New Zealand recovers NZ$11.5m after pokies compliance failures
New Zealand gambling authorities have recovered NZ$11.5 million for community organisations after uncovering widespread accounting and compliance problems in the country’s pokies sector.
The Department of Internal Affairs said its review found instances where money that should have been available for community grants was instead being used by gambling societies to cover operating costs, including purchasing gaming machines.
More than NZ$1 billion is generated through New Zealand pokies each year, with Class 4 gambling trusts required to distribute net gambling proceeds towards authorised community purposes.
The DIA worked with operators to address historical accounting issues, resulting in commitments to return another NZ$11.5 million through gambling grants.
Further recoveries could follow, with the investigation continuing.
The regulator also suspended the operator licence of One Foundation for six days after uncovering accounting failures involving gambling proceeds and a failure to surrender a venue licence when required.
New financial guidance has now been issued to Class 4 gambling operators In New Zealand covering their accounting and distribution obligations.
DIA Director of Gambling Vicki Scott said the investigation was designed to ensure money generated from gambling reaches the communities entitled to it.
“The investigation has produced significant results. We’ve secured commitments that will return $11.5 million to community organisations, taken enforcement action where it was needed, and provided operators with clearer guidance about their obligations,” Scott said.
“While we’ve made substantial progress, our work is not finished.”
The enforcement action comes as New Zealand prepares for a major overhaul of its separate online casino market.
The Online Casino Gambling Act came into force on May 1, with the government planning to issue up to 15 licences beginning in 2027.
Existing offshore online casinos that were serving New Zealanders before the new law commenced can continue temporarily, but cannot advertise locally and will eventually need a licence to remain in the market.
