programme for Māori. “I am very pleased to announce more than 50 percent of eligible Māori have received their first dose and 25 per cent are now fully vaccinated,” ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government funding to fight infectious diseases
    $36 million for research into Covid-19 and other infectious diseases The investment will improve our readiness for future pandemics Research will focus on prevention, control, and management of infectious diseases The Government’s investing in a new Infectious Diseases Research Platform to boost Aotearoa New Zealand’s Covid-19 response and preparedness for ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Quarantine-free travel with Australia to remain suspended for a further 8 weeks
    Suspension to be reviewed again mid to late November Decision brought forward to enable access from Australia to first tranche of around 3000 rooms in MIQ Air New Zealand working at pace to put on more flights from Australia from October    The suspension of quarantine-free travel (QFT) with Australia has ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Extra support for Ethnic Communities to share vaccination information
    Extra support is being made available to Ethnic Communities to help them share COVID-19 vaccination information within their communities, Minister for Diversity, Inclusion and Ethnic Communities Priyanca Radhakrishnan said. “We know we need to get every eligible person in New Zealand vaccinated. A fund being launched today will allow for ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • School holidays remain unchanged for Auckland region
    School holidays in Auckland will continue to be held at the same time as the rest of the country, starting from Saturday, 2 October, Education Minister Chris Hipkins said today. “I’ve carefully considered advice on the implications of shifting the dates and concluded that on balance, maintaining the status quo ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government continues crackdown on gangs and organised crime
    Operation Tauwhiro extended until March 2022 Since it was launched in February, Operation Tauwhiro has resulted in:   987 firearms seized $4.99 million in cash seized 865 people charged with a firearms-related offence Gangs and organised crime groups will continue to be relentlessly targeted with the extension of Police’s successful ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to Body Positive 'HIV Treatments Update Seminar 2021'
    E ngā mana E ngā reo E ngā iwi Tēnā koutou katoa Ka huri ki ngā mana whenua o te rohe nei. Tēnā koutou. He mihi hoki ki a tatou kua tau mai nei I raro I te kaupapa o te rā. Nō reira tēnā koutou katoa Acknowledgements It’s a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Power bill changes bring fairness to charges
    A key recommendation of an independent panel to make electricity charges fairer across all households will be put in place, the Energy and Resources Minister Megan Woods has announced. “Phasing out the regulations on ‘low-use’ electricity plans will create a fairer playing field for all New Zealanders and encourage a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • NZ economy’s strong momentum will support rebound from Delta outbreak; COVID fund replenished
    The economy showed strong momentum in the period leading up to the recent Delta COVID-19 outbreak, which bodes well for a solid economic rebound, Grant Robertson said. GDP rose 2.8 percent in the June quarter, following on from a 1.4 percent increase in the previous March quarter. This was a ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Projects create benefits into the future
    Making a well-known lake swimmable and helping to halt the decline of the endangered hoiho/yellow-eyed penguins are among a suite of new projects being supported by the Government’s Jobs for Nature programme across the southern South Island, Conservation Minister Kiri Allan says. “It’s no secret that many of our most ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Opening statement for Whāriki Indigenous Small Business Roundtable
      Kei ngā tōpito e wha o te āo e rere ana te mihi maioha ki a koutou nō tawhiti, nō tata mai e tāpiri ana ki tēnei taumata kōrero mo te ao hokohoko arā mā ngā pākihi mo ngā iwi taketake Tēnā koutou, tēnā koutou katoa – Pai Mārire.  ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New members appointed to Kāpuia
    The Government is adding four additional members to Kāpuia, the Ministerial Advisory Group on the Government’s Response to the Royal Commission of Inquiry into the terrorist attack on Christchurch mosques. “I’m looking forward to having Pamela MacNeill, Huia Bramley, Melani Anae and Katherine Dedo  join Kāpuia and contribute to this group’s ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Timeline confirmed for Emissions Reductions Plan
    Cabinet has agreed to begin consulting on the Emissions Reduction Plan in early October and require that the final plan be released by the end of May next year in line with the 2022 Budget, the Minister of Climate Change, James Shaw confirmed today. “Cabinet’s decision allows organisations and communities ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Pay parity pathway for early learning teachers confirmed
    Pay parity conditions and higher funding rates for education and care services will come into force on 1 January, 2022, Minister of Education Chris Hipkins confirmed today. The Government signalled this work in Budget 2021. “From 1 January, 2022, centres opting into the scheme will receive government funding and be ...
    BeehiveBy beehive.govt.nz
    2 weeks ago