NZ Regulator Suspends Pokies Trust Licence After Sector-Wide Review
New Zealand's Department of Internal Affairs (DIA) has suspended the operating licence of charitable gaming trust One Foundation for six days and secured commitments to return NZ$11.5 million to community organisations, after a sector-wide review of the Class 4 pokie machine sector uncovered widespread accounting failures.
Class 4 gambling covers non-casino gaming machines, commonly known as pokies, operated by licensed societies whose proceeds are meant to flow back into community grants under New Zealand's Gambling Act.
The DIA's review found cases where money that should have been available for grants was instead used to cover society expenses, including the purchase of gaming machines.
According to public broadcaster RNZ, around three-quarters of the country's 32 pokie trusts were found to be non-compliant to some degree, with DIA Director of Gambling Vicki Scott telling RNZ that about a third had engaged in deliberate "creative accounting."
One Foundation Singled Out For Enforcement
The department suspended One Foundation's licence for six days after finding accounting failures relating to gambling proceeds and identifying that the trust had failed to surrender a licence for one of its pokies venues as required by law.
"We've secured commitments that will return NZ$11.5 million to community organisations, taken enforcement action where it was needed and provided operators with clearer guidance about their obligations," Scott said.
More Recoveries Still To Come
The DIA said the investigation, which has run for two to three years, remains open and that further funding may still be recovered, with Scott estimating the total recoverable amount at around NZ$20 million.
The department has also published new financial guidance for the Class 4 sector to improve consistency in how proceeds are recorded and prevent similar issues.
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Pub Charity chief executive Martin Cheer said some trusts may have misunderstood the rules, while Gaming Machine Association chair Peter Dengate Thrush said most operators had tried to work transparently with regulators.
Scott said the department's role "isn't to put a significant section of the industry out of business," but that operators need to return misallocated funds to communities within a reasonable timeframe.
Players wanting to check an operator's standing can consult the DIA's own gambling register before using a licensed gaming venue.
