Tuesday, 9 November, 2010 - 08:17

http://www.voxy.co.nz/national/039p039-laundering-supports-schools-and-hospitals/5/71057

Gambling issues lobby group GamblingWatch is becoming alarmed at the evidence that money laundered by criminals provides a significant turnover though pokie machines in Pubs and Casinos.

GamblingWatch co-ordinator Dave Macpherson says that in New Zealand and Australia, recent cases and claims are revealing that pokie machines in pubs and casinos are used for laundering the proceeds of illicit earnings by 'P' dealers.

Macpherson refers to the $20 million spent at Sky City by two of Auckland's biggest methamphetamine ('P') dealers as a laundering method. Well over 20,000 of these machines are located throughout the country and big and small time dealers can use them to launder thousands and millions of dollars of drug money.

Australia is embarking on a programme of introducing pre-commit cards to pokie machines and this has been seen as a "threat" to the money laundering operations of criminals. Macpherson notes that the Sydney Morning Herald (1/10/2010) reported that industry sources claim that as much as $2 billion is laundered through these machines every year.

"This is a frightening figure," says Macpherson. "GamblingWatch has been concerned for years now about the damage done to individuals and families by gambling, especially gambling on pokies. It seems that pokie takings from problem gamblers are actually being bolstered by laundered drug money."

"This money is the same money that finds its way into community organisations such as schools, hospitals, councils, sports and other community interest groups. The money is highly tainted, not only by the suffering of problem gamblers, their families, friends and workplaces, but also by the fact that sale of devastating drugs such as "P" could be funding community organisations."

Macpherson says "this situation is so serious that a Select Committee of Parliament should be making detailed and aggressive enquiries into the source and application of pokie funds."

"MP Te Ururoa Flavell's Gambling Harm Reduction Bill would empower such a committee of Parliament to examine all aspects of gambling harm associated with pokies and to get full answers to some very difficult questions. It is crucial that the Bill passes a first reading and goes to Select Committee stage, and we call on the Government to take a responsible stance and support its coalition partner in this effort."