The Department of Internal Affairs

The Department of Internal Affairs

Te Tari Taiwhenua

Building a safe, prosperous and respected nation

 

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Current Consultations

Review of Class 4 gambling - June 2016

Proposed Gambling (Venue Payments) Regulations 2016

Proposed Gambling (Venue Payments) Regulations 2016

View the proposed regulations

Request for feedback
Questions and answers

The Gambling Act 2003 (the Act) currently permits societies to reimburse venues for the actual, reasonable and necessary costs that venues incur within limits imposed by a Gazette Notice made under section 116 of the Act.

The current venue payments regime is time consuming and expensive for the sector to comply with, and for the regulator to audit and enforce.

In 2012, the Minister set priorities for the reform of the Class 4 sector, including simplifying compliance for societies, venues and the regulator, as well as reducing associated costs.

The new venue payments regime is a direct result of this work, as was the Gambling Amendment Act (No 2) 2015 (Amendment Act).

The Amendment Act inserted an empowering provision at section 371(1)(dd) enabling a legislative instrument to prescribe a new venue payment regime. The purpose of this was to replace the current resource-intensive venue costs schedule system with a simple, cost-effective payment system.

After significant consultation with the sector between September 2015 and March 2016, the Minister recommended that a commission-based regime be introduced, calculated as up to 1.28 per cent of weekly turnover, not exceeding 16 per cent of gaming machine profits (excluding GST) on an annual basis, per venue.

Cabinet agreed to this approach on 9 May 2016. The new regime will come into force on 3 October 2016. View the Cabinet paper and Regulatory Impact Statement.

View the proposed regulations

The proposed regulations are as follows:


Proposed Gambling (Venue Payments) Regulations 2016 (PDF, 153KB)

Request for feedback

We seek your views on the proposed regulations, for example:


1. Are there any technical, operational or legal problems or issues with the way the regulations are worded?
2. How do you think the regulations will work in practice? Can you see any pitfalls?
3. Do you have any questions about the new regime?

This consultation is now open and closes on Thursday 28 July 2016.

Please email your comments to gamblingreview@dia.govt.nz with ‘venue payments’ in the subject line.

Or, you can post your comments to:

Safer Communities team
Policy Group
Department of Internal Affairs
PO Box 805
Wellington 6140

Please note that submissions may be made publicly available. Even if you request confidentiality, we might have to release your submission if someone makes a request under the Official Information Act.

Review of Class 4 gambling - June 2016

Download the Discussion Document

Sending us your submission
Questions and answers

This discussion document seeks your views on how community funding from class 4 gambling (pokies in clubs, pubs and bars) can be sustained into the future. Class 4 gambling expenditure has declined since the passing of the Gambling Act 2003, leading to a consequent decrease in funding to communities.

We want your opinion on what the issues and challenges are for the class 4 sector and community funding, and ideas on how things might be improved. We are also seeking ideas for a cost effective regulatory model for the sector that maximises community funding into the future, without increasing harm or driving a growth in gambling.

We are also taking this opportunity to seek views on the future of online gambling in New Zealand.

The Department has had initial conversations with a number of stakeholders about the challenges and opportunities in the sector. Some of their comments have been reflected in this document.

Download the Discussion Document

*You need Adobe Reader installed on your computer to view our files. If you are unable to open the files we recommend you get the latest version of Adobe Reader. You can download and install Acrobat Reader for free from the Adobe website.

**You need Microsoft Excel 2003 installed on your computer to view these files. 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.

Sending us your submission

Please send your submission to the Department of Internal Affairs by Friday 12 August 2016.

Please note that all submissions may be made publicly available. Even if you request confidentiality, we may have to release your submission at a later date if a request is made under the Official Information Act 1982. In your submission please highlight the information you would prefer was withheld should a request be made.

Your submission can be sent in the following ways:

Email: gamblingreview@dia.govt.nz

Post: Safer Communities Team
Policy Group
Department of Internal Affairs
PO Box 805
Wellington 6140

Questions and answers: Class 4 gambling review discussion document

What is the aim of the review?
Since the enactment of the Gambling Act in 2003, a combination of factors have led to a decrease in class 4 gambling expenditure, and a decline in funds being available for distribution to communities. Class 4 expenditure has increased since 2014 and there are signs that the sector is stabilising, and is more mature. However, the future of the sector and the sustainability of community funding remains uncertain.

Therefore, the aim of this review is to look at:
  • the long-term sustainability and effective allocation of funding to communities;
  • whether the legislation is still fit-for-purpose;
  • whether the sector can be regulated more cost-effectively; and
  • preventing and minimising harm from gambling.
What happens after consultation on the discussion document closes?
The public can make submissions on the discussion document until 12 August 2016. The submissions will then by analysed by officials, as well as further targeted consultation with key stakeholders. Key stakeholders include societies, clubs and commercial venues that own or host gaming machines, local government, problem gambling service providers, and representatives of groups who receive grants funding.

The Minister of Internal Affairs will report back to Cabinet at the end of 2016 with recommendations on how to progress the review.

Will the review result in changes to the Gambling Act 2003?
The Department will be considering a wide range of options, which will be informed by submissions received on the discussion document and from targeted workshops with the sector. Options could include changes to the Gambling Act, but not necessarily.

Officials will put the options before Cabinet by the end of 2016. Cabinet will then decide which options to progress. Options will be discussed with the sector before any final recommendations for change are made.