New Zealand Gambling Act: The Four Classes of Gambling

Gambling in New Zealand is governed by the Gambling Act 2003. Instead of listing every game, the law sorts gambling into classes based on how big the prizes and turnover are and who runs the activity. Anything that does not fit one of the authorised classes – or does not follow its rules – is illegal gambling.

Private gambling between friends, where no one makes money from organising it, is allowed outside these classes. Casinos and the national operators TAB NZ and Lotto NZ have their own rules.

Class 1

Small-scale gambling with prizes and turnover of no more than $500, such as a raffle at a school event. Anyone can run it, no licence is needed, and all the money must go back out as prizes – the organiser cannot keep a profit.

Class 2

Gambling run by a society or club, with prizes between $500 and $5,000 and turnover of up to $25,000 per session. Housie nights and larger raffles often fall here. No licence is needed, but the proceeds must go to authorised purposes such as charity or community work.

Class 3

Gambling with prizes over $5,000, such as big raffles or lotteries run by a society. A licence from the Department of Internal Affairs is required, and the net proceeds must be used for authorised purposes.

Class 4

Gaming machines – the pokies found in pubs and clubs. They can only be operated by licensed societies (often called trusts), and a set share of their income must be returned to the community as grants. Class 4 is the largest source of gambling losses in New Zealand outside casinos.

Casino gambling is regulated separately. The Act stopped new casino licences being issued, so the number of land-based casinos is fixed at six venues in Auckland, Hamilton, Christchurch, Dunedin and Queenstown.

Sports and race betting is run by TAB NZ, while Lotto NZ operates the national lottery games. Both are allowed to offer their products online.

The Gambling Act does not allow New Zealand-based companies to run online casinos. It does not make it a crime for New Zealanders to play at offshore sites, which is why many players use international casinos licensed in places such as Malta. The government has announced plans to license a limited number of online casino operators, so check the Department of Internal Affairs for the latest position.

If you choose an offshore site, look for a recognised licence such as the Malta Gaming Authority, read the terms carefully and compare options in our list of online casinos for New Zealand players. For a wider look at the market, see our overview of gambling in New Zealand.