The investigation found that One Foundation, which runs pokies in hospitality venues, distributes community grants, and enforces responsible gaming rules, mismanaged proceeds from gambling machines and failed to surrender a license for one of its venues as required by law. The probe also uncovered cases where money meant for community grants was spent on society expenses like buying gaming machines.
As a result of the investigation, operators have agreed to return $6.6 million through gambling grants.
Director of Gambling at the DIA, Vicki Scott, commented:
“This work has focused on ensuring gambling proceeds are used in the way Parliament intended and that communities receive the benefit they are entitled to. The investigation has produced significant results. We’ve secured commitments that will return NZ$11.5 million to community organisations, taken enforcement action where it was needed, and provided operators with clearer guidance about their obligations. We’ll continue working with operators to recover funding for communities, improve compliance and maintain public confidence in the integrity of class 4 gambling.”
The department additionally shared that it had released new financial guidance for class four gambling operators to improve consistency and prevent similar issues in the future.
