The Government of New Zealand has launched a public consultation into a legislative amendment to exempt lotteries from a remote gambling prohibition clause.
Currently, the New Zealand Gambling Act 2003 prohibits ‘remote interactive gambling’ under Section 9, defining the term as any activity that involves “gambling by a person at a distance by interaction through a communication device”.
However, a new section was introduced to the country’s gambling law back in 2021 in the midst of peak COVID, allowing for specific gambling activities to be conducted remotely by operators holding a Class 3 licence – in order to not affect their ability to fund-raise.
While lotteries were initially included in this section, it was done through a temporary insert that is due to expire on 31 October, 2024. The new proposed law is looking to extend this, allowing lotteries to be permanently conducted remotely.
Under the legislative framework – under which lotteries also fall – Class 3 licence holders are gambling operators who carry out gambling activities without a gambling machine, with the goal of raising money for authorised initiatives such as charities or other non-commercial purposes. By being permanently exempt, lotteries will continue to be able to advertise freely and take online payments.
As of now, under Section 4 of the Gambling Act only the state-owned Lotteries Commission – operator of the Lotto NZ lottery, providers of gambling authorised under the Racing Industry Act 2020 (from which local commercial lotteries are not a part of), and licenced lotteries operating outside of New Zealand are allowed to operate remotely on a permanent basis.
The new draft law will look to change that by adding a new paragraph which states that “class 3 gambling in the form of a lottery conducted by any gambling operator that holds a class 3 operator’s licence that allows the gambling operator to conduct a lottery” is also exempt from the prohibition order.
Public feedback will be expected by 11.59pm on Thursday 19 September, due to the Governance and Administration Committee having to report back to the House of Representatives on 10 October.
If the amendment receives the necessary backing, it will come into effect either the day after 1 November 2024 or the Royal assent – depending on which one comes first.
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