Plain language law

New Zealand law explained for everyone

Gambling Act 2003

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

111: Application or distribution of net proceeds when corporate society ceases class 4 gambling

You could also call this:

"What happens to gambling money when a company stops operating"

Illustration for Gambling Act 2003

If you are part of a corporate society that stops operating class 4 gambling for more than 4 weeks, you must tell the Secretary what you plan to do with the remaining money. You have 20 working days to report how and when you will use the money for authorised purposes. You must also sell any gambling assets and use the extra money for authorised purposes.

You will have to sell all your gambling assets quickly and use any gain for good causes. You must also use all the remaining money from class 4 gambling for good causes. If you do this, you must fill out a standard form and tell the Secretary within 5 working days about the money you got from selling assets and how you used it.

If you do not follow these rules, you can get in trouble and have to pay a fine of up to $10,000.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=DLM208678.

Topics:
Money and consumer rights > GamblingCrime and justice > Criminal law
Previous

110: Publication requirements for corporate societies, or

"Corporate societies must publicly share information about their community funding every 3 months and yearly."

Next

112: Orders regarding application or distribution of net proceeds, or

"Rules for fixing mistakes with gambling money"

Part 2Gambling
Licensing of class 4 gambling: Net proceeds and costs of class 4 gambling

111Application or distribution of net proceeds when corporate society ceases class 4 gambling

  1. A corporate society that has not operated class 4 gambling for a period of more than 4 weeks must, unless it has notified the Secretary and the Secretary has agreed that it may remain inactive for a further specified period,—

  2. report to the Secretary within 20 working days of the end of that 4-week period on how and when it proposes to apply or distribute the remaining net proceeds to or for authorised purposes; and
    1. promptly sell all gambling assets and apply or distribute any gain above the book value from the sale of gambling assets to or for authorised purposes; and
      1. promptly apply or distribute all other remaining net proceeds from its conduct of class 4 gambling to or for authorised purposes.

        1. A corporate society that has applied or distributed net proceeds in accordance with subsection (1)(b) or (c) must report to the Secretary on the relevant standard form, within 5 working days of the application or distribution to or for authorised purposes, on—

        2. any gain above the book value from the sale of gambling assets; and
          1. the final application or distribution of net proceeds from class 4 gambling under subsection (1).

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

            Notes
            • Section 111(1): replaced, on , by section 67 of the Gambling Amendment Act 2015 (2015 No 3).
            • Section 111(1A): inserted, on , by section 67 of the Gambling Amendment Act 2015 (2015 No 3).
            • Section 111(2): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).