Poker rooms ‘hiding in plain sight’
DIA gambling director Vicki Scott said the operations were
“illegal commercial ventures hiding in plain sight”
Some venues were allegedly advertising openly and pulling people in off the street, despite having no licence to offer commercial poker. Scott noted that many patrons did not realise they were participating in illegal gambling and had no protection if disputes or harm occurred.
Predatory credit and harm concerns
The regulator is particularly worried about reports of operators extending informal credit to players, including “sponsorship” arrangements where gamblers hand over a share of future winnings. Offering credit for gambling is illegal under New Zealand law. Scott described these operators as “predatory”, warning that easy access to credit can lead to significant debts, gambling addiction and greater exposure to criminal activity. She also stressed that illegal operations undermine trust in licensed venues and in community fundraising that relies on regulated gambling.
How to spot an illegal gambling venue
The DIA is urging Aucklanders to check signage and promotional material carefully and to be wary of venues that:
• rely heavily on social media to recruit players
• operate as cash-only or primarily use cryptocurrencies
• avoid issuing receipts or won’t answer questions about their licence status.
Venue and property owners are also being reminded they may be held responsible if illegal gambling occurs on their premises. Anyone with information about unlicensed gambling is encouraged to contact the Department of Internal Affairs.
What the Gambling Act says about poker
Under the Gambling Act 2003, commercial poker tournaments with prize pools over $5000, or ticket sales over $25,000, require a Class 3 gambling licence. Only incorporated societies can apply, and all proceeds must go to approved community purposes or prize costs. Organisers are not allowed to personally profit from ticket sales. The DIA has reiterated that the only place to play commercial poker and casino games legally in New Zealand is in a licensed casino.
