A decision by a gaming trust to grant $75,000 in stake money to the Oamaru Harness Racing Club over community organisations has sparked debate over future funding grants.
In its latest funding announcement, Christchurch-based Eureka Trust granted more than $250,000 to racing clubs, including two grants totalling $75,000 to the Oamaru Harness Racing Club, despite the trust having no gaming machine venues in the town.
Christchurch Central MP Brendon Burns said racing clubs, such as the Oamaru Harness Racing Club, were "hitting the jackpot" at the expense of dozens of community organisations.
Mr Burns said he would be seeking answers from the Department of Internal Affairs about the racing industry benefiting from gaming-trust grants and would not rule out instigating a private member's Bill.
Eureka Trust chief executive Graeme Parker said the Gambling Act 2003 permitted the "payment of stakes" to the racing industry.
It was not unusual for the trust to fund "outside its area", he said.
The trust had reduced its funding towards the racing industry from $2 million to $1.3 million a year, Mr Parker said.
Oamaru Harness Racing Club spokesman John Mudie, of Dunedin, said the grants would go towards the more than half a million dollars in stake money offered by the club this year.
"It certainly helps us," he said.
The Southern Trust chief executive Karen Shea, of Dunedin, said the trust gave a "small amount", less than $100,000 a year, to the racing industry, which was permitted under the Act.
Problem Gambling Foundation spokesman David Coom said the charitable gaming sector turned over more than $900 million for the year ending March 31, with more than $58 million going to the racing industry.
Harness Racing New Zealand general manager Edward Rennell, of Christchurch, said clubs were permitted to apply for funding, and it was up each trust to accept or decline each application.
