Gambling Act 2003

Gambling - Licensing of class 4 gambling - Grant of class 4 operator’s licence

52A: Circumstances in which corporate society may apply net proceeds to authorised purpose

You could also call this:

"When a charity-like group can use gambling money for a good cause"

A corporate society can use some or all of its net proceeds for an authorised purpose if the Secretary is satisfied that its main activity is an authorised purpose. The Secretary will check if the corporate society's gambling activities are only a small part of its main activity. You can think of an authorised purpose as a good cause that the corporate society is working towards, like helping a community or supporting a charity.

The Secretary may look at whether the corporate society has a history of doing things that are authorised purposes and if its rules are consistent with having a main objective of doing those things. The Secretary wants to make sure the corporate society is genuine about its main activity and that it's not just using gambling as its main focus.

If the corporate society is a club, the Secretary may also consider whether it has a history of operating as a club for club purposes, such as under section 95, and whether it has many active members who are involved in the club's activities.

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This page was last updated on 29 June 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6399322.

Topics:

Money and consumer rights > GamblingCrime and justice > Criminal law

52: Grounds for granting class 4 operator’s licence, or

"When can you get a licence to run a class 4 gambling operation to raise money for good causes?"

53: Content and conditions of class 4 operator’s licence, or

"What's on a class 4 gambling licence and the rules that come with it"

Part 2Gambling
Licensing of class 4 gambling: Grant of class 4 operator’s licence

52ACircumstances in which corporate society may apply net proceeds to authorised purpose

A corporate society may apply some or all of its net proceeds to an authorised purpose only if the Secretary is satisfied that the corporate society’s primary activity is itself an authorised purpose and the conduct of gambling by the corporate society is only incidental to that activity.
When considering whether subsection (1) applies to a corporate society, the Secretary may take the following into account:
whether the corporate society can demonstrate a significant history of carrying out activities that are authorised purposes; and
whether the corporate society’s governing document is consistent with the corporate society having a primary objective of carrying out activities that are authorised purposes.

When considering whether subsection (1) applies to a corporate society that is a club, the Secretary may also take the following into account:
whether the club has, or had before merging under section 95, a significant history of operating as a club for club purposes; and
whether the club has substantial active membership.

Notes

Section 52A: inserted, on 3 March 2015, by section 29 of the Gambling Amendment Act 2015 (2015 No 3).