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Gambling in Pubs and Clubs (Class 4)
Gaming machines in pubs and clubs (i.e. outside a casino) represent 'Class 4' gambling, which the Gambling Act 2003 classifies as high-risk, high-turnover gambling. Class 4 gambling may only be conducted by a corporate society and only to raise money for an authorised (e.g. community and non-commercial) purpose. You can find out here about:
The Gambling Act aims to control the growth of gambling. There are strict licensing criteria for organisations wanting to run gaming machines and for the venues at which those machines are operated.
The licensing criteria aim to:
Corporate societies that are licensed to operate gaming machines (class 4 corporate societies) must apply the net proceeds of the gaming operation to authorised purposes.
Authorised purposes are:
A society must state what its regulations are, and the statement will be included on its licence.
Click here for more detailed information on Authorised Purposes: Authorised Purpose Guidelines for Societies and Clubs
Regulations have been made under the Gambling Act 2003 to help achieve the objectives of the Act. Regulations apply to individuals and organisations that are authorised to operate gambling. Please click here for a list of our Current Regulations.
For more detailed information please click here:
Venue expenses are the payments that class 4 corporate societies make to reimburse class 4 venues (pubs) for hosting their gaming machines.
After extensive consultation a venue expenses framework was developed under the Gambling Act 2003. The venue expenses framework allows venues to be paid money by societies to reflect their true costs.
The Department has developed guidelines for corporate societies and venue operators on the rules for paying venue expenses related to class 4 gambling (gaming machines outside casinos). Click here to view the Venue Payments Reference Paper - Guidelines on Venue Costs under the Gambling Act 2003 .pdf (300k)*
This paper includes examples of two types of forms that can be used when claiming venue expenses. Use the links below to print and use either of these examples. Adobe site.
Gazette Notice for Venue Expenses
A Gazette notice appearing in the 2 September 2004 issue of the New Zealand Gazette made under section 116 of the Gambling Act 2003 limits and excludes class 4 venue costs.
Most of the limits and exclusions come into effect on 2 December 2004. The remaining limit will come into effect on 2 December 2005. Click here for a copy of the Gazette notice:
Development of Venue Expenses Gazette Notice
A consultation document on venue expenses was sent to all societies and made available on the Department's website on 22 March 2004. To read the 22 March 2004 consultation document please click here: Site Payments Consultation 232k*
As a result of the consultation, an independent accounting firm was commissioned to assess the factors that influence venue expenses and to benchmark actual, reasonable and necessary costs that venues incur for hosting gaming machines. A copy of the accounting firm's report is here:
The Gambling Act allows for the growth of gambling to be controlled through territorial authorities. Territorial authorities have introduced policies that can limit gaming machine numbers and they must agree to where gaming machines are placed in their districts. In this way the community can have input into gaming machine numbers and locations.
A corporate society must apply for territorial consent before it:
Class 4 Game Rules
The Gambling Act (Class 4) Game Rules 2004 govern the playing and participation in class 4 gambling that utilises gaming machines outside of casinos and the systems, processes, information and documentation associated with particular games.
Approved Gaming Machines
The Class 4 Game Rules apply to all gaming machines that are authorised pursuant to the Gambling Act 2003. A list of all approved gaming machines to which the Class 4 Game Rules apply has been made as a reference. Link here to list of Approved Gaming Machines.
Class 4 Game Rules 2004 - Standard Forms
The Secretary for Internal Affairs has issued standard forms relating to class 4 game rules and their use is mandatory. This means that corporate societies, venues or service providers cannot create and use their own versions, except where electronic copies can be generated in the same format as the standard forms and contain exactly the same information.
Due to the progressive implementation of EMS there are two types of standard forms. These are:
Important note about the effects of Class 4 Game Rules 26 and 27 - "Standard Forms" (please read).
Licence Conditions After 1 July 2004
After 1 July 2004, operator's licences and venue licences issued or renewed will be subject to any licence conditions issued under the Gambling Act 2003. These conditions will accompany and form part of the licence. Any corporate society must comply with the requirements set out in the licence conditions. Non compliance will put the society's licence at risk.
Licence Conditions Prior to 1 July 2004
The following licence conditions continue to apply to corporate societies whose licences were issued prior to the introduction of the licensingprovisions of the Gambling Act 2003 on 1 July 2004. These will continue until the licence is renewed or amended in so far as they are not inconsistent with any provision of the Act.
Set A - Single Site Club:
Class 4 Gambling Forms:
Last updated: 28/06/2006