The Department of Internal Affairs

Te Tari Taiwhenua | Department of Internal Affairs

Building a safe, prosperous and respected nation


Bluegrass gambling operator’s licence cancelled

4 July 2012

The Secretary for Internal Affairs has cancelled Bluegrass Trust’s class 4 gambling operator’s licence because he cannot be satisfied the gaming machine society is meeting its obligations under the Gambling Act 2003.

Bluegrass Trust applied to renew its licence in June 2010 and, following an investigation, the Secretary found the trust had supplied false or misleading information about three trotting club loans. These loans were used to establish Bluegrass Trust. In addition, the Secretary found a key person to be unsuitable because of his previous poor compliance with the Gambling Act. The Secretary also considers Bluegrass Trust has breached section 118 of the Gambling Act by knowingly receiving funds, with conditions attached, from potential grant recipients.
Bluegrass Trust can appeal the Secretary's decision to the Gambling Commission and the licence continues operating pending a result.

Blenheim-based Bluegrass Holdings Ltd was incorporated in June 2009 and trades as Bluegrass Trust operating 117 gaming machines in seven bars in Auckland, Lower Hutt, Blenheim, Nelson and Christchurch. Bluegrass Trust says on its website that it raises funds primarily for the benefit of racing in New Zealand, although its Authorised Purpose allows donations for charitable and/or sporting purposes.

Media contact:
Trevor Henry, senior communications adviser, Department of Internal Affairs
Ph 04 495 7211; cell 021 245 8642