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Part 2 - Gambling - Subpart 2 - Classes of gambling

20 Overview

Subpart 2—Classes of gambling

 

Overview

 

20Overview
(1)This Act divides gambling into the following 6 legal classes:
(a)class 1 gambling (no licence required):
(b)class 2 gambling (no licence required):
(c)class 3 gambling (class 3 operator's licence required):
(d)class 4 gambling (class 4 operator's and venue licences required):
(e)casino gambling (casino operator's and venue licences required):
(f)gambling conducted by the Lotteries Commission.

 

(2)Additionally, this Act—
(a)authorises private gambling; and
(b)authorises sales promotion schemes; and
(c)recognises gambling authorised by or under the Racing Industry Act 2020.

 

21 Secretary may categorise gambling

21Secretary may categorise gambling
(1)The Secretary may, by notice in the Gazette, categorise any game, or category or class of game, or form of gambling, as being included in or excluded from a class of gambling if the Secretary considers that—
(a)the categorisation contributes to achieving the purpose of this Act; and
(b)the level of risk associated with the game, or category or class of game, or form of gambling justifies the categorisation.

 

(2)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.

 

Section 21(1): replaced, on 3 March 2015, by section 12 of the Gambling Amendment Act 2015 (2015 No 3).

Section 21(2): replaced, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

 

22 Meaning of class 1 gambling

Class 1 gambling

 

22Meaning of class 1 gambling

In this Act, class 1 gambling is gambling that satisfies the following criteria:

(a)either—
(i)the turnover of the gambling plus interest or other investment return on those proceeds less any actual, reasonable, and necessary costs incurred in conducting the gambling is applied to reward the winners of the gambling if the gambling is conducted by a person other than a society; or
(ii)the net proceeds from the gambling are applied or distributed to authorised purposes if the gambling
(b)the total value of prizes offered or awarded to the winners of the gambling activity, or to the winners in 1 session (if the gambling is conducted in sessions of more than 1 game), does not exceed $500; and
(c)the potential turnover involved in the gambling activity, or in 1 session of gambling (if the gambling is conducted in sessions of more than 1 game), does not exceed $500; and
(d)if the gambling is conducted in sessions of more than 1 game, a society conducts no more than 1 session per day; and

(da)there are game rules for the gambling; and

(e)the gambling, and the conduct of the gambling, satisfies relevant regulations and game rules; and
(f)the gambling does not utilise or involve a gaming machine, directly or indirectly; and
(g)no commission is offered or paid to, or received by, a person for conducting the gambling; and
(h)no remuneration is offered or paid to, or received by, a person for conducting the gambling, except a caller of housie or an authorised representative of a society if the gambling is conducted by a society; and
(i)the Secretary has not categorised the gambling as another class of gambling.

 

Section 22(a)(i): amended, on 15 December 2005, by section 4 of the Gambling Amendment Act (No 2) 2005 (2005 No 104).

Section 22(da): inserted, on 3 March 2015, by section 13(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 22(e): amended, on 3 March 2015, by section 13(2) of the Gambling Amendment Act 2015 (2015 No 3).

 

23 No licence required

23No licence required

Class 1 gambling may be conducted by a person without a licence under this Act.

 

24 Meaning of class 2 gambling

Class 2 gambling

 

24Meaning of class 2 gambling
(1)In this Act, class 2 gambling is gambling that satisfies the following criteria and the requirements specified in section 25:
(a)the net proceeds from the gambling are applied or distributed to authorised purposes; and
(b)the total value of prizes offered or awarded to the winners of the gambling activity, or to the winners in 1 session (if the gambling is conducted in sessions of more than 1 game), does not exceed $5,000; and
(c)the potential turnover involved in the gambling activity, or in 1 session of gambling (if the gambling is conducted in sessions of more than 1 game), does not exceed $25,000; and
(d)if the gambling is conducted in sessions of more than 1 game, a society conducts no more than 1 session per week; and

(da)there are game rules for the gambling; and

(e)the gambling, and the conduct of the gambling, satisfies relevant regulations and game rules; and
(f)the gambling does not utilise or involve a gaming machine, directly or indirectly; and
(g)no commission is offered or paid to, or received by, a person for conducting the gambling; and
(h)no remuneration is offered or paid to, or received by, a person for conducting the gambling, except a caller of housie or an authorised representative of a society; and
(i)the Secretary has not categorised the gambling as another class of gambling.

 

(2)To avoid doubt, class 2 gambling is gambling that is not class 1 gambling.

 

Section 24(1)(b): amended, on 15 December 2005, by section 5(1) of the Gambling Amendment Act (No 2) 2005 (2005 No 104).

Section 24(1)(c): amended, on 15 December 2005, by section 5(1) of the Gambling Amendment Act (No 2) 2005 (2005 No 104).

Section 24(1)(da): inserted, on 3 March 2015, by section 14(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 24(1)(e): amended, on 3 March 2015, by section 14(2) of the Gambling Amendment Act 2015 (2015 No 3).

Section 24(2): added, on 15 December 2005, by section 5(2) of the Gambling Amendment Act (No 2) 2005 (2005 No 104).

 

25 Requirements for class 2 gambling

25Requirements for class 2 gambling

The requirements for class 2 gambling are that—

(a)the winners may claim prizes or rewards without incurring costs additional to the cost of participation:
(b)the following information is published at the point of sale:
(i)the name of the society:
(ii)the name and address of the organiser of the gambling:
(iii)the authorised purposes for which the gambling is conducted, stated specifically:
(iv)when entries close:
(v)details of where, when, and how results will be made available:
(vi)the value and characteristics of the prize or reward to be won:
(vii)the cost of entry:
(viii)the total number of tickets offered in the gambling:
(ix)the process for determining the winners:
(c)the organiser of the gambling is a member or an authorised representative of a society:
(d)except for housie, advertisements or notices soliciting entries include the name of the society, the name and address of the organiser, and the authorised purposes for which funds are being raised:
(e)the prizes or rewards offered, and the authorised purposes for which the gambling is conducted, remain unchanged after tickets are first offered for sale:
(f)every ticket sold, and no other ticket, is included or represented when the result is determined:
(g)neither the society nor the organiser holds a ticket:
(h)unless paragraph (i) or paragraph (j) applies, the result is—
(i)declared within 3 months of tickets first being offered for sale and within 14 days after ticket sales cease; and
(ii)notified publicly within 1 week after it is declared:
(i)if the gambling is ancillary to entertainment, the result must be declared while the entertainment continues:
(j)if the gambling is housie, the result must be declared during the housie session:
(k)prizes or rewards are given only to the persons who win:
(l)the society provides the following information to the Secretary, on request by the Secretary, within 14 days of that request:
(i)an audited statement of the receipts and payments from the gambling:
(ii)the name of each person who conducted the gambling, and any remuneration paid to, or received by, the person for doing so:
(m)if a prize or reward is unclaimed within 3 months of the declaration of a result, it may be disposed of according to the Secretary's directions:
(n)if a prize or reward is unclaimed within 3 months of the declaration of a result, the society must notify the Secretary within 10 working days.

 

26 No licence required

26No licence required

Class 2 gambling may be conducted by a society without a licence under this Act.

 

27 Meaning of class 3 gambling

Class 3 gambling

 

27Meaning of class 3 gambling

In this Act, class 3 gambling is gambling that satisfies the following criteria:

(a)the net proceeds from the gambling are applied or distributed to authorised purposes; and
(b)the total value of the prizes offered or awarded to the winners of the gambling activity, or to the winners of 1 session (if the gambling is conducted in sessions of more than 1 game), exceeds $5,000; and

(ba)there are game rules for the gambling; and

(c)the gambling, and the conduct of the gambling, satisfies relevant game rules; and
(d)the gambling does not utilise or involve a gaming machine, directly or indirectly; and
(e)no commission is offered or paid to, or received by, a person for conducting the gambling, except a licensed promoter; and
(f)the Secretary has not categorised the gambling as another class of gambling.

 

Section 27(ba): inserted, on 3 March 2015, by section 15(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 27(c): amended, on 3 March 2015, by section 15(2) of the Gambling Amendment Act 2015 (2015 No 3).

28 Requirements for class 3 gambling

28Requirements for class 3 gambling
(1)Class 3 gambling that is not conducted regularly may be conducted only by a society that holds a class 3 operator's licence for the gambling.

 

(2)Class 3 gambling that is conducted regularly may be conducted only by a corporate society that holds a class 3 operator's licence for the gambling.

 

(3)A licensed promoter may promote only class 3 gambling that is not conducted regularly.

 

(4)In this section, gambling is conducted regularly if it is conducted in sessions of more than 1 game.

 

29 Existing licences class 3 operators' licences

29Existing licences class 3 operators' licences

A licence issued under section 8 of the Gaming and Lotteries Act 1977 (except for an existing gaming machine licence), or section 26, or section 35 of that Act becomes, and must be treated as if it were a class 3 operator's licence.

 

30 Meaning of class 4 gambling

Class 4 gambling

 

30Meaning of class 4 gambling

In this Act, class 4 gambling is gambling that satisfies the following criteria:

(a)the net proceeds from the gambling are applied to, or distributed for, authorised purposes; and
(b)either –
(i)no commission is paid to or received by a person for conducting the gambling; or
(ii)the only commission that is paid to or received by a person for conducting the gambling is a commission payment to a venue operator that complies with regulations made under section 371(1)(dd); and
(c)there are game rules for the gambling; and
(d)the gambling, and the conduct of the gambling, satisfies relevant game rules; and
(e)either—
(i)the Secretary has categorised the gambling as class 4 gambling and not as another class of gambling; or
(ii)the gambling utilises or involves a gaming machine.

Section 30: replaced, on 3 March 2015, by section 16 of the Gambling Amendment Act 2015 (2015 No 3).

 

31 Requirements for class 4 gambling

31Requirements for class 4 gambling

Class 4 gambling may be conducted only by a corporate society that holds—

(a)a class 4 operator's licence for the gambling; and
(b)a class 4 venue licence for the place where the gambling is conducted.

 

32 Existing gaming machine licences and site approvals

32Existing gaming machine licences and site approvals
(1)Despite section 375, an existing gaming machine licence held on the commencement of this section becomes, and must be treated as if it were, a class 4 operator's licence.

 

(2)A site approval held on the commencement of this section becomes, and must be treated as if it were, a class 4 venue licence (and expires on the same date as the relevant operator's licence).

 

(3)For the purposes of sections 56, 57, 72, and 73, the Secretary may treat a corporate society as the holder of a class 4 operator's licence or class 4 venue licence if the Secretary is satisfied that it is the same, or substantially the same, entity as the society that held an existing gaming machine licence on the commencement of this section.

 

33 Status of TAB NZ and racing clubs

33Status of TAB NZ and racing clubs
(1)TAB NZ and societies that are racing clubs under the Racing Industry Act 2020 must be treated as corporate societies—
(a)for the purposes of—
(i)a class 4 operator’s licence or class 4 venue licence; or
(ii)an application for, or the renewal or amendment of, either licence; and
(b)that, for the purposes of a class 4 operator’s licence or a class 4 venue licence, apply net proceeds from class 4 gambling to an authorised purpose.

 

(1A)Despite subsection (1)(b) and to avoid doubt, section 52A does not apply to TAB NZ or a racing club.

 

(2)A class 4 venue licence may be issued to TAB NZ or a racing club to conduct class 4 gambling only at—
(a)a venue owned or leased by TAB NZand used mainly for racing betting or sports betting; or
(b)a racecourse.

 

(3)However, a class 4 venue licence may not be issued to TAB NZ or a racing club if another corporate society (other than TAB NZ or that racing club)—
(a)holds a class 4 venue licence for the venue; or
(b)held a class 4 venue licence for the venue at any time during the 5-year period immediately before the date on which the application for the licence is made.

Section 33(1): replaced, on 3 March 2015, by section 17 of the Gambling Amendment Act 2015 (2015 No 3).

Section 33(1A): inserted, on 3 March 2015, by section 17 of the Gambling Amendment Act 2015 (2015 No 3).

Section 33(3): inserted, on 21 October 2015, by section 8 of the Gambling Amendment Act (No 2) 2015 (2015 No 90).

 

34 Meaning of casino gambling

34Meaning of casino gambling

In this Act, casino gambling—

(a)means gambling—
(i)for which there are game rules; and
(ii)that satisfies those game rules; and
(iii)which is conducted in accordance with those game rules; and
(iv)to which both a casino venue licence and casino operator’s licence apply; but
(b)does not include gambling conducted by TAB NZ referred to in section 120.

 

Section 34: replaced, on 3 March 2015, by section 18 of the Gambling Amendment Act 2015 (2015 No 3).