June 11, 2007

Government should stop funding Casinos

Recent events at the Christchurch casino demonstrate clearly why the government should stop investing in gambling says Problem Gambling Foundation CEO John Stansfield.

Two senior managers at the casino have recently left amid allegations of prize-rigging and loan sharking at the casino. One of the managers had reportedly been threatened by an underworld figure and was worried about the personal security of himself and his family if he remained.

Mr Stansfield says that gambling and crime have always gone together and it appeared that even the most stringent of regulations would not prevent that.

"Many communities never wanted casinos in the first place," he says.

"A previous government foisted them on us despite being warned that they would bring a downside of gambling related crime and misery which would cost us dearly.

"Traditionally gambling dens have caused problems, surrounding them with glitz and calling them casinos does not alter that."

Mr Stansfield says that casino investment is not an appropriate use of taxpayer money.

"The government should be supporting productive, constructive and ethical businesses," he says.

"What sort of message are they sending the average hard-working kiwi battler when they gamble with their super fund?"

Mr Stansfield says that the problems at Christchurch are unlikely to be solved by a simple management change.

"A good manager may be able to paper over the cracks," he says "But casinos have a flawed business model that depends on causing harm to their clients and the wider community.

"We all have to subsidise them by picking up the costs of the damage they cause.

"This is not sustainable in the long term.

"The government should not be propping them up with taxpayer money"

ENDS

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