Dogged by corruption allegations and back-room inducement deals, pokie trusts could be set for their biggest shake-up in years. The well published rorts involving pokie proceeds going towards the racing industry led to the private member's Bill by Maori Party MP Te Ururoa Flavell.

The architect of the Gambling (Gambling Harm Reduction) Amendment Bill sets out to make amendments to the Gambling Act 2003 which it is intended would provide additional measures to prevent and minimise harm, ensure money from gambling benefits the community and facilitate community involvement in decisions about the provision of gambling.

While the stated intent appears to be relatively innocuous, examination of the Bill establishes a much more drastic approach. The proposed Bill, if enacted, poses the greatest threat the sector has confronted in terms of its ongoing existence.

The central thesis is that corporate societies will be removed from their role of distributing proceeds by 30 June 2012 to be replaced by local committees established by local government. Presumably they would still be able to undertake the fundraising role.

In addition the proposed legislation provides for local councils to cancel licences issued by the DIA as part of their Class 4 venue policy. Councils will make these decisions having taken into account the social impact of gambling, the evidence of harm from gambling and "public sentiment" about the extent and location of gambling venues.

The Bill also proposes to:

• mandate the use of player tracking or pre-commit technology to maximise player knowledge and minimise harm

• remove the special status of the racing industry as a recipient for the purpose of racing stakes