Number of poker and gaming machines

IBISWorld forecasts the number of poker and gaming machines to decline by 1.2% in 2025-26, to total 13,814 machines. The number of electronic gaming machines in New Zealand has been in long-term decline, a trend expected to continue in 2025-26. Growing pressure from advocacy groups and community-led campaigns, like the "Feed Families Not Pokies" initiative in New Zealand, is expected to limit the number of new gaming machine approvals, while some existing gaming machines are discontinued. The continued growth of online gambling has contributed to declines, as players increasingly shift from physical venues to digital platforms, drawing participation away from traditional machines.

The number of poker and gaming machines in New Zealand has been falling since 2003-04. This decline is primarily a result of the Gambling Act 2003, which placed restrictive pressure on gaming machine numbers. For instance, the Act caps the number of gaming machines per location at nine if the licence was granted after October 2001. As venues with licences close down or exit gaming operations, the overall number of gaming machines has trended downwards. In addition, the Gambling Act 2003 also provided regional governments with the power to approve new gaming machines and restrict overall machine numbers. Rising public awareness regarding problem gambling has led many regional governments to cap or actively reduce gaming machine numbers within their constituency.

Non-casino electronic gaming machines hosted in pubs and clubs are classified as class 4 gambling. This class of gambling has additional regulations placed upon wagers. A proportion of the money gamblers lose must be distributed to community groups by way of grants. For gamblers, gaming machines are legislated to return 85% of expenditure as winnings. For venues, commission revenue is limited to 16.0% of annual gaming machine profits. In addition, 40.0% of profits must be returned to approved community associations and projects, while an additional 20.0% of profit attracts a gaming duty, according to the Department of Internal Affairs. Disincentivising financial gains has contributed to the overall decline in gaming machines over the past five years. Overall, IBISWorld forecasts the number of poker and gaming machines in New Zealand to weaken at a compound annual rate of 1.3% over the five years through 2025-26. This decline has been driven by the adoption of "sinking lid" policies, which prevent the replacement or transfer of gaming machine licences when venues close, ensuring a gradual reduction in machine numbers. The decline has been reinforced by national harm minimisation strategies and falling player expenditure, placing financial strain on venues and eroding industry profitability. At the same time, growing consumer interest in online gambling has accelerated the shift away from traditional gaming machines.