Drafting policy
Guidelines for provisions you must, and those you may include in your class 4 venue policy.
On this page
- Items that must/may be covered in your policy
- Next steps
- Checklists for what must vs may be included in your policy
- Related links
Items that must/may be covered in your policy
Section 101 of the Gambling Act sets out what you:
- must include in your policy
- may include in your policy.
Your policy must cover:
- whether venues can be established in your area and if so, where.
It may cover:
- what restrictions, if any, will be placed on the maximum numbers of machines
- whether to include a relocation policy.
- restrictions on the number of electronic gaming machines (EGMs) that will be allowed on one site if two or more clubs in your district merge. (Restrictions around EGMs would be relevant 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.)
Class 4 venue policies — Reference: Section 101 of the Gambling Act
Venues – whether allowed and where located
Your policy must specify whether venues can be established in your area and if so where. 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 if:
- they have been continuously licensed since October 2001, or
- any unlicensed period was for less than 6 months.
Class 4 venue policies — Reference: Section 101 of the Gambling Act
‘Caps’ and ‘sinking lids’ on venues
Councils may choose to adopt a cap for the number of venues. This is where a council sets a maximum number of venues in the policy which may be the same, more or less than the number that it is currently operating. A maximum number of venues or ‘cap’ may be applied to the whole district, specific zones, or ward by ward.
Alternatively, councils may decide not to consent to any new venues being established in their area – this is called a “sinking lid”. A sinking lid policy means that 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 licence has expired, when a venue is no longer operating, contact DIA at gambling@dia.govt.nz
Gaming machines – maximum numbers
When developing your class 4 venue policy, the key number of pokie machines is the maximum number of machines the venue is licensed to operate, as stated on its licence (Section 101(3)(b) of the Gambling Act).
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.
In general, the rules that determine the maximum number of gaming machines differ depending on when venues were first licensed. There are some exceptions for clubs, as outlined in the table below.
|
When venue was first licenced |
Number of machines |
Additional conditions or requirements |
Section of Act |
|---|---|---|---|
|
Venues licenced as at 17 October 2001 |
Maximum of 18 machines |
Unless
|
Section 92 of the Gambling Act |
|
Venues licenced after 17 October 2001 |
Maximum of 9 gaming machines |
Unless:
|
Sections 93 and 94 of the Gambling Act |
|
Clubs licenced after 18 September 2003 |
Maximum of 9 gaming machines
|
Unless the council has given consent to, and the minister has exercised discretion to approve, a greater number of gaming machines, by meeting the requirements of either:
|
Sections 95 of the Gambling Act
Section 96 of the Gambling Act |
*If a venue has been without a licence for six months or more, it loses its right to operate more than nine machines. Instead, the maximum of 9 machines will apply under sections 93 and 94 of the 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 lid’ 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
A class 4 venue policy may include a relocation policy. (Gambling Act section 101(3)(c)). 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.
The first time that you review your policy after the Gambling (Gambling Harm Reduction) Amendment Act 2013 comes into force, you must consider whether to include a relocation policy (Section 102(5A)).
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.
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.
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.
A relocation policy is defined in section 101(5) of the Gambling Act.
Relocations and the Waikiwi decision
Class 4 venue policies — Reference: Section 101 of the Gambling Act
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 provision 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.
Guide to procedure for club mergers
Next steps
Once you have drafted your policy, you are ready to continue to develop your policy following the Local Government Act and to begin your formal consultation and adoption processes.
Statutory consultation
The consultation guidance page sets out the groups you need to engage with to meet mandatory consultation requirements under the Gambling Act. It also outlines other engagement options that may help you reach populations who experience disproportionate gambling harm.
Adopt the policy and notify DIA
Once you have consulted with your community and stakeholders, and decided on any revisions, your new policy will need to be formally adopted.
This will involve:
- adopting the policy in accordance with your governance requirements and the Local Government Act.
- sending a copy of the policy to DIA at gambling@dia.govt.nz
Checklists for what must vs may be included in your policy
What you MUST do when reviewing your policy
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:
- The first time that you review your policy after the Gambling (Gambling Harm Reduction) Amendment Act 2013 comes into force, you must consider whether to include a relocation policy (Section 102(5A)).
- Whenever you are considering including a relocation policy, you must consider the social impact of gambling in high deprivation communities within your district (Section 102(5B)).
- Give notice of your proposed policy to each corporate society that holds a class 4 venue licence in your district (Section 102(1)(a)).
- Give notice of your proposed policy to organisations representing Māori in your district (Section 102(1)(b)).
- Provide a copy of your policy to the Secretary for Internal Affairs each time you complete a review (Section 102(4)).
You may:
- You may wish to specify restrictions on maximum numbers of gaming machines in your district (Section 101(3)(b)).
- You may consider whether to include a relocation policy as defined in section 101(5) in your policy (Section 101(3)(c)).
- You may consider whether to include a relocation policy at any time other than at policy review time, Section 102(5A).
- When consulting on your policy, you may consider giving notice of the proposed policy to any other group in the population who may be affected by your policy (Section 102(3)).
- You may consider including restrictions on the number of electronic gaming machines (EGMs) that will be allowed on one site if two or more clubs in your district merge.
- If you amended or changed your policy, ensure it is adopted in accordance with special consultative procedure set out in Section 83 of the Local Government Act
Related links
Local Government New Zealand (LGNZ)
New Zealand Society of Local Government Managers (SOLGM)
