DIA reaches major milestones in pokies sector compliance

11 September 2026

The Department of Internal Affairs has reached several major milestones in a review of New Zealand's pokies sector compliance, including securing an additional $11.5 million for community organisations, taking enforcement action against a gambling operator, and releasing new guidance to strengthen compliance across the sector.

The milestones follow an investigation into how class 4 gambling operators, commonly known as pokies trusts, accounted for and distributed gambling proceeds. The Department found widespread issues across the sector, including cases where money that should have been available for community grants was instead used to cover society expenses, such as purchasing gaming machines.

More than $1 billion is generated through pokies each year in New Zealand. As the gambling regulator, the Department's role is to ensure gambling proceeds are managed lawfully and that communities receive the benefit intended under the Gambling Act.

One outcome of the investigation has been the recovery of funding for community organisations. The Department has worked directly with operators to address historical issues, resulting in commitments to return an additional $11.5 million through gambling grants. Work is continuing with other operators, and further funding may still be recovered.

A second milestone has been the release of new financial guidance for the class 4 gambling sector. The guidance provides greater clarity on accounting requirements and explains operators' obligations through practical examples. It is designed to improve consistency across the sector and help prevent similar issues from occurring in future.

The investigation has also resulted in formal enforcement action against class 4 gambling society One Foundation. The Department issued a six-day suspension of One Foundation’s operator’s licence after identifying accounting failures relating to gambling proceeds and a failure to surrender a licence for one of its pokies venues when required by law.

Vicki Scott, Director of Gambling, said the investigation had delivered important results for both communities and the integrity of the gambling system.

"This work has focused on ensuring gambling proceeds are used in the way Parliament intended and that communities receive the benefit they are entitled to.

"The investigation has produced significant results. We've secured commitments that will return $11.5 million to community organisations, taken enforcement action where it was needed, and provided operators with clearer guidance about their obligations.

"Most operators have worked constructively with us to address historical issues and improve their practices.

"While we've made substantial progress, our work is not finished. We'll continue working with operators to recover funding for communities, improve compliance and maintain public confidence in the integrity of class 4 gambling."

The investigation remains ongoing and the Department will continue working with operators to ensure gambling proceeds are managed in accordance with the law and that communities receive the funding they are entitled to.

Ends

Media contact:
Media Desk - Department of Internal Affairs Te Tari Taiwhenua
Mobile: +64 27 535 8639
Email: media@dia.govt.nz