Lotto NZ is investigating expanding its sales on its digital 'MyLotto' platform to include online Bingo, and that is causing serious concern for some.

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The government-owned gambling company has gone to market for information about online Bingo systems for potential implementation with its existing online channels.

Lotto NZ launched MyLotto in 2008 and the platform was re-launched in 2017 after being replatformed to a responsive website and incorporating sales via an app.

Sales from digital channels since have risen to about 20 percent of total sales, with 800,000 registered players, of which 250,000 are active monthly and 600,000 active annually.

'Overall, we believe there is still significant growth opportunity for the digital channel, as the current interactive player base makes up a relatively small percentage of players that participate in our games throughout the year across all channels,' Lotto NZ said in a notice on the government tenders website.

'The risk profile of Bingo as an online format game is considered 'medium risk', which is in line with our existing instant-win games,' Lotto NZ said.

'It is worth noting that the rating takes into account the responsible gaming features that are used to minimise harm, and it is therefore possible to reduce the points, and subsequent risk rating of products, through the introduction of additional controls.'

However, Problem Gambling Foundation spokesperson Andree Froude said the organisation was very concerned about the possibility of online Bingo.

'Online instant play games have only just been introduced and now Lotto is considering this,' Froude said.

'These are both high risk forms of gambling because they are continuous so people don’t have to wait long for a result. They are significantly more harmful than purchasing a Lotto ticket where you have to wait for the outcome.'

'While Lotto may rate these games as ‘medium risk’, we don’t.'

In an online environment, people can access the game 24/7 and that can be easily hidden, she said. Setting spending limits would not protect the vulnerable.

'Who is going to benefit from this? Lotto – who are obviously doing this to make money. They use aggressive marketing tactics and have huge marketing budgets so people will be encouraged to try online bingo and ‘be in to win'.'

Pacific Island communities were particularly vulnerable because the game was associated with fundraising and was seen as a social activity, said the foundation's national director for Pacific services, Pesio Ah-Honi.

'Bingo and Housie are normalised forms of gambling in Pacific communities -- it is not seen as risky, just as a social activity,' Ah-Honi said. 'If it is taken out of this social context and put in an online environment, it poses a high risk for Pacific.

Pacific youth are particularly at risk according to a recent study.

'The Ministry of Health has just released its Strategy to Prevent and Minimise Gambling Harm and it included a strong focus on addressing health inequalities and inequities of gambling harm in a range of at-risk groups, including Pacific,' Ah-Honi said.

Lotto NZ said in its notice that minimising the potential for harm from the company's games 'continues to underpin everything we do at Lotto NZ, and is a key driver of any decision to grow our portfolio and increase sales.'

'Our overall responsible gaming programme demonstrates international best practice, having been certified to level four (the highest possible level) by the World Lottery Association (WLA),'it said.

'We continue to look for ways to enhance this programme across all areas of the business.'

Lotto NZ said it assesses the risk profile of each of its games using the external game evaluation tool GamGard, which works by examining the structural and situational characteristics of the game and identifies how risky a proposed game is likely to be for a vulnerable person.

'It provides guidance about responsible gaming design and enables us to consider the responsible gaming implications of each feature of our games.'

Read more:Lotto NZ launches instant ticket checker via mobile app

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Lotto NZ's offline games received a low-risk rating while its online games were considered of medium risk.

Lotto NZ said it was seeking well-documented overviews of solutions for online Bingo platforms and technology, content and the gaming model.

'The content must be reputable, reliable and legal,' it said. 'In a broad sense, we are looking to understand what Bingo games and presentation options you have available in your solution.

'We’re interested in the way in which your games operate, the configurability you offer, ability to offer side games and chat functionality.'

Any platform deployed would have to pass a game risk assessment to understand its potential impact on vulnerable people.

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Auckland Council is expected to vote this week to maintain its sinking lid policy for pokie machines in the region.

But a new report to the council's Regulatory Committee illustrates the sheer scale of problem gambling in South Auckland.

According to the council report over half the people in Auckland seeking treatment for pokie machine gambling addictions are from South Auckland. And just over half of those seeking help are gaming machine users.

New figures released by the Department of Internal Affairs (DIA) show South Auckland had both the largest number of machines and the highest pokie expenditure for the three months to June 30. Gamblers in the Papakura area spent $1,759,727 on 198 machines, while in Manukau pokie machine users spent $2,710,110 on 180 machines.

Under the Gambling Act 2003, Auckland Council must have its own gambling venue policy and set out whether the council will allow new venues to be established and if so, where they can be located.

In 2013 Auckland Council agreed to a sinking lid policy for Class 4 pokie machine venues. The policy means no new consents are issued for new venues and prevents the machines from one club being transferred to another if it closes, helping to reduce the overall number of machines.

But under the policy two licensed venues can merge if they reduce the number of machines they have by one-sixth.

In a report to Tuesday's Auckland Council's Regulatory Committee, council officers recommended maintaining the existing sinking lid policy as the number of operators and machines were continuing to decrease. The number of pokie venues in Auckland has decreased by 13 percent since 2016.

But despite the results the majority of the venues continue to be located in high-deprivation areas like South Auckland.

The last review of the council's gambling policy in 2016 found the number of machines had decreased by 11 percent, but overall takings had increased by 10 percent.

Problem Gambling Foundation spokesperson Andree Froude said while the council's sinking lid policy was one way to reduce the harm caused by gaming machines, by itself it isn't enough.

'Sinking lids take so long because they rely on venues closing, and we're not seeing that in our more deprived communities in areas like South Auckland,' she said. 'When you walk down the street in South Auckland there are venues everywhere.

'We're still seeing the impact of gambling harm on people in these communities. These people are losing money to gambling they can't afford to lose.'

Froude said despite the fact the number of pokie machines was declining, the amount people were spending wasn't.

'The spending on pokies is going up and up.'

Froude said the wider issue of community groups being funded by pokie machine proceeds also needed to be addressed, because the money was coming from the country's poorest communities.

According to the Auckland Council report 40 percent of pokie machine proceeds were turned into grants to community organisations.

The council report cited a Ministry of Health 2017 study which found individual gambling produced the same level of harm as high alcohol consumption, anxiety and depression.

'Cumulatively the harm is close to twice that of drug use disorders, bipolar affective disorder, eating disorders and schizophrenia combined.'

The council report said Māori public health organisation Hāpai te Hauora identified that, along with the immediate financial impact problem gambling had, it could also result in criminal activity, child neglect, depression and anxiety and strained relationships.

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But according to the Ministry of Health only 16 percent of problem gamblers seek treatment.

Auckland Council Regulatory Committee chairperson Linda Cooper said she couldn't comment or vote on the issue as she had a conflict of interest as president of the Waitakere Licensing Trust, a West Auckland-based trust which operates pokie machines.

The Regulatory Committee's deputy chairperson Josephine Bartley was unavailable for comment.

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