New Zealand DIA Recovers NZ$11.5 Million from Pokies Operators in Compliance Investigation

The New Zealand Department of Internal Affairs (DIA) has recovered NZ$11.5 million (US$6.6 million) from class 4 gambling operators following a probe into the pokies sector. The regulator will direct the returned funds to community organisations.

The investigation uncovered widespread issues in which proceeds meant for community grants were instead spent on society expenses, including purchases of additional gaming machines. These practices breach Section 106 of the Gambling Act 2003, which requires net proceeds from class 4 gambling to be applied only to authorised purposes listed in the corporate society’s licence.

Vicki Scott, the DIA’s director of gambling, said the probe produced significant results. “Most operators have worked constructively with us to address historical issues and improve their practices,” Scott said. “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.”

Enforcement Actions and Guidance Issued

The DIA suspended One Foundation’s operating licence for six days after it identified accounting failures tied to gambling proceeds and the failure to surrender a venue licence when required. The regulator also released new financial guidance for class 4 operators to clarify accounting requirements, improve consistency across the sector and help prevent similar problems.

Land-Based Enforcement as Online Liberalisation Nears

The compliance effort sits alongside other land-based actions. In May authorities charged an Auckland man on eight counts under the Gambling Act in connection with two alleged illegal poker venues in central Auckland. These steps continue while New Zealand prepares to liberalise its online gambling market for a 2027 launch, with a cap of 15 licences. Entain and Super Group have each signalled plans to pursue three licences, according to reporting by iGaming Business.

The sustained focus on community returns sets a clear compliance benchmark for all operators ahead of the regulated online expansion.

Reporting: iGaming Business (iGB)

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