The New Zealand Department of Internal Affairs (DIA) has successfully recovered NZ$11.5 million (approximately US$6.6 million) following a compliance investigation within the pokies sector. The DIA announced on Friday that these funds would be allocated to community organizations in need.
According to Section 106 of New Zealand's Gambling Act 2003, holders of class 4 licenses, also referred to as "corporate societies," are mandated to distribute net proceeds from class 4 gambling only for authorized purposes as specified in their licenses.
The DIA coordinated directly with class 4 gambling operators—often termed pokies trusts—and revealed widespread issues that included instances where funds meant for community grants had been misused for society expenses such as the acquisition of additional gaming machines.
Vicki Scott, the DIA's director of gambling, remarked on the significant outcomes of the investigation, affirming that efforts to enhance compliance and ensure communities receive their rightful gambling proceeds will persist. "Most operators have worked constructively with us to address historical issues and improve their practices," she stated. Scott added, "While we’ve made substantial progress, our work is not finished. We’ll continue working with operators to recover funding for communities, improve compliance and maintain public confidence in the integrity of class 4 gambling."
In addition to the monetary recovery, the DIA took enforcement action against One Foundation, a class 4 gaming society, suspending its operating license for six days due to identified accounting failures regarding gambling proceeds. The foundation also failed to legally surrender a license for one of its pokies venues as required.
To aid compliance, the DIA introduced new financial guidance for class 4 operators aimed at clarifying accounting obligations and enhancing consistency across the sector to prevent future issues.
The drive to enforce regulations on land-based gambling comes as New Zealand prepares to liberalize its online gambling market, which is set to launch in 2027. In May, an investigation dubbed “Operation Turbo” led to the charging of an Auckland man on eight counts under the Gambling Act, linked to alleged illegal poker venues operating in the city. Additionally, international companies Entain and Super Group have expressed their intentions to secure three online gambling licenses each, within the stipulated limit of 15 licenses total.
