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Part 3 - Institutions - Subpart 2 - New Zealand Lotteries Commission

236 New Zealand Lotteries Commission

Subpart 2—New Zealand Lotteries Commission

 

New Zealand Lotteries Commission

 

236New Zealand Lotteries Commission
(1)The New Zealand Lotteries Commission established under section 72 of the Gaming and Lotteries Act 1977 is continued in existence.

 

(2)Repealed.

 

237 Crown entity status

[

237Crown entity status
(1)The Lotteries Commission is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

 

(2)The Crown Entities Act 2004 applies to the Lotteries Commission except to the extent that this Act expressly provides otherwise.]

 

238 Functions of Lotteries Commission

238Functions of Lotteries Commission

The functions of the Lotteries Commission are—

(a)to promote, organise, and conduct New Zealand lotteries for the purpose of generating profits for distribution by the New Zealand Lottery Grants Board, or for a community purpose for which a special purpose lottery is promoted under section 245:
(b)to maximise profits so generated, subject to ensuring that the risk of problem gambling and underage gambling is minimised:
(c)to make rules regulating the conduct and operation of New Zealand lotteries in accordance with section 243:
(d)to advise the Minister on matters relating to New Zealand lotteries.

 

Compare: 1977 No 84 s 83

Section 238(b): amended, on 3 March 2015, by section 91 of the Gambling Amendment Act 2015 (2015 No 3).

 

239 Capacity and powers (Repealed)

239Capacity and powers (Repealed)

 

240 Board of Lotteries Commission

240Board of Lotteries Commission
(1)The board of the Lotteries Commission consists of at least 2, and not more than 9, members.

 

(2)Members of the Lotteries Commission are the board for the purposes of the Crown Entities Act 2004.

 

Section 240: substituted, on 25 January 2005, by section 200 of the Crown Entities Act 2004 (2004 No 115).

Section 240(1): amended, on 3 March 2015, by section 92 of the Gambling Amendment Act 2015 (2015 No 3).

 

241 Further provisions about Lotteries Commission

241Further provisions about Lotteries Commission

Schedule 4 applies to the Lotteries Commission, its board members, its procedures, its employees, and related matters.

 

242 Ministerial directions

242Ministerial directions
(1)Repealed.

 

(2)Written directions given by the Minister … may require the Lotteries Commission to vary or revoke any rule made under section 243 or under previous gaming Acts, or to make a new rule under that section.

 

(3)The Minister must consult with the Lotteries Commission before giving a direction to it.

 

(4)As soon as practicable after giving a direction under this section, the Minister must—
(a)publish a copy of it in the Gazette ; and
(b)present a copy of it to the House of Representatives.

 

(5)A direction may be amended or revoked in the same way as it may be given.

 

[

(6)The Lotteries Commission must give effect to a direction under subsection (2) despite section 104 of the Crown Entities Act 2004.]

 

243 Lottery rules

Operation of New Zealand lotteries

 

243Lottery rules
(1)The Lotteries Commission may make rules not inconsistent with this Act for or with respect to the conduct and operation (including the establishment and distribution of prize funds) of New Zealand lotteries or any type of New Zealand lotteries.

 

(2)The rules must be approved by the Minister before being made.

 

(3)Any rules made under this section take effect on and from the date of their notification in the Gazette, or any later date that is specified in the rules.

 

(4)Rules made under this section may authorise designs or specifications or other matters of detail to be determined by the Lotteries Commission, and may not be challenged on the ground that they leave such matters to the discretion of the Commission.

 

(5)Despite subsection (4), the Minister may, in writing to the Lotteries Commission, require that any design, specification, or other matter of detail be incorporated in rules and not left to the discretion of the Commission.

 

(6)In making any rules under this section, the Lotteries Commission must have regard to the desirability of—
(a)minimising the risk of players or participants in New Zealand lotteries becoming problem gamblers; and
(b)minimising the risk of under-age gambling.

[

(7)Rules made under this section are a legislative instrument and 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.]

 

244 Minister may require Lotteries Commission products to comply with regulations and minimum standards

244Minister may require Lotteries Commission products to comply with regulations and minimum standards
(1)The Minister may, by notice to the Lotteries Commission,—
(a)require that any New Zealand lottery or class of New Zealand lotteries must comply with the requirements of any regulations or minimum standards made under section 313 or section 327; and
(b)accordingly, require the Commission to vary or revoke any relevant rule made under section 243, or make a new rule under that section, to ensure compliance.

 

(2)The Minister must cause a copy of the notice to be published in the Gazette.

[

(3)A notice given under this section 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.]

 

245 Special purpose lotteries

245Special purpose lotteries
(1)The Minister may, from time to time, instruct the Lotteries Commission to promote a New Zealand lottery for any community purpose that the Minister thinks fit.

 

(2)In this section, community purpose has the same meaning as in section 277.

 

[

(3)An instruction under this section is a direction for the purposes of the Crown Entities Act 2004.]

 

246 Lotteries Commission may determine additional prizes

246Lotteries Commission may determine additional prizes

The Lotteries Commission may, from time to time, determine additional prizes to be distributed in accordance with a New Zealand lottery to—

(a)prize winners in any New Zealand lottery; or
(b)any particular class of such prize winners determined by the Commission.

 

247 Lottery proceeds

247Lottery proceeds
(1)Every selling agent of tickets in a New Zealand lottery must pay the proceeds that the agent accrues from the sale of tickets in the lottery, at times or intervals determined by the Lotteries Commission, into such account opened by the Commission … as the Commission directs.

 

(2)A selling agent may however deduct money from those proceeds as authorised by the Lotteries Commission.

 

(3)The Lotteries Commission must keep those proceeds in the account, or invest them in accordance with the provisions of the Trustee Act 1956 as to the investment of trust funds, until they are dealt with under section 263.

 

(4)Any interest accruing from an investment under subsection (3), or any proceeds from the realisation of such an investment, must be paid into the account referred to in subsection (1) and treated as part of the lottery proceeds on which the interest or realisation was accrued.

 

248 Method of drawing lottery

248Method of drawing lottery
(1)Every New Zealand lottery must be drawn and prizes allocated in a manner and under conditions determined by the Lotteries Commission.

 

(2)Subsection (1) is subject to any rules made under section 243 and any provisions specified by the Minister under section 244(1)(a).

 

249 Scrutiny of drawings and allocations

249Scrutiny of drawings and allocations

The Secretary and the Auditor-General must exercise the scrutiny that they determine necessary—

(a)to ensure the security and proper operation of the equipment, processes, and procedures used in connection with the drawing of a New Zealand lottery or an allocation; and
(b)over the drawing and accuracy of the official results of New Zealand lotteries.

 

250 Drawings to be open to public at discretion of Lotteries Commission

250Drawings to be open to public at discretion of Lotteries Commission
(1)Except as provided in subsection (2), the drawing of every New Zealand lottery must be open to the public.

 

(2)The Lotteries Commission may, from time to time, determine that the drawing of a particular type of New Zealand lottery is not to be open to the public. In making such a determination, the Commission must have regard to the method and frequency of the drawing and the technology used in the drawing.

 

(3)Where the drawing of a New Zealand lottery is open to the public, the Lotteries Commission must publicly notify or announce, in any manner that it thinks fit,—
(a)the time and place of the drawing; and
(b)in the case of a drawing that is to be broadcast, the time and channel or station of the drawing.

 

(4)Subsection (2) is subject to any rules made under section 243 and to any provisions specified by the Minister under section 244(1)(a).

 

251 Official result

251Official result
(1)Immediately after the drawing of any New Zealand lottery, the Lotteries Commission must—
(a)carry out any procedure for verification of the result for the time being agreed by the Commission, the Department, and the Auditor-General; and
(b)announce or display the official result in accordance with the rules for the type of New Zealand lottery to which the drawing relates.

 

(2)No person, other than a broadcaster with whom the Lotteries Commission specifically contracts for the purpose, may publish or broadcast the announced results of a New Zealand lottery before the official result is announced or displayed under subsection (1)(b).

 

(3)A person who contravenes subsection (2) commits an offence and is liable on … conviction to a fine not exceeding $200.

 

(4)In this section, official result means the result of drawing a New Zealand lottery under this Act.

 

252 Lottery prize fund

252Lottery prize fund
(1)All the money that constitutes the prize fund of a New Zealand lottery must be paid into a lottery prize fund account.

 

(2)The Lotteries Commission must pay out of the lottery prize fund account the prizes set for the relevant type of lottery in accordance with rules made under section 243 and any provisions specified by the Minister under section 244(1)(a).

 

(3)The money kept in the lottery prize fund account may be applied only towards the payment of prizes in New Zealand lotteries, except as provided in subsection (4).

 

(4)The Lotteries Commission may invest any money kept in the lottery prize fund account that is not immediately required for the payment of prizes—
(a)in any securities in which trust funds may be invested by the trustees in accordance with the Trustee Act 1956 or in accordance with any other statutory authority; or
(b)in any other manner that the Commission determines with the approval of the Minister.

 

(5)Any interest accruing from those investments, and any proceeds from the realisation of the investments,—
(a)must be paid into the lottery prize fund account; and
(b)forms, in accordance with any rules made under section 243 and any provisions specified by the Minister under section 244(1)(a), a prize pool for any lottery conducted at a later date.

 

253 Entitlement to prizes

253Entitlement to prizes
(1)The Lotteries Commission must pay the prizes of each New Zealand lottery to the participants who are entitled to those prizes in accordance with the official results of the drawing of that lottery and in accordance with any rules made under section 243 and any provisions specified by the Minister under section 244(1)(a).

 

(2)If, after the drawing of a lottery, no entitlement exists to a prize offered in the lottery, the amount of the prize must—
(a)be retained within the lottery prize fund account; and
(b)be dealt with in accordance with any rules made under section 243 and any provisions specified by the Minister under section 244(1)(a).

 

254 Claims to lottery prizes

254Claims to lottery prizes
(1)A participant who is entitled to a lottery prize may be required to submit evidence of his or her entitlement to the prize, in accordance with rules made under section 243 and any provisions specified by the Minister under section 244(1)(a), to the Lotteries Commission or to a selling agent of the Commission.

 

(2)If the Lotteries Commission or, if appropriate, the selling agent is satisfied that the participant is entitled to the prize, the Commission or agent must pay the participant the amount of the prize out of the money constituting the prize fund for the lottery.

 

(3)If the Lotteries Commission is not satisfied that a claiming participant is entitled to the prize claimed, the Commission must retain the amount of the prize in the lottery prize fund account until the question of entitlement is resolved.

 

(4)If it is determined that the entitlement exists, the Lotteries Commission must pay the amount of the prize in accordance with that determination.

 

(5)If it is determined that no entitlement exists, the Lotteries Commission must deal with the amount of the prize in accordance with section 256 as if it were an unclaimed prize.

 

(6)Despite anything in this section, no claim submitted to the Lotteries Commission under subsection (1) may be recognised if it is made later than 12 months after the drawing of the lottery to which it relates.

 

255 No entitlement to interest

255No entitlement to interest

A person is not entitled to the payment of interest in respect of a prize in a New Zealand lottery unless the Lotteries Commission had no reasonable grounds for—

(a)questioning entitlement to the prize; or
(b)withholding payment of the prize.

 

256 Unclaimed prizes

256Unclaimed prizes
(1)If any prize in a New Zealand lottery is not claimed within 12 months after the drawing of that lottery, or any prize in a New Zealand lottery that is an instant game is not claimed within 12 months after the date of closure of that instant game,—
(a)the Lotteries Commission must retain the prize in the lottery prize fund account, if so provided in rules made under section 243 or provisions specified by the Minister under section 244(1)(a); and
(b)the prize then forms, in accordance with those rules or provisions, a part of the prize pool for any New Zealand lottery conducted at a later date.

 

(2)If rules made under section 243 or provisions specified by the Minister under section 244(1)(a) do not provide for the retention of an unclaimed prize in the lottery prize fund account, then, at the expiry of the 12-month period that applies under subsection (1), the Lotteries Commission must pay the amount of the prize from the lottery prize fund account into such account opened under section 286 as the Secretary directs. The amount of the prize must then be dealt with as if it were part of the undistributed profits of New Zealand lotteries.

 

(3)For the purposes of this section, the date of closure of a New Zealand lottery that is an instant game is—
(a)the date on which the last ticket is sold, or any tickets remaining unsold are cancelled by the Lotteries Commission; or
(b)if provision is made by the Lotteries Commission for additional prizes in accordance with section 246, the date on which those additional prizes are determined.

 

257 Funds of Lotteries Commission

Financial provisions relating to Lotteries Commission

 

257Funds of Lotteries Commission

The funds of the Lotteries Commission consist of—

(a)all lottery proceeds set aside for expenses incurred or expected to be incurred in conducting lotteries and for the purposes of the Commission under section 263:
(b)all money advanced or made available to the Commission under section 288:
(c)all money received by the Commission by way of fees, rent, or otherwise in respect of—
(i)any real or personal properly vested in or controlled by the Commission; or
(ii)the performance or exercise of any of the functions or powers of the Commission:
(d)all money received by the Commission from the sale or other disposal of any of its real or personal property:
(e)all accumulations of income derived from any such money.

 

258 Bank accounts (Repealed)

258Bank accounts (Repealed)

 

259 Estimates of income and expenditure

259Estimates of income and expenditure
(1)The Lotteries Commission must, before 1 June in each financial year, prepare and submit to the Minister an estimate of the Commission's income and expenditure for the next financial year.

 

(2)The estimate must be approved by the Minister either—
(a)as submitted by the Lotteries Commission; or
(b)after it has been amended by the Commission in a manner required by the Minister.

 

(3)All expenditure by the Lotteries Commission in any financial year must be in accordance with the approved estimate for that year, unless the Minister expressly approves otherwise.

 

(4)The Commission must also promptly supply to the Secretary for Internal Affairs the information needed by the Secretary to enable him or her to comply with section 276(1).

 

260 Borrowing powers (Repealed)

260Borrowing powers (Repealed)

 

261 Loans

261Loans

The Lotteries Commission may, for the purpose of assisting in the promotion, organisation, and conduct of New Zealand lotteries, or for other purposes that the Minister approves,—

(a)make advances to any person or body corporate, with or without security, at the rates of interest that it determines or free of interest:
(b)guarantee to any person or body corporate, with or without security, advances made by any person or body corporate.

 

262 Investment of funds

260Investment of funds

The Lotteries Commission may invest any of its funds in accordance with the provisions of the Trustee Act 1956 as to the investment of trust funds.

 

263 Payment of profits

263Payment of profits
(1)Except as provided in subsection (2), the Lotteries Commission must, at the intervals or times that the Minister may direct, consistent with the estimate of income and expenditure approved by the Minister under section 259, pay its profits into such account opened under section 286 as the Secretary directs.

 

(2)The Minister may from time to time authorise the Lotteries Commission to retain the portion of its profits that the Minister thinks fit for the purposes of the Commission.

 

264 Exemption from income tax

264Exemption from income tax

The Lotteries Commission is exempt from the payment of income tax.

 

265 Financial year (Repealed)

265Financial year (Repealed)

 

266 Accounts and audit

266Accounts and audit
(1)Repealed.

 

(2)The financial statements that must be prepared by the Lotteries Commission under [Part 4 of the Crown Entities Act 2004] must include its financial transactions relating to the proceeds from sales of tickets in New Zealand lotteries and every special purpose lottery promoted under section 245.

 

(3)Repealed.

 

267 Protection of name

Other matters

 

267Protection of name
(1)No body may be incorporated or registered under any enactment or in any other manner—
(a)under the name “New Zealand Lotteries Commission” ; or
(b)under any other name that so resembles the name of the Lotteries Commission that it is likely to mislead any person.

 

(2)No person other than the Lotteries Commission may, either alone or with any other person,—
(a)trade or carry on business under the name “New Zealand Lotteries Commission” unless that person has carried on business continuously under the name of “New Zealand Lotteries Commission” since any date before 1 November 1986; or
(b)trade or carry on business under any other name, knowing that the name so resembles the name of the Lotteries Commission that it is likely to mislead any person.

 

(3)A person who contravenes subsection (2) commits an offence and is liable on … conviction to,—
(a)in the case of an individual,—
(i)a fine not exceeding $5,000; and
(ii)in the case of a continuing offence, a further fine not exceeding $500 for every day or part of a day during which the offence has continued:
(b)in the case of a body corporate,—
(i)a fine not exceeding $50,000; and
(ii)in the case of a continuing offence, a further fine not exceeding $5,000 for every day or part of a day during which the offence has continued.

 

268 Protection of product names

268Protection of product names
(1)No person other than the Lotteries Commission may, either alone or with any other person, promote, organise, or conduct any gambling—
(a)under the product names specified in subsection (3); or
(b)under any other name, knowing that the name so resembles a product name specified in subsection (3) that it is likely to mislead any person.

 

(2)A person who contravenes subsection (1) commits an offence and is liable on … conviction to,—
(a)in the case of an individual, a fine not exceeding $5,000:
(b)in the case of a body corporate,—
(i)a fine not exceeding $50,000; and
(ii)in the case of a continuing offence, a further fine not exceeding $5,000 for every day or part of a day during which the offence has continued.

 

(3)The specified product names are “Lotto Combo”, “Instant Kiwi”, and “Golden Kiwi”.

 

(4)Nothing in this section prevents the use by any person of the words “Lotto”, “Combo”, “Instant”, “Golden”, or “Kiwi” separately.

 

269 Contracts with other bodies (Repealed)

269Contracts with other bodies (Repealed)

 

270 Accounts of bodies assisting Lotteries Commission and audit of accounts

270Accounts of bodies assisting Lotteries Commission and audit of accounts
(1)A person, body corporate, or department that has entered into an arrangement, agreement, or contract [under section 17 of the Crown Entities Act 2004] to do anything as agent for the Lotteries Commission, or otherwise act on behalf of the Commission, in the promotion, organisation, or conduct of any New Zealand lottery must—
(a)keep full and true accounts of everything done by him, her, or it relating to the lottery in a manner and form approved by the Commission; and
(b)as soon as practicable after the end of each financial year, or (if earlier) after the termination of the arrangement, agreement, or contract,—
(i)prepare a statement of account of his, her, or its activities on behalf of the Commission during the year or other relevant period; and
(ii)on receipt of a written request from the Commission, submit the statement to the Commission.

 

(2)Every statement proposed under subsection (1) must be audited by the Auditor-General, who, for that purpose, has and may exercise all his or her powers under the Public Audit Act 2001.

 

(3)For the purposes of this section, financial year means the period commencing with 1 July in each year and ending with 30 June in the following year.

 

271 Members of Lotteries Commission continue in office

Transitional provision

 

271Members of Lotteries Commission continue in office

The persons who were members or alternate members of the Lotteries Commission immediately before the commencement of this subpart are deemed to have been appointed as members or alternate members of the board of the Lotteries Commission, and continue in office as such for the remainder of the terms for which they were appointed as members or alternate members of the Lotteries Commission.