Smokefree cuts gaming machine revenue
Gaming machine profits have been hard hit by smokefree legislation, cutting income from machines in Ashburton pubs by around 20 per cent.
Ashburton Trust financial accountant Fay Watson said the first few months following the December smoking ban saw gaming machine revenue drop by 25 per cent.
“Prior to the smoking ban, revenue was reasonably steady, running just ahead of the previous year. Revenue is currently around 20 per cent short of last year, but is coming in higher than expected, and so the outlook has improved,� she said.
Money from Ashburton Trust gaming machines is distributed by the Ashburton Trust Charitable Foundation, with a target set to give away $850,000 in grants in this financial year.
“The foundation does not have as strong a revenue stream as it did last year and so this will be a challenge to achieve, but we are feeling positive and if we can do more, it will be a bonus,� Mrs Watson said.
The charitable foundation’s purpose is to benefit the Ashburton community.
At this week’s disbursement of funds, $216,324 was handed to community organisations, with the biggest winner being the Order of St John, which received $50,000.
Organisation secretary-treasurer Wendy Greene said the funds will be used for planned rebuilding of the St John centre.
The existing building is a many times remodelled army building, moved from the Westerfield army camp. It has long passed its use by date in terms of being economical to continue refurbishing, Mrs Greene said.
The building project is estimated to cost about $900,000, and fundraising is well underway, she said.
Other big winners in the latest round of disbursements were Mid Canterbury Cricket, $22,000, Clearwater Aquatic Club, $20,000, Ashburton Art Gallery, $20,000, Ashburton Aviation Museum, $20,000, Ashburton Trotting Club, $12,000, Mid Canterbury Tennis sub association, $10,000, and NZ Woollymunchers Fine Wine and Lambfest, $10,000.
The foundation’s trustees recently approved capital expenditure which will allow the foundation to reinvest in new machinery.
Over the next few months the foundation will start the process of updating machines to ensure all game computer technology is compatible with systems for national electronic monitoring of gaming machines, which is due to be phased in over the coming year.
2005-09-12
