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New Zealand law explained for everyone

Gambling Act 2003

Gambling - Licensed promoters of class 3 gambling - Trust account

211: Licensed promoter must have trust account

You could also call this:

"Licensed promoters must keep fundraising money safe in a special bank account"

Illustration for Gambling Act 2003

If you are a licensed promoter, you must have a trust account. This account is for money raised by or paid to you, including interest. You must pay this money into the trust account at a registered bank, which can be for the society's activities or a particular promotion.

You can only withdraw money from the trust account to pay it to the society or to someone else with the society's written direction. You can also withdraw money to pay an account as required by section 213.

Money in the trust account must not be used to pay your debts or those of a key person in your organisation. It must not be taken by a court or pass to the Official Assignee if you are bankrupt. If you break these rules, you can be fined up to $2,000.

However, you can pay money into the society's bank account if your agreement with the society allows it.

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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=DLM209399.

Topics:
Money and consumer rights > GamblingCrime and justice > Criminal law
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210: Consequences of appeal regarding licensed promoter’s licence, or

"What happens to your licence if you appeal a decision about it"

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212: Trust account must be audited, or

"Licensed promoters must have their trust accounts regularly checked by a qualified auditor."

Part 2Gambling
Licensed promoters of class 3 gambling: Trust account

211Licensed promoter must have trust account

  1. This section applies to all money raised by, or paid to, a licensed promoter (including interest)—

  2. to meet the expenses incurred by the licensed promoter on the society’s behalf; or
    1. to be held by the licensed promoter on the society’s behalf.

      1. A licensed promoter must pay the money into a trust account, at a registered bank, operated either—

      2. for the activities of the society or the licensed promoter generally; or
        1. for a particular promotion.

          1. No person may withdraw money paid into the trust account except—

          2. to pay it to the society on whose behalf it was received or, at the direction in writing of the society, to a person other than the licensed promoter; or
            1. for the purpose of paying an account rendered in accordance with section 213.

              1. Money paid into a licensed promoter’s trust account must not—

              2. be used to pay debts of the licensed promoter, or of a key person of the licensed promoter:
                1. be attached or taken in execution under an order or process of a court:
                  1. pass to the Official Assignee if the licensed promoter or a key person of the licensed promoter is adjudged bankrupt.

                    1. A person who knowingly contravenes subsection (3) or subsection (4) commits an offence and is liable on conviction to a fine not exceeding $2,000.

                    2. This section does not prevent money raised by, or paid to, a licensed promoter being paid into the society’s bank account if the payment is permitted by the licensed promoter’s agreement with the society.

                    Compare
                    • 1977 No 84 s 55
                    Notes
                    • Section 211(5): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).