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Gambling Act 2003

Gambling - Licensing of class 4 gambling - Net proceeds and costs of class 4 gambling

106: Corporate society must apply or distribute net proceeds from class 4 gambling to or for authorised purpose

You could also call this:

"Corporate societies must use class 4 gambling profits for approved purposes."

Illustration for Gambling Act 2003

If you are part of a corporate society that does class 4 gambling, you must use the money you make from it for a purpose that is allowed in your licence. You have to follow the rules in your licence when you use the money you make from class 4 gambling, and this is also subject to the restriction in section 52A. If you do not follow the rules, you can get in trouble and have to pay a fine of up to $10,000.

If you are found guilty of not following the rules, a court can make you pay back any money you used wrongly or make sure you use the money correctly. The court can also tell you to use the money you made from class 4 gambling for a purpose that is allowed in your licence. If you are found guilty, you will lose your licence to operate class 4 gambling and you will not be able to appeal this decision. You will also lose any other licences you have for class 4 venues.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM208668.

Topics:
Money and consumer rights > GamblingCrime and justice > Criminal law
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Part 2Gambling
Licensing of class 4 gambling: Net proceeds and costs of class 4 gambling

106Corporate society must apply or distribute net proceeds from class 4 gambling to or for authorised purpose

  1. A corporate society must apply or distribute the net proceeds from class 4 gambling only to or for an authorised purpose specified in the corporate society’s licence.

  2. To avoid doubt, the requirement in subsection (1) for a corporate society to apply or distribute the net proceeds from class 4 gambling is subject to the restriction in section 52A relating to the circumstances in which a corporate society may apply, rather than distribute, those net proceeds.

  3. A corporate society that fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.

  4. A court that convicts a corporate society of an offence under this section may—

  5. make whatever orders are necessary to recover an amount of proceeds wrongly applied or distributed or to safeguard an amount not applied or distributed; and
    1. order the application or distribution of an amount of proceeds not yet applied or distributed.

      1. The effect of a conviction under this section is that—

      2. the class 4 operator’s licence and all class 4 venue licences held by the corporate society are cancelled; and
        1. the corporate society does not have a right to appeal the cancellation.

          Notes
          • Section 106(1A): inserted, on , by section 63(1) of the Gambling Amendment Act 2015 (2015 No 3).
          • Section 106(2): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
          • Section 106(3)(b): amended, on , by section 63(2) of the Gambling Amendment Act 2015 (2015 No 3).