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Info for Territorial Authorities

Territorial Authorities in New Zealand must have a class 4 gambling venue policy, which must be reviewed within three years of being adopted and thereafter every three years.

This page is designed to provide helpful information for Territorial Authorities who are reviewing their gambling venue policies. It is not intended to be a substitute for independent legal advice, or independent research into regional issues.

Find out here about:

Note: If your query is not answered below or you would like further advice please contact Natasha Firth on 04 494 0668 or email her using the form firstname.lastname@dia.govt.nz


Class 4 gambling venue policy

This policy must consider the social impact of gambling within the territorial authority's district and specify whether or not class 4 venues may be established in the district and, if so, where they may be located.

Matters a territorial authority may have to consider in determining its policy include:
  • The characteristics of the district and parts of the district
  • The location of kindergartens, early childhood centres, schools, places of worship, and other community facilities
  • The number of gaming machines that should be permitted to operate at any venue or class of venue
  • The cumulative effects of additional opportunities for gambling in the district
  • How close any venue should be permitted to be to any other venue
  • What the primary activity at any venue should be.
The policy may also specify restrictions on the maximum number of machines that may be operated as a class 4 venue. This policy can be adopted, amended or replaced only through the use of the special consultative procedure outlined in the Local Government Act 2002.

There is more information about what is required in a class 4 gambling policy in the Gambling Act 2003. Sections 95, 96 and 98-103 are the most relevant sections dealing with these requirements.

The Department sent a letter to Territorial Authorities .pdf (122k)* on 22 February 2007 advising them of some of the gambling and problem gambling statistics and information they may want to consider when reviewing their policies.


Territorial Authority consent

Generally, a society must obtain a territorial authority consent in the following circumstances:
  • If a society proposes to increase the number of machines that may be operated at a class 4 venue (whether by way of an application for, or amendment to, a class 4 venue licence, and whether or not in association with an application for ministerial discretion under section 95 or 96)
  • The first time there is an application for a class 4 venue licence for a venue for which a class 4 venue licence was not held on 17 October 2001
  • If a society applies for a class 4 venue licence and a class 4 venue licence has not been held by any society for the venue within the last six months.
A territorial authority must consider every application for a territorial authority consent in accordance with its gambling venue policy. The territorial authority cannot issue a consent until its gambling venue policy is in place.

The territorial authority may or may not place a condition on gaming machine numbers. It may not place other conditions. It's important to note that any proposed 'cap' in gaming machine numbers would only affect new venues as existing venues already have a statutory entitlement to the number of machines they are operating.

Note: A territorial authority consent is not revocable once issued, nor can it lapse or expire - it is a one off assent to a situation. A territorial authority also does not have any retrospective powers with regards to any consented venues once they have entered the Department's licensing process.

When the Department receives a territorial consent for venue licensing, in order to assess its validity/lawfulness the Department looks at:
  • Whether the relevant territorial policy, on it's face, allowed the issuing of that consent
  • Whether any amendment made to a territorial authority policy was made lawfully with the use of the special consultative procedure in the Local Government Act 2002
  • Any other information the Department is aware of that suggests a consent is not valid.

Frequently asked questions

We hear that gaming machine profits have dropped. Do we have any regional/national figures on the extent of any 'drop' at all?

It is expected that player expenditure in 2005/06 will be approximately 12 per cent less than in 2004/05. This decline has been attributed to a stricter regulatory regime created by the Gambling Act and changes to the smoke-free environments legislation that came into effect in December 2004. This may translate to less money for grants, although this is only relative, given that 2005/06 expenditure will still be the 4th highest on record.


To what extent does the availability of gaming machines contribute to or act as a 'driver' for harm?

Information on the link between the availability of gaming machines, particularly in lower socio-economic areas, and harm from gambling can be found in Problem Gambling Geography of New Zealand on the Ministry of Health website at www.moh.govt.nz This website also contains statistical information on presentation numbers for treatment for problem gambling.


Some Territorial Authorities have population ratio based caps. How effective are these given there is uncertainty about actual population levels between censuses?

Some Territorial Authorities that have used population caps define the population of the district in terms of the usual resident estimates available from Statistics New Zealand on a particular day each year. Other Territorial Authorities have used the official census night figure. The Department has no information on their effectiveness.


What information do you have on national/regional expenditure on Gaming Machines? National or regional social impact material?

Currently expenditure data is gathered annually on a national level. See our gambling statistics for useful information including:
  • Gambling venues and numbers of machines by Territorial Authority as at a certain date
  • Difference in gaming machine venues and numbers by territorial authority region from June 2006 (or earlier) to September 2006
  • National gambling expenditure information up to 30 September 2006.
The Department also has a range of research reports containing information on the social impact of gambling. These reports include:
The implementation of the Electronic Monitoring System (EMS) means more accurate regional expenditure data will soon be available. The Department is also initiating a project aimed at gathering detailed, regular data on grants, including grants by TA district. With respects to regional grant information, you may want to contact Societies.

For more general research, there are a couple of reports on the Ministry of Health website www.moh.govt.nz, which may be useful.


Are we required to mandate that gambling venues must have a liquor licence?

A Territorial Authority can choose to place this requirement in their Gambling Venue Policy as a 'relevant matter' but no, this is not a requirement for the Gambling Act or the Department.


Are we required to use the Special Consultative Procedure (SCP) if we have reviewed our Act and are just carrying it over?

In the Department's opinion, no, the SCP is only necessary when adopting a Gambling Venue Policy for the first time or otherwise amending, changing or replacing a Gambling Venue Policy.


Should we just use the gaming machine statistics on the Internet or speak to DIA about current machine numbers?

While the machine numbers data on the internet provides a useful snapshot, we urge Territorial Authorities wanting an up-to-date appreciation of what is operating in their district to get in touch with us and make a section 103 request.


Are children banned from gambling venues?

Children are not banned from gambling areas or gambling venues outright. They are not permitted to engage in class 4 or other restricted gambling and the venue operator has a duty to minimise the possibility of under 18 year olds gaining access to class 4 gambling.


Do we really need to engage in an expensive social impact study in reviewing our Gambling Venue Policy?

It is entirely over to the Territorial Authority as to how it wants to manage its regional social impact assessment.


TAB venue policy

Every territorial authority must also have a TAB venue policy. Territorial authorities must also develop and review these policies through the use of the special consultative procedure outlined in the Local Government Act 2002 and have regard to the social impact of gambling in the territorial authority district. They must be reviewed every three years.

The policy must specify whether the New Zealand Racing Board may establish new stand-alone TABs (i.e. the policy does not deal with TABs in pubs and clubs) in the district and, if so, where they may be located. The New Zealand Racing Board requires a consent from the relevant territorial authority before it establishes a new stand-alone TAB.

Territorial authorities should ensure that the wording of their policies clearly covers every possible situation (for example, a proposal to relocate a TAB from one place to another).

There are some very specific steps for territorial authorities to follow when making their TAB venue policies. The relevant provisions are sections 65A to 65E of the Racing Act 2003.


Useful tips

The tips below should help you when it comes to developing your class 4 gambling venue and/or TAB venue policies:
  • Make sure the wording of your policy clearly covers every situation you intend it to cover. The policy should clearly state how it would operate in every circumstance envisaged by the Act i.e. club applications under sections 95 and 96, and proposals for a group to relocate from one venue to another
  • Ensure that your policy's wording is consistent with the Act - that it includes all elements that are required to be included and does not take irrelevant considerations into account
  • Make it clear whether you intend a policy to be permissive or prescriptive, and ensure it is phrased accordingly
  • Remember, what you think a policy allows may not appear so to an independent reader. Mistakes in drafting could be expensive to rectify at a future date
  • Ensure changes to a gambling venue policy are consulted on and documented in a manner that complies with the relevant legislation
  • If in doubt seek legal advice.

Further 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.

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Last updated: 24/11/2009