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The Department of Internal Affairs

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Resource material › Information We Provide › Gambits - December 2013

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The year in review

Debbie Despard, Director Gambling Compliance

As 2013 closes, it is timely to reflect on a very busy and progressive year for Regulatory Services, following structural changes in late 2012.

The restructure was part of a change in philosophy, strengthening our focus on minimising harm and maximising benefit in all the areas we regulate. This has allowed us to change the way we work in some areas, adopt new strategies in others, and become a more responsive regulator across the board.

In this issue of Gambits there are a number of updates about our work across the gambling sector. We are starting with a high level look at our work this year in the context of change and refreshed objectives, and a look ahead to what 2014 will bring.

A significant number of people joined Regulatory Services in new roles and new teams were created from the restructure, including two Gambling Inspectors in Wellington. Casino Compliance teams established in Auckland and Christchurch (including the recent appointment of Ian Milnes as Manager of Casino Compliance), team leaders appointed in Auckland and Wellington in Licensing Compliance, and Natasha Firth as Manager Licensing Compliance, and Sector Initiatives appointing their third and final team member in September.

The Financial Integrity team, newly developed to regulate under the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT) has reached full strength, and while they are regulating under different legislation, their presence increases our resource in the gambling sector, with casinos a key focus for their potential to be vehicles for money laundering.

With a number of new faces on board, and a renewed vision for how we operate, many of our teams have been working hard on establishing better communication channels and developing closer and more productive relationships with the sector and other stakeholders. Sector Initiatives particularly relies on these key relationships in their work, and the Gambling Compliance team is already seeing benefits of increased communication, with many of the minor day to day administrative issues societies face being sorted quickly. For Licensing Compliance, this has improved their position to educate and work with clubs to help keep gambling operations on track, while ensuring compliance and the integrity of gambling.

Through closer communication we aim to prevent small infringements from escalating into big problems. Nevertheless there have been some significant convictions this year arising from gambling activity, including: Lindsay Raki for theft of pokie grant money totalling over $300,000; Bo Du, Xiao Dong Lu and Zhuo Zhao for theft of casino money by cheating.

With help from the Regulatory Investigations team we are turning our attention to serious and complex issues, based on factors including the size and magnitude of offending, severity of potential or actual harm to the community, risk of non-compliance spreading in the sector, and evidence of deliberate or organised non-compliance. A resulting investigation is Operation Chestnut, the largest investigation in the history of the gambling sector, and a joint operation by the Department, the Serious Fraud Office and the Organised Financial Crime Agency. The investigation is progressing and we recently announced that key individuals have been interviewed, and more interviews may follow.

This approach is a significant example of moving away from business-as-usual processes, to focusing resources in areas where we can have the most influence and impact. Similarly, the Sector Initiatives team is exploring new and innovative ways to minimise harm and maximise benefit, and will continue to work with the sector and communities to implement initiatives that arise from this work.

While we apply our resources to significant projects and issues, it is also important to maintain an ability to respond to our changing environment. The ever-advancing technological environment has been a key driver for the development of the Integrated Gaming Platform, which Licensing Compliance has been working hard on throughout the year. Admittedly, as with any new system, we have hit some road bumps and we are grateful to those affected for their cooperation and patience while we work through them, but we are progressing nonetheless. The second phase presents an exciting new challenge that will, among other things, deliver services online.

Another notable change to our environment has been brought about by the New Zealand International Convention Centre Act, which results in a number of regulatory concessions for SkyCity Auckland Casino. The casino and gambling sector has been under increased scrutiny over the course of this year, which has brought both challenges and opportunities for everyone involved. While the passing of the New Zealand International Convention Centre Act does not change how we regulate, it does have significant impact on what we regulate, and we recognise that this will have an impact on our regulatory responsibilities. We will focus on understanding these impacts and respond accordingly in anticipation of the regulatory concessions coming into effect.

2014 looks to be a very busy year for us, with the bedding in of new approaches and some significant milestones on the work programme with a number of projects. We will continue to reflect on our performance, adapt as challenges arise, and focus our efforts on having an impact on what we see as a common goal across the sector: minimising harm and maximising benefit.

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Introducing Ian Milnes

Ian Milnes has been appointed Manger Casino Compliance, based in Auckland. He is an experienced Environment and Public Health Consultant, and was most recently employed at Auckland Council, as Manager, Southern Licensing and Compliance.


Ian MilnesIan has been in New Zealand for over 30 years. Originally from Liverpool, Ian says he has not forgiven his father for not being one of the Beatles!

Parental resentment aside, Ian brings a wealth of knowledge and experience to the Gambling Compliance team following a 28 year career in compliance and enforcement with local government. He is looking forward to the challenges that his new role brings.

“It’s an exciting time to be part of Gambling Compliance,” he says. “We have a fantastic opportunity via minimising harm and maximising benefit to influence thinking and behaviours beyond the traditional inspection/audit regimes.”

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First licence relocation under new law

The first Class 4 venue licence using the relocation provisions of the Gambling (Gambling Harm Reduction) Amendment Act 2013, commonly referred to as the Flavell Bill, has been issued by the Department.


The licence concerned the Te Rapa Tavern in Hamilton. The landowner at the tavern’s original location had not renewed the lease and the Te Rapa Tavern venue operator rebuilt the tavern at a new location 850 metres away.

Hamilton City Council’s Class 4 gambling venue policy already contained clauses allowing relocation of venues in specified parts of the city and the council issued consent for 18 gaming machines to operate at the Te Rapa Tavern’s new location. Had the council not had such a policy, the licence issue may have been more complex.

If territorial authorities (TAs) do not already have clauses in their Class 4 gambling policy allowing relocation, they must review this at their next policy update. TAs can refuse licence relocations at their discretion, but if they want to introduce a clause to their policy allowing relocations, they must consult on the change. Whenever a TA is considering whether to include a relocation policy, it must consider the social impact of gambling in high-deprivation communities within its district.

The Ministry of Health will soon be publishing an updated Gambling Resource for Local Government which will also include information on the new requirements.

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Class 4 regulatory proposals: What’s the latest?

There has been widespread public interest in proposals to improve four areas in the non-casino Class 4 gambling sector and the Department commends the effort put into submissions. The detailed information that many provided gives an overall view of the state of the Class 4 sector and the potential impacts of the various proposals.


The proposals, which were released for public consultation in September, attracted 114 submissions from Class 4 societies, venues, community groups, problem gambling help providers, local councils and others.

The proposals aim to:
  • increase the minimum rate of return of gaming machine proceeds (GMP) to the community from 37.12 per cent to between 40 and 43 per cent
  • regulate local distribution of GMP to the areas that generated them
  • increase transparency of grant information
  • change the current venue payments system.
The Department is analysing the submissions and will advise the Minister of Internal Affairs on potential changes and the next steps in the process. If changes proceed, amending the minimum rate of return and introducing local distribution regulations will likely happen first as these can be made under existing regulation-making provisions in the Gambling Act 2003.

The proposals to increase the transparency of grant information and improve the venue payments system, will take longer to progress as they require legislative amendments. The Department proposes to work with the sector on the venue payments proposal to ensure that any changes are well designed.

More information about all the potential changes will be available after decisions are made. Further questions about the process can be addressed to the Department via the submissions email address: class4submissions@dia.govt.nz

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Financial viability review continues

The Department’s review of the financial viability guidelines for Class 4 societies is continuing pending the outcome of a High Court case dealing with related matters. The court decision is expected in the New Year.


In the meantime, the Department is assessing financial viability on a case-by-case basis.

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IGP update

Work on the Integrated Gambling Platform (IGP) Phase Two has started and is progressing well.


Phase Two will see all licensing processes for gambling activities brought online, as well as some other technical aspects to future proof the system for enhanced information sharing.

For this next phase of the project, the Department is keen on engaging the sector to get their feedback and requirements on how they will use the system to lodge applications, create notifications and manage their information efficiently.

Please contact us if you are interested in joining a forum discussion and get a first hand look on how it works now and help shape how it will work in the future. Email igp@dia.govt.nz to register your interest.

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Grant funding environment update: Understanding societies’ perspectives

Stefan Pishief, Manager Sector Initiatives

Sector Initiatives has made progress with the study of the Class 4 funding environment in the Manukau Ward and Manurewa Local Board throughout October and November.

Following a survey and attending workshops with community and charity groups in the area, the team has been analysing information they received and writing a report on the findings. This is in the final stages and we hope to circulate it to the community and the sector in the coming weeks.

To better understand the environment from societies’ perspectives, we held two workshops in October. These were held in Wellington and Auckland, and focused on the challenges societies face in distributing Gaming Machine Proceeds back to the communities it is generated in, and how they manage these challenges currently. It was hugely beneficial to get a number of societies discussing the issues in an open forum, and brought a range of perspectives together on what is a shared outcome for many.

The workshops were followed up with some written questions to societies, and requests for grant data, which we have been receiving over the last few weeks.

From the information provided so far, and what we heard at the workshops, we are learning things we were not necessarily aware of, and we are seeing some great examples of work being undertaken by societies to return funds to local areas. We will compare the findings from the community with those from societies, and identify any correlations which may suggest particular problem areas in returning funds to those communities in the Manukau Ward and Manurewa Local Board.

We have also been pleased with attendance at the workshops and response to the data requests from the sector. One society representative commented that this was the first time they had been invited to such a workshop, and thought it was beneficial. We agree and are looking forward to progressing with this work.

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Community service for pokie money theft

The former venue operator of the Counties Inn, Pukekohe, Martin Clyve Lamplough, 64, was sentenced to 200 hours community service and fined $7,500 after pleading guilty to stealing gaming machine money.


He failed to bank a week’s gaming machine take of $27,015.60 in May, using the money to pay his business’s bills and accounts.

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Shining the spotlight on performance: Class 4 audit reports

Publishing of Class 4 audit reports is an important step in enhancing transparency and integrity in the Class 4 environment. For any venues considering changing societies, audit reports are a useful decision making tool, and venue operators should do their homework before they go ahead with any changes.

Why do we audit societies?

  • To determine a society’s level of compliance with the Gambling Act 2003, game rules and regulations and the implementation of its policies and procedures
  • To identify areas of compliance and non-compliance with the Act
  • To recommend areas for improvement and best practice to support a society’s compliance with the Act.

What do audits focus on?

Areas of focus for these audits are determined each year through the Department’s business planning process, which allows us to ensure that gambling is conducted in a way that minimises gambling harm, maximises returns to authorised purposes, minimises costs and improves capability and compliance within the sector.

What’s in an audit report?

Audit reports summarise the audit findings and represent the Department’s assessment of a society’s performance against the focus areas and compliance with its obligations. The Department has the duty of assessing the society’s adherence to the Gambling Act 2003 and uses the audit report to set expectations as well as provide direction to the sector.

How can you access audit reports?

Finalised audit reports are published regularly on the Department’s website under Gambling > Compliance, Investigations & Audits >
Gambling Compliance Audits.

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New training requirements for door staff

The PSPPI (Minimum Training) Regulations 2013 came into force on 1 October and there are new training requirements for security guards and door staff.

Who has to be trained?

Anyone who fits the definition of “crowd controllers” under the Private Security Personnel and Private Investigators (PSPPI) Act 2010, this includes door staff, bouncers and security guards.

What is the training?

There are three NZQA unit standards that focus on managing conflict and help ensure that crowd controllers act in the public interest.

When is the training deadline?


Those already licensed, or who applied for a licence, as at 30 September 2013, have one year to complete the required training. Those who applied for a licence after that date need to do the training before they can get a licence, but can apply for a temporary certificate of approval to allow them to work while they train.

What happens if door staff aren’t trained?

A licence holder could be fined up to $20,000 for employing or contracting a person without a current certificate of approval. Working without a licence is an offence risking a fine of up to $40,000 for an individual or up to $60,000 for a company.


More information is available at www.pspla.govt.nz

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Banking GMP over Christmas/New Year

The Christmas and New Year period is a hectic time for everyone as it is, but throw in a few public holidays and you’d be forgiven for being confused about when to bank gaming machine profits (GMP).


GMP must be banked within five working days of being calculated, and are to be calculated for successive seven-day periods, Monday-Sunday inclusive. To save everyone from meticulously scouring the rules and the calendar to work out when to bank, we’ve listed the dates below.

Banking dates

For this Christmas and New Year the banking due dates are:


For GMP generated 9 -15 December 2013, the banking is due 20 December 2013

For GMP generated 16 - 22 December 2013, the banking is due 7 January 2014

For GMP generated 23 - 29 December 2013, the banking is due 9 January 2014

For GMP generated 30 December - 5 January 2014, the banking is due 10 January

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Keeping the focus on harm minimisation: regs under review

The Department has started a review of gambling harm prevention and minimisation (HPM) regulations, focusing primarily on harm associated with pokies in pubs and clubs – Class 4 non-casino gambling.


The Gambling (Gambling Harm Reduction) Amendment Act, passed in September, created a new regulation-making power that could require the use of pre-commitment, player-tracking, or other harm minimisation devices, technology, or systems associated with Class 4 gaming machines.

The review will examine the feasibility, cost and benefits of introducing pre-commitment systems and associated technology, along with other types of harm minimisation systems such as facial recognition technology and player-tracking systems.

The Gambling Act 2003 also includes regulation-making powers for HPM in Class 4 gambling. Some of these powers have already been exercised through the Gambling (Harm Prevention and Minimisation) Regulations 2004. The review will analyse the effectiveness of current regulations and the potential for amendments, while also considering a need for new regulations under the original regulation-making powers.

The review was discussed at the recent Stakeholder Reference Group meeting held on 22 November, and a wide range of ideas and considerations were raised by attendees

The review involves only preliminary information gathering and analysis, and is expected to be completed by mid 2014. If amendments are proposed following this process, formal consultation will occur with all relevant stakeholders.

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MVE update

The Multi-Venue Exclusion (MVE) programme for problem gamblers is now operating in 45 New Zealand communities, with Masterton being the most recent to implement the programme, and Taranaki in the initial phases of introduction.


Neove Christoforou and Davina Cochrane of the Sector Initiatives team worked with Care NZ in Masterton throughout November and December, implementing the MVE national framework and clinical use of multi-venue exclusions. This involved liaising with all service providers, and societies and venue operators in the area to ensure a common understanding and consistent approach to multi-venue exclusions.

They are currently working with the Problem Gambling Foundation in Taranaki, with implementation to be completed by the end of January.

The Masterton programme operates in Masterton, Carterton and South Wairarapa, and the Taranaki programme will operate throughout New Plymouth, Stratford and South Taranaki.

The corresponding map shows those communities now operating the MVE programme, excluding Taranaki. Four more communities are on track to implement the programme in the coming months.

Areas and localities operating Multiple Venue Exclusion Programmes as at November 2013


Map of New Zealand showing "Areas and localities operating Multiple Venue Exclusion Programmes as at November 2013"
White dot denotes a township or city where MVE is operating
Light grey sections indicate whole territorial authorities where MVE is operating

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Gambling harm research available from MoH

The Ministry of Health’s strategy for Preventing and Minimising Gambling Harm includes funding research and contributing to the gambling harm minimisation evidence. The following completed research reports are available from the Ministry’s website:

Effectiveness of Brief Telephone Interventions

Internationally, there is a dearth of evidence on the effectiveness of interventions for treating problem gambling, and how sustained the benefits of these interventions are. The Ministry of Health and the AUT addressed this gap in the evidence base by conducting a high quality clinical trial. The clinical trial compared the effectiveness of three different types of telephone-based brief interventions with the standard care provided by the Gambling Helpline (Lifeline Aotearoa). The researchers found participants showed major improvements in their gambling problems, and this was maintained at the 12-month follow-up, irrespective of the type of intervention they received. Of note was the finding that those receiving standard care from the Gambling Helpline did as well as those receiving the other interventions. There was also some evidence that Maori benefitted more from the boosted treatment. To read the full report go to:

http://www.health.govt.nz/ and enter the key words ‘gambling intervention effectiveness’.

Client Outcomes

There is limited evidence on the outcomes for clients who receive gambling treatment services in New Zealand and worldwide. In the first of its kind, the AUT with funding from the Ministry of Health, conducted an ‘outcome study’ involving 150 New Zealanders with gambling problems. The study compared the outcomes for clients who only received the standard telephone-based care provided by the Gambling Helpline (Lifeline Aotearoa) to those who in addition to the standard care provided by the Gambling Helpline, also received face-to-face counselling for their gambling problems. The researchers found that people achieved significant improvements when they received the standard Gambling Helpline telephone-based care, and that having additional face-to-face counselling generally did not lead to further gains. To read the full report go to:
http://www.health.govt.nz/ and enter the key words ‘gambling intervention effectiveness’.

Impact of Gambling on Pacific and Asian Peoples

Pacific peoples have one of the highest rates of problem gambling in New Zealand, however there is very limited research to inform efforts to prevent and minimise gambling-related harm in this population. To address this, the Ministry of Health contracted the AUT to conduct a study on the impact of gambling and problem gambling on the Pacific community in New Zealand. An important feature of this study is that it provides ethnic-specific findings for the major Pacific groups in New Zealand – Cook Islander, Niuean, Samoan, and Tongan. Some of the key findings were: the church has a significant influence on Pacific peoples’ gambling, many Pacific people have a limited awareness of problem gambling services, and the impact of gambling was generally more negative than positive. To read the full report go to:
http://www.health.govt.nz/ and enter the key words ‘gambling pacific’.

The Asian population of New Zealand has increased rapidly in the past two decades. Anecdotal and media reports have suggested Asian people may experience significant levels of gambling-related harm. However there is a dearth of good quality evidence to inform decision-making in this area. To build an evidence base, the Ministry of Health provided funding to Auckland University to conduct a study on the impact of gambling and problem gambling on the Asian community in New Zealand. Some of the key findings were: New Asian immigrants may be at greater risk for problem gambling, Asian peoples generally have a preference to gamble in casinos rather than pubs or clubs, and strategies to address gambling-related harm in the Asian community should utilise cultural strengths, build trust, normalise help-seeking, and provide education about the potential harms of gambling. To read the full report go to: http://www.health.govt.nz/ and enter the key words ‘gambling asian’.

Effects of Advertising on Gambling

The issue of the effects of gambling advertising on people’s behaviour has been the subject of some media commentary. However there is very limited research evidence to guide decision-making on this matter. To address this the Ministry of Health contracted an independent research company (Schottler Pty Ltd) to conduct an exploratory study of the effects of gambling advertising, marketing, and sponsorship on New Zealanders’ perception and behaviour towards gambling. The main finding was that gambling advertising in New Zealand has a relatively conservative effect on influencing people to spend more money on gambling than they want to. However, the study concluded that the negative effects of gambling advertising are generally greater for at-risk gamblers. To read the full report go to:
http://www.health.govt.nz/ and enter the key words ‘gambling advertising’.

Influence of Venue Characteristics on Gambling

Electronic gaming machines (EGMs) are the main reason for New Zealanders presenting to problem gambling services for treatment, whether they are based in casinos, clubs, or pubs. As part of its commitment to preventing and minimising gambling harm, the Ministry of Health funded a study by Opus Ltd to examine what characteristics of gambling venues are associated with problem gambling. The study involved 813 gamblers from eight venues in New Zealand. Some of the main findings were: noise or sounds from EGMs has a strong association with problem gambling; people who report higher gambling problems tend to switch more often between EGMs; and gamblers that have positive social interactions with staff are less likely to be problem gamblers. To read the full report go to:
http://www.health.govt.nz/ and enter the key words ‘gambling venue opus’.

Outcomes Framework for Preventing and Minimising Gambling Harm

The current Preventing and Minimising Gambling Harm Strategic Plan (2010/11-2015/16) identifies 11 objectives for improving gambling-related outcomes for New Zealanders. In 2012, the Ministry of Health contracted KPMG to work with sector stakeholders to develop a framework for measuring progress towards achievement of these objectives, and to report on the current status. Some of the main findings from the inaugural baseline report are: there has been a reduction in inequalities related to problem gambling, but inequalities remain for Māori and low income communities; while participation in decision-making is good at a regional level it is less effective at a local level; problem gambling services are effectively raising awareness about the harms from gambling; interventions for gambling-related harm are moderately accessible, highly responsive and moderate to highly effective; an evidence base to underpin problem gambling is being developed. The next Outcomes Framework report will update progress since the baseline report. To read the full report go to:
http://www.health.govt.nz/ and enter the key words ‘gambling outcomes baseline’.

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Addressing harmful gambling in venues

The Health Promotion Agency (HPA) has also started research to address harm in gambling venues, which involves interviewing venue staff and gamblers. Anthea Fitzsimons explains the project:


While many people gamble safely, a small but significant number of people are still being harmed by their own or someone else’s gambling.

Recent research by the Health Promotion Agency (HPA) has shown that three out of four people believe that gambling venues have an ethical or legal responsibility to prevent their customer’s gambling behaviour from becoming harmful. However, only 42 per cent of respondents who had experienced or been exposed to gambling harm and 34 per cent of those who had not been exposed to gambling harm believed that it was a legal requirement (footnote reference below).

The HPA is interested in working closely with the Department, the gambling industry as well as venues and problem gambling services across the country with a view to extending its Choice Not Chance campaign to include messaging in and around Class 4 venues. In order to better understand the challenges faced by staff, venues and gamblers in this space, and inform future development, the HPA has undertaken a series of one-on-one interviews in December with findings being published in early 2014.

The HPA is committed to inspiring New Zealanders to lead healthier lives so that we, as a country, experience less harm, injury and disease. It is responsible for a number of high profile national programmes and campaigns and in relation to gambling harm, strives to increase awareness and support communities to prevent and respond to harmful gambling.

The HPA is keen to involve the gambling industry as we progress in this area. If you are interested in more information about this please contact Anthea at a.fitzsimons@hpa.org.nz

Footnote - (Kiwi Lives III 2013 Campaign Evaluation (July 2013) www.hpa.org.nz/ research-library/research-publications)

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Sanction Decisions

List of decisions relating to sanctions imposed by the Department from 1 January 2013 to 31 October 2013

Operator
Licence type
Venue
Proposed sanction
Breach/Reason
Date of decision or proposal
Outcome/status
YouthtownClass 4123 Karaoka Bar/Palm BarCancel venue licenceIllegal gambling (including poker)25 June 2013Proposal withdrawn following a negotiated outcome with the venue operator and society
Bluegrass Holding Limited (Bluegrass) & Stanmore Star Investments LimitedClass 4 venue licenceSideline BarCancellationSideline Bar key person suitability issues and other factors (sections 67(1)(c) and (r) of the Gambling Act 2013).19 August 2013Bluegrass appealed to the Gambling Commission on 23 October 2013. Stanmore Star Investments Limited also appealed to the Gambling Commission on 6 November 2013.
Mainland FoundationClass 4Woodend HotelCancel venue licenceLate banking/theft of gaming machine profits in breach of section 104(2) of the Act and regulation 4 of the Gambling (Class 4 Banking) Regulations 2006.2 September 2013Mainland Foundation surrendered the venue licence.
PatronClass 4Ascot Park Motor HotelHarm prevention and minimisationBreach of exclusion order under section 312 of the Gambling Act 200328 June 2013Warning issued
PatronClass 4Kelvin HotelHarm prevention and minimisationBreach of exclusion order under section 312 of the Gambling Act 20031 August 2013Warning issued
PatronClass 4Multiple venues in WellingtonHarm prevention and minimisationBreach of exclusion order under section 312 of the Gambling Act 200313 March 2013Warning issued

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Gambling Commission Appeals - resolved

Breakdown of appeals that have been resolved recently and appeals that are currently in process as at 22 November 2013

Operator and venue
Department decision
Appeal (closed)
Outcome
Cuesports Foundation Limited (Cuesports)The Department decided to cancel Cuesports’ Class 4 operator’s licence for a number of reasons, including key person issues, financial viability, failure to distribute at least 37.12% of net proceeds and failure to maximise net proceeds and minimise operating costs. The Department advised Cuesports of its decision on 24 April 2012. Cuesports gave notice of an appeal against the Department’s decision on 14 May 2012. It appealed on a number of grounds. Cuesports initially raised a matter of jurisdiction and then applied for disclosure of material about matters concerning other Class 4 operator licence holders.Cuesports withdrew the appeal. The original cancellation decision made by the Department stands.
Cuesports Foundation Limited (Cuesports) –Denbigh Hotel The Department decided to cancel the venue licence because it could not be satisfied of the suitability of key persons. Cuesports gave notice of an appeal against the Department’s decision on 26 April 2013. The appeal indicated that there was a change to the key person. The Department withdrew its decision to cancel the venue licence on the basis of the evidence provided. The licence for Denbigh Hotel was surrendered.
That Was Then This Is Now Charitable Trust (TWTTIN)The Department decided to refuse TWTTIN a Class 3 operator’s licence (to run a raffle) because it could not, after investigation, be satisfied of the suitability of key persons. The Department advised TWTTIN of its decision on 30 October 2012.TWTTIN gave notice of an appeal against the Department’s decision on 12 November 2012. TWTTIN stated its grounds for challenging the Department’s decision as “right of appeal”.The Gambling Commission upheld the appeal. The decision to refuse to grant the Class 3 licence was reversed and the Secretary was directed to issue a licence with additional conditions. GC16/13.

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Gambling Commission Appeals - in progress

Breakdown of appeals that have yet to be finalised

Operator and venue
Department decision
Appeal (closed)
Outcome
Bluegrass Holding Limited (Bluegrass)The Department decided to cancel Bluegrass’ Class 4 operator’s licence because it could not, after investigation, be satisfied of the suitability of Bluegrass and its key persons to hold a Class 4 operator’s licence. The Department advised Bluegrass of its decision on 3 July 2012. Bluegrass gave notice of an appeal against the Department’s decision on 4 July 2012. It appealed on a number of grounds including that the Department’s decision was wrong in fact and in law, breached due process and was beyond the Department’s powers. Bluegrass filed an application with the Gambling Commission to have certain questions of law heard separately, prior to the hearing of the substantive appeal. The Gambling Commission declined the application on 7 December 2012. In process.
Phoenix Charitable Trust (Phoenix)The Department decided to refuse Phoenix a Class 4 operator’s licence because it could not, after investigation, be satisfied of the suitability of key persons. The Department advised Phoenix of its decision on 23 November 2012. Phoenix gave notice of an appeal against the Department’s decision on 14 December 2012. It appealed on a number of grounds including that the Department’s decision was wrong in fact and in law, breached due process, failed to act consistently between cases and is unreasonable. In process.
Bluegrass Holdings Limited – Sideline Bar (Bluegrass)The Department decided to cancel the venue licence because it could not, after investigation, be satisfied of the suitability of key persons. Bluegrass gave notice of an appeal against the Department’s decision on 23 October 2013. It appealed on a number of grounds including that the Department’s decision was wrong in fact and in law, breached due process, is disproportionate and unfair. In process.
Stanmore Star Investments – Sideline BarThe Department decided to cancel the venue licence because it could not, after investigation, be satisfied of the suitability of key persons.Bluegrass Holdings Limited gave notice of an appeal against the Department’s decision on 23 October 2013. The venue operator also gave notice of an appeal against the Department’s decision on 6 November 2013. The two appeals will be considered at the same time.In process.

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Gambling Compliance Court Cases

Gambling Compliance cases resolved before the courts since September 2011

Name of other party
Court/Tribunal
Type of case
Resolution
Michael LaimanWhangarei District CourtClass 4: Theft under section 220 of the Crimes Act 1961Convicted and fined $1000 plus costs
Martin Clyve LamploughPukekohe District CourtClass 4: Theft under section 220 of the Crimes Act 1961Convicted and fined $7500 and 200 hours community service
Bo DuHamilton District CourtCasino: Obtaining by deception under section 240(1)(a) of the Crimes Act 1961Convicted, nine months home detention and $20,000 reparation
Xiao Dong LuHamilton District CourtCasino: Obtaining by deception under section 240(1)(a) of the Crimes Act 1961Convicted, 350 hours community service and $4,000 reparation
Zhuo ZhaoHamilton District CourtCasino: Obtaining by deception under section 240(1)(a) of the Crimes Act 1961Convicted, five months home detention and $13,000 reparation
Levi James NewportHamilton District CourtClass 4: Theft under section 219 of the Crimes Act 1961Convicted. Eight months prison served concurrently with another sentence.
PatronInvercargillClass 4: Breach of exclusion order under section 312 of the Gambling Act 2003Convicted and discharged on two charges; fined $250 plus court costs of $130 on a third charge.

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Pokie Expenditure in September Year

Gaming machine (GM) expenditure in the year ended September 2013 dropped three per cent from $845.5 million to $819.4 million. There were also fewer licence holders, gambling venues and gaming machines compared with 12 months earlier.


Graph of annual non-casino gaming machine expenditure
View a large version of this image.

Between the second and third quarters of 2013 spending fell $100,000, from $206.1 million at the end of June to $206 million at 30 September 2013.

Non-casino gaming machine spending by society type (July-September 2013)

Society type
Total GMP quarter
% of total
Non-club
178,623,705.58
86.7%
Sports clubs
4,147,708.11
2.0%
Chartered clubs
16,345,178.94
8.2%
RSAs
6,933,044.27
3.4%
Total club
27,425,931.32
13.3%
Total all
206,049,636.90
100.0%
The spending is captured through the electronic monitoring of non-casino gaming machines (EMS), which became fully operational in March 2007, enabling the Department to track and monitor operations, ensure the integrity of games and the accurate accounting of money.

Licence holders fell from 351 to 347, venues declined from 1356 to 1343 and the number of gaming machines decreased from 17,534 to 17,320.

DateLicensed HoldersVenuesGaming Machines
30 Sept 2013347134317,320
30 June 2013351135617,534
31 Mar 2013353136717,542
31 December 2012357138117,670
30 September 2012361139017,827
30 June 2012361140017,943
31 March 2012359140318,001
31 Dec 2011360141018,133
30 Sept 2011360140918,167
30 June 2011364142118,309
31 March 2011365143018,484
31 Dec 2010367144318,681
30 Sept 2010369143818,601
30 June 2010370145518,944
31 March 2010374147019,115
31 Dec 2009378149119,359
30 Sept 2009377148619,296
30 June 2009384150119,479
31 March 2009394152719,739
31 Dec 2008399153719,879
30 Sept 2008405155120,025
30 June 2008415155219,856
31 March 2008421156920,018
31 Dec 2007428158520,182
30 Sept 2007435159320,163
30 June 2007439159820,120

Further information, including numbers of venues, machines and expenditure by territorial authority and changes in the quarter, is available from the Department’s Gaming Statistics web page at: www.dia.govt.nz.

The figures are based on territorial authority boundaries, including the Auckland super city.

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Gaming machine societies’ contacts

The Department’s gambling compliance and licensing inspectors each have responsibilities for liaising with gaming machine societies. If societies have issues to discuss, they may contact these inspectors first by phoning the Department’s toll free number 0800 257 887.


ApplicantCompliance InspectorLicensing Inspector
AHAURA/GREY VALLEY LIONS CLUB INCORPORATEDDave Macdonald ext 3152Jasmine Rangiwhetu ext 5491
AIR RESCUE SERVICES LIMITEDDave Macdonald ext 3152Brent Addison ext 5345
BLUE WATERS COMMUNITY TRUSTDave Batenburg ext 7922Beth Datuin ext 7952
BLUEGRASS TRUSTDave Macdonald ext 3152Craig Holmes ext 5486
BLUESKY COMMUNITY TRUST LIMITEDJohn Hennebry ext 7939Jeremy Belcher ext 7916
BULLER COMMUNITY DEVELOPMENT COMPANY LIMITEDTony Climo 03 409 2158Poni Lealofi ext 5380
CHRISTCHURCH EARTHQUAKE RECOVERY TRUST LIMITEDTony Climo 03 409 2158Jasmine Rangiwhetu ext 5491
CONSTELLATION COMMUNITIES TRUST INCORPORATEDDavid Batenburg ext 7922Jeremy Belcher ext 7916
CUESPORTS FOUNDATION LIMITEDStephen Bass ext 7168Rochell Goodwin-Kanara ext 5350
DRAGON COMMUNITY TRUST LIMITEDJohn Hennebry ext 7939Jeremy Belcher ext 7916
ENDEAVOUR COMMUNITY FOUNDATION LIMITEDGarth Cherrington ext 5520Kerry Dyer ext 7151
FIRST LIGHT COMMUNITY FOUNDATION LIMITEDTheresa Sarten ext 5258Kerry Dyer ext 7151
FIRST SOVEREIGN TRUST LIMITEDAndy Cruickshank ext 7267Kerry Dyer ext 7151
FOUR WINDS FOUNDATION LIMITEDDave Batenburg ext 7922Brent Addison ext 5345
GRASSROOTS TRUSTClark McMichael ext 7268Kerry Dyer ext 7151
HUCKLEBERRYS SPORTS & CHARITABLE SOCIETY INCORPORATEDTheresa Sarten ext 5258Janet Wong ext 5505
ILT FOUNDATIONIain Ballantyne 03 409 2158Craig Holmes ext 5486
INFINITY FOUNDATION LIMITEDTheresa Sarten ext 5258Brent Addison ext 5345
KAIWAKA SPORTS ASSOCIATION INCORPORATEDStephen Bass ext 7168Kerry Dyer ext 7151
LIONS CLUB OF OHAI-NIGHTCAPS INCORPORATEDIain Ballantyne 03 409 2158Craig Holmes ext 5486
MAINLAND FOUNDATION LIMITEDDuane Calvert ext 6609Craig Holmes ext 5486
MANA COMMUNITY GRANTS FOUNDATIONRick Mead ext 5667Poni Lealofi ext 5380
MANUKAU COUNTIES COMMUNITY FACILITIES COMMUNITY TRUSTDave Batenburg ext 7922Beth Datuin ext 7952
MT WELLINGTON FOUNDATION LIMITEDTrevor Franklin ext 7573Beth Datuin ext 7952
NEW ZEALAND COMMUNITY TRUSTGarth Cherrington ext 5520Craig Holmes ext 5486
NEW ZEALAND RACING BOARDBrad Avery ext 5498Jasmine Rangiwhetu ext 5491
OXFORD SPORTS TRUST INCORPORATEDCliff Simpson ext 7937Kerry Dyer ext 7151
PELORUS TRUSTBrad Avery ext 5498Poni Lealofi ext 5380
PODIUM SPORTS FOUNDATION LIMITEDTrevor Franklin ext 7573Beth Datuin ext 7952
PRIME COMMUNITY TRUSTBrad Avery ext 5498Poni Lealofi ext 5380
PUB CHARITYErin Moyle ext 5711Janet Wong ext 5505
PUB CHARITY LIMITEDErin Moyle ext 5711Janet Wong ext 5505
REDWOOD TRUST INCORPORATEDDave Macdonald ext 3152Craig Holmes ext 5486
SOUTHERN VICTORIAN CHARITIBLE TRUST INCORPORATEDDuane Calvert ext 6609Jasmine Rangiwhetu ext 5491
THE AKARANA COMMUNITY TRUST LIMITEDJohn Hennebry ext 7939Beth Datuin ext 7952
THE BENDIGO VALLEY SPORTS & CHARITY FOUNDATIONDuane Calvert ext 6609Poni Lealofi ext 5380
THE BRUNNER RUGBY LEAGUE CLUB INCORPORATEDIain Ballantyne 03 409 2158Brent Addison ext 5345
THE LION FOUNDATION (2008) John Hennebry ext 7939Jeremy Belcher ext 7916
THE NORTH & SOUTH TRUST LIMITEDCliff Simpson ext 7937Jeremy Belcher ext 7916
THE PEGASUS SPORTS FOUNDATION LTDStephen Bass ext 7168Kerry Dyer ext 7151
THE RUNANGA COMMUNITY SWIMMING POOL TRUSTRon Grob ext 6603Poni Lealofi ext 5380
THE SOUTHERN TRUSTRon Grob ext 6603Poni Lealofi ext 5380
THE TRUSTS COMMUNITY FOUNDATION LIMITEDTony Climo 03 409 2158Brent Addison ext 5345
TRILLIAN TRUSTStephen Bass ext 7168Beth Datuin ext 7952
TRUST AORAKI LIMITEDRon Grob ext 6603Poni Lealofi ext 5380
TRUST HOUSE FOUNDATIONGarth Cherrington ext 5520Brent Addison ext 5345
WHITEHOUSE TAVERN TRUSTCliff Simpson ext 7937Kerry Dyer ext 7151
YOUTHTOWN INCORPORATEDTrevor Franklin ext 7573Jeremy Belcher ext 7916

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Regulatory Services

Gambling compliance issues are covered by Regulatory Services which sits within the Department’s Policy, Regulatory and Ethnic Affairs branch under Deputy Chief Executive, Paul James.


The branch encompasses all the roles where the Department is, in effect, the regulator of a sector of the economy. In addition to gambling, this includes community safety (censorship and anti-spam compliance), fire service policy, identity services policy, local government, community and voluntary sector policy, civil defence and emergency management policy and crown entity monitoring functions, and Office of Ethnic Affairs. For the sake of simplicity, functions outside of the gambling sector are not included on this page.

Diagram of Regulatory Services' management positions
View a large version of this image.

Regulatory Services: Responsible for all regulation and compliance operations (and operational policy) including anti-spam, censorship, gambling, racing, anti-money laundering and countering financing of terrorism.

Operations Support: Provides support and assistance to operational compliance functions across the group and wider Department

Regulatory Investigations: Undertakes significant (complex, cross group, lengthy and sensitive) investigation projects involving criminal, legal and financial issues related to the governance and operation of gaming sector people and organisations. Provides expertise and support to investigations and audits across the group.

Financial Integrity: Under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, monitors casinos, non-deposit-taking lenders, money changers and reporting entities not covered by the other supervisors, The Reserve Bank and the Securities Commission.

Gambling Compliance: Responsible for the Inspectors and other staff working with the gambling sector to bring about compliance with the law. Works closely with Policy so that there is a constant flow of information between the staff involved in applying the law and those who develop the law.

Gaming Technology: This position oversees the technical integrity of gaming issues across casino and all other classes of gambling.

Operational Policy: Provides support and advice to the Inspectors and other staff working in the sector. Develops standards, game rules and other “deemed regulations”. In broad terms, develops Department policies for how the law will be turned into the work done in the field.

Casino Compliance: Responsible for working with the casino sector to bring about compliance with the law.

Licensing Compliance: Responsible for Class 4 Licensing, championing a new electronic licensing regime and management oversight of the Electronic Monitoring System (EMS) contract with Intralot.

Sector Initiatives: Responsible for developing new and innovative approaches to promoting and securing increased compliance across the gambling sector.

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Contacts

All Gambling Compliance staff can be contacted by phoning the Department’s toll free number 0800 257 887.


Email: gambling.compliance@dia.govt.nz

Website: www.dia.govt.nz/gambling

Postal address and fax numbers:

CASINO COMPLIANCE

PO Box 805, Wellington 6140, Fax: (04) 494 0624

GAMBLING LICENSING

PO Box 10-095, The Terrace, Wellington 6140,
Fax: (04) 494 0656

GAMBLING COMPLIANCE
Auckland
PO Box 2220, Auckland 1140, Fax: (09) 362 7945

Wellington
PO Box 10-095, The Terrace, Wellington 6140,
Fax: (04) 495 7214

Christchurch
PO Box 1308, Christchurch 8140

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Gambits

The Department of Internal Affairs produces Gambits four times a year.


Gambits provides information about the Department’s recent work and significant issues in the gambling sector. It is intended for sector organisations and the community in general, to increase understanding of and compliance with the law.

Editor: Trevor Henry
Telephone: (04) 495 7211 or 021 245 8642
Email: trevor.henry@dia.govt.nz

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Do you want to receive Departmental media releases and Gambits?

If you would like to have your organisation added to the Department’s distribution list for media releases about gambling issues, or want to receive Gambits but are not currently on the mailing list, please fill out this form and return it, or email the information to:


Trevor Henry, Communications Advisor, Department of Internal Affairs
PO Box 805, Wellington 6140
Telephone: (04) 495 7211, Fax: (04) 495 7224, Email: trevor.henry@dia.govt.nz

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