Allegations by two southern trusts that its pub venues were offered incentives, including venue upgrades, television sets and tickets to the 2007 Rugby World Cup, have been investigated by the Department of Internal Affairs.
The department confirmed to the Otago Daily Times it received "in confidence" complaints from two gaming societies, after several venues had been offered incentives to switch allegiance to another gaming trust.
Two Dunedin-based trusts, the Southern Trust and Bendigo Valley Foundation, alleged that a TAB staff member offered inducements to several southern venues between April 2006, and June 2007.
"The allegations were that venues were being offered a range of incentives to secure their transfers, including free or subsidised TAB room upgrades, provision of television sets for TAB rooms, better resulting TAB commission rates, or free 2007 World Cup match tickets," DIA gambling compliance group investigations manager Geoff Owen said.
The allegations were unable to be substantiated by the department following an investigation, he said.
Inducements are illegal under the Act and are punishable by heavy fines.
"The department expects unfettered transparency between the gaming trust which owns the gaming machines, the venues in which those machines are located and a grant recipient who might be entitled to apply and receive gaming funds," Mr Owen said.
A spokeswoman for the New Zealand Racing Board, which runs the TAB, said it co-operated fully with the inquiries.
"The DIA has informed the NZ Racing Board that it found no wrong-doing by the TAB/NZ Racing Board or any of its employees for that matter," the spokeswoman said.
When asked how many venues had switched to a racing-friendly trust in the past year, the spokeswoman replied "The TAB does not collect information of that nature.
"It is the decision of the individual hotel-tavern owners which trust they decide to have any poker machines with."
The Southern Trust chief executive Karen Shea said one of its southern venues had been approached and offered inducements.
The Southern Trust has more than 110 venue operators, including 20 in Otago-Southland.
The trust had informed the department about the issue, but had not received any feedback, she said.
When asked if she believed the approach was a one-off, she replied "no".
Ms Shea said she suspected some venue operators had received inducements to change their venue agreement and align themselves with a racing-friendly trust.
The Southern Trust, which gave $19 million back to the community in 2008, did not support the racing industry benefitting from gaming machines, she said.
"Money should go back towards the community."
Last year, the trust awarded less than 1% of its grants to the racing industry and had spoken informally to Internal Affairs Minister Richard Worth "expressing our views that the community, in the broadest sense, should benefit from gaming funds".
The Bendigo Valley Trust, which according to the allegations lost one venue through inducements, declined to comment when contacted.
Allocating gaming machine funds for racing and/or stakes is authorised under the Gambling Act, and it is up to each trust to determine where it allocates its funds.
Problem Gambling Foundation of New Zealand South Island regional manager David Coom said he had heard of trusts targeting venues aligned to other trusts.
"We are concerned trusts have become far more aggressive in targeting venues, and more needs to be done to clean up the industry."
