Gambling System Update

11 June 2025

Kia ora,

2025 is shaping up to be a busy year for our gambling teams, and there is plenty on the horizon to keep the momentum going.   

Over the past couple of months we’ve taken our class 4 venue workshops on the road again, hosting venue operators, managers and society compliance managers throughout West and Central Auckland in March, as well as the Hawke’s Bay in late April. These sessions (which follow on from regional workshops hosted in Porirua and Horowhenua last year) gave us an excellent opportunity to meet and discuss important topics with those working in the sector. All our 2025 workshops have been well-attended and well-received, and we’re making plans to bring them to more regional centres throughout the rest of the year – we will be sending invitations out to venues in areas that we’re visiting, so keep an eye on your inbox!  

The role of technology in the gambling space remains a key focus for our mahi across the board. As part of our Online Gambling Implementation (OGI) programme, we are doing a lot of behind-the-scenes work to ensure a safe, fair and well-controlled gambling environment in New Zealand. Read on for more about how we are working towards this goal by curbing illegal promotion of offshore online gambling companies and progressing with our comprehensive online gambling implementation programme.   

Speaking of technology, we are working on a discussion document on cashless gaming and will be seeking sector feedback on it in the near future. We also got in touch recently with non-casino gaming operators with an important update on our Electronic Monitoring System (EMS) - which you can read below.   

Ngā mihi nui,  
Vicki Scott 
Gambling Director 

Influencer gambling promotion in the spotlight

Our Gambling team has been in the news over the past couple of months, as the Department issued warnings to several social media influencers illegally promoting online gambling – and a $5,000 fine to prominent influencer Millie Elder Holmes.  

Local influencers with sizeable audiences on platforms such as Instagram and TikTok had received warnings after partnering with international online casinos and promoting them with live-streams, promotional giveaways, and links to their websites. Under the Gambling Act it is illegal to promote an offshore gambling operator – and breaches could lead to a fine of up to $10,000 per offence.   

The response from influencers has been constructive, with many immediately removing the offending content. So far, notices have been issued to eight individuals, and our team is currently investigating a further 30 cases. 

We expect that highlighting this issue, and helping to bridge the knowledge gap within the social media influencer community will curb the volume of promotional partnerships with unregulated international online casinos - and ultimately protect more New Zealanders from gambling harm. 

Stay up to date with online casino gambling

We have launched a new page on our website for those who wish to find out more about the Online Gambling Implementation Programme. This page features key announcements, a summary of work that has progressed so far and provides you with an opportunity to submit any questions you may have about the programme. 

To ensure fairness and transparency, answers to all questions will be made publicly available on the webpage, which we will aim to update every fortnight. 

If you’re interested in following our journey as we develop and implement the new online casino gambling regulatory system, you can also register your interest to receive the latest updates from the programme directly to your inbox. 

Important update on Electronic Monitoring System for class 4 gambling

In early April we contacted class 4 (non-casino) gambling operators by email with an update on our Electronic Monitoring System (EMS) project.  

Cashless gaming discussion document coming soon

We will soon be consulting on the future EMS and possible non-cash payment forms for Class 4 gaming machines. We welcome your feedback on the issues raised in the discussion document and other issues you think we should be considering.    

Keep an eye out for the discussion document, as well as information about our planned workshops – which will give you an opportunity to ask questions before submitting feedback 

Class 4 venues must have a suitable primary purpose (other than gambling)

There has been publicity lately about class 4 gaming venues that have lost their alcohol licences. Under the Act, class 4 venues cannot be used mainly for operating gaming machines. In addition, the primary activity must be some form of onsite entertainment, recreation, or leisure focused on persons 18 years and over.   

This means operators need to prove they have a suitable primary purpose – not gambling – on offer at any time gambling is available. The easiest way to do this is with an alcohol licence.   

Moving forward we intend to make it a licence condition for any venue that has provided an alcohol licence as evidence of primary activity, that they maintain that alcohol licence and that the gaming machines operate only while the alcohol licence is in use. This applies to pubs, clubs, hotels, and any other licensed venue.   

If a venue loses its alcohol licence and wishes to apply to change its primary purpose, or if a new venue wishes to operate gaming machines without an alcohol licence, the Secretary will consider applications on a case-by-case basis in order to determine whether they have a primary purpose consistent with the Gambling Act and regulations. 

First infringements under new regulations issued

Our Operations teams have issued the first infringement notices under the amended Gambling (Harm Prevention and Minimisation) Regulations 2004. 

In late February, a Christchurch venue manager received a $1,000 fine, after a series of inspections confirmed that venue staff were consistently not meeting their harm minimisation obligations.

Later, in May, a venue manager in the Bay of Plenty received a $1,000 fine for failing to keep adequate sweep records in line with their venue's harm minimisation requirements.  

The amended regulations (which came into force in December 2023) provide the Department with the ability to issue infringement notices for a range of breaches relating to harm minimisation obligations. 

After a period of taking an education-first approach, as the regulator we now expect full compliance with the regulations.  

New audit and prize statement requirements

In March 2025, we have made some changes to the Audit and Prize Statement requirements.  

If you’re going to apply for a licence to run a Class 3 lottery, raffle, prize competition, instant game or game of chance, there are a couple of things you need to be aware of: 

• The auditor must hold a certificate of public practice as a Chartered Accountant (CA ANZ), or as a Certified Practising Accountant (CPA Australia)
• You will need to submit the auditor’s report along with the Audit and Prize Statement form. The GC13 form no longer requires the auditor’s signature.  

Problem gambling levy announced

In May, new regulations were enacted establishing a new problem gambling levy, effective for three years starting 1 July 2025.  

The new levy is struck to reimburse the Crown the cost of the integrated problem gambling strategy developed by the Ministry of Health. The 30/70 weighting, used to calculate the proportion of the levy to be contributed by each of the four gambling sectors has been retained. 

New levy rates for 2025-28 are: 

• Casinos:  0.89% 

• Class 4:   1.24% 

• Lotteries Commission:   0.69% 

• TAB NZ:   0.74%