Health & Science
Public health advocates say the Department of Internal Affairs is prioritising the profits of Kiwi gambling companies over the health of Kiwi gamblers, Marc Daalder reports.
- Overview Compulsive gambling, also called gambling disorder, is the uncontrollable urge to keep gambling despite the toll it takes on your life. Gambling means that you're willing to risk something you value in the hope of getting something of even greater value.
- Gambling provides a source of funding for community groups. Gambling and lottery activities provide funds for community groups through grants. Application forms are available from societies (typically via a website), some community networks such as Citizens' Advice Bureaux, and often at gaming machine venues.
- The Department of Internal Affairs is about to roll out a new gambling monitoring system from existing supplier Intralot, a company whose founder is the subject of international scrutiny.
New Zealand spends hundreds of millions of dollars on online gambling every year, but only two Kiwi organisations are earning anything from it. The rest is flowing to overseas websites - and domestic companies want in.
The 10 Rules for Responsible Gambling Read the Rules Success Stories Derek’s Story After 12 years of being a compulsive gambler and many attempts to quit, I made a call to Lutheran Social Services Gamblers Choice.
To deal with the thorny issue, the Department of Internal Affairs has launched a probe to discover what it should do about gambling websites. In August, DIA released a discussion document presenting four options, as well as a set of 'add-ons'.
Public health advocates like the Problem Gambling Foundation's Andree Froude say the document prioritises the profits of gambling companies over the health of gamblers.
Is DIA focused on the right issue?
At the moment, only two New Zealand companies are allowed to operate a gambling site in the country: the TAB and Lotto.
In the discussion document, DIA lays out four main proposals: maintain the status quo; allow TAB and Lotto to market more online gambling products; open up the market to all domestic companies under a licensing scheme; or open up the market to all domestic and foreign companies under a licensing scheme.
Notably, none of the proposals detail winding back online gambling or engaging in harm minimisation - these suggestions are left to the side as potential 'add-ons'.
'Our concern is always going to be around the harm,' Froude says. 'We don't want to see a whole lot of different gambling operators offering online products to New Zealanders. More importantly, we want to make sure that the online operators are going to be regulated in such a way that consumers are protected.'
Max Abbott, a professor of psychology and public health at AUT who specialises in gambling, said that all the options were worth discussing. Nonetheless, he said, 'my preference, frankly, would be option one. I'd actually suggest that we even look seriously at blocking access to international sites because many of them aren't safe.'
What can be done?
This online idea blocking was also floated by DIA in the 'add-ons' section, but in a confused manner that made it seem like an afterthought. It proposed censoring the internet in a way that New Zealand doesn't even reserve for extremist content or child pornography.
Other 'add-ons' rely on the goodwill of gambling operators, including overseas companies which aren't subject to New Zealand regulations or tax laws. DIA suggests that 'gamblers could self-exclude themselves from using particular gambling operators or products (if this function was offered by the operator)'.
Alternately, DIA has proposed geo-blocking, which is the technology that companies like Netflix use to restrict content to different countries. In other words, DIA wants to ask offshore operators to voluntarily block New Zealanders.
Another suggestion involves working with domestic credit card companies to block Kiwis from using credit cards on gambling sites. This is being investigated in the UK and is already in place in Australia.
Abbott also suggested placing compulsory caps on the amount of money that New Zealanders could lose to a given site. This would require a licensing and regulatory scheme with participation from operators, but would work with domestic companies.
Online gambling's scale
Seven percent of New Zealand gamblers are problem gamblers, according to DIA. While these gamblers are disproportionately concentrated in real-life gambling, that could change as online gambling grows more popular.
The amount of money spent on offshore gambling sites nearly doubled between 2015 and 2017, and Lotto NZ's own online gambling programme saw a 26 percent increase in sales last year.
It still represents a small proportion of the $2.4 billion that Kiwis spend on gambling every year, but the astounding growth rate of online ventures leaves little doubt that it could be the future of the industry in the country.
However, Kiwi gambling companies aren't waiting around for DIA to reform the system. SkyCity, the Auckland-based casino operation, has launched a Malta-based online casino in a bid to win a share of some of the hundreds of millions of gambling dollars that flow overseas annually.
SkyCity did not respond to a request for comment.
Internal Affairs Minister Tracey Martin said the Government was 'after peoples' views' with the discussion document.
Dia Gambling Statistics
'There are four general ‘options’ to guide that discussion, but people are free to put in any views or proposals they have,' she said.
'All of these will be considered in the policy work that will occur after submissions close at the end of September.'
The Iowa Department of Inspections and Appeals (DIA) is a multifaceted regulatory agency charged with protecting the health, safety, and well-being of Iowans.
DIA staff is responsible for inspecting and licensing or certifying health care providers and suppliers, restaurants and grocery stores, social and charitable gambling operations, and hotels and motels. In addition, DIA staff investigates alleged fraud in Iowa's public assistance programs and conducts contested case hearings to settle disputes between Iowans and various State and local government agencies. Learn more about the department and find links to Iowa Code and Iowa Administrative Rules.
If you need to visit the department, the main office is located on the Capitol complex in Des Moines.
Iowa Department of Inspections and Appeals
Lucas State Office Building, Third Floor
321 East 12th Street
Des Moines, Iowa 50319-0083
Phone: 515.281.7102
Department Director
Larry Johnston, Jr., is the director of DIA. He was appointed to this role by Governor Kim Reynolds on March 1, 2019.
Johnson previously served as the State public defender. In this role, he managed an organization with a $60 million budget and 220 employees in 19 offices throughout the state with the focus of providing the Constitutional right to counsel. Johnson served as legal counsel and deputy legal counsel for more than six years for Governor Terry E. Branstad and then-Lt. Governor Reynolds. As counsel, he served on the Iowa Legislature’s Administrative Rules Review Committee as the governor’s ex officio representative. He collaborated with the information technology team in the design and development of a web-based application and award-winning website, rules.iowa.gov, that streamlined the regulatory review process. Prior to working in the governor’s office, he practiced administrative law in Des Moines.
Johnson received his law degree from Creighton University School of Law, and his Bachelor of Science in management from Purdue University’s Krannert School of Management. While in college, he studied in Spain at the University of Seville’s School of Economics and Business.
Department Structure
Essential, centralized support services for DIA are administered by and coordinated through the Administration Division. Division staff oversee all strategic planning, financials and budgeting, legislative affairs, administrative rulemaking, personnel, purchasing, and public information activities for the department.
Food and Consumer Safety Bureau
The Food and Consumer Safety Bureau is responsible for administering and enforcing the Iowa Food Code (Iowa Code Chapter 137F) by conducting food safety inspections at food establishments (grocery stores, restaurants, bars, farmers markets, home bakeries, convenience stores, etc.) and food processing plants. The purpose of the Iowa Food Code is to 'safeguard the public health and provide to consumers, food that is safe, unadulterated and honestly prepared.' The Food Code is based upon food safety recommendations developed by the Food and Drug Administration (FDA), in consultation with representatives from the food industry and regulators, and focuses on public health and the prevention of foodborne illness.
Learn more about food business licensing.
Social and Charitable Gambling Unit
The Social and Charitable Gambling Unit administers Iowa Code Chapter 99B, which regulates games of skill or chance, raffles, bingo, social gambling and amusement devices. Qualified organizations may obtain a social or charitable gambling license to conduct fund-raising activities benefiting educational, civic, public, charitable, patriotic, or religious purposes.
Learn how to apply for a social and charitable gambling license.
Indian Gaming Compacts
The director of the Iowa Department of Inspections and Appeals is authorized to enter into and implement agreements or compacts between the State of Iowa and Native American tribes in the state. Gaming compacts are executed under the authority of the Indian Gaming Regulatory Act (25 U.S.C section 2701 et seq.). The agreements (compacts) shall contain provisions intended to implement the policies and objectives of the Indian Gaming Regulatory Act.
Three tribal gaming compacts were first negotiated in 1992, authorizing casino-type gaming in the State of Iowa. Learn more about the Tribal Gaming Commissions. If you’re interested in viewing the compacts, please submit a public information request.
- The Winnebago Tribe of Nebraska began operation of WinnaVegas Casino near Sloan on April 30, 1992.
- The Omaha Tribe of Nebraska began operation of CasinOmaha near Onawa on June 22, 1992. The casino was renamed Blackbird Bend in April 2013.
- The Sac and Fox Tribe of the Mississippi in Iowa began operation of Meskwaki Bingo and Casino near Tama on December 31, 1992.
The Administrative Hearings Division of DIA conducts contested-case and other administrative proceedings for nearly all State agencies and some local government agencies.
The division is authorized by the legislature in Iowa Code 10A.801, and is governed by the Iowa Administrative Procedures Act, Iowa Code chapter 17A, the division's administrative rules, and the relevant statutes and rules of the agency for which the division is conducting a particular contested case proceeding.
Administrative Law Judges
Administrative law judges (ALJs) within the Administrative Hearings Division have the following responsibilities:
- Preside over telephone or in-person hearings
- Rule on motions or objections
- Decide cases fairly and impartially
- Write proposed agency decisions in cases on many topics, including driver’s licenses revocations and child abuse assessment proceedings
Jurisdiction
The Administrative Hearings Division of DIA conducts administrative proceedings for nearly all State agencies and some local government agencies. While the division is required to conduct certain contested case proceedings by statute or administrative rule, it is also authorized under section 10A.801(5) of Iowa Code to conduct any proceeding for any governmental entity on a contract basis.
The majority of the division's cases are conducted for the Iowa Department of Human Services and the Iowa Department of Transportation.
The Health Facilities Division is the designated state survey and certification agency, responsible for state licensure and federal certification of Medicare and Medicaid programs and other health care providers and suppliers operating in the state of Iowa. DIA provides oversight for nursing facilities, skilled nursing facilities, residential care facilities, intermediate care facilities for the intellectually disabled, hospitals, hospices, home health agencies, programs and facilities caring for children, assisted living programs, and elder group homes.
Survey teams from the division conduct unannounced on-site inspections at health care facilities to assess the quality of care and services provided to clients, patients, residents, and tenants. If problems are discovered during an inspection, the division can initiate corrective and/or disciplinary action to assure a facility's compliance with State and federal rules. Health Facilities Division personnel also investigate complaints alleging improper care or treatment of patients, residents, and tenants in licensed and certified entities.
The Investigations Division audits health care facilities, and conducts criminal, civil, and administrative investigations of fraud and misconduct. Staff within the division work closely with other State and local partners in identifying fraud, waste, and abuse, and where appropriate, forward cases to federal, State, and local officials for prosecution.
Investigations Division Units
- Abuse Coordinating Unit—Assists with the detection, investigation and prosecution of civil, administrative dependent adult abuse investigations in health care facilities.
- Economic Fraud Control Unit—Investigates recipient public assistance fraud and food assistance trafficking. Investigates the transfer or assignment of a legal or equitable interest in property from a Medicaid transferor to a transferee for less than fair market value.
- Human Services Audits Unit—Performs expenditure audits of local Iowa Department of Human Services (DHS) offices to determine eligibility for federal reimbursements and to ensure compliance with State and federal funding requirements. Audits also are performed at residential care facilities, nursing facilities, and residential and intermediate care facilities for the intellectually disabled, to ensure that residents’ funds are being properly maintained. The audits are used to verify that Medicaid reimbursement procedures meet all applicable government requirements.
- Medicaid Fraud Control Unit—Investigates allegations of fraud committed by providers against the Medicaid program and fraud in the administration of the Medicaid program. Additionally, investigates abuse/neglect and other crimes committed upon residents in care facilities or related programs that receive funding from the Medicaid program.
- Professional Standards Unit—Investigates licensed professionals for the Professional Licensure Bureau of the Iowa Department of Public Health.
- Public Assistance Debt Recovery Unit—Investigates and initiates collections of overpayment debts owed to DHS.
Four units are attached to the department, for administrative support purposes. Each unit, like DIA's major divisions, has Iowa Code-mandated duties and responsibilities.
Child Advocacy Board
The Child Advocacy Board ensures that the foster care system is working to place each Iowa foster child in a permanent home. In addition, CAB administers the State's Court-Appointed Special Advocate Program (CASA), which is designed to protect the rights of Iowa’s foster children in all court-related activities.
Employment Appeal Board
Diana Gamble
The three-member Employment Appeal Board is appointed by the governor and serves as the final administrative law forum for State and federal unemployment benefit appeals. The board also hears appeals of rulings of the Occupational Safety and Health Administration (OSHA) and rulings of the Iowa Public Employees Retirement System (IPERS). The three members of the board are appointed to represent employers, employees, and the general public. In addition to unemployment cases, the board hears appeals involving peace officer issues and contractor registration requirements. The board receives 96 percent of its funding from the federal government based on the number of appeals heard and the time taken to render a decision.
Dia Gambling Sites
Board Members:
Ashley Koopmans, Chair, Public Representative
James Strohman, Vice Chair, Labor Representative
Myron Linn, Board Member, Management Representative
Iowa Racing and Gaming Commission
The Iowa Racing and Gaming Commission regulates pari-mutuel dog and horse racing, commercial gambling facilities, sports wagering, and fantasy sports contests in Iowa.
State Public Defender’s Office
The mission of the State Public Defender is to provide high-quality legal representation to impoverished clients who are accused of committing crimes or involved in juvenile court matters.