Invercargill city councillors have not backed a sinking lid policy for gambling, despite a staff report saying it was the best option for reducing harm. The community and regulatory committee chose the status quo cap option for consultation as part of a three-year review. The draft Gambling Venues Policy with the cap option goes to consultation from 28 October to 29 November 2026, pending approval from the full council, and will include a hearing.
Cap retains 226 machines and relocation rule
The existing control caps the number of machines at 226; operators can apply to relocate or merge venues or transfer machines between venues, provided the shift brings the machines into the inner city and out of the suburbs, where they are heavily concentrated in the city’s more hard-up areas. The sinking lid goes further by not allowing relocations, venue mergers, or machine transfers, the report said. That approach was backed by the Problem Gambling Foundation and the National Public Health Service.
There are 226 gaming machines and 15 Class 4 venues in Invercargill, with no change to numbers since September 2020. Nationally, gaming machines and Class 4 venues decreased by 8 percent and 11 percent respectively over the same period. Across the three years to June 2026, the amount lost on gaming machines annually in Invercargill rose 8 percent from $17.5 million to $18.9 million. Player losses totalled $2.71 billion across the country for the year 2024/25, including Lotto, TAB, casinos and Class 4 gaming machines, the report said.
Councillors split over sinking lid
Mayor Tom Campbell and councillors Darren Ludlow, Grant Dermody, Allan Arnold, Trish Boyle, Barry Stewart and Steve Broad voted for the status quo as the starting point. Councillors Marcus Lush, Lisa Tou-McNaughton, Andrea de Vries and Ria Bond and mana whenua representative Mike Bain voted against. Lush said: “I’m no fan of pokie machines. I believe they are a tax on the poor for the rich.” Tou-McNaughton said: “A sinking lid policy puts community well-being first as a gradual approach, reducing access over time.”
Committee chair Darren Ludlow said there were concerns the earlier sinking lid policy would push gambling online: “The difference is, with the venues there’s some form of supervision, and if (operators) fail to exercise their duties properly . . . they get shut down for a while.” The council had previously used a sinking lid but rejected returning to it at the last review. Campbell backed the cap: “You can end up with just old places, gradually falling down around people’s ears, but still open – for no other reason than because you cannot move the machines.” The committee vote was reported by The Press.