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NZ Gaming Magazine Operators between a rock and a hard place The current formulae for gaming venue expenses are starting to squeeze the life out of the industry. The plethora of regulations and constraints are now impacting in a real way with different operators being affected by different aspects of the regulations. Our high performing sites, by their very nature, have high costs. They are not able to recover all their direct costs because of the formula costs on their operating expenses. Many of these sites are unable to be paid their management fees because they have already hit the cap with their direct expenses. On the other hand, the medium sites cannot be paid up to the caps because they are constrained by the 16% cap on societies. Because of this cap, societies are struggling to pay to those smaller sites what has already been agreed by the Department of Internal Affairs are actual and reasonable costs. The Department of Internal Affairs Gaming Venue Expenses Working Party must find a way to address these issues or we will see a continuing decline in the number of venues prepared to invest in and maintain their gaming operation. Bruce H Robertson 30 September 2006 |
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