Tauranga city councillors don't want to get as involved with gambling as it could do under the proposed gambling reform bill.

The bill, sponsored by Waiariki MP Te Ururoa Flavell, officially called the Gambling (Harm Reduction) Amendment Bill, is currently before the select committee.

At a workshop on the Bill on Tuesday, city councillors heard from both sides of New Zealand's gambling industry before deciding it will call for submissions.

As it stands the bill is considered unworkable and threatens the existing regime that operates pokie machines in New Zealand, and also distributes the profits.

Issues that are being opened up for debate by the bill include those presented by Tommy Wilson to the workshop.

The Te Puna resident's concerns include the $1million taken out of Te Puna every year by pokie machines, none of which ever comes back. About 100 hundred families are affected by pokie playing and have to find the money spent on the pokies from somewhere else, says Tommy.

Gambling funds are distributed to clubs and schools - none of which have any association with Te Puna. The decisions about redistributing gambling monies are made in the Waikato. There is no Tauranga or Te Puna representative involved in those decisions.

Councillors agreed with Mayor Stuart Crosby's stance that gambling is not the council's core business and that it should not become involved in owning pokies machines, or operating and servicing them.

He expressed interest in making the distribution process more open and transparent, possibly by council representatives becoming involved – and with gambling money paying for any local government involvement.

But getting too involved could place the council in conflict, says Stuart. It has itself been the beneficiary of $500,000 from the Lion Foundation for the roof at Baypark. The council is also from time to time involved in assisting community organisations in approaching the various gambling profits distributors, like Pub Charity, for funding.

Pub Charity's chief executive Martin Cheer told the workshop the bill's stated intent that 80 per cent of gambling money be returned to the community is unworkable, because the government currently takes about 30 per cent in taxes. Another third is wrapped up in operating costs, leaving only one third of the gambling pie for distribution back to the community.

He contested the allegation pokies are only placed in poor communities, saying if that were the case Sky City Casino would be in South Auckland.

Problem Gambling NZ chief executive Graeme Ramsey says South Auckland has a pokie machine for every 75 people, while in Remuera there's one for every 465 people.

The issue is gambling harm, which he says relates more directly to Maori, Pacific Island and Asian gamblers – and pokie machines. Most problem gamblers have a problem with pokie machines, he says.

'If it wasn't for pokie machines we wouldn't exist.”

Gambling took $28.1 million out of Tauranga in the financial year ending March 31.

Of that, $8.7 million was returned in the form of grants.

Tauranga's submission has to be written up and presented to the select committee before June 21.