Pokie operator loses licence
The Bay Foundation of Paihia has lost its licence to operate gaming machines under the Gambling Act 2003.
The Department of Internal Affairs declined to renew the licence after identifying several failings in a recent audit.
This week the Gambling Commission dismissed the Foundation’s appeal against that decision.
The Foundation is the third society to lose its licence since the Gambling Act took full effect in July 2004. It
operated gaming machines at three venues in Rotorua, Mount Maunganui and Waipapakauri. Reasons for not renewing the
Returning less than 23 per cent of gaming machine proceeds to authorised purposes – substantially below the statutory
minimum of 37.12 per cent
Paying too much in venue costs
Paying excessive amounts in management company fees and failing to supply supporting documentation
The precarious nature of the Foundation’s finances
The Department’s Director of Gambling Compliance, Mike Hill, said the loss of licence is a reminder to all societies
about their responsibilities under the Gambling Act.
“The societies exist to raise money for the community, benefiting a range of activities identified as authorised
purposes under their licence conditions,” Mike Hill said. “The law states what minimums they must meet in terms of
returns to the community and how much can be claimed as expenses for their operations. These must be actual, reasonable
and necessary and we scrutinise them carefully during audits.”