Department of Internal Affairs Secures $11.5 Million for Communities Following New Zealand Pokies Review

New Zealand’s Department of Internal Affairs has secured an additional $11.5 million for community organisations as part of its review of the pokies sector. The regulator took enforcement action against one operator and released new guidance to strengthen compliance across class 4 gambling societies.

The milestones follow an investigation into how pokies trusts accounted for and distributed gambling proceeds. The Department identified widespread issues where funds intended for community grants were used instead for society expenses such as purchasing gaming machines. More than $1 billion is generated through pokies each year.

Recoveries, Enforcement Action, and New Guidance

The Department worked directly with operators to resolve historical issues. This produced commitments to return the $11.5 million in grants. Further funding may still be recovered as the work continues.

Formal enforcement targeted class 4 gambling society One Foundation. The Department imposed a six-day suspension of its operator’s licence after finding accounting failures with gambling proceeds and the failure to surrender a licence for one pokies venue as required by law.

The Department also issued new financial guidance. It clarifies accounting requirements and illustrates obligations with practical examples to improve consistency and prevent recurrence.

Vicki Scott, Director of Gambling, said: “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 $11.5m 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.”

Regulatory Oversight Ahead

As reported by G3 Newswire, the investigation remains ongoing. The Department will keep engaging operators to ensure proceeds are managed according to the Gambling Act and communities receive entitled funding.

This activity sets a clear compliance benchmark. Operators face sustained scrutiny on financial controls, with licence sanctions available where standards are not met. The emphasis on accurate distribution will influence how societies structure expenses and report grants going forward.

Reporting: G3 Newswire

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