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6 October 2015

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In this edition of Gambits we:

  • update you on the No 3 Bill and provide you with information about two immediate impacts of the No 3 Bill that will come into effect the day after the Bill receives Royal assent
  • introduce you to a new entrant to the Class 4 sector, the Milestone Foundation. Please note that this is the correct web address for Milestone: www.milestonefoundation.co.nz. The earlier Gambits:now contained a link that was incorrect.

No 3 Bill passes committee of the whole House

The Gambling Amendment Bill (No 3) is progressing through Parliament. (Read more in our July edition New Class 4 gambling law coming).

The Bill passed the committee of the whole House stage on 24 September. We expect the third reading may take place by the end of November.  

We will keep you informed about the Bill’s progress in Gambits, as well as providing you with more information about some of the other changes in the Bill that may affect you.

However, at this stage we want to let you know in advance about two immediate impacts of the Bill that will come into effect the day after it receives Royal assent and becomes law. If you are a class 4 society and will be submitting any key person applications in the coming months, or if you use a management services provider, the information below explains what you will need to do.

New GC5 Key Person Personal Information Forms

Key person changes under the Gambling Amendment Bill (No 3) come into effect the day after the Bill receives the Royal assent. From that date we will require additional information about key persons and a new GC5 form will be posted on our website. This is the same process that was followed when the No 2 Bill received Royal assent.

All individual key persons who are named in any Class 3 or Class 4 gaming licensing application as being a new or returning key person or an existing key person whose role/association is changing must complete a new GC5 personal information form.

All these key persons must complete Part B of the new GC5 form in full as well as all other sections relevant to their circumstances. This is irrespective of whether they have completed a GC5 previously.

Existing key persons who are not changing or adding a new role/association do not need to complete a new GC5 form.

We acknowledge the additional work this will require, however, it is necessary as the new GC5 form will provide additional information for determining the suitability of key persons which is not currently collected.

Transition process

Although the new provisions take effect immediately, we are allowing the following transition period of up to two months.

If, following Royal assent, you receive a completed GC5 Key Person Personal Information form on the old form, it won’t contain the additional question B11 that we require. In this case you will need to:

  • contact the individual concerned and have them complete the new question B11 on page 10
  • have them print their name, then sign and date the page and return it to you before you submit the application to us.

Key persons do not need to complete the new GC5 form in full unless:

  • it is two months or more after the date of Royal assent of the No 3 Bill, or
  • the authorisation on page 5 of the GC5 was signed and dated more than two months before the date of receipt by the department.

If, after Royal assent, you submit an application using the old GC5 (without the new question B11 on page 10) we will contact you to obtain the additional page.

To help us limit any delays when processing your applications, please ensure you provide us with the relevant information before submitting your application.

Adding management services providers and others as key persons

Management services providers contracted by class 4 societies will be brought into the Act’s regulatory regime as key persons the day after Royal assent.

This means that the chief executive of, and anyone who exercises significant influence in, the management services provider will also be considered as key persons of the relevant society.

Any class 4 society that uses a management services provider, as defined in the Bill, will need to ensure that the management services provider, its chief executive and anyone else who exercises a significant influence on the management services provider is listed as a key person in relation to their class 4 operator’s licence.

If the management services provider and other relevant persons are not already listed as key persons you must add them by submitting a GC2 Key Person amendment/notification form, along with the required supporting documentation within 20 working days of the new Act coming into effect.

Introducing the Milestone Foundation

In the interests of a transparent and trusted sector, we would like to introduce a new society to the class 4 sector. The Milestone Foundation holds the venue licence for one venue, the Mount Richmond Hotel, Mt Wellington, Auckland, and was licensed on 28 September.

Milestone’s objectives are to support the Asian population in New Zealand, particularly in Auckland. The Foundation sees a need to support recent immigrants to New Zealand with the process of adjusting from a predominantly Asian culture and assisting with their settlement into New Zealand.

The Foundation’s overall purposes will be to provide grants for education, health and matters that promote and support the Asian culture. This may include providing academic scholarships, public health services, English language classes, job training and support for not-for-profit events that celebrate Asian cultures.

Two of Milestone’s three directors are new to the sector. To prepare as directors of a class 4 society they have undertaken training around the Gambling Act, and their duties and obligations. In addition, they have utilised experienced contractors and advisors to ensure they satisfy their legislative requirements.

Milestone is the first new society to be licensed since March 2013. The addition comes as the number of non-club societies continues a downward trend, decreasing from 82 in 2005 to 39 now. 

As we have previously stated, the licensing of a new society is not something we take lightly. This is demonstrated by the rigorous 10 month assessment process we undertook that led to Milestone being licensed.

We welcome Milestone to the class 4 sector and look forward to working with them to achieve the purposes of the Act and improve the lives of Asian people in New Zealand.

More information about Milestone’s purpose and an authorised purpose statement can be found on their website: www.milestonefoundation.co.nz