New Zealand Legislation: Regulations
Regulations are laws made under Acts
This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, most of which come into force on 1 December 2004, set out requirements, under the Gambling Act 2003 (the Act), for the holders of class 4 operator’s licences (“licence holders”
) in respect of the net proceeds generated from gaming machines situated in venues other than casinos. Regulations relating to notices about the application or distribution of net proceeds, websites, and application forms for grants come into force on 1 July 2005.
The regulations are divided into 2 Parts. Part 1 (regulations 4 to 8) sets out requirements for all licence holders. Part 2 (regulations 9 to 17) sets out additional requirements for licence holders that conduct class 4 gambling mainly to distribute net proceeds to the community (“licence holders that mainly distribute net proceeds”
).
Regulation 4 provides that Part 1 applies to all licence holders.
Regulation 5 requires a licence holder to keep documents and data relating to the conduct of class 4 gambling up to date and accurate. A licence holder is also required to ensure that agreements or arrangements entered into for the provision of goods or services related to the gambling are in writing and set out the specifics of the goods or services. Copies of documents and data must be kept by a licence holder for 7 years. Copies of records required by game rules must be kept at the venue for at least 1 month after they are compiled or completed.
Regulation 6 relates to the management of gambling equipment. Only vendors, technicians, or service agents may install, service, maintain, repair, or modify the equipment and modifications must comply with the requirements of the Act. The regulation also imposes restrictions on the persons who may access the internal components of the equipment, cashbox compartments, bank note devices, and the logic compartment and software of the equipment. Accurate and detailed records must be kept of servicing, maintenance, repairs, and modification of the equipment.
Regulation 7 requires a licence holder to display a notice at each of its class 4 venues informing players about how to obtain information about the application or distribution of net proceeds.
Regulation 8 requires a licence holder to establish a committee to make decisions on the application or distribution of net proceeds. The committee must comprise at least 3 natural persons that are key persons. Under the Act, a key person is an office holder, chief executive, or other person who exercises significant influence in the management of the licence holder.
Regulation 9 provides that Part 2 imposes additional requirements on licence holders that mainly distribute net proceeds.
Regulation 10 sets out a minimum amount of net proceeds that must be distributed by licence holders that mainly distribute net proceeds. The amount is the proportion of net proceeds equivalent to 37.12% of their GST exclusive gross proceeds each financial year.
Regulation 11 further requires these licence holders to distribute most of the net proceeds for authorised purposes on a quarterly basis and to distribute the remainder of net proceeds to authorised purposes within 3 months after the end of each financial year.
Regulation 12 requires licence holders that mainly distribute net proceeds to obtain the return of money distributed to a grant recipient who has received funding from another source for the same purpose or who has misused the money.
Regulation 13 requires these licence holders to maintain a website and update the website every 6 months. The regulation sets out information and features that must be included on the website.
Regulation 14 includes an extra function for the net proceeds committees of licence holders that mainly distribute net proceeds. In addition to their other functions, the net proceeds committees must distribute net proceeds from class 4 gambling for authorised purposes.
Regulation 15 specifies records that must be kept by these net proceeds committees, relating to the distribution of net proceeds.
Regulation 16 sets out further requirements relating to the approval of grant applications and the subsequent making of grants.
Regulation 17 specifies information that must be required in a grant application form.