Process for applying a gambling policy

Follow 4 steps when applying your local gambling policy to decide whether or not to grant consent.

Step 1: Check if council consent is required

Section 98 sets out the circumstances that a consent from the local council is required:

If a society proposes to increase the number of machines that may be operated at a class 4 venue, by either applying for or amending a class 4 venue licence.
If a club society applies for ministerial discretion to permit an increase in the number of gaming machines at a club.
The first time there is an application for a Class 4 venue licence for a venue which did not hold a class 4 venue licence on 17 October 2001.
If a corporate society applies for a class 4 venue licence and such a licence has not been held by any society for the venue within the last 6 months.
If a society proposes to change the venue to which a class 4 venue licence currently applies. Such a proposal must be considered under the council’s relocation policy and have the venue operator’s agreement. See: Relocations of existing venues

Council consent is also required any time TAB New Zealand wishes to establish a TAB venue.

Regulatory agency roles

Step 2: Consider the application for consent against your policy

Consider how your policy applies to applications for:

consent for new class 4 or Agency venues
a change to an existing class 4 venue licence, for example existing venues applying to operate more gaming machines at their venue, or relocating.

Every council must:

consider an application for consent in accordance with either its class 4 venue policy, or its agency venue policy.
decide whether to grant or decline consent.

Gaming machine numbers

There are some important notes to keep in mind when making these decisions:

Where consent is required, a council may or may not place conditions on gaming machine numbers.
If a corporate society applies to amend its licence to increase the number of gaming machines to be operated at the venue, a council cannot specify a maximum number of machines that is less than the number that the venue is currently licensed to operate at the venue.

Location—for new class 4 venues

If a society or club applies for a class 4 venue licence for a new class 4 venue, the council must check whether the proposed location of the new class 4 venue is in accordance with its policy.

For example, some class 4 venue policies stipulate that any new class 4 venues must be situated within the defined CBD of the town or city.

Relocations of existing class 4 venues

Some kinds of moves will not trigger the council’s relocation policy. For example, a move under the Waikiwi precedent will not require the issue of a new licence.

If the relocation of a class 4 venue has been consented by a council and a new venue licence issued by the Department, the following rules apply:

The Department must cancel the licence that relates to the old venue (the cancellation takes effect on the date on which the new licence takes effect).
The maximum number of gaming machines permitted to operate at the new venue is the same as the number permitted to operate at the old venue (up a maximum of 18 gaming machines).
Any existing council relocation policies that provide otherwise are overridden (for example if an existing relocation policy requires that new venues have a maximum of nine machines).
The old venue must be treated as if no class 4 licence had ever been held for that venue. This means that a new council consent will be required for that venue if a class 4 venue licence is subsequently applied for, and the venue cannot be granted a licence to operate more than nine machines under section 94 of the Gambling Act.

A 2019 Gambling Commission decision has affirmed the meaning oif the terms ‘venue’, ‘class 4 venue’, ‘place’ and ‘address’, which were the subject of a High Court declaration in 2013 (The Waikiwi decision).

For details of both these decisions see: Relocations and the Waikiwi decision

Club mergers

The Gambling Act gives the Minister of Internal Affairs the discretion to permit more gaming machines at one venue, if two or more clubs operating gaming machines merge.

Sections 95 and 96 set out the requirements that the Minister must be satisfied on before exercising his or her discretion to do so.

Applicants are advised to seek advice from their lawyers at an early stage.

The process involves 4 separate stages, which need to be done in the following order:

the clubs proposing to merge must obtain consent to the proposed merger from the relevant territorial authority
the clubs proposing to merge must obtain approval, in principle, from the Minister
the clubs must apply to the Secretary of the Department of Internal Affairs to obtain the relevant operator licence and venue licence
the legal processes and any property transactions related to the merger must be completed.

Venue licences for clubs involved in mergers

Section 95 (6) (a) of the Gambling Act states that where a new licence is being issued for two or more clubs that are merging to one new entity, all the clubs’ venue licences will be cancelled. There is no right of appeal against that cancellation.

Once cancelled, no society may consequently apply for a replacement class 4 licence within six months of the cancellation.

Step 3: Decide to provide or decline consent

Make a decision as to whether to issue the consent or not. Go through your normal decision-making processes under the Local Government Act to ratify that decision.

Identify if the decision is consistent with policy

Your decision may either be consistent or not consistent with your local class 4 venue policy.

Generally, a consent that is inconsistent with the council’s policy will not be accepted as a valid consent, though there can be exceptions.

Under section 80 of the Local Government Act, the Department can only licence the relevant Class 4 venue if an inconsistent council consent identifies:

where/how it is inconsistent
the reasons for the inconsistency.

It must also include a statement that indicates:

the council understands that the consent is inconsistent with the policy, but wishes to issue it anyway
if the council intends to amend their policy, or otherwise accommodate the decision.

Step 4: Notify applicant

Under the Gambling Act and the Racing Industry Act, every council must notify:

Class 4 venue applicants of its determination in respect of Class 4 venue applications within 30 working days after the later of—

the date of receipt of the application; or
the date that it adopts a class 4 venue policy.

The TAB NZ and the Department, of its determination in respect of TAB venue applications within 30 working days after the later of—

the date of receipt of the application; or
the date that it adopts an Agency venue policy.

Te Tari Taiwhenua | Department of Internal Affairs

Building a safe, prosperous and respected nation