New Zealand’s Department of Internal Affairs has suspended the licence of charitable gaming trust One Foundation for six days, after a review of the Class 4 poker machine sector found accounting failures in how gambling proceeds were handled.
The regulator announced the suspension on Friday, saying One Foundation had failed to account properly for gambling proceeds and had not surrendered the licence for one of its pokies venues as required by law when it detailed the enforcement action.
Grant money diverted to society expenses
The sector-wide review found widespread accounting issues across Class 4 operators, including cases where money that should have been available for community grants was instead used to cover society expenses such as purchasing gaming machines. Class 4 gambling covers non-casino gaming machines, or pokies, operated by licensed societies whose proceeds are meant to be distributed as community grants under New Zealand’s Gambling Act.
The Department of Internal Affairs said the work focused on ensuring gambling proceeds, which amount to more than NZ$1 billion annually, were managed lawfully and that communities received the benefit they were entitled to.
“The investigation has produced significant results. We’ve secured commitments that will return NZ$11.5 million to community organizations, taken enforcement action where it was needed and provided operators with clearer guidance about their obligations,” Gambling Director Vicki Scott said.
Scott said most operators had cooperated with the review.
Further recoveries possible
The Department also released new financial guidance for the Class 4 sector covering accounting requirements and operators’ obligations, which it said was designed to improve consistency and prevent similar issues. Work with other operators is continuing, and the regulator said further funding may still be recovered.
The exact dates of the suspension and the identities of the other operators under review have not been disclosed.
If gambling is affecting your life, free confidential support is available at Gambling Help Online or by calling 1800 858 858.
Darcy Mullane covers the Australian side of the games industry for WellPlayed: local release dates and pricing, classification decisions, and the studios and events based here.
