NZ Regulator Recovers $11.5m for Pokies Communities, Suspends Operator

^{New Zealand's gambling regulator says it has recovered $11.5 million in community pokies funding and suspended one operator's licence after a sector-wide compliance review. (Photo: Sanjay Jangam / Wikimedia Commons)}

New Zealand's Department of Internal Affairs (DIA) has secured commitments to return $11.5 million to community organisations and suspended the operating licence of a class 4 gambling society, after an investigation found widespread accounting failures across the country's pokies sector.

The department, which regulates gambling under the Gambling Act 2003, said on 11 September 2026 that the review examined how class 4 gambling operators, commonly known as pokies trusts, accounted for and distributed gambling proceeds. More than $1 billion is generated through pokies in New Zealand each year, funds that are meant to flow back into community grants under the Act.

Investigation Found Money Diverted From Community Grants

The department said its investigation uncovered cases where money that should have been available for community grants was instead used to cover society expenses, including the purchase of gaming machines. That finding triggered direct engagement between the DIA and individual operators to correct historical accounting problems.

That work has already produced commitments to return an additional $11.5 million through gambling grants, with the department noting that further funding may still be recovered as it continues talks with other operators. The investigation remains open.

One Foundation Hit With Six-Day Licence Suspension

The compliance push also led to formal enforcement action against class 4 gambling society One Foundation. The DIA issued a six-day suspension of the operator's licence after identifying accounting failures relating to gambling proceeds, along with a failure to surrender a licence for one of its pokies venues when required by law.

Alongside the enforcement action, the department published new financial guidance for the class 4 sector, intended to give operators greater clarity on their accounting obligations through practical examples and to bring more consistency to how proceeds are recorded across the industry.

'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,' Vicki Scott, Director of Gambling at the Department of Internal Affairs, said in the public statement.

Scott added that most operators had worked constructively with the department to address historical issues and improve their practices, but said the work was 'not finished'. She said the DIA would continue working with operators to recover further funding, improve compliance and maintain public confidence in the integrity of class 4 gambling.

What Happens Next

The department has not named which other operators remain under review, and has not said when further recoveries or enforcement decisions might follow. For the pokies trusts still working through historical accounting issues, the new guidance is intended to set a clearer baseline for how proceeds must be recorded and distributed going forward.

The DIA said it will continue monitoring compliance across the class 4 sector as the wider review continues, with the goal of ensuring gambling proceeds are managed in line with the Gambling Act and that communities receive the funding they are entitled to.

Full details of the department's financial guidance for class 4 societies, along with information on the Gambling Act 2003, are available via the Department of Internal Affairs.