New Zealand’s gambling regulator has secured commitments to return an additional NZ$11.5 million to community organisations after uncovering widespread accounting problems across the country’s gaming machine sector.
The Department of Internal Affairs (DIA) launched its review into how Class 4 gambling operators, commonly known as pokies trusts, accounted for and distributed proceeds generated by electronic gaming machines. Investigators found cases where money that should have remained available for community grants had instead been used to meet society expenses, including purchases of gaming machines.
The regulator has worked directly with operators to address historical accounting issues, resulting in commitments to channel the additional NZ$11.5 million back through gambling grants. The investigation remains open, and the DIA said further money could still be recovered as discussions with other operators continue.
The case involves a significant source of community funding. Pokies generate more than NZ$1 billion annually in New Zealand, while DIA statistics show gross machine proceeds reached NZ$1.051 billion for the 12 months ending June 2026. At the end of that quarter, 13,613 electronic gaming machines were operating across 948 venues nationwide.
New Zealand’s Gambling Act requires corporate societies operating Class 4 gambling to apply or distribute net proceeds only to authorised purposes specified in their licences. A corporate society that breaches this requirement can face a fine of up to NZ$10,000, alongside additional regulatory consequences.
The compliance review has also resulted in enforcement action against One Foundation. DIA suspended the society’s operator licence for six days after identifying failures in the accounting of gambling proceeds and finding that the operator had not surrendered a venue licence when legally required.
Alongside the enforcement action, the regulator has issued new financial guidance for the Class 4 sector. It includes practical examples intended to clarify accounting requirements, improve consistency between operators and reduce the risk of similar problems occurring again.
DIA gambling director Vicki Scott said most operators had cooperated with the review and taken steps to correct historical practices. The regulator will continue examining the sector, seeking additional funds where appropriate and checking that proceeds are handled in accordance with gambling law.
The pokies investigation comes as New Zealand expands its wider gambling regulatory framework. The country’s Online Casino Gambling Act 2026 is already in force, with the new licensed online casino market expected to become fully operational during 2027.