Draft Policy
Checklists for your policy
All councils were obliged to adopt a class 4 venue policy within 6 months of commencement of the Gambling Act 2003 (Section 101(1)). In adoption their policy, councils were obliged to:
- Have regard to the social impact of gambling within your district (Section 101(2)).
- Specify whether and where class 4 venues may be established in your district (Section 101(3)(a)).
- Adopt your policy in accordance with special consultative procedure set out in section 83 of the LGA 2002 (Section 101(1)).
There are some provisions that the policy must contain and some provisions that it may contain. Each of these provisions is discussed in more detail in the following section of the guidance.
Please refer to the following checklists to ensure you have included or considered these provisions correctly. All legal references are to the Gambling Act 2003 unless otherwise specified.
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Checklist: what you MUST do on review of your policy |
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Once adopted, you must complete a review of the policy within 3 years after adoption of the policy, and each 3 years after that. (Section 102(5)). In completing your review, here are the things you must do:
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Checklist: what you MAY do: |
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Items to be covered in your policy
Section 101 of the Gambling Act sets out what you must include in your policy and also sets out what you may wish to consider including in your policy:
Section 101(3)
(3) The policy—
(a) must specify whether or not class 4 venues may be established in the territorial authority district and, if so, where they may be located; and
(b) may specify any restrictions on the maximum number of gaming machines that may be operated at a class 4 venue; and
(c) may include a relocation policy.
So, your policy will need to cover:
- Whether venues can be established in your area and if so, where.
- What restrictions, if any, will be placed on the maximum numbers of machines.
- Whether to include a relocation policy.
You must cover the first topic, as this is mandatory under the Gambling Act, while the second and third topics may be included in your policy.
Club mergers
A fourth topic, which is not mandatory but often included in council policies is restrictions on the number of EGMS that will be allowed on one site if two or more clubs in your district merge. This may be relevant to include if your council wishes to restrict the number of machines below the statutory maximum of 30 EGMs, allowed in the case of a club merger as set out in section 95(4) of the Gambling Act.
Venues – whether and where located
Your policy must specify whether venues can be established in your area and if so where. Note that any restrictions on venues will only apply when societies apply for a territorial consent to establish a new venue. The council’s policy will have a limited or no effect on venues established as at 17 October 2001, which have not been without a licence for more than six months.
Section 101(4)
(4) In determining its policy on whether class 4 venues may be established in the territorial authority district, where any venue may be located, and any restrictions on the maximum number of gaming machines that may be operated at venues, the territorial authority may have regard to any relevant matters, including:
(a) the characteristics of the district and parts of the district:
(b) the location of kindergartens, early childhood centres, schools, places of worship, and other community facilities:
(c) the number of gaming machines that should be permitted to operate at any venue or class of venue:
(d) the cumulative effects of additional opportunities for gambling in the district:
(e) how close any venue should be permitted to be to any other venue:
(f) what the primary activity at any venue should be.
“Caps” and “sinking lids” on venues
Councils may decide not to consent to any new venues being established in their area. This will have the effect of “capping” the number of venues to the existing number of venues. A maximum number of venues or “cap” may be applied to the whole district, specific zones, or ward by ward.
Alternatively, councils may choose to adopt a “sinking lid” policy for the number of venues. This is where a council sets a maximum number of venues in the policy which is less than the number that it is currently operating.
This would mean once a class 4 gambling venue closes, the council will not issue any other society a licence to replace that venue. To clarify whether a license has expired, when a venue is no longer operating contact DIA link]. Note that a license expires after a period of six months (Section 98(b)). After this period a new consent will be required.
Gaming machines – maximum numbers
Under section 101(3)(b), the key number of pokie machines for class 4 venue polices is the maximum number of machines the venue is licensed to operate, as stated on its license.[i]
The number of machines specified in the area policy will be the total of the maximum number of licensed Electronic Gaming Machines (EGMs) at public and non-public venues.
Some councils also have casinos in their area, which contain pokie machines. Your class 4 venue policy does not include the EGMs situated in casinos.
The maximum number of machines permitted at any one venue depends on when the venues were first licensed to operate:
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Date licensed |
Number of machines they may operate |
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Venues (including clubs) that had a license on 17 October 2001 |
No more than 18 machines. (Section 92 of the Gambling Act) |
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Venues (including clubs that were established after 17 October 2001 but before the Gambling Act came into force on 18 September 2003 |
No more than nine machines, and the relevant society must have received local authority consent for these (section 93 of the Gambling Act). This is the case unless a new class 4 venue license is obtained that allows the change, or the license is amended to allow the change. |
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Clubs licensed after 17 October 2001 to operate up to 9 machines |
May, with council consent, apply to the Minister to operate up to 18 machines (section 96 of the Gambling Act). |
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Clubs wishing to merge |
May, with council apply to the council to operate the combined total of their current licenses up to a maximum of 30 machines, subject to council consent and to ministerial approval (Section 95, Gambling Act) |
A venue currently licensed to operate a number of EGMs which falls under these statutory limits, needs to apply for council consent to increase the number of gaming machines it can operate, up to these statutory limits.
“Caps” and “sinking lids” on gaming machines
Councils may choose to place a maximum number or a “cap” on EGMs for their whole district, specific zones, or ward by ward.
Councils may choose to adopt a “sinking lid” policy on machines.
This means that once the number of machines licenced to operate in a community decreases, councils will not issue any other society a licence to replace those machines.
Relocation
Relocation policies can be used as a tool to help facilitate the movement of class 4 venues, for example, out of high deprivation areas into areas such as the CBD.
Under section 101(3)(c) of the Gambling Act, your class 4 venue policy may include a relocation policy.
However, it is important to note that under section 102(5A), the first time that a territorial authority commences a review of their policy since the Gambling( Gambling Harm Reduction) Amendment Act 2013 came into force, it must consider whether to include a relocation policy in its class 4 venue policy.
A relocation policy is defined in section 101(5) of the Gambling Act as follows:
Section 101(5)
(5) A relocation policy is a policy setting out if and when the territorial authority will grant consent in respect of a venue within its district where the venue is intended to replace an existing venue (within the district) to which a class 4 venue licence applies (in which case section 97A applies).
In other words, a relocation policy sets out if, and under what circumstances, a council will grant consent to allow an existing venue to move to a new location within the district.
It’s important to note that a relocation involves a venue taking its current entitlement to operate a certain number of EGMs to its new location. For example, an 18-machine venue which is granted consent to relocate will be entitled to operate up to 18 machines in its new location.
There has been a question about in what circumstances a council’s relocation policy will take effect in relation to certain proposed moves. Some kinds of moves will not trigger a council’s relocation policy. Whether the council’s relocation policy is triggered in any given situation is informed by the Waikiwi precedent (refer to Gambling Commission Decision GC0419) and this is set out in Part 2 of our guidance: Applying your class 4 venue policy].
Club mergers
Section 95 of 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. Section 95 sets out the requirements that the Minister must be satisfied on before exercising his or her discretion to do so.
As part of your council’s class 4 venue policy, you may wish to consider including a section on whether you will allow an increase of machines at one site if two or more clubs decide to merge to one site, and if so, how many. More guidance on the process around club mergers is provided in –Part 2: Applying your class 4 venue policy resource in development.
Statutory consultation
- Link to SOLGM and LGNZ
Once you have drafted your policy, you are ready to continue to develop your policy following the LGA and begin your formal consultation and adoption processes.
The mandatory consultations requirements set out under the Gambling Act are set out in Section 2: Pre-consultation Engagement. You may also wish to review the discussion on other engagement in Section 2 of the guidance
[Link to in engagement resources
