NZ Gambling Act 2003

In essence, the Gambling Act 2003 New Zealand is a comprehensive legislative tool that regulates and safeguards the interests of both consumers and society as a whole. This legislation controls and manages the industry to prevent harm caused by gambling while authorising some forms and prohibiting others from facilitating responsible gambling. It emphasises fairness, minimises criminal opportunities, and benefits the community. It also encourages community engagement in decisions regarding gaming services.

This article offers an in-depth look at the New Zealand Gambling Regulation Act 2003, its background, and the most critical sections it includes. The impact of the legislation on the gaming sector is discussed to help providers and players understand all the nuances of this intricate document for legal, safe and pleasant gaming.

Passed on September 18, 2003, the NZ Gambling Act 2003 marked the beginning of a new era for casinos, lotteries, sports betting and other gaming activities. Following extensive legislative processes and discussions, this governing document emerged to supplant both the Gaming and Lotteries Act of 1977 and the Casino Control Act of 1990.

In essence, the Gambling Act 2003 New Zealand is a comprehensive legislative tool that regulates and safeguards the interests of both consumers and society as a whole. This legislation controls and manages the industry to prevent harm caused by gambling while authorising some forms and prohibiting others from facilitating responsible gambling. It emphasises fairness, minimises criminal opportunities, and benefits the community. It also encourages community engagement in decisions regarding gaming services.

This article offers an in-depth look at the New Zealand Gambling Regulation Act 2003, its background, and the most critical sections it includes. The impact of the legislation on the gaming sector is discussed to help providers and players understand all the nuances of this intricate document for legal, safe and pleasant gaming.

New Zealand Gambling Act 2003 Explained in Detail

The New Zealand Gambling Act was passed on September 18, 2003. Its primary aim is to control the gaming sector in New Zealand completely. Other goals include the following.

• Limiting the gaming industry’s expansion.
• Fostering responsibility and accountability.
• Reducing and eliminating gaming harm.
• Assuring honesty and fairness.

The industry’s shifting terrain and the necessity for ongoing adaptation in the face of changing public concerns and technological improvements were reflected in this law’s significant modifications in 2005 and 2015.

The New Zealand Gambling Act 2003 extends its regulatory scope by defining who is permitted to engage in gaming activities and specifying the locations where such gaming is allowed. That way, it further refines and modernises the regulation of the industry to align with the evolving needs of society and the industry itself. Only six casinos in NZ are currently operating within the law.

• Sky City Auckland.
• Christchurch Casino.
• Sky City Queenstown.
• Wharf Casino Queenstown.
• Sky City Hamilton.
• Dunedin Casino.

New Zealand Legal Gambling Classes

Types of gambling that are not permitted by or governed by the Gaming Act of 2003 are considered illegal. This effectively prohibits all forms of gaming that do not fall within the four legal classes specified by the law.

Class 1

This class includes low-stake gambling and activities such as raffles and sweepstakes by charitable organisations and standalone individuals, which do not require a licence. Under this legislation, the winnings or the turnover fall below NZ$500 to be considered legal. Moreover, the organiser may not receive any remuneration, so all of the event’s proceedings must be paid to the winner.

Class 2

The Gambling Act 2003 authorises societies or clubs to hold non-licensed gambling events with a turnover of less than NZ$25,000. The prize valued at its retail price must be at most NZ$5,000 to be deemed lawful. The net revenues from the gaming activity have to be used exclusively for approved purposes.

Class 3

Casinos and casino-style games, including table games and gaming machines, fall under Class 3 gambling and are tightly regulated. Such activities require licensing and must be run by a society. Regular gambling should be organised by a corporate entity and have prizes in retail value exceeding NZ$5,000.

Class 4

Class 4 gambling is aimed at machines in non-casino venues, like pubs and clubs, and is subject to strict licensing and operational rules. Such activities must be run by a corporate society only and raise money exclusively for authorised purposes such as community and non-commercial purposes.

Illegal Gambling Types in New Zealand

The New Zealand Gambling Act 2003 outlines various types of gambling expressly prohibited within the country. These bans are implemented to uphold the industry’s integrity, protect customers, and minimise potential harm. There are four critical categories of prohibited activities that we cover in more detail below.

Bookmaking and Placing Bets

In New Zealand’s history, bookmaking remained prohibited within its borders since 1920. However, in 1961, a significant shift occurred as horse racing bookmaking was permitted exclusively at racetracks.

Now, under the Gambling Act 2003, bookmaking, which involves betting on the outcomes of races and sporting events, is prohibited unless specifically authorised by the relevant authorities. This regulation aims to prevent unregulated and potentially fraudulent betting practices, ensuring fair play and transparency within the industry.

The only exclusion is digital activities facilitated by the Totalizator Agency Board of New Zealand (TAB NZ). This statutory body, established under the Racing Industry Act of 2020, now legally provides betting services to New Zealand residents, reflecting the evolving landscape of gaming regulations within the country.

Remote Interactive Gambling

The term “RIG” encompasses the concept of individuals engaging in gaming activities from a distance, facilitated through interaction with a communication device like a phone, tablet, computer or similar.

The New Zealand Gambling Act 2003 strictly regulates RIG, including online betting, by allowing only overseas-based operators to provide such services to New Zealand residents. Even though this restriction ensures that remote NZ-based gaming is not permitted, there are many online casino sites based abroad that provide top-notch gaming entertainment and are legal for Kiwis. Moreover, they are also safe and licensed by international authorities like the Malta Gaming Authority, Curaçao Gaming Control Board, etc.

There are specific exemptions to the general prohibition of RIG in New Zealand. Sales promotions in the form of lotteries conducted within New Zealand fall outside this ban, but other sales promos might be categorised as remote interactive gambling. The Lotteries Commission and the Racing Board are permitted to conduct approved forms of RIG. Additionally, licensed class 3 operators are granted an exemption from the ban on RIG until October 2024.

Legal Gambling Age

There are age restrictions set by the New Zealand Gambling Act to safeguard minors from the potential harms associated with gaming. Individuals must reach the legal gambling age in New Zealand (commonly 18 or 20 years, depending on the type of gaming) to participate in the chosen activity. Instant games like scratch cards, bets at the Totalizator Agency Board, and pokies require the user to be over 18 years old. At the same time, a player must be over 20 years old to enter a casino. Fines for breaking this act can be as high as NZ$500-NZ$1,000.

Gambling Advertising from Overseas

The Gambling Act 2003 makes advertising gaming from overseas in New Zealand illegal. This includes any ads promoting online casinos, betting or operators located outside New Zealand or those that might encourage people to gamble abroad. Violating this rule is an offence under Section 16 of the act, and the penalty can be a fine of up to $10,000.