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.
The DIA said its job is to make sure this money is managed lawfully. The goal is for communities to receive the benefits set out under the Gambling Act.
Vicki Scott, the DIA’s Director of Gambling, said the review focused on making sure funds are used the way Parliament intended. She said communities should receive the support they are entitled to.
Millions Returned to Community Groups
The DIA confirmed it recovered NZ$11.5 million for community organizations as part of the review. That figure equals about US$6.7 million.
This money came from commitments secured directly with gambling operators. The DIA said more funding could still be recovered as its work with other operators continues.
Scott said the review has already delivered results. She pointed to the funds returned, the enforcement action taken, and the clearer guidance now given to operators.
Alongside the enforcement measures, the DIA released new financial guidance for the sector. The guidance explains accounting requirements using practical examples.
The regulator said the aim is to improve consistency across the industry. It is also meant to help prevent similar issues from happening again.
Scott said most operators worked with the DIA to fix past problems and improve their practices. She said the response from the wider sector had been cooperative.
The DIA said its investigation remains active. Officials will continue monitoring the sector to make sure gambling proceeds are handled according to the law.
The crackdown comes as New Zealand prepares to launch a separate, licensed online gambling market. That framework, published in June under the Online Gambling Regulations 2026, targets a 2027 launch and will allow only 15 licenses nationwide.
