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Compliance Investigations and Audits Electronic Monitoring System (EMS) Fact Sheets (Gambling Act 2003) Gambling in Pubs and Clubs (Class 4) Info for Territorial Authorities |
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Gambling in Pubs and Clubs (Class 4)
Gaming machines in pubs and clubs (i.e. outside a casino) represent 'Class 4' gambling, which the Gambling Act 2003 classifies as high-risk, high-turnover gambling. Class 4 gambling may only be conducted by a corporate society and only to raise money for an authorised (e.g. community and non-commercial) purpose.
Key Messages from The Southern Trust and The Trusts Charitable Foundation Gambling Commission Appeals .pdf (111k)* The Department's expectations in relation to actual, reasonable and necessary costs; minimising costs and maximising net proceeds; venue developments and enhancements; and a number of other issues following recent Gambling Commission appeals. Misuse (Late Banking) of Gaming Machine Profits (GMP) Policy .pdf (25k)* The Department's policy in relation to the late banking of GMP by Class 4 venues, which came into effect on 12 October 2009. Player Information Displays (PIDs) Notice .pdf (27k)* Reducing gaming machine numbers, and territorial authority consents. Financial Viability Guidelines .pdf (184k)* This paper sets out the Department's expectations in determining whether a Class 4 applicant's proposed gambling operation is "financially viable". Licensing CriteriaThe Gambling Act 2003 aims to control the growth of gambling. There are strict licensing criteria for organisations wanting to run gaming machines and for the venues at which those machines are operated.The licensing criteria aim to:
Authorised PurposesCorporate societies that are licensed to operate gaming machines (Class 4 corporate societies) must apply the net proceeds of the gaming operation to authorised purposes.Authorised purposes are:
RegulationsRegulations have been made under the Gambling Act 2003 to help achieve the objectives of the Act. Regulations apply to individuals and organisations that are authorised to operate gambling. Click here to see a list of the Current Regulations.The following questions and answers have been collated to help answer queries from gambling operators about recent legislative and regulatory changes: Frequently Asked Questions .pdf (78k)* More Information
Venue ExpensesKey Messages Following Gambling Commission AppealsThe following letter (5 July 2010) clarifies the Department's expectations in relation to actual, reasonable and necessary costs; minimising costs and maximising net proceeds; venue developments and enhancements; and a number of other issues following recent Gambling Commission appeals.
The Department amended the Reference Paper: Guidelines on Venue Costs Under the Gambling Act 2003 .pdf (64k)*. The Reference Paper explains the New Zealand Gazette Notice and how to complete the venue costs schedule. Societies and venues can also access a Frequently Asked Questions .pdf (40k)* document on Class 4 venue costs. Class 4 Venue Costs Schedule The Department has completed a series of consultations with a view to achieving consistency in the Class 4 sector on the treatment of Class 4 venue costs. As a result of that consultation, the Department has published a standardised Class 4 venue costs schedule for use by all Class 4 societies. This form must be used by all societies when assessing the venue costs associated with a Class 4 gambling operation. The Schedule is in Excel format with formulas added and can be downloaded and used directly. Alternatively, you can print it out and complete it manually.
Class 4 Venue Labour Costs The labour costs associated with a Class 4 gambling operation make up a significant portion of the costs that can be claimed under the Gazette Notice. The Department undertook a project to benchmark Class 4 venue labour costs in line with the recommendations of the Venue Expenses Working Party. This project looked at the nature of Class 4 venue labour activities and provided data on the timeframes associated with conducting those activities. Click here to view the Class 4 Venue Labour Costs Benchmarking Report .pdf (183k)*. The Charity Gaming Association also commissioned a Colmar Brunton Survey .pdf (1.9m)* to examine the timeframes associated with Class 4 gambling. Societies and venues can use these reports to assist in setting labour task timeframes. Note: much of the data relates to 18 machine venues. Conference Expenses All societies should consider these guidelines carefully before deciding whether to arrange a conference:
Example of Record Keeping for Gaming Operations (Monthly)The Department has created an example of record keeping for gaming operations on a monthly basis. All clubs are encouraged to use the following Excel spreadsheet, which will help to:
If you have any questions about using this spreadsheet, please contact Gambling Inspector Anna Panchenko - direct dial (04) 494 5764 or email anna.panchenko@dia.govt.nz. Gazette Notice for Venue ExpensesSection 116 allows the Secretary to issue notices to limit or exclude Class 4 venue costs.The previous Gazette notice appearing in the 2 September 2004 issue of the Gazette has been replaced by a notice appearing in the 17 July 2008 issue. This notice clarifies the position of GST in relation to venue expenses (effective 18 July 2008).
A consultation document on venue expenses was sent to all societies and made available on the Department's website on 22 March 2004:
Most of the limits and exclusions came into effect on 2 December 2004. The remaining limit came into effect on 2 December 2005. Click here for a copy of the original Gazette notice: A letter and a venue expenses form was sent to all corporate societies with venue agreements on 2 September 2004. The letter explains the intent of the original Gazette notice and the requirements on societies that result from the notice:
Venue TransfersThe process for transferring gaming machines from one society to another changed with the implementation of the Electronic Monitoring System (EMS). View this document for step-by-step instructions on the new process: Venue Transfer Process .pdf (21k)*The Role of Territorial AuthoritiesThe Gambling Act allows for the growth of gambling to be controlled through territorial authorities. Territorial authorities have introduced policies that can limit gaming machine numbers and they must agree to where gaming machines are placed in their districts. In this way the community can have input into gaming machine numbers and locations.A corporate society must apply for territorial consent before it:
Gambling Sector ConsultationThe Department has developed Consultation Guidelines .pdf (26k)* on who we consult with and when/how we do it. These guidelines also explain what consultation is and what you can expect during and after consultation.Class 4 Game RulesThe Gambling Act (Class 4) Game Rules govern the playing and participation in Class 4 gambling that utilises gaming machines outside of casinos and the systems, processes, information and documentation associated with particular games.Societies must comply with these Game Rules from 29 June 2006:
Class 4 Game Rules - Standard FormsThe Secretary for Internal Affairs has issued Standard Forms relating to Class 4 game rules and their use is mandatory. This means that corporate societies, venues or service providers cannot create and use their own versions, except where electronic copies can be generated in the same format as the standard forms and contain exactly the same information.Gaming Machine Analysis form In response to a number of requests, we have produced the Standard Form Gaming Machine Analysis in a simple spreadsheet (Microsoft Excel 2003 format) that allows figures and other data to be input and automatically works out meter differences. If you do not have access to Excel 2003 or higher you may use the Excel file viewer to view, print and export the contents of this file. It is essentially the same as the .pdf* version on our website, but has some minor additional functionality (e.g. highlighting the difference between actual and calculated hopper movement). Its use is not mandatory, but you are welcome to download and use it instead of the .pdf* document if it suits your gaming machine operation. Please read the Gaming Machine Analysis Spreadsheet Instructions .pdf (24k)* before use. If you have any questions or experience any difficulties using it, please contact Senior Inspector Technical David Chatwin - direct dial (03) 353 8308 or email david.chatwin@dia.govt.nz. Licence ConditionsOperator's licences and venue licences issued or renewed are subject to licence conditions issued under the Gambling Act 2003. These conditions accompany and form part of the licence. Any corporate society must comply with the requirements set out in the licence conditions. Non-compliance will put the society's licence at risk.The Gaming Machine Operations Manual (Blue Book) was replaced by the Class 4 Game Rules 2004. Class 4 Gambling FormsClass 4 gambling forms can be printed or downloaded from the Forms page - under the 'Class 4 Gambling Only' section.Audited Financial StatementsThe Gambling Act 2003 requires Class 4 societies to provide audited financial statements to the Department of Internal Affairs within three months of the end of a society's financial year.The templates below will help clubs and corporate societies (Class 4 operators) to prepare their financial statements and their forecast financial statements which are necessary to complete the Application to Renew Class 4 Operator's License and Venue Licence(s). Please note that these templates do not remove the need for judgement and consultation with your advisers when preparing your financial statements. Templates for corporate societies and clubs can be printed or downloaded from the Forms page - under the 'Audited Financial Statements (for Class 4 Gambling)' section. Financial Viability This paper sets out the expectations of the Department in determining whether a Class 4 applicant’s proposed gambling operation is "financially viable": Financial Viability Guidelines .pdf (184k)* More Information
*This document is in Adobe Acrobat (.pdf) format. You need to have the Adobe Acrobat Reader installed on your computer. You can download a free version from the Adobe site. **This file is in Microsoft Excel 2003 format. If you do not have access to Excel 2003 or higher you may use the Excel file viewer to view, print and export the contents of this file. |
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Last updated: 07/07/2010 |
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