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More Gambling Forecast for New Zealand

Newsdesk by Newsdesk
Mon 15 Jul 2013 at 04:31
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New Zealanders are expected to be gambling more across the board over the next few years.

A new study keying on problem gambling and released by the Health Ministry forecasts casino spending to grow by 2.3% through 2016, and some believe that might be conservative in light of a recent public-private agreement that allows SkyCity in Auckland substantial increases to its slots and table games inventories in exchange for funding a new convention center in the city. SkyCity is ponying up A$402 million to build the facility.

The study forecasts betting on racing and sports through the Totalisator Agency Board to grow by 6.6% through 2016. Spending on Lotto and other NZ Lotteries games is forecast to grow 8%.

Consultants KordaMentha estimate that the supply increases at SkyCity, combined with a government concession that allows the industry to implement cashless technologies for the first time, will generate $260 million-$330 million in incremental revenue annually.

The Auckland casino will be adding up to 230 machine games to its existing 1,647, plus 40 new tables, bringing that total to 150, and up to 240 new electronic table game positions.

The country’s six casinos contain 2,800 slots in all.

In contrast, the study expects spending on machine games in pubs and clubs—still the largest sector of the market—to drop slightly over the next three years from $854 million last year to $849 million. The slide could be greater, say industry insiders, as more local councils act to cap machine numbers and restrict new technologies to combat problem gambling.

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The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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