Internal Affairs Minister, Hon Peter Dunne, has announced today that the Gambling (Class 4 Net Proceeds) Amendment Regulations 2014 will come into effect on 4 September 2014.
The regulations increase the minimum rate of return (ROR) from 37.12 per cent of gross proceeds up to 42 per cent over a five year period.
For corporate societies the increase in the minimum rate of return will commence in the first full financial year after the regulations take effect and be staggered over five years, to allow the sector time to adapt to the new requirements.
Minimum rate of return for the next five years onwards, therefore, is as follows:
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Financial years commencing on or after 4 September 2014 = 40%
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Financial years commencing on or after 4 September 2016 = 41%
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Financial years commencing on or after 4 September 2018 = 42%
Examples
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Your financial year is 1 November – 31 October; your minimum ROR will be 40% for the 2014-15 and 2015-16 years, 41% for the 2016-17 and 2017-18 years, and 42% from 2018-19 onwards
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Your financial year is 1 April – 31 March; your minimum ROR will be 40% for the 2015-16 and 2016-17 years, 41% for the 2017-18 and 2018-19 years, and 42% from 2019-20 onwards
Update on other regulatory reforms
As detailed at the regional forums in May 2014 and in the May issue of Gambits there are several other regulatory reforms in process, including:
These reforms will not progress further before the general election in September.
We will keep you updated on progress of the reforms, and work with representatives of the Class 4 gambling sector through a number of avenues (including Regional Forums in November) to prepare for the changes, in particular, to develop a workable system for commission-based venue-payments, which we will be in contact about over the coming months.
