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The Department of Internal Affairs (DIA) has marked a turning point in its review of New Zealand’s pokies sector, recovering NZ$11.5 million and taking firm action against operators who failed to meet compliance standards.
The investigation focused on class 4 gambling trusts, which are responsible for distributing proceeds from pokies to community causes. Regulators discovered that funds meant for grants were instead being diverted to cover society expenses, including the purchase of gaming machines.
With pokies generating more than NZ$1 billion annually, the DIA stressed that its role is to ensure gambling proceeds are managed lawfully and that communities receive the benefits intended under the Gambling Act.
Director of Gambling Vicki Scott explained: “This work has focused on ensuring gambling proceeds are used in the way Parliament intended and that communities receive the benefit they are entitled to.”
Licence suspensions follow
The DIA worked directly with operators to resolve historical issues, securing commitments to return the funds. Officials noted that further recoveries may follow as investigations continue.
Alongside financial recovery, enforcement action was taken against One Foundation, a class 4 gambling society. The regulator suspended its licence for six days after identifying accounting failures and its refusal to surrender a venue licence when required by law.
Scott highlighted the importance of these steps, stating, “The investigation has produced significant results. We’ve secured commitments that will return $11.5 million to community organisations, taken enforcement action where it was needed, and provided operators with clearer guidance about their obligations.”
The crackdown did not stop at enforcement. The DIA also introduced new financial guidance for the sector, designed to clarify accounting requirements and provide practical examples of operator obligations.
“While we’ve made substantial progress, our work is not finished. We’ll continue working with operators to recover funding for communities, improve compliance and maintain public confidence in the integrity of class 4 gambling,” he added.
The DIA confirmed that its investigation remains active, with continued monitoring to ensure gambling proceeds are managed according to law.
NZ prepares for online gaming launch
The crackdown on the physical sector comes just months away from New Zealand’s planned rollout of licensed online gambling. The Online Gambling Regulations 2026, published in June, set the framework for the country’s first regulated iGaming market, with a launch date targeted for 2027.
The rules are strict. Only 15 licenses will be issued, and applicants must prove access to at least NZ$7.5 million in capital. Each operator can hold no more than three licenses, a cap that major firms like Super Group and Entain are already preparing to reach.
Since the bidding process began, regulators have added further restrictions. These include bans on advertising that ties gambling success to luck or rituals, as well as measures aimed at stopping AI‑driven gambling scams.
