Gambling System Update

20 December 2024

Kia ora

As we head into the final few weeks of 2024, as well as reflecting on the past year we are thinking about what lies ahead. We have important changes on the way for the Gambling Group, and 2025 is shaping up to be a big year.  

In July this year the Government announced its intention to regulate online casinos. We have started to build the team who will design and deliver this new regulatory system. The new system is expected to be in place by early 2026. Up to 15 licences will be awarded, subject to a range of regulatory requirements and regulatory oversight by Te Tari.

Online gambling operators who are granted a licence will be allowed to advertise in New Zealand, subject to limitations. For now, the advertisement of any online casino in New Zealand remains prohibited. For a more detailed recap of the rules around section 16 of the Gambling Act and how they apply, please read on.

As many of you know, in 2023 we set up a project to future-proof the class 4 Electronic Monitoring System which provides us with valuable data from every non-casino gaming machine in the country. You can expect an update on our progress with this important project in early 2025.

We’ll also be issuing new standards for account-based play in casinos in early 2025 and will continue to work with SkyCity as it prepares to implement mandatory account-based play across its three casinos.

In this final newsletter for the year, I’ve also included information on some other recent case law and legislative developments and some further legislation planned for 2025.

Kia hari, kia koa i te wā whakatā – Happy Holidays!

Ngā mihi nui,
Vicki Scott
Gambling Director

Good news for class 3 fundraisers

Changes to the Gambling Act means that fundraisers and charitable organisations can continue to operate class 3 raffles and lotteries online and keep raising funds for good causes.

The temporary exemption that was introduced during the Covid-19 response is now permanent, thanks to a recent bill that was passed into law.

Raffle tickets can continue to be purchased online using a range of payment options including internet banking, credit card payments and payment facilities like PayPal.

Class 3 licence holders can choose to run their entire raffle remotely as tickets can also be issued digitally.

If you’re planning on running a class 3 raffle, make sure you read the rules on our website, as there are some key things you’ll need to know.

Get to know section 16 of the Gambling Act

Have you ever scrolled through your Instagram feed and seen ads for online casinos? Or maybe you’ve been shopping online or watching YouTube when an ad appears.

We are receiving an increasing number of complaints about advertising in New Zealand for overseas online casinos. This is illegal – it’s an offence under the Gambling Act punishable by a fine of up to $10,000.

Connecting with Asian Family Services

Left to right: Hong Yuan (AFS), Tian Tian (DIA), Ashleigh Bahg (DIA), Joyce Safa’i-Papali’i (DIA), Lisa Vuong (DIA), Kelly Feng (AFS)

In November 2024, some of our Gambling Team had the opportunity to engage with Asian Family Services (AFS) during their away day. The team was invited to present on our role in regulating class 4 gambling.

Our session focused on the expectations for venue and casino staff in preventing and minimising gambling harm. We addressed pubs, clubs and casino operations and provided insights into how our regulators conduct venue inspections and gambling harm audits. We also highlighted Granted.govt.nz, a data tool which displays the funding allocated to communities through grants, including the amounts and recipients. 

We were pleased to see strong engagement throughout the session. With over 40 clinical and public health professionals in attendance, the discussion was lively, and many thoughtful questions were raised both during and after the presentation.

Engagement and education are central to our work and this visit served as an excellent opportunity to connect with AFS and share valuable information about gambling regulation and harm prevention. The positive feedback and continued interest from AFS attendees emphasised the value of these collaborations in raising awareness and building community understanding.

We look forward to continuing these important conversations and further strengthening our relationships with key partners in the sector. The Gambling Team are often available to come along to in-person events and meetings. If you’d like to hear directly from any of our team, please get in touch with gambling@dia.govt.nz to discuss future opportunities.

Key High Court case affecting class 4 sector

Feed Families Not Pokies Aotearoa Inc v Secretary for Internal Affairs [2024 NZHC 3719]

On 9 December 2024 the High Court released the above judgment making a range of declarations about the correct interpretation of the Gambling Act. This decision has significant implications for the class 4 gambling sector.

We will work with the sector to communicate the operational impacts in greater detail, but the key change to be aware of is that if a class 4 society has not conducted gambling at a venue for more than 4 weeks and has not obtained the Secretary’s permission to extend that 4 week period, the licence held by that society is automatically surrendered, with no right to appeal.

This ruling has implications for a number of licences which are under consideration by the Department. We will work with those licence-holders directly to communicate the impacts of the decision.  

Casinos

Mandatory Account-Based Play in casinos

We are in the final stages of consultation for the new standard for mandatory account-based play in casinos.

This will enable SkyCity to implement mandatory account-based play across its three casinos by mid-2025.  The standard will also apply to any other casinos that opt to do the same.

Casino game rule changes

We are progressing work on a number of changes to casino game rules (including Blackjack, Baccarat and Roulette) requested by SkyCity. Changes to the General Game Rules, resulting from the new Account-Based Standards are also being proposed at the same time.

Targeted consultation on the changes will start in the new year.

Regulatory Systems Amendment Bill - changes to the Gambling Act

In 2025 the Minister of Internal Affairs will be introducing a Bill into Parliament to amend a number of Acts that are administered by DIA, including the Gambling Act.  

The proposed amendments all share the overall policy objective of improving the effectiveness and efficiency of regulatory systems overseen by DIA, keeping regulatory systems up-to-date and removing unnecessary compliance and implementation costs. The amendments are all minor. Public consultation will be part of the Select Committee process.

By way of advanced warning, the key changes to be aware of in terms of the Gambling Act are changes to:

• clarify that gaming machines in storage do not have to be connected to the Department’s Electronic Monitoring System (EMS).
• clarify that clubs proposing to merge only have to demonstrate they have the intention to operate their gaming machines at a single venue, not all their operations.
• remove the requirement that the model and serial number of each gaming machine be a condition of the licence for venues licensed before the Act came into effect.
• require territorial authorities to publish their class 4 venue policy on their websites rather than send them to the Secretary.
• repeal the redundant provisions relating to licensed promoters for class 3 raffles.
• restrict the purchase of all Lotto NZ's lottery products both in-store and online to persons aged 18 years old and over.