NZ Gambling Law Guide

Subpart 4—Licensing of class 4 gambling

Applications for class 4 operator's licence

50Application for class 4 operator's licence

(1)A corporate society may apply to the Secretary for a licence to conduct class 4 gambling.

(2)An application must be on the relevant standard form and be accompanied by—

(a)a copy of the applicant’s governing document; and

(b)details of the authorised purposes to or for which net proceeds from the class 4 gambling will be applied or distributed; and

(c)a statement by the applicant of how it proposes to minimise the risk of problem gambling (including the corporate society’s policy for identifying problem gamblers); and

(d)information about the financial viability of the proposed gambling operation and the means proposed to maximise the net proceeds from the class 4 gambling to be applied to or distributed for authorised purposes; and

(da)in the case of an applicant that proposes to apply some or all of its net proceeds from the class 4 gambling to an authorised purpose, information to assist the Secretary to determine whether the applicant meets the requirements of section 52A(1); and

(e)in the case of an applicant that mainly or wholly distributes net proceeds from the class 4 gambling to the community, details of the methods, systems, and policies for consideration of applications and distribution of net proceeds; and

(f)a profile of each key person, including details of their experience in conducting class 4 gambling, character, and qualifications; and

(g)an application, and accompanying information, for a class 4 venue licence for each venue at which the applicant proposes to operate class 4 gambling; and

(h)any information requested by the Secretary to assist the Secretary to determine whether the applicant is suitable; and

(i)any information requested by the Secretary to show that the applicant will meet the requirements of this Act and the conditions of the proposed licence.

(3)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

Section 50(2)(c): amended, on 3 March 2015, by section 26(1)(a) of the Gambling Amendment Act 2015 (2015 No 3).

Section 50(2)(c): amended, on 3 March 2015, by section 26(1)(b) of the Gambling Amendment Act 2015 (2015 No 3).

Section 50(2)(da): inserted, on 3 March 2015, by section 26(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 50(2)(e): amended, on 3 March 2015, by section 26(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 50(2)(f): amended, on 3 March 2015, by section 26(4) of the Gambling Amendment Act 2015 (2015 No 3).

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51Secretary must investigate applicant for class 4 operator's licence

(1)The Secretary must undertake any investigations the Secretary considers necessary to determine whether the applicant and the key persons are eligible and suitable for the applicant to be granted a class 4 operator’s licence.

(2)In undertaking investigations, the Secretary may—

(a)require the applicant and any key person to provide further information relating to the application and to undergo an independent investigation into its financial position and credit history by a person nominated by the Secretary:

(b)require the Police, a government agency (except for the Inland Revenue Department), or a racing code to provide information about, or comment on, the applicant and any key person or other matters concerning the application:

(c)refer to the Police a copy of the application and any further information provided by the applicant and any key person.

(3)If a racing code is required to provide information about a person, then it must provide any information that it holds that relates to—

(a)breaches, within the last 7 years, by the person of any rules of racing made under the Racing Industry Act or the previous racing Acts; or

(b)the conviction, within the last 7 years, of the person for an offence against the Racing Industry Act or the previous racing Acts.

(4)A person required to provide information under this section must provide the information as promptly as is reasonable in the circumstances.

(5)Subsection (2) does not limit subsection (1).

Section 51(3)(a): amended, on 3 March 2015, by section 27 of the Gambling Amendment Act 2015 (2015 No 3).

Section 51(3)(b): amended, on 3 March 2015, by section 27 of the Gambling Amendment Act 2015 (2015 No 3).

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Grant of class 4 operator's licence

52Grounds for granting class 4 operator's licence

(1)The Secretary must refuse to grant a class 4 operator’s licence unless the Secretary is satisfied that,—

(a)the gambling to which the application relates is class 4 gambling; and

(b)the applicant’s purpose in conducting class 4 gambling is to raise money for authorised purposes; and

(c)the applicant’s proposed gambling operation is financially viable; and

(d)the applicant will maximise the net proceeds from the class 4 gambling and minimise the operating costs of that gambling; and

(e)the net proceeds from the class 4 gambling will be applied to or distributed for authorised purposes; and

(f)the applicant is able to comply with applicable regulatory requirements; and

(g)the applicant will minimise the risk of problem gambling; and

(h)any investigations carried out by the Secretary do not cause the Secretary not to be satisfied about the suitability of the applicant or any key person, in terms of subsection (4); and

(i)there are no factors that are likely to detract from achieving the purpose of this Act; and

(j)a key person is not a key person in relation to a class 4 venue licence held, or applied for, by the applicant (except in the case of a class 4 venue licence application, which was not or is not required under section 65(3) or (4) to be accompanied by a class 4 venue agreement).

(2)In assessing financial viability under subsection (1)(c), the Secretary must consider, among other things, the ability of the applicant to reward winners and pay levies, taxes, and other costs, as well as apply or distribute the net proceeds from the class 4 gambling to or for authorised purposes.

(3)The Secretary may refuse to grant a class 4 operator’s licence if an applicant fails to provide the information requested by the Secretary in accordance with section 51.

(4)In determining whether an applicant is suitable for a class 4 operator’s licence, the Secretary may investigate and take into account the following things:

(a)whether the applicant or a key person has, within the last 7 years,—

(i)been convicted of a relevant offence:

(ii)held, or been a key person in relation to a class 3 or class 4 operator’s licence, a class 4 venue licence, a casino licence, or a licensed promoter’s licence under this Act or any licence under previous gaming Acts that has been cancelled, suspended, or for which an application for renewal has been refused:

(iii)been placed in receivership, gone into liquidation, or been adjudged bankrupt:

(iv)been a director of a company that has been placed in receivership or put into liquidation, and been involved in the events leading to the company being placed in receivership or put into liquidation:

(v)been prohibited or disqualified from acting as a director or promoter of, or in any way, whether directly or indirectly, being concerned or taking part in the management of, a company under section 382, 383, or 385 of the Companies Act 1993:

(vi)been prohibited from acting as a director or directly or indirectly being concerned, or taking part, in the management of a company under section 299 of the Insolvency Act 2006; and

(b)the financial position and credit history of the applicant and each key person; and

(c)the profile of past compliance by the applicant and each key person with—

(i)this Act, minimum standards, game rules, Gazette notices, and licence conditions; and

(ii)the Racing Industry Act 2020 or the previous racing Acts (and any rules of racing made under any of those Acts); and

(iii)previous gaming Acts, and regulations made under previous gaming Acts; and

(iv)a licence or a site approval issued under a previous gaming Act; and

(d)any other matter that the Secretary considers relevant.

(5)The Secretary may take into account matters of a similar nature to those listed in subsection (4) that occurred outside New Zealand.

(6)If the Secretary decides to refuse to grant a class 4 operator’s licence, the Secretary must notify the applicant of—

(a)the reason for the decision; and

(b)the right to appeal the decision; and

(c)the process to be followed for an appeal under section 61.

Section 52(1)(g): amended, on 3 March 2015, by section 28(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(1)(j): amended, on 3 March 2015, by section 28(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(4)(a): amended, on 3 March 2015, by section 28(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(4)(a)(iii): amended, on 3 March 2015, by section 28(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(4)(a)(iv): inserted, on 3 March 2015, by section 28(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(4)(a)(v): inserted, on 3 March 2015, by section 28(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(4)(a)(vi): inserted, on 3 March 2015, by section 28(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(4)(b): replaced, on 3 March 2015, by section 28(5) of the Gambling Amendment Act 2015 (2015 No 3).

Section 52(4)(c)(iv): amended, on 21 October 2015, by section 11(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 52(4)(d): inserted, on 21 October 2015, by section 11(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

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52A

Circumstances in which corporate society may apply net proceeds to authorised purpose

(1)A corporate society may apply some or all of its net proceeds to an authorised purpose only if the Secretary is satisfied that the corporate society’s primary activity is itself an authorised purpose and the conduct of gambling by the corporate society is only incidental to that activity.

(2)When considering whether subsection (1) applies to a corporate society, the Secretary may take the following into account:

(a)whether the corporate society can demonstrate a significant history of carrying out activities that are authorised purposes; and

(b)whether the corporate society’s governing document is consistent with the corporate society having a primary objective of carrying out activities that are authorised purposes.

(3)When considering whether subsection (1) applies to a corporate society that is a club, the Secretary may also take the following into account:

(a)whether the club has, or had before merging under section 95, a significant history of operating as a club for club purposes; and

(b)whether the club has substantial active membership.

Section 52A: inserted, on 3 March 2015, by section 29 of the Gambling Amendment Act 2015 (2015 No 3).

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53Content and conditions of class 4 operator's licence

(1)A class 4 operator’s licence must include the following information and conditions:

(a)the name of the corporate society that holds the licence; and

(b)the commencement date and expiry date of the licence; and

(c)a specific description of the authorised purposes to or for which net proceeds from the class 4 gambling are intended to be applied or distributed; and

(d)any other information or conditions added by the Secretary.

(1A)The Secretary may specify any expiry date for a class 4 operator’s licence that is not more than 3 years after the commencement date of that licence.

(2)The conditions that the Secretary may add to a class 4 operator’s licence include—

(a)conditions intended to minimise the risk of problem gambling:

(b)conditions concerning the management of the gambling, including the records that must be maintained and reporting requirements:

(c)conditions concerning the management, application, and distribution of funds derived from gambling and from the investment of those funds:

(d)conditions that restrict the authorised purposes to or for which net proceeds from the class 4 gambling may be applied or distributed:

(e)conditions requiring the corporate society to inform players of the odds of winning, and specifying how that information is to be displayed or provided:

(f)conditions encouraging responsible gambling:

(g)any other conditions consistent with this Act that the Secretary considers will promote or ensure compliance with this Act.

(3)The Secretary may—

(a)amend or revoke a condition of a class 4 operator’s licence; or

(b)add new conditions to a class 4 operator’s licence.

(4)If the Secretary decides to amend or revoke a condition or add a new condition to a class 4 operator’s licence, the Secretary must notify the corporate society of—

(a)the right to appeal the decision; and

(b)the process to be followed for an appeal under section 61.

Section 53(1): amended, on 3 March 2015, by section 30(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 53(1)(b): amended, on 21 October 2015, by section 12(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 53(1A): inserted, on 21 October 2015, by section 12(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 53(2)(a): amended, on 3 March 2015, by section 30(2) of the Gambling Amendment Act 2015 (2015 No 3).

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53A Continuing obligations of class 4 operator

Every corporate society that holds a class 4 operator’s licence must, in relation to class 4 gambling conducted by the corporate society, ensure that, at all times,—

(a)the purpose of conducting that gambling is to raise money for authorised purposes; and

(b)the net proceeds from that gambling are maximised and the operating costs of that gambling are minimised; and

(c)the costs incurred in conducting that gambling are actual, reasonable, and necessary; and

(d)the net proceeds from that gambling are applied to, or distributed for, authorised purposes; and

(e)the risks of problem gambling posed by that gambling are minimised; and

(f)all applicable regulatory requirements are complied with.

Section 53A: inserted, on 3 March 2015, by section 31 of the Gambling Amendment Act 2015 (2015 No 3).

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54Significant changes in relation to class 4 operator's licence must be notified

(1)A corporate society holding a class 4 operator's licence must notify the Secretary, and provide details, if any of the following things occur:

(a)the corporate society or a key person is convicted of a relevant offence:

(b)the corporate society or a key person is placed in receivership, goes into liquidation, or is adjudged bankrupt:

(c)the corporate society or a key person breaches a rule of racing made under the Racing Industry Act 2020:

(d)a key person ceases to be a key person or is incapable of performing the duties of his or her position:

(e)a change is proposed to the corporate society's governing document that may affect the corporate society's ability to comply with this Act or the licence.

(2)Notification must be made before, or as soon as practicable after, the changes occur.

(3)The powers and obligations in section 51 apply to a notification as if the notification were an application for a class 4 operator's licence.

(4)The Secretary may require the corporate society to apply for an amendment under section 57, or may invoke the suspension or cancellation provisions under sections 58 and 59, as a result of the notification.

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55Change of purpose and winding up provisions of holder of class 4 operator's licence ineffective without approval

(1)A corporate society holding a class 4 operator's licence must obtain the approval of the Secretary before it changes a provision in its governing document that may have the effect of altering—

(a)the corporate society's status as an entity established and conducted entirely for non-commercial purposes; or

(b)the distribution of its assets on winding up; or

(c)its objects so that it is no longer capable of applying or distributing net proceeds from the class 4 gambling to or for authorised purposes.

(2)If a governing document is changed with an effect described in subsection (1) without the approval of the Secretary, the change may be ignored by the Minister, the Secretary, the Gambling Commission, or the Department in applying this Act.

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Renewal or amendment of class 4 operator's licence

56Renewal of class 4 operator's licence

(1)A corporate society may apply to the Secretary for a renewal of its class 4 operator’s licence before the expiry of the licence.

(2)An application must be on the relevant standard form and be accompanied by—

(a)any items listed in section 50 that the Secretary requests in order to consider the application and effect the renewal; and

(b)if applicable, any items necessary to effect an application for a class 4 venue licence.

(3)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

(4)Sections 51 and 52 apply to an application for renewal as if it were an application for a class 4 operator’s licence.

(5)The Secretary must refuse to renew a class 4 operator’s licence if—

(a)any investigations carried out by the Secretary cause the Secretary not to be satisfied about any of the matters specified in section 52; or

(b)the Secretary is not satisfied that the applicant complies with section 53A; or

(c)the Secretary is not satisfied that the applicant will comply with all applicable regulatory requirements of this Act, including the obligations set out in section 53A, minimum standards, game rules, Gazette notices, and licence conditions.

(6)A class 4 operator’s licence continues in force after its expiry date if—

(a)the corporate society has applied for renewal before the expiry date; and

(b)the application has not been refused.

Section 56(5): replaced, on 3 March 2015, by section 32 of the Gambling Amendment Act 2015 (2015 No 3).

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57Amending class 4 operator's licence

(1)A corporate society must apply to the Secretary to amend its class 4 operator’s licence if the corporate society proposes to—

(a)change the authorised purpose to or for which net proceeds from the class 4 gambling will be applied or distributed; or

(b)change its problem gambling policies; or

(c)change its methods, systems, or policies for the consideration of applications for the distribution of net proceeds from the class 4 gambling; or

(d)add a new key person; or

(e)make any other change that impacts on its ability to comply with this Act or the licence.

(2)An application must be on the relevant standard form and be accompanied by—

(a)any items listed in section 50 that the Secretary requests in order to consider the application and effect the amendment; and

(b)if applicable, any items necessary to effect an application for a class 4 venue licence.

(3)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

(4)Sections 51 and 52 apply to an application for amendment as if it were an application for a class 4 operator’s licence.

(5)The Secretary must refuse to amend a class 4 operator’s licence if—

(a)any investigations carried out by the Secretary cause the Secretary not to be satisfied about any of the matters specified in section 52; or

(b)the Secretary is not satisfied that the applicant complies with section 53A; or

(c)the Secretary is not satisfied that the applicant will comply with all relevant requirements of this Act, including the obligations set out in section 53A, minimum standards, game rules, Gazette notices, and licence conditions.

Section 57(5): replaced, on 3 March 2015, by section 33 of the Gambling Amendment Act 2015 (2015 No 3).

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Suspension, cancellation, or refusal to amend or renew class 4 operator's licence

58Suspension or cancellation of class 4 operator's licence

(1)The Secretary may suspend for up to 6 months, or cancel, a class 4 operator’s licence if the Secretary is satisfied that—

(a)any of the grounds in section 52 are no longer met; or

(b)the corporate society is failing, or has failed, to comply with all relevant requirements of this Act, including the obligations set out in section 53A, minimum standards, game rules, Gazette notices, and licence conditions; or

(c)the class 4 venue agreement is no longer consistent with ensuring compliance with this Act or the licence; or

(d)the corporate society supplied information that is materially false or misleading in its application for—

(i)a class 4 operator’s licence; or

(ii)a renewal or an amendment of a class 4 operator’s licence; or

(iii)a class 4 venue licence; or

(iv)a renewal or an amendment of a class 4 venue licence.

(2)In deciding whether to suspend or cancel a class 4 operator’s licence, the Secretary must take into account the matters in section 52.

(3)The Secretary may exercise the power of suspension conferred by this section in respect of any breach that falls within any of paragraphs (a) to (d) of subsection (1) whether or not—

(a)the breach continues at the time that the power is exercised or is proposed to be exercised:

(b)a penalty is prescribed for the breach.

Section 58(1)(b): replaced, on 3 March 2015, by section 34(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 58(3): replaced, on 3 March 2015, by section 34(2) of the Gambling Amendment Act 2015 (2015 No 3).

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59Procedure for suspending, cancelling, or refusing to amend or renew class 4 operator's licence

(1)If the Secretary proposes to suspend, cancel, or refuse to amend or renew a class 4 operator’s licence, the Secretary must notify the corporate society of—

(a)the proposal to suspend, cancel, or refuse to amend or renew the licence; and

(b)the reason for the proposed suspension, cancellation, or refusal; and

(c)the corporate society’s rights, and the procedure to be followed—

(i)before the suspension or cancellation takes effect; or

(ii)as a result of the refusal to amend or renew the licence.

(2)The corporate society may make written submissions to the Secretary concerning the proposed suspension, cancellation, or refusal to amend or renew within—

(a)20 working days after the date of the notice under subsection (1); or

(b)any longer period that the Secretary allows if an application for an extension is made within the time period specified in paragraph (a).

(3)The Secretary must consider any submissions made by the corporate society.

(4)If the Secretary decides to suspend a licence, the Secretary must notify the corporate society of—

(a)the date that the suspension takes effect; and

(b)the suspension period (up to 6 months); and

(c)the reason for the suspension.

(d)[Repealed]

(e)[Repealed]

(4A)Where the licence is suspended because of a continuing breach, the Secretary must notify the society of—

(a)the matters to be dealt with in order for the Secretary to consider withdrawing the suspension before the end of the suspension period; and

(b)the consequences of not dealing with the matters identified.

(5)If the Secretary decides to cancel or refuse to amend or renew a licence, the Secretary must notify the corporate society of,—

(a)for a cancellation, the date on which the cancellation takes effect and the reason for the cancellation; or

(b)for a refusal to amend or renew, the reason for the refusal.

(6)If subsection (4) or subsection (5) applies, the Secretary must also notify the corporate society of—

(a)the right to appeal the decision; and

(b)the process to be followed for an appeal under section 61.

Section 59(4)(c): replaced, on 3 March 2015, by section 35(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 59(4)(d): repealed, on 3 March 2015, by section 35(1) of the Gambling

Amendment Act 2015 (2015 No 3).

Section 59(4)(e): repealed, on 3 March 2015, by section 35(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 59(4A): inserted, on 3 March 2015, by section 35(2) of the Gambling Amendment Act 2015 (2015 No 3).

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60Consequences of suspension, cancellation, or refusal to amend or renew class 4 operator's licence

(1)The suspension or cancellation of, or refusal to amend or renew, a class 4 operator's licence does not affect—

(a)the obligation of the corporate society to apply or distribute the net proceeds from the class 4 gambling in accordance with this Act and the licence; and

(b)any condition added to the licence by the Secretary relating to records that must be maintained and reporting requirements.

(2)The Secretary may decide to withdraw a suspension before the end of the suspension period if the reasons for the suspension are resolved to the satisfaction of the Secretary.

(3)The Secretary may decide to cancel a suspended licence at the end of the suspension period if the reasons for the suspension are not resolved to the satisfaction of the Secretary.

(4)Section 59(5) and (6) apply to the cancellation of a suspended licence.

(5)Subject to section 62, a licence that is suspended or cancelled or refused to be renewed or amended remains in force or unchanged (as the case may be) until the period for making an appeal expires.

(6)A corporate society is not entitled to a refund of fees, taxes, or levies paid in relation to class 4 gambling if the Secretary suspends, cancels, or refuses to amend or renew its class 4 operator's licence.

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61Appeal to Gambling Commission regarding class 4 operator's licence

(1)A corporate society may appeal to the Gambling Commission against a decision of the Secretary to—

(a)refuse to grant a class 4 operator’s licence to the corporate society; or

(b)amend or revoke a condition of the licence, or add a new condition to it; or

(c)refuse an application by the corporate society for the renewal of a class 4 operator’s licence; or

(d)refuse to amend a class 4 operator’s licence held by the corporate society; or

(e)suspend or cancel a class 4 operator’s licence held by the corporate society.

(1A)To avoid doubt, the specification of an expiry date under section 53(1A) is not

a decision that may be appealed to the Gambling Commission.

(2)An appeal must be in writing and must be made within—

(a)15 working days after the date of the notice of the Secretary’s decision; or

(b)any longer period that the Gambling Commission allows if an application for an extension is made within the time period specified in paragraph (a).

(3)The Gambling Commission—

(a)may request any information from the corporate society or the Secretary; and

(b)is not bound to follow any formal procedure; and

(c)does not need to hold a hearing; and

(d)must consider any information provided by the corporate society or the Secretary.

(4)The Gambling Commission may then—

(a)confirm, vary, or reverse the decision of the Secretary; or

(b)refer the matter back to the Secretary with directions to reconsider the decision.

(5)The Gambling Commission must give notice of—

(a)its decision, with reasons, to both the corporate society and the Secretary; and

(b)the date on which its decision takes effect (which may be a date that is later than the date on which it makes the decision).

Section 61(1A): inserted, on 21 October 2015, by section 13(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 61(5): replaced, on 21 October 2015, by section 13(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

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62Consequences of appeal regarding class 4 operator's licence

(1)The conditions of a class 4 operator’s licence remain unchanged pending the outcome of an appeal if the appellant appeals an amendment or revocation of a condition or the addition of a new condition under section 61(1)(b).

(2)A class 4 operator’s licence remains in force until—

(a)the expiry of the period for an appeal under section 61(2); or

(b)the date that the Gambling Commission specifies under section 61(5), if the appellant—

(i)appeals a refusal to renew or amend the licence under section 61(1)(c) or (d); or

(ii)appeals a decision to suspend or cancel the licence under section 61(1)(e).

Section 62(2)(b): amended, on 21 October 2015, by section 14 of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

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Other matters

63Surrender of class 4 operator's licence

(1)A corporate society may surrender a class 4 operator's licence to the Secretary at any time.

(2)The surrender of a class 4 operator's licence does not affect—

(a)the obligation of the corporate society to apply or distribute the net proceeds from the gambling in accordance with this Act and the licence; and

(b)any conditions relating to records that must be maintained and reporting requirements.

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64Class 4 operator's licence not transferable

A class 4 operator's licence is not transferable.

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Applications for class 4 venue licence

65Application for class 4 venue licence

(1)A corporate society may apply to the Secretary for a class 4 venue licence.

(2)An application must be on the relevant standard form and be accompanied by—

(a)a description of the venue and its location; and

(b)a territorial authority consent if required under section 98; and

(c)a copy of a class 4 venue agreement if required under subsection (3); and

(d)a statement by the applicant of how it proposes to minimise the risk of problem gambling and underage gambling at the class 4 venue; and

(e)a profile of the venue manager and the venue operator, including details of their experience in conducting class 4 gambling, character, and qualifications; and

(f)details of gambling equipment that the applicant intends to operate at the venue and evidence that it meets relevant minimum standards; and

(g)if the application relates to a venue that is licensed to another corporate society, notice from the other corporate society that it is surrendering its venue licence for the venue; and

(h)if relevant, evidence that on issue of the licence the applicant will own any gambling equipment (except for electronic monitoring systems) that it proposes to operate; and

(i)evidence that any gambling equipment that the applicant proposes to operate under the licence is not and will not be financed by the manufacturer, distributor, or vendor of the equipment; and

(j)evidence that the class 4 venue is not to be used mainly for operating gaming machines; and

(k)if the application relates to a venue for which a class 4 venue licence was not held at the time of commencement of this section, evidence that the class 4 venue is not to be part of a place at which another class 4 venue or a casino is located; and

(l)evidence that the venue is suitable in all other respects to be a class 4 venue.

(3)The application must also be accompanied by a class 4 venue agreement unless the Secretary is satisfied that the applicant is a club that intends to operate gambling equipment at a non-commercial class 4 venue that—

(a)it owns or leases; and

(b)is mainly for the use of club members.

(4)Despite subsection (3), an application by TAB NZ or a racing club is not required to be accompanied by a venue agreement.

(5)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

(6)The Secretary may request from the applicant any further information that the Secretary considers necessary to consider the application properly.

Section 65(2)(d): amended, on 3 March 2015, by section 36(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 65(2)(e): amended, on 3 March 2015, by section 36(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 65(2)(k): amended, on 3 March 2015, by section 36(3) of the Gambling Amendment Act 2015 (2015 No 3).

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66Secretary must investigate applicant for class 4 venue licence

(1)The Secretary must undertake any investigations the Secretary considers necessary to determine—

(a)whether the applicant is eligible and suitable to be granted a class 4 venue licence; and

(b)whether the venue manager and venue operator are suitable persons in terms of section 68.

(2)The Secretary may undertake whatever investigations the Secretary considers necessary to determine whether any other key person is a suitable person in terms of section 68.

(3)In undertaking investigations, the Secretary may—

(a)require the applicant and any key person to provide further information relating to the application and to undergo an independent investigation into its financial position and credit history by a person nominated by the Secretary:

(b)require the Police, a government agency (except for the Inland Revenue Department), or a racing code to provide information about, or comment on, the applicant and any key person or other matters concerning the application:

(c)refer to the Police a copy of the application and any further information provided by the applicant and any key person.

(4)If a racing code is required to provide information about a person, then it must provide any information that it holds that relates to—

(a)breaches, within the last 7 years, by the person of any rules of racing made under the Racing Industry Act 2020 or the previous racing Acts; or

(b)the conviction, within the last 7 years, of the person for an offence against the Racing Industry Act 2020 or the previous racing Acts.

(5)A person required to provide information under this section must provide the information as promptly as is reasonable in the circumstances.

(6)Subsection (3) does not limit subsection (1) or (2).

Section 66(4)(a): amended, on 3 March 2015, by section 37(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 66(4)(b): amended, on 3 March 2015, by section 37(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 66(6): amended, on 3 March 2015, by section 37(2) of the Gambling Amendment Act 2015 (2015 No 3).

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Grant of class 4 venue licence

67Grounds for granting class 4 venue licence

(1)The Secretary must refuse to grant a class 4 venue licence unless the Secretary is satisfied that—

(a)the applicant holds a class 4 operator’s licence; and

(b)the possibility of persons under 18 years old gaining access to class 4 gambling at the class 4 venue is minimised; and

(c)the venue manager is an individual and any investigations carried out by the Secretary do not cause the Secretary not to be satisfied about his or her suitability, in terms of section 68, to supervise—

(i)the conduct of class 4 gambling at the venue; and

(ii)venue personnel; and

(d)any investigations carried out by the Secretary do not cause the Secretary not to be satisfied about the suitability of any other key person, in terms of section 68; and

(e)if the application relates to a class 4 venue that is licensed to another corporate society, the other corporate society has surrendered its class 4 venue licence for the venue; and

(f)the territorial authority has provided a consent (if required under section 98); and

(g)on issue of the licence, the applicant will own any gambling equipment (except for electronic monitoring systems) that it proposes to operate; and

(h)on issue of the licence, the applicant will not operate any gambling equipment that is financed by the manufacturer, distributor, or vendor of the equipment; and

(i)all gambling equipment to be operated at the venue meets relevant minimum standards; and

(j)the class 4 venue agreement (if required)—

(i)enables the class 4 gambling conducted at the class 4 venue to comply with this Act and the proposed class 4 venue licence; and

(ii)includes the information specified in section 69; and

(k)the class 4 venue is not used mainly for operating gaming machines; and

(l)if the application relates to a venue for which a class 4 venue licence was not held at the time of commencement of this section, the class 4 venue is not to be part of a place at which another class 4 venue or a casino is located; and

(m)for an application that is required under section 65(3) to be accompanied by a class 4 venue agreement, no person will be both a key person in relation to the relevant class 4 operator’s licence and a key person in relation to the class 4 venue licence; and

(n)if TAB NZ is the applicant, the class 4 venue is either—

(i)owned or leased by TAB NZ and used mainly for racing betting or sports betting; or

(ii)a racecourse; and

(o)if the applicant is a racing club, the class 4 venue is a racecourse; and

(p)the risk of problem gambling at the class 4 venue is minimised; and

(q)the proposed venue is suitable in all other respects to be a class 4 venue; and

(r)there are no other factors that are likely to detract from achieving the purpose of this Act; and

(s)the applicant is able to comply with all other applicable regulatory requirements.

(2)If the Secretary decides to refuse to grant a class 4 venue licence, the Secretary must notify the applicant, or, if there is a venue agreement, the parties to the agreement, and the venue manager of—

(a)the reason for the decision; and

(b)the right to appeal the decision; and

(c)the process to be followed for an appeal under section 77.

Section 67(1)(b): amended, on 3 March 2015, by section 38(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 67(1)(l): amended, on 3 March 2015, by section 38(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 67(1)(m): amended, on 3 March 2015, by section 38(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 67(1)(s): replaced, on 3 March 2015, by section 38(4) of the Gambling Amendment Act 2015 (2015 No 3).

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68Determining suitability for class 4 venue licence

(1)In determining whether a key person is a suitable person for the purpose of sections 66 and 67, the Secretary may investigate and take into account the following things:

(a)whether he, she, or it has, within the last 7 years,—

(i)been convicted of a relevant offence:

(ii)held, or been a key person in relation to, a class 3 or class 4 operator’s licence, a class 4 venue licence, a casino licence, or a licensed promoter’s licence under this Act or any licence under previous gaming Acts that has been cancelled, suspended, or for which an application for renewal has been refused:

(iii)been placed in receivership, gone into liquidation, or been adjudged bankrupt:

(iv)been a director of a company that has been placed in receivership or put into liquidation, and been involved in the events leading to the company being placed in receivership or put into liquidation:

(v)been prohibited or disqualified from acting as a director or promoter of, or in any way, whether directly or indirectly, being concerned or taking part in the management of, a company under section 382, 383, or 385 of the Companies Act 1993:

(vi)been prohibited from acting as a director or directly or indirectly being concerned, or taking part, in the management of a company under section 299 of the Insolvency Act 2006:

(b)the financial position and the credit history of the key person:

(c)the profile of past compliance by the key person with—

(i)this Act, minimum standards, game rules, Gazette notices, and licence conditions; and

(ii)the Racing Industry Act 2020 or the previous racing Acts (and any rules of racing made under any of those Acts); and

(iii)previous gaming Acts, and regulations made under previous gaming Acts; and

(iv)a licence or a site approval issued under a previous gaming Act; and

(d)any other matter that the Secretary considers relevant.

(2)The Secretary may take into account matters of a similar nature to those listed in subsection (1) that occurred outside New Zealand.

Section 68(1)(a): amended, on 3 March 2015, by section 39(a) of the Gambling Amendment Act 2015 (2015 No 3).

Section 68(1)(a)(iv): inserted, on 3 March 2015, by section 39(b) of the Gambling Amendment Act 2015 (2015 No 3).

Section 68(1)(a)(v): inserted, on 3 March 2015, by section 39(b) of the Gambling Amendment Act 2015 (2015 No 3).

Section 68(1)(a)(vi): inserted, on 3 March 2015, by section 39(b) of the Gambling Amendment Act 2015 (2015 No 3).

Section 68(1)(c)(iv): amended, on 21 October 2015, by section 15(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 68(1)(d): inserted, on 21 October 2015, by section 15(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

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69Form and content of class 4 venue agreement

(1)The form and content of a class 4 venue agreement must be approved by the Secretary and must include—

(a)a schedule signed by the venue manager and the venue operator setting out—

(i)the full name, date of birth, and contact details of the venue manager; and

(ii)the gambling-related duties and responsibilities of the venue manager; and

(b)the payment to be made by the holder of the class 4 venue licence to the venue operator, which must be payments that comply with regulations made under section 371(1)(dd) or, if no such regulations are in force, payments in respect of an itemised list of costs associated with the operation of class 4 gambling at the venue; and

(c)the expiry date of the venue agreement.

(2)A class 4 venue agreement must be signed by the holder of, or applicant for, the class 4 venue licence and the venue operator.

(3)The expiry date of a class 4 venue agreement may be overridden by anything to the contrary in this Act, game rules, minimum standards, or licence conditions but, in any case, must not be later than 3 years after the date of the venue agreement.

(4)Approval of a class 4 venue agreement lapses if the corporate society ceases to hold a class 4 operator’s licence or a class 4 venue licence for that venue.

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69A

Continuing obligations of corporate society in relation to class 4 venue licence

A corporate society that holds a class 4 venue licence must, in relation to class 4 gambling conducted at the class 4 venue for which the licence is held, ensure that, at all times,—

(a)the possibility of persons under 18 years old gaining access to class 4 gambling at the venue is minimised; and

(b)the corporate society owns all gambling equipment (except for electronic monitoring systems) that it operates at the venue; and

(c)the corporate society does not operate any gambling equipment that is financed by the manufacturer, distributor, or vendor of the equipment; and

(d)all gambling equipment operated at the venue meets relevant minimum standards; and

(e)the venue is not used mainly for operating gaming machines; and

(f)if TAB NZ is the licensee, the venue is used mainly for racing betting or sports betting; and

(g)the risk of problem gambling is minimised.

Section 69A: inserted, on 3 March 2015, by section 40 of the Gambling Amendment Act 2015 (2015 No 3).

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70Content and conditions of class 4 venue licence

(1)A class 4 venue licence must include the following information and conditions:

(a)the name of the corporate society that holds the licence; and

(b)the commencement date and expiry date of the licence; and

(c)the authorised purpose of the corporate society; and

(ca)the name of the class 4 venue; and

(d)the name of the venue operator; and

(e)the name of the venue manager; and

(f)a description of the class 4 venue and its location; and

(g)conditions about the class 4 gambling that may be conducted at the venue, including the number of gaming machines that may be operated; and

(h)details of the gambling equipment that may be operated at the venue; and

(i)conditions to prevent class 4 gambling being conducted at the venue unless the primary activity of the venue is offered and available at that time; and

(j)any other conditions added by the Secretary.

(1A)The Secretary may specify any expiry date for a class 4 venue licence that is not more than 3 years after the commencement date of that licence.

(2)The conditions that the Secretary may add to a class 4 venue licence include—

(a)conditions to ensure that both the venue operator and the venue manager can supervise effectively—

(i)the class 4 gambling at the venue; and

(ii)the venue personnel:

(b)conditions to minimise the possibility of persons under 18 years old gaining access to class 4 gambling at the class 4 venue:

(c)conditions concerning the banking of money from the gambling:

(d)conditions regarding the application or distribution of net proceeds from the class 4 gambling to or for authorised purposes:

(e)if the corporate society accepts applications for the distribution of net proceeds from gambling, conditions about the process for making, and the provision of information about how to make, an application:

(f)conditions regarding the display of the class 4 venue licence at the venue:

(fa)conditions to minimise the possibility of problem gambling at the venue:

(g)conditions encouraging responsible gambling at the venue:

(h)conditions specifying areas within a class 4 venue as the only areas permitted for conducting class 4 gambling:

(i)any other conditions consistent with this Act that the Secretary considers will promote or ensure compliance with this Act.

(3)The Secretary may—

(a)amend or revoke a condition of a class 4 venue licence; or

(b)add new conditions to a class 4 venue licence.

(4)If the Secretary decides to amend or revoke a condition or add a new condition to a class 4 venue licence, the Secretary must notify the corporate society or the parties to the venue agreement, and the venue manager, of—

(a)the right to appeal the decision; and

(b)the process to be followed for an appeal under section 77.

(5)Despite subsection (1)(b), a class 4 venue licence expires on the date that a class 4 operator’s licence held by the corporate society that holds the class 4 venue licence is surrendered, expires, or is cancelled.

(6)For the purposes of subsection (1)(i), if the class 4 venue is a racecourse, the primary activity of the venue must be treated as including the provision of sports, recreation, entertainment, and convention facilities.

Section 70(1): amended, on 3 March 2015, by section 41(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 70(1)(b): amended, on 21 October 2015, by section 17(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 70(1)(ca): inserted, on 3 March 2015, by section 41(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 70(1A): inserted, on 21 October 2015, by section 17(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 70(2)(a): amended, on 3 March 2015, by section 41(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 70(2)(c): amended, on 3 March 2015, by section 41(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 70(2)(fa): inserted, on 3 March 2015, by section 41(5) of the Gambling Amendment Act 2015 (2015 No 3).

Section 70(2)(g): amended, on 3 March 2015, by section 41(6) of the Gambling Amendment Act 2015 (2015 No 3).

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71Significant changes in relation to class 4 venue licence must be notified

(1)A corporate society holding a class 4 venue licence must notify the Secretary, and provide details, if any of the following things occur:

(a)a key person in relation to the class 4 venue licence is convicted of a relevant offence:

(b)a key person in relation to the class 4 venue licence is placed in receivership, goes into liquidation, or is adjudged bankrupt:

(c)a key person in relation to a class 4 venue licence breaches a rule of racing made under section 37 of the Racing Industry Act 2020:

(d)the venue manager ceases to be the venue manager or is incapable of performing the duties of his or her position:

(da)the venue manager changes:

(e)the venue operator changes:

(f)the nature of the class 4 venue changes:

(g)the corporate society has not conducted class 4 gambling at the venue for a period of more than 4 weeks (in which case the class 4 venue licence must be surrendered, under section 79(1)(a), unless the Secretary agrees that the venue may remain inactive for a further specified period).

(2)Notification must be made before, or as soon as practicable after, an event listed in subsection (1) occurs.

(3)The powers and obligations in section 66 apply to a notification as if the notification were an application for a class 4 venue licence.

(4)The Secretary may require the corporate society to apply for an amendment under section 73, or may invoke the suspension or cancellation provisions under sections 74 and 75, as a result of the notification.

Section 71(1)(da): inserted, on 3 March 2015, by section 42(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 71(1)(g): amended, on 3 March 2015, by section 42(2) of the Gambling Amendment Act 2015 (2015 No 3).

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Renewal or amendment of class 4 venue licence

72Renewal of class 4 venue licence

(1)A corporate society may apply to the Secretary for a renewal of its class 4 venue licence before the expiry of the licence.

(2)An application must be on the relevant standard form and be accompanied by any items listed in section 65 that the Secretary requests in order to consider the application and effect the renewal.

(3)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

(4)Sections 66 and 67 apply to an application for renewal as if it were an application for a class 4 venue licence.

(5)The Secretary must refuse to renew a class 4 venue licence if—

(a)the applicant does not hold the associated operator’s licence; or

(b)any investigations carried out by the Secretary cause the Secretary not to be satisfied about any of the matters specified in section 67; or

(c)the Secretary is not satisfied that the applicant complies with section 69A; or

(d)the Secretary is not satisfied that the applicant will comply with all relevant requirements of this Act, including the obligations set out in section 69A, minimum standards, game rules, Gazette notices, and licence conditions.

(6)Unless the associated operator’s licence is cancelled, suspended, or not renewed, a class 4 venue licence continues in force after its expiry date if—

(a)the corporate society has applied for renewal before the expiry date; and

(b)the application has not been refused.

Section 72(5): replaced, on 3 March 2015, by section 43 of the Gambling Amendment Act 2015 (2015 No 3).

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73Amending class 4 venue licence

(1)A corporate society must apply to the Secretary to amend its class 4 venue licence if the corporate society proposes to—

(a)change any gambling equipment at the venue; or

(b)increase the number of gaming machines that it may operate at the venue; or

(c)change any condition of the licence or any procedure that is a condition of the licence.

(2)An application must be on the relevant standard form and be accompanied by any items listed in section 65 that the Secretary requests in order to consider the application and effect the amendment.

(3)The Secretary may return an incomplete application, and the accompanying documents and any fee, to an applicant.

(4)Sections 66 and 67 apply to an application for amendment as if it were an application for a class 4 venue licence.

(5)The Secretary must refuse to amend a class 4 venue licence if—

(a)the applicant does not hold the associated operator’s licence; or

(b)any investigations carried out by the Secretary cause the Secretary not to be satisfied about any of the matters specified in section 67; or

(c)the Secretary is not satisfied that the applicant complies with section 69A; or

(d)the Secretary is not satisfied that the applicant will comply with all relevant requirements of this Act, including the obligations set out in section 69A, minimum standards, game rules, Gazette notices, and licence conditions.

Section 73(5): replaced, on 3 March 2015, by section 44 of the Gambling

Amendment Act 2015 (2015 No 3).

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Suspension, cancellation, or refusal to amend or renew class 4 venue licence

74Suspension or cancellation of class 4 venue licence

(1)The Secretary may suspend for up to 6 months, or cancel, a class 4 venue licence if the Secretary is satisfied that—

(a)any of the grounds in section 67 are no longer met; or

(b)the corporate society is failing, or has failed, to comply with all relevant requirements of this Act, including the obligations set out in section 69A, minimum standards, game rules, Gazette notices, and licence conditions; or

(c)the class 4 venue agreement is no longer consistent with ensuring compliance with this Act or the licence; or

(d)the corporate society supplied information that is materially false or misleading in its application for—

(i)a class 4 venue licence; or

(ii)a renewal or an amendment of a class 4 venue licence; or

(iii)a class 4 operator’s licence; or

(iv)a renewal or an amendment of a class 4 operator’s licence.

(2)In deciding whether to suspend or cancel a class 4 venue licence, the Secretary must take into account the matters in section 67.

(3)The Secretary may exercise the power of suspension conferred by this section in respect of any breach that falls within any of paragraphs (a) to (d) of subsection (1) whether or not—

(a)the breach continues at the time that the power is exercised or is proposed to be exercised:

(b)a penalty is prescribed for the breach.

Section 74(1)(b): replaced, on 3 March 2015, by section 45(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 74(3): inserted, on 3 March 2015, by section 45(2) of the Gambling Amendment Act 2015 (2015 No 3).

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75Procedure for suspending, cancelling, or refusing to amend or renew class 4 venue licence

(1)If the Secretary proposes to suspend, cancel, or refuse to amend or renew a class 4 venue licence, the Secretary must notify the corporate society or, if there is a venue agreement, the parties to the agreement, and the venue manager of—

(a)the proposal to suspend, cancel, or refuse to amend or renew the licence; and

(b)the reason for the proposed suspension, cancellation, or refusal; and

(c)their rights, and the procedure to be followed—

(i)before the suspension or cancellation takes effect; or

(ii)as a result of the refusal to amend or renew the licence.

(2)The corporate society or the parties to the venue agreement, and the venue manager may make written submissions to the Secretary concerning the proposed suspension, cancellation, or refusal to amend or renew within—

(a)20 working days after the date of the notice under subsection (1); or

(b)any longer period that the Secretary allows if an application for an extension is made within the time period specified in paragraph (a).

(3)The Secretary must consider any submissions made by the corporate society or the parties to the venue agreement, or the venue manager.

(4)If the Secretary decides to suspend a licence, the Secretary must notify the corporate society or the parties to the venue agreement, and the venue manager of—

(a)the date that the suspension takes effect; and

(b)the suspension period (up to 6 months); and

(c)the reason for the suspension.

(d)[Repealed]

(e)[Repealed]

(4A)Where the licence is suspended because of a continuing breach, the Secretary must notify the society of—

(a)the matters to be dealt with in order for the Secretary to consider withdrawing the suspension before the end of the suspension period; and

(b)the consequences of not dealing with the matters identified.

(5)If the Secretary decides to cancel or refuse to amend or renew a licence, the Secretary must notify the corporate society or the parties to the venue agreement, and the venue manager of,—

(a)for a cancellation, the date on which the cancellation takes effect and the reason for the cancellation; or

(b)for a refusal to amend or renew, the reason for the refusal.

(6)If subsection (4) or subsection (5) applies, the Secretary must also notify the corporate society or the parties to the venue agreement, and the venue manager of—

(a)the right to appeal the decision; and

(b)the process to be followed for an appeal under section 77.

Section 75(4)(c): replaced, on 3 March 2015, by section 46(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 75(4)(d): repealed, on 3 March 2015, by section 46(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 75(4)(e): repealed, on 3 March 2015, by section 46(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 75(4A): inserted, on 3 March 2015, by section 46(2) of the Gambling Amendment Act 2015 (2015 No 3).

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76Consequences of suspension, cancellation, or refusal to amend or renew class 4 venue licence

(1)The suspension or cancellation of, or refusal to amend or renew, a class 4 venue licence does not affect—

(a)the obligation of the corporate society to apply or distribute the net proceeds from the class 4 gambling in accordance with this Act and the licence; and

(b)any condition added to the licence by the Secretary relating to records that must be maintained and reporting requirements.

(2)The Secretary may decide to withdraw a suspension before the end of the suspension period if the reasons for the suspension are resolved to the satisfaction of the Secretary.

(3)The Secretary may decide to cancel a suspended licence at the end of the suspension period if the reasons for the suspension are not resolved to the satisfaction of the Secretary.

(4)Section 75(5) and (6) apply to the cancellation of a suspended licence.

(5)Subject to section 78, a licence that is suspended or cancelled or refused to be renewed or amended remains in force or unchanged (as the case may be) until the period for making an appeal expires.

(6)A corporate society is not entitled to a refund of fees, taxes, or levies paid in relation to class 4 gambling if the Secretary suspends, cancels, or refuses to amend or renew its class 4 venue licence.

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77Appeal to Gambling Commission regarding class 4 venue licence

(1)A corporate society or, if there is a venue agreement, the parties to the agreement, and the venue manager may appeal to the Gambling Commission against a decision of the Secretary to—

(a)refuse to grant a class 4 venue licence to the corporate society; or

(b)amend or revoke a condition of the licence, or add a new condition to it; or

(c)refuse an application by the corporate society for the renewal of a class 4 venue licence; or

(d)refuse to amend a class 4 venue licence held by the corporate society; or

(e)suspend or cancel a class 4 venue licence held by the corporate society.

(1A)To avoid doubt, the specification of an expiry date under section 70(1A) is not a decision that may be appealed to the Gambling Commission.

(2)An appeal must be in writing and must be made within—

(a)15 working days after the date of the notice of the Secretary’s decision; or

(b)any longer period that the Gambling Commission allows if an application for an extension is made within the time period specified in paragraph (a).

(3)The Gambling Commission—

(a)may request any information from the corporate society or the parties to the agreement or the venue manager or the Secretary; and

(b)is not bound to follow any formal procedure; and

(c)does not need to hold a hearing; and

(d)must consider any information provided by the corporate society, or the parties to the venue agreement, and the venue manager and the Secretary.

(4)The Gambling Commission may—

(a)confirm, vary, or reverse the decision of the Secretary; or

(b)refer the matter back to the Secretary with directions to reconsider the decision.

(5)The Gambling Commission must give notice of—

(a)its decision, with reasons, to the corporate society, or the parties to the venue agreement, and the venue manager and the Secretary; and

(b)the date on which its decision takes effect (which may be a date that is later than the date on which it makes the decision).

Section 77(1A): inserted, on 21 October 2015, by section 18(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 77(5): replaced, on 21 October 2015, by section 18(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

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78Consequences of appeal regarding class 4 venue licence

(1)The conditions of a class 4 venue licence remain unchanged pending the outcome of an appeal if the appellant appeals an amendment or revocation of a condition or the addition of a new condition under section 77(1)(b).

(2)A class 4 venue licence remains in force until—

(a)the expiry of the period for an appeal under section 77(2); or

(b)the date that the Gambling Commission specifies under section 77(5), if the appellant—

(i)appeals a refusal to renew or amend the licence under section 77(1)(c) or (d); or

(ii)appeals a decision to suspend or cancel the licence under section 77(1)(e).

Section 78(2)(b): amended, on 21 October 2015, by section 19 of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

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Other matters

79Surrender of class 4 venue licence

(1)A corporate society—

(a)must surrender a class 4 venue licence to the Secretary in the circumstances described in section 71(1)(g):

(b)may surrender a class 4 venue licence to the Secretary at any other time.

(2)The surrender of a class 4 venue licence does not affect—

(a)the obligation of the corporate society to apply or distribute the net proceeds from the gambling in accordance with this Act and the licence; and

(b)any condition relating to records that must be maintained and reporting requirements.

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80Class 4 venue licence not transferable

A class 4 venue licence is not transferable.

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81Complaints to Secretary

(1)This section applies if a person makes a complaint to the Secretary about the conduct of class 4 gambling at a particular venue or by the holder of a class 4 operator's licence.

(2)The Secretary must, as soon as practicable after receiving a complaint, investigate the complaint and notify the complainant, if possible, as to whether any action has been, or will be, taken in respect of the complaint and the nature of any action taken.

(3)The complainant may complain to the Gambling Commission about the way the Secretary has handled the complaint.

(4)The Gambling Commission must then—

(a)require the Secretary to provide a report about the way the complaint was handled; and

(b)consider the matter in light of the Secretary's report; and

(c)report to the Minister about the matter if the Gambling Commission considers that the Secretary did not handle the complaint appropriately; and

(d)notify the complainant and the Secretary of its view and any report to the Minister.

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82Certain information must be displayed at class 4 venue

(1)The holder of a class 4 venue licence must display at the class 4 venue the following information:

(a)the commencement date and expiry date of the class 4 venue licence:

(b)contact details for the holder of the class 4 venue licence:

(c)if the net proceeds from gambling at the class 4 venue are mainly or wholly distributed to the community,—

(i)details of how and where to apply for a grant of net proceeds; and

(ii)the corporate society’s contact details for submitting complaints regarding the distribution of net proceeds; and

(iii)a statement that the law does not permit venue personnel to be involved in decisions about, or to manage or provide applications for, grants to the community:

(d)that complaints about the conduct of gambling in the venue or the conduct of a holder of a class 4 operator’s licence may be made to the Secretary.

(2)If a class 4 venue agreement is not required in respect of the class 4 venue under section 65(3) or (4), the information must be displayed at all times on a sign in the immediate area where gaming machines are located.

(3)For all other class 4 venues, the information must be displayedat all times—

(a)on a sign in the immediate area where gaming machines are located; and

(b)on a sign that can be easily read by persons immediately outside each principal entrance.

(4)The holder of a class 4 venue licence who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

Section 82(1)(c): amended, on 3 March 2015, by section 47(a) of the Gambling Amendment Act 2015 (2015 No 3).

Section 82(1)(c)(ii): replaced, on 3 March 2015, by section 47(b) of the Gambling Amendment Act 2015 (2015 No 3).

Section 82(4): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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83Obligation on disposal of gaming machines

(1)The holder or former holder of a class 4 operator’s licence must provide the following information to the Secretary within 20 working days of disposing of a gaming machine:

(aa)the manufacturer, model, and serial number of the gaming machine and any other details necessary to identify the gaming machine with ease; and

(a)the means of disposal; and

(b)if relevant, the name of the acquirer of the gaming machine and the details necessary to contact the acquirer with ease.

(2)The holder or former holder of a class 4 operator’s licence who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

Section 83(1): amended, on 3 March 2015, by section 48(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 83(1)(aa): inserted, on 3 March 2015, by section 48(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 83(1)(b): amended, on 3 March 2015, by section 48(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 83(2): amended, on 3 March 2015, by section 48(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 83(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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84Prohibition on certain gaming machines in class 4 venue

(1)On and from the date that is 6 months after the commencement of this section, the holder of a class 4 venue licence must not operate, or allow to be operated, at the class 4 venue a gaming machine that is able to accept banknotes with a denomination greater than $20.

(2)The holder of a class 4 venue licence who fails to comply with this section commits an offence and is liable on … conviction to a fine not exceeding $10,000.

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Disabling gambling equipment and electronic monitoring of gaming machines

85Disabling gambling equipment

(1)The Secretary may disable or seal gambling equipment, without prior notice to the holder of the class 4 operator’s licence or class 4 venue licence, the venue operator, or the venue manager, if the Secretary believes, on reasonable grounds, that the gambling equipment does not comply with minimum standards, or is faulty, or has been tampered with.

(2)The Secretary must enable or unseal gambling equipment if the Secretary no longer believes, on reasonable grounds, that the gambling equipment does not comply with minimum standards, or is faulty, or has been tampered with or the Secretary is satisfied that the problem has been, or will be, rectified.

(3)A disablement or subsequent enablement may—

(a)be effected manually or by means of an electronic monitoring system; and

(b)result from a decision of the Secretary or occur automatically by the operation of an electronic monitoring system.

(4)A disablement or sealing is not a suspension or cancellation of a class 4 operator’s licence or a class 4 venue licence.

(5)The Secretary may disable or subsequently enable—

(a)a particular item of gambling equipment at a venue; or

(b)all gambling equipment at a venue; or

(c)all or some gambling equipment at various venues.

(6)If a fault in the electronic monitoring system or the telecommunications system used to operate the electronic monitoring system causes gambling equipment not to operate, the Crown or a person appointed under section 88 to implement and operate the system is not liable for any compensation to any person for loss or damage caused by the failure of the equipment to operate.

Section 85(6): amended, on 3 March 2015, by section 49 of the Gambling Amendment Act 2015 (2015 No 3).

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86Holder of class 4 operator's licence must connect to electronic monitoring system

(1)The holder of a class 4 operator’s licence must connect the following gambling equipment to an electronic monitoring system specified by the Secretary in a notice to the holder:

(a)all gaming machines under the holder’s control; and

(b)any other gambling equipment, or classes of gambling equipment, specified by the Secretary by notice in the Gazette.

(2)The holder of a class 4 operator’s licence—

(a)must bear the cost of replacing or upgrading gambling equipment in order to enable the connection of gaming machines to an electronic monitoring system; and

(b)may be required by the Secretary to bear the cost of equipping or upgrading a class 4 venue for which it holds a licence in order to enable the connection of gaming machines to an electronic monitoring system.

(3)The holder of a class 4 operator’s licence must comply with subsection (1) by the date or dates notified to that holder by the Secretary, and the Secretary may notify particular dates that apply—

(a)to particular corporate societies or classes of corporate society:

(b)to particular class 4 venues or classes of class 4 venues.

(4)[Repealed]

(5)The holder of a class 4 operator’s licence must not operate gaming machines after the date or dates notified to the holder by the Secretary unless the machines are connected to an electronic monitoring system specified by the Secretary.

(6)A notice under subsection (1)(b) is a disallowable instrument for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

Section 86(1): replaced, on 3 March 2015, by section 50(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 86(3)(a): replaced, on 3 March 2015, by section 50(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 86(4): repealed, on 3 March 2015, by section 50(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 86(6): inserted, on 3 March 2015, by section 50(4) of the Gambling Amendment Act 2015 (2015 No 3).

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87Functions of electronic monitoring system

(1)The Secretary may use an electronic monitoring system for, amongst other things,—

(a)monitoring and receiving information about—

(i)the funds used to gamble on gaming machines and the destination of those funds:

(ii)the number and location of gaming machines:

(iii)the potential of gaming machines for problem gambling:

(iv)faults with gaming machines:

(v)tampering with gaming machines:

(vi)suspected contraventions of this Act:

(b)controlling gaming machines:

(c)disabling or enabling gaming machines.

(2)Any statistical information that is collated by the Secretary from information received under subsection (1)(a) must be made available on the Department's website, or in another electronic form that is easily accessible to the public, within a reasonable time after that information is collated.

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88Secretary may select monitor

(1)The Secretary may appoint 1 person that the Secretary considers to be suitable to implement and operate an electronic monitoring system.

(2)Despite subsection (1), the Secretary may appoint 1 or more persons that the Secretary considers to be suitable to implement and operate 1 or more electronic monitoring systems in order to facilitate the transfer of an electronic monitoring system from the person appointed under subsection (1) to another person.

Section 88(2): inserted, on 3 March 2015, by section 51 of the Gambling Amendment Act 2015 (2015 No 3).

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Particular limits on numbers of gaming machines

89Notification required

(1)A society that operates gaming machines on the commencement of this section must notify the Secretary, in the manner that the Secretary reasonably requests, within 1 month after the commencement of this section of—

(a)the class 4 venues where the gaming machines were lawfully operated (on the day 3 days after the commencement of this section); and

(b)the number of gaming machines lawfully operated at each class 4 venue (on the day 3 days after the commencement of this section); and

(c)the serial number and model of each gaming machine at each class 4 venue (on the day 3 days after the commencement of this section).

(2)If the Secretary decides to cancel a class 4 operator's licence because a society has not complied with subsection (1)—

(a)the Secretary is not required to follow the cancellation procedure under section 59; and

(b)the Secretary must notify the society that the class 4 operator's licence is cancelled from the date of notification; and

(c)there is no right of appeal from the decision.

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90Register of class 4 venue licences must be maintained

(1)The Secretary must maintain a register of places for which a class 4 venue licence was held on 17 October 2001, and, if a new place is substituted for such a place in accordance with a relocation policy, must amend the register accordingly.

(2)The Secretary must make an entry in the register if, at any time after 17 October 2001, there is a period of 6 months or more during which there is no class 4 venue licence for a class 4 venue to which subsection (1) applies.

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91No compensation

No compensation is payable by the Crown or a territorial authority to any person for any loss or damage arising from the enactment or operation of sections 89 to 101 or section 102(5A).

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92Limit on number of gaming machines for which class 4 venue licence held on 17 October 2001

(1)This section applies to a class 4 venue for which—

(a)a class 4 venue licence was held on 17 October 2001; and

(b)there has not been a period of 6 months or more since 17 October 2001 when no class 4 venue licence was held.

(2)A corporate society must not operate more than 18 gaming machines at a class 4 venue.

(3)The number of gaming machines notified to the Secretary under section 89(1), and the models and serial numbers of the gaming machines, must be treated as a condition of the class 4 venue licence and the corporate society must not change gaming machines at the venue, unless—

(a)a new class 4 venue licence is obtained that allows the change; or

(b)the licence is amended to allow the change.

(4)The limit in subsection (2) and the condition as to number imposed under subsection (3) may be overridden under section 95 or reduced by regulations made under section 314(1)(a).

Section 92(2): amended, on 3 March 2015, by section 52 of the Gambling Amendment Act 2015 (2015 No 3).

Section 92(3): amended, on 3 March 2015, by section 52 of the Gambling Amendment Act 2015 (2015 No 3).

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93Limit on number of gaming machines for which class 4 venue licence granted after 17 October 2001 but before commencement

(1)This section applies to a class 4 venue—

(a)to which section 92 does not apply; and

(b)for which a class 4 venue licence is held that was granted after 17 October 2001 but before the commencement of this section.

(2)A corporate society must not operate more than 9 gaming machines at a class 4 venue.

(3)[Repealed]

(4)[Repealed]

(5)[Repealed]

(6)[Repealed]

(7)[Repealed]

(8)The number of gaming machines notified to the Secretary under section 89(1), and the models and serial numbers of the gaming machines, must be treated as a condition of the class 4 venue licence and the corporate society must not change the gaming machines, or operate more than that number of gaming machines at the venue, unless—

(a)a new class 4 venue licence is obtained that allows the change; or

(b)the licence is amended to allow the change.

(9)The limit in subsection (2) and the condition as to number imposed under subsection (8) may be overridden under section 96, or reduced by regulations made under section 314(1)(a).

Section 93(2): amended, on 3 March 2015, by section 53(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 93(3): repealed, on 3 March 2015, by section 53(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 93(4): repealed, on 3 March 2015, by section 53(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 93(5): repealed, on 3 March 2015, by section 53(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 93(6): repealed, on 3 March 2015, by section 53(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 93(7): repealed, on 3 March 2015, by section 53(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 93(8): amended, on 3 March 2015, by section 53(3) of the Gambling Amendment Act 2015 (2015 No 3).

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94Limit on number of gaming machines for venue with venue licence granted after commencement

(1)This section applies to a class 4 venue—

(a)to which section 92 does not apply; and

(b)for which a class 4 venue licence is granted after the commencement of this section.

(2)A corporate society must not operate at a class 4 venue more than the greater of—

(a)9 gaming machines; or

(b)the number of gaming machines approved by the Minister under section 96.

(3)The limits in subsection (2) may be reduced by regulations made under section 314(1)(a).

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95Ministerial discretion to permit more gaming machines if clubs merge

(1)This section applies to 2 or more corporate societies that the Minister is satisfied are clubs and—

(a)2 or more of which hold class 4 venue licences; and

(b)can each demonstrate a significant history of—

(i)operating as clubs for club purposes; and

(ii)operating the number of machines specified in any class 4 venue licences held immediately before making an application to the Minister under subsection (2); and

(c)can each demonstrate that they intend to merge into a single club operating at a single class 4 venue; and

(d)can demonstrate to the Minister’s satisfaction that the proposed class 4 venue is not a commercial premises; and

(e)can demonstrate to the Minister’s satisfaction that the merged club will have a substantial active membership; and

(f)have obtained a territorial authority consent for the venue, either without a condition on numbers of gaming machines or with a condition on numbers that is consistent with the number of gaming machines that it is proposed to operate at the venue.

(2)The corporate societies may apply jointly to the Minister for approval to operate up to the number of gaming machines consented to by the territorial authority at the proposed venue.

(3)The Minister may approve an application under subsection (2) as the Minister sees fit.

(4)The Minister’s approval must specify the number of gaming machines that may be operated, but the number—

(a)must not exceed the number of gaming machines specified in a territorial authority consent; and

(b)must not in any case exceed the lesser of—

(i)30; or

(ii)the sum of the number of gaming machines specified in all of the corporate societies’ class 4 venue licences at the time of the application.

(5)The corporate societies may then apply jointly to the Secretary for a class 4 venue licence for the proposed venue in accordance with section 65, but the Secretary must not issue a class 4 venue licence until the corporate societies have—

(a)merged; and

(b)obtained a class 4 operator’s licence.

(6)On issue of the class 4 venue licence,—

(a)the Secretary must cancel any previous class 4 venue licences held by the corporate societies, and there is no right of appeal against that cancellation; and

(b)a corporate society may not, within 6 months after the cancellation, submit an application for a class 4 venue licence in relation to any of the class 4 venues referred to in paragraph (a).

(7)The limits in subsection (4) may be reduced by regulations made under section 314(1)(a).

Section 95(1)(c): amended, on 3 March 2015, by section 54(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 95(3): replaced, on 3 March 2015, by section 54(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 95(6)(a): amended, on 3 March 2015, by section 54(3)(a) of the Gambling Amendment Act 2015 (2015 No 3).

Section 95(6)(b): replaced, on 3 March 2015, by section 54(3)(b) of the Gambling Amendment Act 2015 (2015 No 3).

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96Ministerial discretion to permit more than 9 machines at certain class 4 venues

(1)This section applies to a corporate society that the Minister is satisfied is a club that proposes to operate gaming machines at a class 4 venue and to which section 92 does not apply and that—

(a)holds a class 4 operator’s licence; and

(b)can demonstrate a significant history of—

(i)operating as a club for club purposes; and

(ii)operating the number of machines specified in any class 4 venue licence held immediately before making an application to the Minister under subsection (2); and

(c)can demonstrate to the Minister’s satisfaction that the proposed class 4 venue is not a commercial premises; and

(d)can demonstrate to the Minister’s satisfaction that it has a substantial active membership; and

(e)has obtained a territorial authority consent for the venue, either without a condition on numbers of machines or with a condition on numbers that is consistent with the number of machines that it is proposed to operate at the venue.

(2)The corporate society may apply to the Minister for approval to operate up to 18 gaming machines at the proposed venue.

(3)The Minister may approve an application under subsection (2) as the Minister sees fit.

(4)The Minister’s approval must specify the number of gaming machines that may be operated but the number—

(a)must not exceed the number of gaming machines specified in the territorial authority consent; and

(b)must not in any case exceed 18.

(5)The corporate society may then apply to the Secretary for a class 4 venue licence for the venue in accordance with section 65 or, if it holds a class 4 venue licence for the venue, an amendment to the licence in accordance with section 73.

(5A)On the issue of a new class 4 venue licence,—

(a)Secretary must cancel any previous class 4 venue licences held by the corporate society, and there is no right of appeal against that cancellation; and

(b)a corporate society may not, within 6 months after the cancellation, submit an application for a class 4 venue licence in relation to any of the class 4 venues referred to in paragraph (a).

(6)The limits in subsection (4) may be reduced by regulations made under section 314(1)(a).

Section 96(3): replaced, on 3 March 2015, by section 55(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 96(5A): inserted, on 3 March 2015, by section 55(2) of the Gambling Amendment Act 2015 (2015 No 3).

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97Power to issue, renew, or amend class 4 licence may be overridden

The Secretary's power to issue, renew, or amend a class 4 operator's licence or class 4 venue licence may be overridden by regulations made under section 314.

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97AEffect of relocation

(1)This section applies when—

(a)a territorial authority has adopted a relocation policy (as defined in section 101(5)); and

(b)in accordance with that policy, the territorial authority grants consent in respect of a venue (the new venue) to replace an existing venue (the old venue); and

(c)a new class 4 venue licence is granted in respect of the new venue.

(2)When this section applies,—

(a)the Secretary must cancel the class 4 venue licence that relates to the old venue, in which case—

(i)the cancellation takes effect on the date on which the new class 4 venue licence takes effect; and

(ii)there is no right of appeal against the cancellation; and

(b)despite section 100(1)(b)(i), the maximum number of gaming machines permitted to operate at the new venue at the time when the new class 4 venue licence takes effect is the same as the maximum number of gaming machines permitted to operate at the old venue immediately before the licence relating to the old venue is cancelled; and

(c)for the purposes of this Act,—

(i)if the old venue was a venue to which section 92 applied, the new venue must be treated as a venue to which section 92 applies; and

(ii)the old venue must be treated as if no class 4 venue licence had ever been held by any society for that venue (which means that, under section 98, consent will be required for that venue if a class 4 venue licence is subsequently applied for in relation to it).

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Territorial authority consent

98When territorial authority consent is required

A territorial authority consent is required in the following circumstances:

(a)if a corporate society proposes to increase the number of gaming machines that may be operated at a class 4 venue (whether by way of an application for, or amendment to, a class 4 venue licence, and whether or not in association with an application for ministerial discretion under section 95 or 96):

(b)if a corporate society applies for a class 4 venue licence and a class 4 venue licence has not been held by any corporate society for the venue within the last 6 months:

(c)if a corporate society proposes, in accordance with a relocation policy of the territorial authority, to change the venue to which a class 4 venue licence currently applies.

Section 98: replaced, on 3 March 2015, by section 56 of the Gambling Amendment

Act 2015 (2015 No 3).

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99Application for territorial authority consent

(1)An application for a territorial authority consent must be made to the territorial authority for the district in which the class 4 venue is, or will be, located.

(2)The application must be accompanied by the information required by the territorial authority to enable it to consider the application properly.

(3)An application for consent in accordance with a relocation policy may be made only with the agreement of the venue operator of the existing venue.

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100Considering and determining application for territorial authority consent

(1)A territorial authority must—

(a)consider and determine an application for a territorial authority consent in accordance with its class 4 venue policy; and

(b)then either—

(i)grant a consent with or without a condition specifying the maximum number of gaming machines that may be operated at the venue (but with no other condition); or

(ii)not grant a consent.

(2)However, if a corporate society applies for a territorial authority consent for an amendment to a class 4 venue licence to allow an increase in the number of gaming machines that may be operated at a venue, a territorial authority—

(a)must consider and determine the application in accordance with subsection (1); but

(b)may not include a condition specifying a maximum number of machines that may be operated at the venue that is fewer than the number of machines that may be operated currently at the venue.

(3)The territorial authority must notify the applicant of its determination within 30 working days after the later of—

(a)the date of receipt of the application; or

(b)the date that it adopts a class 4 venue policy.

(4)A territorial authority must not consider an application for a territorial authority consent before it has a class 4 venue policy.

(5)A territorial authority consent for a class 4 venue expires 6 months after its date of issue if no application for a class 4 venue licence in relation to the venue has been submitted.

Section 100(1)(a): amended, on 3 March 2015, by section 57(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 100(1)(a): amended, on 15 December 2005, by section 6 of the Gambling Amendment Act (No 2) 2005 (2005 No 104).

Section 100(1)(b)(i): amended, on 3 March 2015, by section 57(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 100(3)(b): amended, on 15 December 2005, by section 6 of the Gambling Amendment Act (No 2) 2005 (2005 No 104).

Section 100(4): amended, on 15 December 2005, by section 6 of the Gambling Amendment Act (No 2) 2005 (2005 No 104).

Section 100(5): inserted, on 3 March 2015, by section 57(3) of the Gambling Amendment Act 2015 (2015 No 3).

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101Territorial authority must adopt class 4 venue policy

(1)A territorial authority must, within 6 months after the commencement of this section, adopt a policy on class 4 venues.

(2)In adopting a policy, the territorial authority must have regard to the social impact of gambling within the territorial authority district.

(3)The policy—

(a)must specify whether or not class 4 venues may be established in the territorial authority district and, if so, where they may be located; and

(b)may specify any restrictions on the maximum number of gaming machines that may be operated at a class 4 venue; and

(c)may include a relocation policy.

(4)In determining its policy on whether class 4 venues may be established in the territorial authority district, where any venue may be located, and any restrictions on the maximum number of gaming machines that may be operated at venues, the territorial authority may have regard to any relevant matters, including:

(a)the characteristics of the district and parts of the district:

(b)the location of kindergartens, early childhood centres, schools, places of worship, and other community facilities:

(c)the number of gaming machines that should be permitted to operate at any venue or class of venue:

(d)the cumulative effects of additional opportunities for gambling in the district:

(e)how close any venue should be permitted to be to any other venue:

(f)what the primary activity at any venue should be.

(5)A relocation policy is a policy setting out if and when the territorial authority will grant consent in respect of a venue within its district where the venue is intended to replace an existing venue (within the district) to which a class 4 venue licence applies (in which case section 97A applies).

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102Adoption and review of class 4 venue policy

(1)A policy on class 4 venues under section 101 must be adopted in accordance with the special consultative procedure in section 83 of the Local Government Act 2002 and, for the purpose of subsection (1)(e) of that section, the territorial authority must give notice of the proposed policy, in a manner that the territorial authority considers appropriate, to—

(a)each corporate society that holds a class 4 venue licence for a venue in the territorial authority district; and

(b)organisations representing Māori in the territorial authority district.

(2)A policy may be amended or replaced only in accordance with the special consultative procedure, and this section applies to that amendment or replacement.

(3)Subsection (1)(b) does not affect the ability of a territorial authority to take similar action in respect of any other population group.

(4)A territorial authority must, as soon as practicable after adopting, amending, or replacing a policy, provide a copy of the policy to the Secretary.

(5)A territorial authority must complete a review of a policy within 3 years after the policy is adopted and then within 3 years after that review and each subsequent review is completed.

(5A)The first time that a territorial authority commences a review of a policy after the Gambling (Gambling Harm Reduction) Amendment Act 2013 comes into force, the territorial authority must (and may at any other time) consider whether to include a relocation policy (as defined in section 101(5)) in its class 4 venue policy.

(5B)Whenever a territorial authority is considering whether to include a relocation policy in its class 4 venue policy, it must consider the social impact of gambling in high-deprivation communities within its district.

(6)A policy does not cease to have effect because it is due for review or being reviewed.

Section 102(1)(a): amended, on 3 March 2015, by section 58 of the Gambling Amendment Act 2015 (2015 No 3).

Section 102(5A): inserted, on 14 September 2013, by section 11 of the Gambling (Gambling Harm Reduction) Amendment Act 2013 (2013 No 71).

Section 102(5B): inserted, on 14 September 2013, by section 11 of the Gambling (Gambling Harm Reduction) Amendment Act 2013 (2013 No 71).

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103Provision of information relating to class 4 venues in territorial authority district

On request from a territorial authority, the Secretary must provide—

(a)the name and address of each corporate society that holds a class 4 venue licence for a venue in the territorial authority district; and

(b)the name and address of each class 4 venue in the territorial authority district and the number of gaming machines permitted to operate there.

Section 103(a): amended, on 3 March 2015, by section 59 of the Gambling Amendment Act 2015 (2015 No 3).

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Net proceeds and costs of class 4 gambling

104Gaming machine profits must be banked

(1)A venue manager must bank all gaming machine profits from class 4 gambling into a dedicated account for gaming machine profits specified by, and in the name of, the holder of the class 4 operator’s licence at a registered bank in New Zealand.

(2)The venue manager must bank the gaming machine profits within the time frame specified in regulations made under section 371 or, if no time frame is specified, as soon as reasonably practicable.

(3)If a venue manager contravenes subsection (1) or (2), the holder of the class 4 operator’s licence—

(a)must advise the Secretary of the contravention as soon as possible after becoming aware of the contravention; and

(b)must immediately—

(i)take steps to disable all gaming machines at the class 4 venue and advise the Secretary of the disablement; or

(ii)request the Secretary to disable all gaming machines at the class 4 venue by means of the electronic monitoring system; and

(c)must not subsequently enable, or if paragraph (b)(ii) applies, request the Secretary to enable, the gaming machines at the class 4 venue until the gaming machine profits have been banked in accordance with subsection (1).

(4)A person who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

(5)In this section and sections 105 and 105A, gaming machine profits means the turnover of class 4 gambling minus the total prizes paid.

Section 104(1): replaced, on 3 March 2015, by section 60(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 104(1): amended, on 21 October 2015, by section 20 of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 104(2): amended, on 3 March 2015, by section 60(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 104(2): time frame specified as within 5 working days beginning on the day that the profits are, or ought to be, calculated, on 6 April 2006, by regulation 4 of the Gambling (Class 4 Banking) Regulations 2006 (SR 2006/40).

Section 104(3): replaced, on 3 March 2015, by section 60(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 104(4): amended, on 3 March 2015, by section 60(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 104(4): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 104(5): replaced, on 3 March 2015, by section 60(5) of the Gambling Amendment Act 2015 (2015 No 3).

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105Interest, etc, on gaming machine profits

(1)The holder of a class 4 operator’s licence must ensure that the interest or other investment return on the gaming machine profits referred to in section 104, plus any gain above the book value from the sale of gambling assets, is credited directly to or banked directly into (as the case may be) a dedicated account for gaming machine profits in the name of the holder of the class 4 operator’s licence at a registered bank in New Zealand.

(2)The interest, investment return, or proceeds must be banked within the time frame specified in regulations made under section 371 or, if no time frame is specified, as soon as reasonably practicable.

(3)[Repealed]

(4)A holder of a class 4 operator’s licence who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

Section 105(1): replaced, on 3 March 2015, by section 61(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 105(3): repealed, on 3 March 2015, by section 61(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 105(4): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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105A

Management of gaming machine profits bank account

(1)The holder of a class 4 operator’s licence must not meet the costs of the class 4 gambling operation or apply funds to, or distribute funds for, authorised purposes except from a dedicated account for gaming machine profits referred to in section 104(1) or 105(1).

(2)Unless the Secretary gives consent to some or all of the gaming machine profits, interest, investment return, and any gain above the book value from the sale of gambling assets being transferred to another bank account, the gaming machine profits, interest, investment return, and any gain above the book value from the sale of gambling assets must remain in the account for the gaming machine profits until the class 4 operator either—

(a)uses the gaming machine profits, interest, investment return, and any gain above the book value from the sale of gambling assets to meet the costs of the class 4 gambling operation; or

(b)applies the gaming machine profits, interest, investment return, and any gain above the book value from the sale of gambling assets to, or distributes the gaming machine profits, interest, investment return, and any gain above the book value from the sale of gambling assets for, authorised purposes.

(3)A holder of a class 4 operator’s licence who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

Section 105A: inserted, on 3 March 2015, by section 62 of the Gambling Amendment Act 2015 (2015 No 3).

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106Corporate society must apply or distribute net proceeds from class 4 gambling to or for authorised purpose

(1)A corporate society must apply or distribute the net proceeds from class 4 gambling only to or for an authorised purpose specified in the corporate society’s licence.

(1A)To avoid doubt, the requirement in subsection (1) for a corporate society to apply or distribute the net proceeds from class 4 gambling is subject to the restriction in section 52A relating to the circumstances in which a corporate society may apply, rather than distribute, those net proceeds.

(2)A corporate society that fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.

(3)A court that convicts a corporate society of an offence under this section may—

(a)make whatever orders are necessary to recover an amount of proceeds wrongly applied or distributed or to safeguard an amount not applied or distributed; and

(b)order the application or distribution of an amount of proceeds not yet applied or distributed.

(4)The effect of a conviction under this section is that—

(a)the class 4 operator’s licence and all class 4 venue licences held by the corporate society are cancelled; and

(b)the corporate society does not have a right to appeal the cancellation.

Section 106(1A): inserted, on 3 March 2015, by section 63(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 106(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 106(3)(b): amended, on 3 March 2015, by section 63(2) of the Gambling Amendment Act 2015 (2015 No 3).

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107Corporate society must provide annual report to Secretary

(1)A corporate society must, not later than 3 months after the end of its financial year, provide to the Secretary an annual report on the conduct of class 4 gambling by the corporate society during the financial year.

(2)The annual report must include—

(a)the information described in section 108; and

(b)an auditor's report on the information contained in the report.

(3)The first financial year for which a corporate society must provide an annual report is the financial year that commences after the commencement of this section.

(4)The requirements of this section are in addition to any other reporting requirements imposed on the corporate society in or under this Act or any other enactment.

(5)This section does not limit the Secretary's power to require other financial information in accordance with this Act.

(6)In this section and section 108A, auditor means,—

(a)in the case of a public entity under the Public Audit Act 2001, the Auditor-General; or

(b)in any other case, a person who is a qualified auditor within the meaning of section 35 of the Financial Reporting Act 2013.

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108Contents of annual report

(1)An annual report must include—

(a)an itemised statement of the application or distribution of net proceeds from class 4 gambling to or for authorised purposes; and

(b)financial statements prepared in accordance with generally accepted accounting practice.

(1A)The financial statements included in the annual report must comply with regulations made under section 371(1)(dc).

(2)In this section,—

financial statements has the same meaning as in section 6 of the Financial Reporting Act 2013

generally accepted accounting practice has the same meaning as in section 8 of the Financial Reporting Act 2013.

Section 108: replaced, on 1 April 2014, by section 90 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 108(1)(a): amended, on 3 March 2015, by section 64 of the Gambling Amendment Act 2015 (2015 No 3).

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108A Audit must be carried out in accordance with auditing and assurance standards

(1)An auditor must, in carrying out an audit on the information contained in an annual report under section 107, comply with all applicable auditing and assurance standards.

(2)The auditor’s report on the information contained in the annual report must comply with the requirements of all applicable auditing and assurance standards.

(3)This section does not apply to a corporate society that is a public entity under the Public Audit Act 2001.

(4)In this section, applicable auditing and assurance standard has the same meaning as in section 5 of the Financial Reporting Act 2013.

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108BClubs that operate gambling equipment at non-commercial class 4 venues must make financial statements available to members

(1)This section applies to a corporate society that is a club that operates gambling equipment at a non-commercial class 4 venue that—

(a)it owns or leases; and

(b)is mainly for the use of club members.

(2)A corporate society to which this section applies must ensure that a copy of any financial statements referred to in section 108(1)(b) and a copy of the auditor’s report on those statements are sent to the members or shareholders of the society (if any) within 20 working days after the annual report is required to be provided to the Secretary under section 107.

(3)A corporate society that contravenes subsection (2) commits an offence and is liable on conviction to a fine not exceeding $10,000.

Section 108B: inserted, on 1 April 2014, by section 90 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

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108COther corporate societies must make financial statements available on Internet

(1)This section applies to a corporate society other than a corporate society to which section 108B applies.

(2)A corporate society to which this section applies must, not later than 4 months after the end of its financial year, ensure that a copy of any financial statements referred to in section 108(1)(b) for that financial year and a copy of the auditor’s report on those statements are available at all reasonable times on an Internet site maintained by or on behalf of the society.

(3)This section does not limit any other duty under this Act or regulations made under this Act to make available the annual report, the financial statements, or the auditor’s report.

(4)A corporate society that contravenes subsection (2) commits an offence and is liable on conviction to a fine not exceeding $10,000.

Section 108C: inserted, on 1 April 2014, by section 90 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

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109Annual review of criteria for distribution of net proceeds

A corporate society that mainly or wholly distributes net proceeds to the community must, at least annually, review the criteria, methods, systems, and policies it uses for consideration of applications for the distribution of net proceeds.

Section 109: amended, on 3 March 2015, by section 65 of the Gambling Amendment Act 2015 (2015 No 3).

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110Publication requirements for corporate societies

(1)This section applies to a corporate society that mainly or wholly distributes net proceeds to the community.

(2)A corporate society must publish, at intervals of not more than 3 months, the availability of net proceeds for authorised purposes.

(3)A corporate society must publish, at least 1 month before any net proceeds are distributed through grants to the community,—

(a)details of where to obtain an application form for a grant, who will consider applications, and the criteria against which they will be considered; and

(b)the names of the persons who hold office in the corporate society and a brief summary of their background; and

(c)the process that the corporate society follows for dealing with complaints regarding distribution of net proceeds.

(4)A corporate society must publish at least annually, or at any shorter intervals specified by regulations, a statement that discloses the following matters:

(a)details of all applications received from applicants during the reporting period:

(b)details disclosing, for each application that has been determined during the reporting period,—

(i)whether it has been accepted in full or declined in full:

(ii)whether it has been accepted in part and declined in part:

(iii)if it has been declined in full or in part, the reasons for that decision:

(c)every amount of net proceeds from class 4 gambling distributed in the reporting period and the applicant to whom that amount relates:

(d)any interest that any member of a corporate society’s net proceeds committee has in any applicant who is a recipient of a grant that—

(i)has been made by that committee; and

(ii)is required to be disclosed under paragraph (c):

(e)the results of the corporate society’s annual review of the criteria, methods, systems, and policies it uses for considering the distribution of net proceeds from class 4 gambling:

(f)any other matters prescribed by regulations.

(4A)For the purposes of subsection (4)(d), a member of a corporate society’s net proceeds committee has an interest in a recipient of a grant (a recipient) if—

(a)the member may derive a financial benefit from the grant or may have a financial interest in the recipient; or

(b)the member is a part of the immediate family of the recipient; or

(c)where the recipient is an organisation, club, society, or association, the member is—

(i)an officer or a member of the recipient; or

(ii)a part of the immediate family of an officer or a member of the recipient; or

(d)the member is, or has been, the recipient’s lawyer or is under a professional obligation to the recipient in another professional capacity; or

(e)the member is, or has been, employed by the recipient, or is, or has been, indebted to the recipient, or is, or has been, involved in business or financial dealings with the recipient; or

(f)the member is otherwise connected or involved with the recipient in a way that can reasonably be perceived as having influenced the decision to make the grant to the recipient.

(4B)A corporate society must, in accordance with the regulations, provide the Secretary with an electronic version of every statement published under subsection (4).

(5)A corporate society that fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

(6)In this section,—

applicant means persons or groups who have applied to the corporate society for grants of net proceeds from class 4 gambling

net proceeds committee means a committee established under the regulations to make decisions on the application or distribution of net proceeds to or for an authorised purpose specified in the licence

part of the immediate family, in relation to an officer or a member of a corporate society’s net proceeds committee, means a person—

(a)who is the member’s—

(i)spouse, civil union partner, or de facto partner; or

(ii)parent, child, sister, or brother; or

(b)who is the parent, child, sister, or brother of the member’s spouse, civil union partner, or de facto partner

publish means to publish in accordance with the regulations

regulations means regulations made under section 114

reporting period, in relation to a statement of any kind required to be published under subsection (4), means the period prescribed by the regulations for a statement of that kind.

Section 110(1): amended, on 3 March 2015, by section 66(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 110(3)(c): amended, on 3 March 2015, by section 66(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 110(5): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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111Application or distribution of net proceeds when corporate society ceases class 4 gambling

(1)A corporate society that has not operated class 4 gambling for a period of more than 4 weeks must, unless it has notified the Secretary and the Secretary has agreed that it may remain inactive for a further specified period,—

(a)report to the Secretary within 20 working days of the end of that 4-week period on how and when it proposes to apply or distribute the remaining net proceeds to or for authorised purposes; and

(b)promptly sell all gambling assets and apply or distribute any gain above the book value from the sale of gambling assets to or for authorised purposes; and

(c)promptly apply or distribute all other remaining net proceeds from its conduct of class 4 gambling to or for authorised purposes.

(1A)A corporate society that has applied or distributed net proceeds in accordance with subsection (1)(b) or (c) must report to the Secretary on the relevant standard form, within 5 working days of the application or distribution to or for authorised purposes, on—

(a)any gain above the book value from the sale of gambling assets; and

(b)the final application or distribution of net proceeds from class 4 gambling under subsection (1).

(2)A corporate society that fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

Section 111(1): replaced, on 3 March 2015, by section 67 of the Gambling Amendment Act 2015 (2015 No 3).

Section 111(1A): inserted, on 3 March 2015, by section 67 of the Gambling Amendment Act 2015 (2015 No 3).

Section 111(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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112Orders regarding application or distribution of net proceeds

(1)The Secretary may apply for orders in accordance with subsections (2) and (3) if—

(a)a corporate society ceases to conduct class 4 gambling, whether temporarily or permanently; or

(b)a corporate society fails to apply or distribute net proceeds from class 4 gambling within a time period prescribed by regulations made under section 114; or

(c)the Secretary considers that it is necessary in order to recover net proceeds from class 4 gambling that have been improperly paid to a person.

(2)An application for an order must be made to—

(a)the High Court if the net proceeds from class 4 gambling are, or are estimated to be, more than $350,000; or

(b)the District Court if the net proceeds from class 4 gambling are, or are estimated to be, $350,000 or less.

(3)On application by the Secretary under this section, the High Court or the District Court may—

(a)make whatever orders are necessary to recover an amount improperly paid out, applied, or distributed; or

(b)order the application or distribution of an amount not yet applied or distributed.

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113Key persons must not be involved in certain activities or decisions

(1)A key person in relation to a class 4 venue licence, the application for which was required under section 65(3) to be accompanied by a class 4 venue agreement, applies must not—

(a)provide application forms for persons or groups in the community to complete in order to apply for grants of net proceeds from class 4 gambling; or

(b)be involved in decisions about, or in managing, the application or distribution of net proceeds from class 4 gambling conducted by a corporate society that operates at the venue (whether or not the net proceeds derive from that venue); or

(c)provide, or be involved in decisions about who will provide, goods or services to the corporate society that conducts gambling at the class 4 venue; or

(d)provide, or be involved in decisions about who will provide, goods or services to recipients of grants of net proceeds from class 4 gambling conducted by a corporate society at the venue if the goods or services constitute at least part of the authorised purpose for which net proceeds were granted; or

(e)be involved in decisions about who will provide goods or services to recipients of grants of net proceeds from class 4 gambling conducted by a corporate society that operates at the venue (whether or not the net proceeds derive from that venue) if the goods or services constitute at least part of the authorised purpose for which net proceeds were granted.

(1A)Subsection (1)(c) does not apply—

(a)to a person who is a key person in relation to the class 4 venue licence only because that person services gambling equipment at the class 4 venue; or

(b)to the provision of services listed in the class 4 venue agreement.

(2)A key person in relation to a class 4 venue licence who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

(3)A key person in relation to an operator’s licence or the holder of a class 4 operator’s licence who knowingly allows a key person in relation to a class 4 venue licence to contravene this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

Section 113(1): amended, on 3 March 2015, by section 68(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 113(1): amended, on 3 March 2015, by section 68(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 113(1)(c): replaced, on 3 March 2015, by section 68(3) of the Gambling Amendment Act 2015 (2015 No 3).

Section 113(1A): inserted, on 3 March 2015, by section 68(4) of the Gambling Amendment Act 2015 (2015 No 3).

Section 113(2): amended, on 3 March 2015, by section 68(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 113(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 113(3): amended, on 3 March 2015, by section 68(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 113(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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114Regulations regarding application or distribution of net proceeds from class 4 gambling

(1)The Governor-General may, by Order in Council, make regulations for all or any of the following purposes relating to the application and distribution of net proceeds from class 4 gambling:

(a)prescribing the amount (or a minimum amount) that a corporate society must allocate for application, apply, or distribute to or for authorised purposes, and that amount may be prescribed as a specific amount or as a percentage (for example, as a percentage of turnover, player expenditure, or net proceeds):

(b)prescribing a time period within which the application or distribution to or for authorised purposes of net proceeds from class 4 gambling must occur:

(c)prescribing requirements for advertising the availability of net proceeds from class 4 gambling for distribution:

(d)prescribing requirements for the methods and processes used to deal with applications for the distribution of net proceeds from class 4 gambling:

(e)prescribing requirements for the publication of information about the application and distribution of net proceeds from class 4 gambling, which may, without limitation, include requirements that information of that kind, or any class of information of that kind, be published—

(i)in a stated manner, location, or form:

(ii)in an electronic form as well as, or instead of, a non-electronic form:

(f)prescribing any matter to be disclosed in a statement published under section 110(4), and the form in which those matters must be disclosed in that statement:

(g)prescribing the form of the electronic version required to be provided under section 110(4B) and the manner in which, and the time within which, it must be provided:

(h)specifying the reporting period to which a statement published under section 110(4) must relate, and different reporting periods may be specified for different cases:

(i)specifying intervals that are shorter than 12 months at which a statement under section 110(4) must be published, and different intervals may be specified for different cases:

(j)requiring that a portion of the proceeds of class 4 gambling (which may be specified or determined by a specified formula or definition) be applied or distributed to or for authorised purposes in, or operating in, the geographical area from which those proceeds were derived:

(k)setting out how geographical areas are to be identified or defined for the purposes of the regulations, and different definitions may be adopted for different purposes:

(l)prescribing the criteria or circumstances under which a corporate society may retain net proceeds to maintain financial viability:

(m)limiting the amount of the net proceeds of class 4 gambling that may be applied or distributed to or for authorised purposes in, or operating in, outside the geographical area from which those net proceeds were derived:

(n)imposing rules about the application or distribution of net proceeds that are not required to be, or are not prohibited from being, applied or distributed to or for authorised purposes in, or operating in, a particular geographical area:

(o)prescribing any other matters concerning the management, application, or distribution of net proceeds.

(2)Regulations made under subsection (1) may apply—

(a)to specified licence holders or classes of licence holder; or

(b)in respect of specified venues or classes of venue; or

(c)in respect of specified gambling equipment or classes of gambling equipment; or

(d)in respect of specified games or classes of games.

(3)[Repealed]

Section 114(1)(a): amended, on 3 March 2015, by section 69(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 114(1)(b): amended, on 3 March 2015, by section 69(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 114(1)(e): replaced, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(f): replaced, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(g): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(h): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(i): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(j): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(k): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(l): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(m): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(n): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(1)(o): inserted, on 21 October 2015, by section 23(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 114(3): repealed, on 21 October 2015, by section 23(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

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115Payment of commission prohibited

(1)The payment of, or receipt of, commission by any person for conducting class 4 gambling is prohibited.

(1A)Subsection (1) does not apply to commission payments made to a venue operator if the payment complies with regulations made under section 371(1)(dd).

(2)A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.

Section 115(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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115A

Duty on grant recipients

(1)A grant recipient who receives a grant of net proceeds from class 4 gambling must use the grant—

(a)only for the specific authorised purpose for which it was granted; and

(b)in accordance with any conditions consistent with this Act attaching to the grant.

(2)A grant recipient who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.

Section 115A: inserted, on 3 March 2015, by section 70 of the Gambling Amendment Act 2015 (2015 No 3).

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116Secretary may limit or exclude operating costs of corporate society

(1)The Secretary may, by notice in the Gazette,—

(a)set limits on, or exclude, the operating costs that may be incurred by a corporate society that conducts class 4 gambling:

(b)set the rates of depreciation for gambling assets acquired by a corporate society in respect of class 4 gambling.

(2)A notice under subsection (1) may apply to specified licence holders or to classes of licence holder.

(3)A limit may be expressed in any way that the Secretary considers appropriate, for example,—

(a)as a specific amount:

(b)as a percentage:

(c)as an amount for each gaming machine.

(4)A contract or other arrangement or obligation entered into by a corporate society, whether before or after the enactment of this Act, that does not comply with limits set under subsection (1) is an illegal contract for the purposes of subpart 5 of Part 2 of the Contract and Commercial Law Act 2017.

(5)A notice given under subsection (1) is a disallowable instrument, but not a legislative instrument, for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

(6)In this section, operating costs—

(a)includes the following:

(i)costs of operating the corporate society, including fees, salary, expenses, or any other payments to a key person, to a management services provider, or to another person involved in operating the corporate society:

(ii)costs associated with repairing and maintaining gambling equipment; but

(b)does not include any payment made to a venue operator

Section 116(1): replaced, on 3 March 2015, by section 71 of the Gambling Amendment Act 2015 (2015 No 3).

Section 116(6): replaced, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

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117Secretary may investigate and audit licensees, grant recipients, management services providers, and businesses at class 4 venues

(1)The Secretary may, to the extent that is necessary to determine compliance with this Act, investigate and audit the generation, application, and distribution of the proceeds from class 4 gambling, which may include—

(a)an investigation and audit of the holder of a class 4 operator’s licence or a class 4 venue licence:

(b)an investigation and audit of a grant recipient:

(ba)an investigation and audit of a management services provider:

(c)an investigation and audit of a business operating at a class 4 venue.

(2)The persons referred to in subsection (1) must provide any information required by the Secretary for the purpose of carrying out an investigation or audit under that subsection.

(3)The Secretary may publish, or require the corporate society to publish, in the form that the Secretary considers appropriate—

(a)the results of the investigation and audit:

(b)a summary of the results of the investigation and audit with details of where to obtain the full results.

(4)The Secretary may recover the costs of investigating or auditing from the holder of class 4 operator’s licences in accordance with regulations made under section 370.

(5)A person who fails to comply with this section commits an offence and is liable on conviction to a fine not exceeding $5,000.

Section 117 heading: amended, on 21 October 2015, by section 26(1) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 117(1): amended, on 3 March 2015, by section 72 of the Gambling Amendment Act 2015 (2015 No 3).

Section 117(1)(ba): inserted, on 21 October 2015, by section 26(2) of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

Section 117(5): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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118Certain persons must not seek, receive, or offer benefits with improper conditions attached

(1)A holder of, or key person in relation to, a class 4 operator’s licence or a class 4 venue licence must not knowingly receive or seek money, a benefit, an advantage, a privilege, or a gift from the following persons if the receipt has an improper condition attached to it and whether the receipt or condition is direct, indirect, formal, informal, or otherwise:

(a)a grant recipient or potential grant recipient:

(b)a person that sells, repairs, services, or maintains gambling equipment.

(2)A key person in relation to a class 4 venue licence must not knowingly receive or seek money, a benefit, an advantage, privilege, or gift from the following persons, if the receipt has an improper condition attached to it and whether the receipt or condition is direct, indirect, formal, informal, or otherwise:

(a)a holder of a class 4 operator’s licence:

(b)a key person in relation to a class 4 operator’s licence.

(3)A holder of, or key person in relation to, a class 4 operator’s licence, or person that sells, repairs, services or maintains gambling equipment must not knowingly offer money, a benefit, an advantage, a privilege, or a gift to the following persons if the receipt has an improper condition attached to it and whether the receipt or condition is direct, indirect, formal, informal, or otherwise:

(a)a grant recipient or potential grant recipient:

(b)a key person in relation to a class 4 venue licence.

(3A)Any other person involved in making decisions on grant applications made to the holder of a class 4 operator’s licence must not knowingly receive or seek money, a benefit, an advantage, a privilege, or a gift from a grant recipient (or potential grant recipient) if the receipt has an improper condition attached to it, and whether the receipt or condition is direct, indirect, formal, informal, or otherwise.

(3B)A holder of a class 4 operator’s licence or a class 4 venue licence, or a key person in relation to a class 4 operator’s licence or a class 4 venue licence, must not knowingly receive any money, a benefit, an advantage, a privilege, or a gift that could reasonably be perceived as influencing decisions taken, or to be taken, on applications for grants, whether the receipt is direct, indirect, formal, informal, or otherwise.

(4)To avoid doubt, subsections (2) and (3) do not prevent the holder of a class 4 operator’s licence from paying a key person in relation to a class 4 venue the costs associated with the class 4 venue if the payment—

(a)complies with section 115 and regulations made under section 371; and

(b)is consistent with the relevant venue agreement; and

(c)is otherwise lawful.

(5)A person who contravenes this section commits an offence and is liable on conviction to a fine not exceeding $10,000.

(6)To avoid doubt, this section applies whether—

(a)where an improper condition is an element of an offence, the condition is attached either before or after the money, benefit, advantage, privilege, or gift is received by the person concerned; or

(b)any money, benefit, advantage, privilege, or gift is actually received by the person concerned.

Section 118 heading: amended, on 21 October 2015, by section 27(1) of the Gambling Amendment

Act (No 2) 2015 (2015 No 90).

Section 118(1): amended, on 21 October 2015, by section 27(2) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(2): amended, on 21 October 2015, by section 27(2) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(2)(a): amended, on 21 October 2015, by section 27(3) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(2)(b): amended, on 21 October 2015, by section 27(3) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(3): amended, on 21 October 2015, by section 27(2) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(3A): inserted, on 3 March 2015, by section 73(1) of the Gambling Amendment Act 2015

(2015 No 3).

Section 118(3A): amended, on 21 October 2015, by section 27(2) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(3B): inserted, on 21 October 2015, by section 27(4) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(4): replaced, on 21 October 2015, by section 27(4) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(5): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011

No 81).

Section 118(6)(a): amended, on 21 October 2015, by section 27(5) of the Gambling Amendment Act

(No 2) 2015 (2015 No 90).

Section 118(6)(a): amended, on 3 March 2015, by section 73(2) of the Gambling Amendment Act

2015 (2015 No 3).

Section 118(6)(b): amended, on 3 March 2015, by section 73(2) of the Gambling Amendment Act

2015 (2015 No 3).

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New Zealand Gambling Law Guide

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Part 2 - Gambling - Subpart 4 - Licensing of class 4 gambling

50 Application for class 4 operator's licence

51 Secretary must investigate applicant for class 4 operator's licence

52 Grounds for granting class 4 operator's licence

52A Circumstances in which corporate society may apply net proceeds to authorised purpose

53 Content and conditions of class 4 operator's licence

53A Continuing obligations of class 4 operator

54 Significant changes in relation to class 4 operator's licence must be notified

55 Change of purpose and winding up provisions of holder of class 4 operator's licence ineffective without approval

56 Renewal of class 4 operator's licence

57 Amending class 4 operator's licence

58 Suspension or cancellation of class 4 operator's licence

59 Procedure for suspending, cancelling, or refusing to amend or renew class 4 operator's licence

60 Consequences of suspension, cancellation, or refusal to amend or renew class 4 operator's licence

61 Appeal to Gambling Commission regarding class 4 operator's licence

62 Consequences of appeal regarding class 4 operator's licence

63 Surrender of class 4 operator's licence

64 Class 4 operator's licence not transferable

65 Application for class 4 venue licence

66 Secretary must investigate applicant for class 4 venue licence

67 Grounds for granting class 4 venue licence

68 Determining suitability for class 4 venue licence

69 Form and content of class 4 venue agreement

69A Continuing obligations of corporate society in relation to class 4 venue licence

70 Content and conditions of class 4 venue licence

71 Significant changes in relation to class 4 venue licence must be notified

72 Renewal of class 4 venue licence

73 Amending class 4 venue licence

74 Suspension or cancellation of class 4 venue licence

75 Procedure for suspending, cancelling, or refusing to amend or renew class 4 venue licence

76 Consequences of suspension, cancellation, or refusal to amend or renew class 4 venue licence

77 Appeal to Gambling Commission regarding class 4 venue licence

78 Consequences of appeal regarding class 4 venue licence

79 Surrender of class 4 venue licence

80 Class 4 venue licence not transferable

81 Complaints to Secretary

82 Certain information must be displayed at class 4 venue

83 Obligation on disposal of gaming machines

84 Prohibition on certain gaming machines in class 4 venue

85 Disabling gambling equipment

86 Holder of class 4 operator's licence must connect to electronic monitoring system

87 Functions of electronic monitoring system

88 Secretary may select monitor

89 Notification required

90 Register of class 4 venue licences must be maintained

91 No compensation

92 Limit on number of gaming machines for which class 4 venue licence held on 17 October 2001

93 Limit on number of gaming machines for which class 4 venue licence granted after 17 October 2001 but before commencement

94 Limit on number of gaming machines for venue with venue licence granted after commencement

95 Ministerial discretion to permit more gaming machines if clubs merge

96 Ministerial discretion to permit more than 9 machines at certain class 4 venues

97 Power to issue, renew, or amend class 4 licence may be overridden

97A Effect of relocation

98 When territorial authority consent is required

99 Application for territorial authority consent

100 Considering and determining application for territorial authority consent

101 Territorial authority must adopt class 4 venue policy

102 Adoption and review of class 4 venue policy

103 Provision of information relating to class 4 venues in territorial authority district

104 Gaming machine profits must be banked

105 Interest, etc, on gaming machine profits

105A Management of gaming machine profits bank account

106 Corporate society must apply or distribute net proceeds from class 4 gambling to or for authorised purpose

107 Corporate society must provide annual report to Secretary

108 Contents of annual report

108A Audit must be carried out in accordance with auditing and assurance standards

108B Clubs that operate gambling equipment at non-commercial class 4 venues must make financial statements available to members

108C Other corporate societies must make financial statements available on Internet

109 Annual review of criteria for distribution of net proceeds

110 Publication requirements for corporate societies

111 Application or distribution of net proceeds when corporate society ceases class 4 gambling

112 Orders regarding application or distribution of net proceeds

113 Key persons must not be involved in certain activities or decisions

114 Regulations regarding application or distribution of net proceeds from class 4 gambling

115 Payment of commission prohibited

115A Duty on grant recipients

116 Secretary may limit or exclude costs of corporate society

117 Secretary may investigate and audit licensees, grant recipients, and businesses at class 4 venues