{"id":685,"date":"2019-10-24T10:05:14","date_gmt":"2019-10-24T10:05:14","guid":{"rendered":"http:\/\/insight.thomsonreuters.co.nz\/?p=685"},"modified":"2023-03-13T02:41:04","modified_gmt":"2023-03-13T02:41:04","slug":"how-lawful-gambling-provides-crucial-funding-for-charities","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.co.nz\/legal\/posts\/how-lawful-gambling-provides-crucial-funding-for-charities","title":{"rendered":"How Lawful Gambling Provides Crucial Funding for Charities"},"content":{"rendered":"\n

Every year, millions of dollars are\nreturned to the community through grants and other fundraising in New Zealand.\nThis wouldn\u2019t be made possible without the heavily regulated gambling industry,\nprimarily used to bankroll charitable causes. <\/h4>\n\n\n\n

Jarrod True is Author of Gambling Law<\/em><\/a>, a comprehensive resource published by Thomson Reuters on the various forms of gambling in New Zealand. As Director of his specialist legal advisory practice, True Legal Limited, Jarrod is an expert on the gambling regulatory framework and has been involved with policy development in this area. Legal Insight New Zealand<\/em> caught up with Jarrod to get his perspective on how the legislation is going and what organisations and businesses ought to be mindful of when getting involved. <\/p>\n\n\n\n

The\nindustry making a difference<\/h2>\n\n\n\n

The Author and Director\u2019s initial\ninvolvement into legal gambling territory began in 2001, when he reviewed one\nregulator\u2019s key policy decisions, in which the outcome of that case was\nsuccessful. Since then, Jarrod has had a string of successful Gambling\nCommission decisions, with many setting valuable precedents for the industry. <\/p>\n\n\n\n

His passion for the area of the law stems\nfrom the tremendous benefits it offers to New Zealand charities, where he cites\nnon-casino gaming machines as one, great example. Consisting of non-profit\norganisations, in 2018 they made 28,000 grants, totalling $276 million, to\n11,000 recipients. <\/p>\n\n\n\n

\u201cThis funding is crucial for these\ncommunity groups, many of whom would not be able to provide services and\nsupport in their community without it. It is fantastic to be involved in an\nindustry that makes such a positive difference,\u201d said Jarrod.<\/p>\n\n\n\n

Background\nand comparison to other jurisdictions <\/h2>\n\n\n\n

For those not closely familiar with the\nrules and regulations, we asked Jarrod to sum up the legal background. <\/p>\n\n\n\n

\u201cGambling in New Zealand is currently\ngoverned by two large pieces of legislation, the Racing Act 2003 and the\nGambling Act 2003. The Gambling Act 2003 replaced the Casino Control Act 1990\nand the Gaming and Lotteries Act 1977,\u201d he explained. <\/p>\n\n\n\n

\u201cAs a general rule, gambling in New Zealand\nis conducted in order to raise funds for charitable or community purposes. The\nexception to this is private gambling, licensed casinos, gambling conducted by\nthe Racing Industry Transition Agency under the Racing Act 2003, sales\npromotion schemes, and some instances of class 1 gambling.\u201d<\/p>\n\n\n\n

The New Zealand gambling function, fondly\ndescribed by Jarrod as a \u201ccommunity fundraising tool\u201d, stands out compared to\nthe rest of the world. <\/p>\n\n\n\n

\u201cIn other countries, gambling is a\ncommercial operation, done to raise commercial profits, with the only public\nbenefit being the taxation revenue generated,\u201d he added. <\/p>\n\n\n\n

\u201cThe New Zealand model ensures that the\nharm that comes from the very small percentage of people who are problem\ngamblers is outweighed by the significant good that comes from the large amount\nof community grants, employment, and taxation revenue generated.\u201d<\/p>\n\n\n\n

When\norganisations breach gambling regulations<\/h2>\n\n\n\n

The benefits that gambling profits offer\nmany organisations is clear. But those who host lotteries and fundraise through\ngambling can break the rules if they are not careful, Jarrod warned. <\/p>\n\n\n\n

\u201cIt is common for schools and other non-profit\norganisations to sell lottery tickets as a fundraiser. Many of these\norganisations are, however, getting themselves in trouble with the regulator by\nselling the tickets via an online method (such as email, Facebook, or bank\ntransfer). Fundraisers such as lotteries and raffles may be advertised online,\nbut the purchasing of the ticket may not be undertaken remotely via a website,\napp or over the phone.\u201d<\/p>\n\n\n\n

So what about the lawyers reading this\narticle, with clients at risk of doing the wrong thing? Jarrod urged lawyers to\nremind their business clients that sales promotions fall within the gambling\nregulatory framework, too.<\/p>\n\n\n\n

\u201cA number of large companies have recently\nbeen advised by the regulator that their sales promotions are unlawful. For\nexample, it is unlawful for a store to offer a promotion that includes an\ninstant win, if the goods can be purchased remotely from the store. It is\ntherefore unlawful for a supermarket to allow its online shoppers to\nparticipate in an instant win promotion. It is also unlawful for restaurants to\nallow Uber eats customers to participate in a promotion that includes an\ninstant win,\u201d he said. <\/p>\n\n\n\n

For legal\ncounsel advising clients on avoiding a brush with the law when it comes to\nraffles and gambling, Jarrod\u2019s top tips are\u2026<\/p>\n\n\n\n