TLDR New Zealand’s Department of Internal Affairs suspended the license of charitable gaming trust One Foundation for six days over accounting failures. The DIA recovered NZ$11.5 million (US$6.7 million) for community organizations through a wider review of the Class 4 gambling sector. Investigators found some operators used gambling proceeds meant for community grants to cover society expenses, including gaming machine purchases. New Zealand’s Class 4 gambling sector generates more than NZ$1 billion annually in proceeds. The DIA released new financial guidance to help operators meet their accounting obligations going forward.
New Zealand’s gambling regulator has taken action against a charitable gaming trust after finding problems with how it handled money meant for community groups. The Department of Internal Affairs, known as the DIA, suspended the license of One Foundation for six days.
The suspension was announced on Friday. It follows a broader review into New Zealand’s Class 4 gambling sector, which covers pokies machines operated by charitable trusts.
One Foundation is a Class 4 gambling trust. These trusts collect proceeds from gaming machines and are required to pass the money on to community organizations through grants.
The DIA said its review found accounting failures at One Foundation. The trust also failed to surrender a license for one of its pokies venues when it was legally required to do so.
Review Uncovers Wider Sector Problems
The DIA’s investigation looked beyond One Foundation. It examined how Class 4 operators across the country were managing and distributing gambling proceeds.
Investigators found that some operators used money that should have gone to community grants for other purposes instead. This included covering society expenses and buying gaming machines.
New Zealand’s Class 4 gambling sector generates more than NZ$1 billion each year. That is roughly US$581 million based on current exchange rates.
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