The New Zealand Department of Internal Affairs (DIA) has successfully retrieved NZ$11.5 million (US$6.6 million) as part of an investigation into compliance within the pokies industry. The agency announced the funds recovered from operators on Friday, affirming that these will be allocated to community organizations.
According to Section 106 of New Zealand's Gambling Act 2003, holders of class 4 licences, referred to as "corporate societies," are mandated to apply or distribute net proceeds from class 4 gambling solely for an authorized purpose, as outlined in their licences.
During its investigation, the DIA closely engaged with class 4 gambling operators, commonly known as pokies trusts, and uncovered widespread problems. Among these were instances where money earmarked for community grants was misappropriated for society expenses, including the purchase of more gaming machines.
Vicki Scott, the DIA’s director of gambling, emphasized the investigation's significant outcomes while highlighting 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 noted. She also stressed, "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."
As part of the overall enforcement actions, the DIA suspended the operating licence of One Foundation, a class 4 gambling society, for six days. This suspension followed the identification of accounting discrepancies related to gambling proceeds, in addition to One Foundation’s failure to surrender a licence for one of its pokies venues as legally required.
To further support compliance, the DIA has issued new financial guidance for class 4 operators, intended to clarify their accounting duties and obligations. The department stated that this guidance aims to enhance consistency across the sector and help prevent similar future issues.
This crackdown on land-based gambling is occurring concurrently with the impending liberalisation of the online market in New Zealand, projected to launch in 2027. In a related investigation named “Operation Turbo,” an Auckland man has been charged with eight counts under the Gambling Act linked to two illegal poker venues reportedly operating in central Auckland. With a total of 15 online licences available, international firms Entain and Super Group have expressed intentions to acquire three licences each.
