Pokie grants to trotting clubs reined in 

Source: NZPA

The Department of Internal Affairs is seeking to ban three gaming machine societies and seven pokie bars from funding four harness racing clubs, following an investigation into millions of dollars worth of funding.

Department gambling compliance director Mike Hill says a proposed new gambling licence condition will prevent the Lion, Perry and Infinity foundations from granting pokie funds to the Thames Harness Racing Club and the Manukau, Kumeu and Franklin Trotting Clubs.

The four clubs received over $5.4 million between 2006 and 2008 and about $400,000 before that.

Earlier this year it was alleged that a complicated pub-buying venture had been set up to pump millions of dollars of pokie machine money into harness racing.

Following an investigation into the grant application process, the flow of funds and the relationship between the parties and Northern Hospitality Management, which operated at the seven gaming machine venues, the department believes the grants are inconsistent with sections of the Gambling Act.

The Act makes it clear that decisions about gaming machine grants should be transparent, free from conflicts of interest or conditions, Hill says.

Northern Hospitality Management operates 36 bars around the country and hosts 624 pokie machines.

It is owned by former Harness Racing NZ executive member Ian Shaw and racehorse owner Alf Wallis. The company could not be contacted tonight.

The societies have 15 days to appeal to the Gambling Commission about the new licence condition and one society has already done so, the department says.