The New Zealand Department of Internal Affairs (DIA) has successfully recovered NZ$11.5 million (about US$6.6 million) during a compliance investigation focused on the pokies sector.
On Friday, the gambling regulator revealed that the funds returned by operators would be allocated to community organizations. According to Section 106 of New Zealand's Gambling Act 2003, holders of class 4 licenses—known as “corporate societies” by the DIA—are mandated to distribute the net proceeds from class 4 gambling exclusively for authorized purposes as specified in their licenses.
The DIA engaged directly with class 4 gambling operators, commonly referred to as pokies trusts, and discovered significant compliance violations. These included instances where funds intended for community grants were instead redirected towards operating expenses, including the purchase of additional gaming machines.
Vicki Scott, the DIA’s director of gambling, emphasized the importance of the investigation's outcomes and reaffirmed the commitment to enhancing compliance to ensure communities benefit from gambling revenues. “Most operators have worked constructively with us to address historical issues and improve their practices,” Scott stated, adding, “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 recovered funds, the DIA imposed enforcement measures against One Foundation, a class 4 gambling society. The organization faced a six-day suspension of its operating license due to accounting failures concerning gambling proceeds and a failure to surrender a license for one of its pokies venues as legally required.
The DIA also released updated financial guidance for class 4 operators aimed at clarifying accounting standards and outlining their obligations. This guidance seeks to foster consistency across the sector and prevent similar compliance issues in the future.
The enforcement efforts from the DIA are occurring amid a broader crackdown on land-based gambling, coinciding with advancements in the online gambling market set to launch in 2027. In May, an operation called “Operation Turbo” led to the arrest of a man in Auckland on eight counts under the Gambling Act, related to two illegal poker venues in central Auckland. With a cap of 15 licenses available, international companies Entain and Super Group have expressed interest in securing three online gambling licenses each.
