The New Zealand Department of Internal Affairs (DIA) has successfully recovered NZ$11.5 million (approximately US$6.6 million) during an inquiry into compliance issues within the pokies sector. This announcement was made by the gambling regulator on Friday, highlighting that the recovered funds will be allocated to community organizations.
Under Section 106 of New Zealand’s Gambling Act 2003, corporate societies, which hold class 4 licenses, are mandated to allocate or distribute the net proceeds from class 4 gambling exclusively to authorized purposes outlined in their licenses.
During its investigations, the DIA collaborated directly with class 4 gambling operators, commonly referred to as pokies trusts, and found "widespread issues." These ranged from funds that were expected to support community grants being misused for society expenses, including the purchase of additional gaming machines.
Vicki Scott, DIA’s director of gambling, remarked on the significant outcomes of the investigation. She emphasized the ongoing commitment to improving compliance and ensuring that communities receive proper funding from gambling proceeds. "Most operators have worked constructively with us to address historical issues and enhance their practices," Scott stated. "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 conjunction with recovering NZ$11.5 million, the DIA also imposed enforcement action against One Foundation, a class 4 gambling society. Its operating license was suspended for six days due to identified accounting failures related to gambling proceeds and a failure to return a license for one of its pokies venues when it was legally required.
To assist class 4 operators, the DIA introduced new financial guidelines aimed at clarifying accounting requirements and outlining their obligations. These guidelines were developed to enhance consistency across the sector and prevent similar issues from arising in the future.
The crackdown on land-based gambling in New Zealand occurs amid preparations for the online gambling market, which is set to launch in 2027. Recent efforts, such as the "Operation Turbo" investigation in May, resulted in charges against an individual for operating two illegal poker venues in central Auckland.
With a total of 15 licenses available, international companies like Entain and Super Group have expressed interest in securing three online gambling licenses each, indicating the growing competitiveness of the evolving market.
