The New Zealand Department of Internal Affairs (DIA) announced it has recovered NZ$11.5 million (US$6.6 million) as part of its compliance investigation into the pokies sector. This significant amount will be allocated to community organizations throughout the country.
According to Section 106 of the Gambling Act 2003, operators holding a class 4 licence, referred to as "corporate societies," are mandated to use or distribute the net proceeds from class 4 gambling exclusively for authorised purposes specified in their licences.
During its investigation, the DIA collaborated with class 4 gambling operators, commonly known as pokies trusts, and uncovered extensive compliance issues. Some funds that should have supported community grants were improperly utilized for society expenses, including the acquisition of additional gaming machines.
Vicki Scott, the DIA's director of gambling, highlighted the investigation's success and emphasized ongoing efforts to enhance compliance and ensure that communities benefit from gambling proceeds. "Most operators have worked constructively with us to address historical issues and improve their practices," Scott remarked. She acknowledged the substantial progress made but affirmed that their work is not yet complete. "We’ll continue working with operators to recover funding for communities, improve compliance, and maintain public confidence in the integrity of class 4 gambling," she added.
In conjunction with recovering the NZ$11.5 million, the DIA took enforcement action against One Foundation, a class 4 gambling society. The foundation's operating licence was suspended for six days after the DIA identified significant accounting failures regarding gambling proceeds and a failure to surrender the licence for one of its pokies venues when required.
To mitigate future compliance issues, the DIA has issued new financial guidance for class 4 operators. This guidance aims to clarify accounting requirements and obligations, thereby seeking to enhance consistency across the sector.
Simultaneously, a crackdown on land-based gambling is underway as New Zealand's online gambling market prepares for its launch in 2027. In May, an investigation dubbed “Operation Turbo” led to the arrest of a man in Auckland who faced eight charges under the Gambling Act in connection with two illegal poker venues allegedly operating in the city. As the online sector evolves, companies like Entain and Super Group have expressed interest in obtaining three of the limited 15 online gambling licences available.
