Gambling System Update

11 March 2025

Kia ora

It has been a busy start to 2025, which means that there is plenty to share with you in this first update of the year.

We have organised several workshops for class 4 venue operators, managers and society compliance managers to talk about our venue assessment process and expectations, as well as providing an opportunity to engage with regulatory experts. These sessions have been well attended and supported by the sector – so far, we’ve visited Porirua and Horowhenua, next week the team will be in Auckland. We’re looking forward to seeing those who plan to attend there.

As the class 4 sector is aware, changes to gambling harm minimisation regulations came fully into force at the end of 2023. We have taken an educative approach to date, with an emphasis on ensuring that class 4 venues and operators understand the new monitoring procedures to identify signs of harm earlier and more consistently. Over a year in, our stance is changing, we now expect compliance and will be issuing infringement notices when we don’t see it.

Also relevant to Class 4 are some important court decisions recently that have operational impacts for the sector. Read on for a further explanation of what these cases mean for class 4 licence holders.

We value transparency and are committed to releasing useful data to the public. Work is underway to collect and publish the 2024 calendar year class 4 grants data, expect to see this published on Granted.govt.nz within the next few months. In this newsletter, we have shared the annual figures to show how much was spent across the four main types of gambling – NZ Lotto products, class 4 gambling (pokies), Casinos and TAB Racing and Sports betting.

Please read on for more information about a recent fraud prosecution outcome, a reminder to get registered and start using Gambling Aotearoa to apply for and amend class 4 gambling licences, and a brief Electronic Monitoring System project update.

Ngā mihi nui,
Vicki Scott
Gambling Director

How New Zealanders gambled in 2023/24

Gamblers in New Zealand lost $2.79 billion dollars on the four main types of regulated gambling in the 2023/24 financial year. This is a 1.13 percent ($31 million) increase from 2022/23. After adjusting for the effects of both inflation and changes to New Zealand’s adult population (18 years and over), per-capita gambling expenditure decreased by 3.19 percent, from $520.76 to $504.17.

While annual gambling expenditure increased overall, expenditure decreased for all gambling types except Lotto New Zealand, which increased significantly by 11.46 percent. Decreases across the remaining sectors ranged from 1.14 percent ($4 million) for TAB to 3.16 percent ($34 million) for Class 4 (pokies).

For a year on year comparison of money lost across these four types of regulated gambling in Aotearoa New Zealand, please visit: dia.govt.nz/gambling-statistics-expenditure

*Financial year-end represents the gambling operator’s reported balance date. In most cases this will be 30 June, however, in some cases the balance date differs (e.g. TAB New Zealand at 31 July).

Investigation by DIA leads to Grants Fraud Prosecution

Following an investigation by DIA, a 24-year-old Auckland man has been sentenced to six months home detention after fraudulently submitting class 4 (pokie) gambling grant applications, seeking a total of $73,000.

No grant funding was obtained, thanks to the Trust (Aotearoa Gaming Trust) declining the applications and referring the matter to DIA. During the investigation a search warrant was executed at a residential address and electronic devices seized which revealed evidence of the offending.

This case serves as a good reminder that we have no tolerance for anyone who tries to manipulate the community grants system to their personal advantage.

Streamline your licensing application process

Gambling Aotearoa allows class 4 gambling operators to apply for and renew gambling licensing applications online and manage their information to make updates more efficiently.

We would like to encourage any clubs or societies who are not already using the system get registered for Gambling Aotearoa using the button below.

Resources to help you navigate Gambling Aotearoa, including an end-to-end introductory user guide and pre-recorded video demonstrations are available to view on the DIA website: www.dia.govt.nz/Gambling-Aotearoa

These resources will show you how to:

• access and navigate the Gambling Aotearoa portal
• provide other people in your organisation access to the portal
• make online submissions of licensing application amendments
• track the progress of applications and view other associated documents
• apply for and renew class 4 licences (both operator and venue)

Inactivity in class 4 venues - operational impacts of the recent High Court decision

As we mentioned in the last Gambling System Update, the High Court released its decision in Feed Families Not Pokies Aotearoa Inc v Secretary for Internal Affairs [2024 NZHC 3719] at the end of 2023.

The key takeaway from that decision was 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 four-week period, the licence held by that society is automatically surrendered, with no right to appeal.

This means societies need to keep a close eye on any venues that are, or are expected to be, inactive for a period of time. Not only does the extension application have to be submitted before the end of the four-week period, the Secretary’s decision must be made prior to the expiry of the four weeks, or the licence is lost.

We want to stress the importance of submitting inactivity extensions well before the end of the four-week inactivity period, ideally as soon as it becomes apparent the gaming operation will need to be inactive for a longer period of time. Whilst we are doing our best to ensure these decisions are prioritised and turned around in a timely manner, the later an application is submitted the greater the chance a decision will not be able to be made in time. 

An extension application can be made by completing a the GC4A application form, we encourage you to do this on Gambling Aotearoa to avoid any delays. Please provide as much evidence as possible to support your extension application.

The High Court decision is subject to appeals and cross-appeals. However, we apply the law as it stands in the meantime, so it is important all venues and societies are aware of this new approach.

What the High Court ‘Waikiwi’ decision means for class 4 

In early 2024, the High Court decided that minor class 4 venue relocations conducted without the consent of territorial authorities (known as "Waikiwi" relocations, named after 2013 High Court case concerning the Waikiwi Tavern) were no longer permitted. 

Following the ruling, an appeal was lodged by the Gaming Machines Association of New Zealand (GMANZ). In December 2024, the Court of Appeal dismissed this appeal – confirming that all relocations of class 4 gambling venues (even minor ones) require the consent of the relevant territorial authority.

In their decision, the Court of Appeal emphasised the purpose of 2013 amendments made to the Gambling Act 2003, which placed decision-making about venue relocations with the territorial authority and ensured community involvement. 

In practice, this means that societies will need to obtain a consent from their territorial authority in writing for any kind of venue relocation – even minor relocations. The High Court decision (and subsequent Court of Appeal decision) does not affect or overturn any Waikiwi applications granted in the past.

EMS Project Update

The Electronic Monitoring System (EMS) is a tool for monitoring non-casino electronic gaming machines (EGMs) or ‘pokies’ in New Zealand.  

The Gambling Act 2003 requires that every non-casino EGM, must be connected to a monitoring system. The EMS provides the DIA and those who operate gaming machines with accurate, detailed and timely information about gaming machine operations as well as assuring that the gambling that is occurring is lawful and fair. 

In 2023, a project was established to consider ongoing electronic monitoring needs. While this project is ongoing, the Department of Internal Affairs has signed a variation to utilise the one-year extension option in the current EMS Service Agreement (that was varied in 2020) with Intralot New Zealand for continued supply of the Electronic Monitoring System (EMS). This variation extends the EMS Service Agreement from 10 May 2025 to 10 May 2026.  

Further and more detailed updates about the EMS project, including next steps, will be provided soon.  

Dunedin Casino Venue Licence Renewed

On 26 February the Gambling Commission issued its decision renewing the venue licence for Dunedin Casino for a further 15-year term.

Changes were made to Dunedin Casino’s level of charitable contribution, an issue which was picked up by the media.