Draft Working Capital Ratio (WCR) Policy

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On 1 July 2020, amendments to the Gambling (Class 4 Net Proceeds) Regulations 2004 came into force. While this change coincided with measures introduced to provide relief from the COVID-19 pandemic, it resulted from a long-standing conflict between the need to distribute all net proceeds, while at the same time demonstrating financial viability.

The purpose of new regulation 11A, together with the temporary suspension of regulations 10(1) and 11, is to permit corporate societies to retain a portion of their net proceeds (up to a maximum 1.5:1 ratio of current assets to current liabilities). This Working Capital Ratio will help ensure class 4 operators have adequate reserves to demonstrate their ongoing financial viability, which is essential if they are to sustain their operations and continue to make returns to the community.

View or download our draft policy document: Working Capital Ratio Policy - Draft for Feedback (PDF, 234KB)

How to submit

Please title your submissions 'Feedback to WRC Policy' and send them to: gambling@dia.govt.nz.

Submissions close 29 November 2021