GMANZ “in Full Support” Of DIA’s Investigation Into Class 4 Gaming Trusts

The Gaming Machine Association of New Zealand (GMANZ) is in full support of the Department of Internal Affairs (DIA)’s current investigation into spending of cash reserves by Class 4 gaming trusts.

This follows Newsroom’s recent reporting that DIA is investigating how some Gambling Societies are managing their Working Cash ratio, after a regulation change in July 2020 permitted Societies to retain a greater proportion of their annual profits so they could avoid insolvency during COVID-19 lockdowns.

“GMANZ is deeply committed to ensuring that our members are compliant under the Gambling Act. We take our responsibilities very seriously and work hard to support integrity in the Class 4 gaming sector. Accountability of our members is a critical part of that,” says GMANZ chair Peter Dengate Thrush.

“The July 2020 regulation change, which was made during Covid-19 lockdowns, was an absolutely necessary response to address historic and systemic insolvency issues, which were exposed during a very difficult, uncertain time,” says Dengate Thrush. “GMANZ’s members exist to support communities, and the relief package put in place by the Minister was effective and helped a lot.”

“Newsroom’s reporting raises very valid questions. GMANZ is committed to working with its membership and DIA to clarify these questions and identify what steps need to be taken next,” says Dengate Thrush.

“There were a lot of fast-moving regulatory and legislative changes happening around that time in 2020 as New Zealand was figuring out how to manage the rising COVID-19 pandemic, and it was a difficult time for all of us,” says Dengate Thrush.

“The fact that DIA has had to engage outside accounting expertise is a sign that this is a more complex accounting and legal area than is usually the case. We look forward to working with DIA and our members to ensure everyone understands the new regime and applies the rules correctly.”

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