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23 June 2016

Download a text only version of Gambits.

In this edition of Gambits we:

  • remind you about the new grant publication requirements coming into effect in October 2016 and seek your views on how grant information should be published when the newspaper publication requirement lapses
  • let you know about a few other policy projects, either underway or pending, in relation to Class 4 gambling that we will also be seeking your views on over the coming months; and
  • update you on the Integrated Gambling Platform (IGP) and what you can expect over the next year.

New grant publication requirements

In October this year, new requirements about publishing grant information come into force.

These changes:

  • require more detailed information to be provided about applications received, approved and declined
  • stop the requirement to publish grant details in hard copy versions of newspapers.

The details are found in section 110 of the Gambling Act and apply to Class 4 societies that mainly or wholly distribute net proceeds to the community (i.e. most non-club societies).

Information on grant decision making

From 21 October 2016, a Class 4 society will be required to publish, at least once a year, a statement that includes the following information:

  • details of all applications received during the reporting period
  • details disclosing, for each application that has been determined during the reporting period,
    • whether it has been accepted in full or declined in full
    • whether it has been accepted in part and declined in part
    • if it has been declined in full or in part, the reasons for that decision.
  • every amount of net proceeds from Class 4 gambling distributed in the reporting period and the applicant to whom that amount relates.

Societies will also need to provide an electronic version of the grants statement information to the Secretary of Internal Affairs (s110(4B)).

We are considering whether new regulations should be developed that specify that publication on the society’s website is the minimum “publication” that will be needed or whether other requirements are also needed.

We are seeking your views on this issue and would like to hear from you about what form future publication of grant information should take.

Tell us your views

  • Do you consider that new regulations are required to clarify the meaning of “publish”?
  • Do you consider that requiring publication on a website is the best option to replace the current newspaper publication requirement? If not, what alternative/s would you prefer?
  • What is your preferred option for providing a statement electronically to the Department?
  • Are there any further matters on which the Department needs to provide guidance around grant making?

Please send your comments to the Department of Internal Affairs by  18 July 2016.

Email: gamblingreview@dia.govt.nz with “grant publication” in the subject line

Post: Safer Communities Team
Policy Group
Department of Internal Affairs
PO Box 805
Wellington 6140

Please note that all submissions may be made publicly available. Even if you request confidentiality, we may have to release your submission at a later date if a request is made under the Official Information Act 1982. In your submission please highlight the information you would prefer was withheld should a request be made. (Please note that while you may indicate the information you would like withheld, it can only be withheld if it meets the relevant criteria under the Official Information Act.)

Broader work on what regulations should require around grant making is on a longer timeframe than the work on how to publish grant information. We will update you in due course to explore the potential to work with the Class 4 sector on grant information. This may also include the design of a standardised approach to electronic grants statements.

Requirement to disclose any interest in the grant recipient

There is also a new requirement for societies’ grant decision-makers (net proceeds committee members) to declare in their published statements any “interest” they have in a recipient of a grant their committee made.

A member of a net proceeds committee will have an “interest” in a recipient of a grant if:

  • the member may gain a financial benefit from the grant or may have a financial interest in the recipient; or
  • the member is a “part of the immediate family” of the recipient; or
  • where the recipient is an organisation, club, society, or association, the member is
    • an officer or a member of the recipient; or
    • part of the immediate family of an officer or a member of the recipient.

“Part of the immediate family” is defined in a new section 110(6) as meaning, in relation to an officer or a member of a Class 4 society’s net proceeds committee, a person who is:

  • the member’s spouse, civil union partner, or de facto partner; or
  • the member’s parent, child, sister, or brother; or
  • the parent, child, sister, or brother of the member’s spouse, civil union partner, or de facto partner.

Update on upcoming Class 4 consultation

We will continue to seek your views on other key projects relating to the Class 4 sector. Specifically, we wanted to let you know about some policy projects that we will be consulting on over the coming months.

Class 4 gambling review

Cabinet has considered the Department’s discussion document on the Class 4 review. The discussion document was developed in consultation with the sector and will be published on our website for public feedback.

We expect this document to be released next week and will update you in Gambits.

Venue payment regulations

In May 2016, the Government announced a new venue payments system for venues hosting gaming machines in bars and pubs. The new system originated from changes in the Gambling Amendment Act (No 2) 2015.

Read the Minister’s media release

The Department will report back to Cabinet in August with proposed regulations, which are expected to come into force in October 2016.

We expect to provide further information, and a draft copy of the regulations for your feedback, in July.

Future financial reporting requirements

The Gambling Amendment Act (No 2) 2015 also provided for regulations to amend the requirements for societies:

  • as to the manner and form of financial statements in their annual reports (section 108 of the Gambling Act 2003), and
  • on applying and distributing net proceeds (section 114).

These new requirements are additional to the current financial reporting requirements in sections 108 and 114 of the Gambling Act respectively.

We are currently considering these matters, and will contact the sector later in the year about progressing this.

Integrated Gambling Platform (IGP) update

As many of you will be aware the Integrated Gambling Platform (IGP) is the key system through which the Department manages licencing for the gambling sector.  IGP has been rolled out in stages since mid-2013 with functionality provided for:

  • processing licence applications for Class 3 and 4 gambling
  • managing compliance activity; and
  • approvals of Class 4 gaming machines and games.

The requirements for IGP functionality have evolved since the system was first considered and we have been working with our provider, Intralot NZ, to reassess the introduction of additional IGP features whilst we consider the functionality needed to regulate for a safe and trusted gambling sector that benefits our communities.  As a result, limited additional functions will be introduced into IGP over the next year, including an improved interface between the sector and the Department through the delivery of electronic licence application forms and online payment of licence application fees.

Intralot NZ will continue to operate IGP until May 2020 and will operate the Electronic Monitoring System until May 2022 to assist with the smooth transition between systems should new suppliers be selected in the future to provide these systems to the Department.