Invercargill Councillors Back Pokie Machine Cap Over Staff-Recommended Sinking Lid

^{Invercargill councillors have chosen a cap on pokie machines over the sinking lid that council staff recommended. (Photo: Stephen Colebourne / Wikimedia Commons / CC BY 2.0)}

Invercargill city councillors have chosen a cap on gaming machines over a sinking lid for their draft Gambling Venues Policy, going against a staff report that called a sinking lid the best option for reducing harm. The draft will go out for consultation from 28 October to 29 November.

A council committee met this week to choose between a sinking lid and a status quo cap as part of a three-year review of the policy. The details come from RNZ's Local Democracy Reporting, which cited the council report.

Cap Versus Sinking Lid

Both options aim to reduce harm, but a sinking lid arguably goes further. It stops relocations, venue mergers and machine transfers, so machine numbers fall over time as venues close. A cap holds the existing number in place. These Class 4 machines are the pokies found in pubs and clubs.

The committee ultimately agreed to adopt the draft policy for consultation with a cap option. The decision is subject to approval by the full council. The council used a sinking lid previously, but rejected returning to it at the last review.

According to the report, Invercargill has 226 gaming machines and 15 Class 4 venues, with no change in numbers since September 2020. Over the same period, machines and venues fell nationally by 8 and 11 per cent respectively.

Class 4 gambling in New Zealand is run by societies and trusts that distribute proceeds to community causes, which is why funding for community organisations came up in the discussion. Any change to venue numbers would play out gradually, as licences lapse or venues close.

What Councillors Said

Councillor Lisa Tou-McNaughton backed a sinking lid, saying community wellbeing should be at the heart of council decisions. She acknowledged there would be concern over community funding, but said ways should be found to support organisations that do not depend on gambling proceeds.

"A sinking lid policy puts community well-being first as a gradual approach, reducing access over time."

Councillor Marcus Lush also supported a sinking lid. Mayor Tom Campbell said he backed the cap, noting that old venues could be held on to under a sinking lid. Councillor Steve Broad said he leaned towards the status quo, while acknowledging a sinking lid was "potentially more defensible".

The Problem Gambling Foundation and the National Public Health Service both backed a sinking lid, according to the report.

Losses Rising

The staff report showed that annual losses on Invercargill gaming machines rose 8 per cent over the three years to June 2026, from $17.5 million to $18.9 million. Nationally, player losses across Lotto, TAB, casinos and Class 4 machines totalled $2.71 billion in 2024/25.

Gambling venue policies are set locally, while the wider regime is regulated by the Department of Internal Affairs, which has recovered $11.5 million for pokies communities. Invercargill's consultation includes a hearing, and the full council will decide the final policy afterwards.