Gambling Enforcement and Penalties
The Department of Internal Affairs prioritises compliance through education and auditing, but deploys severe statutory enforcement tools against operators who violate host responsibility mandates, financial regulations, or licensing terms.
Statutory Penalties Under the Act
The Gambling Act establishes substantial penalties for regulatory non-compliance:
| Offence Category | Statutory Section | Maximum Penalty |
|---|---|---|
| Operating Illegal Gambling | Section 19 | 1 year imprisonment or fine up to $20,000 (Individual); $50,000 (Corporate) |
| Advertising Illegal Gambling | Section 16 | Fine up to $10,000 (Individual); $50,000 (Corporate) |
| Allowing Minors into Casino | Section 301 | Fine up to $5,000 (Individual); $10,000 (Casino Operator) |
| Breach of Host Responsibility | Sections 130, 137 | Suspension or cancellation of casino/venue operating licence |
| AML / CFT Non-Compliance | AML/CFT Act 2009 | Civil penalties up to $2 million; criminal fines up to $5 million |
Landmark Enforcement Actions
In recent years, the DIA has demonstrated a robust enforcement stance against major industry participants. Notable regulatory interventions include:
- SkyCity Casino Licence Suspension Proceedings: In 2023, the Secretary for Internal Affairs applied to the Gambling Commission to suspend the casino venue licence of SkyCity Auckland following a complaint regarding a failure to uphold mandatory host responsibility procedures for a continuous player over an extended period. The matter was subsequently settled with an agreed multi-day closure of the gaming floor, demonstrating the severe operational consequences of host responsibility breaches.
- Revocation of Class 4 Societies: Repeated cancellations of pub gaming machine corporate licences where board members failed to maintain arms-length relationships with commercial venue operators or misdirected community grant funds.
