The largest gaming machine funder of the racing industry is to stop giving money towards stakes, it has been revealed.
More than $83 million in gaming machine grants has been given to the racing industry during the past five years, with Levin-based The Trusts Charitable Foundation (TTCF), responsible for more than $21 million - or 22% of its total grants - going to the racing industry.
In an interview with the Otago Daily Times earlier this week, Queenstown-based TTCF trustee and racing identity Murray Acklin confirmed the foundation would no longer fund racing stakes.
The 2003 Gambling Act permitted grants going towards racing, including the payment of stakes, and the change is credited with reviving the fortunes of the industry.
However, TTCF would continue to support racing clubs in the form of grants towards infrastructure, which benefitted the the wider community, and trustees would consider each application on its merit, he said.
Trustees were "conscious of public perception", and were confident racing would continue to prosper without TTCF grants going towards stake money.
Mr Acklin estimated fewer than half of all grants awarded to the racing industry went towards stakes, with the majority going towards infrastructure.
TTCF, which operates 893 gaming machines in 74 venues, was issued with a six-day suspension by the Gambling Commission over questionable business activities last month.
Aside from the New Zealand Racing Board, which runs the TAB, the foundation is the biggest funder of the racing industry with most of its funds generated from TAB outlets, Mr Acklin said.
Of the 27 stand-alone TABs which host poker machines, 16 are aligned with TTCF and the remainder belong to the Lion Foundation.
Over the past five years, the racing industry has been granted more than $83 million in gaming machine grants.
An analysis of all grants over the past five years reveals three gaming societies were responsible for more than half of all grants given to the industry - TTCF ($21 million - 22% of its total donations), First Sovereign Trust ($12 million - 40%) and New Zealand Community Trust ($10 million - 6%).
In total, eight societies returned double-digit percentages of their total grants to the racing industry.
Of the 70 societies which have returned gaming machine grants since 2005-06, 38 have given money to the racing industry.
Last month, Internal Affairs minister Nathan Guy said racing was an authorised purpose under the 2003 Gambling Act, but recent decisions by the Gambling Commission "sends a clear message to the sector about its fundamental obligations in raising funds for community benefit".
Problem Gambling Foundation of New Zealand chief executive Graeme Ramsey said he welcomed TTCF's decision, which was a "step in the right direction".
"That is a step every community group would applaud."
Mr Ramsey said gaming machine grants should not support racing stakes, as "what we have is one form of gambling funding another".
The system of distributing gaming machine funds was fundamentally flawed, and required a change under the Act, he said.
GallopSouth chief executive Andre Klein said gaming grants were vital for the racing industry, which suffered from being poorly funded.
Gaming grants enabled improvements to the racing clubs' general facilities, and without them they would "fall into complete disrepair".
Bendigo Valley Sports and Charity Foundation gave less than 1% each year to the racing industry and "never for stake money", chief executive and trustee Lance Pearson, of Dunedin, said.
Mr Pearson said he personally supported the removal of racing as an authorised purposed under the Gambling Act.
"We don't think gambling should support gambling."
