In the latest edition of Gambits the Dept of Internal Affairs has outlined guidelines to clarify its position over clubs that choose to have in-house rules preventing non-members, not signed in as guests, from playing gaming machines and collecting winnings. These guidelines have been drafted in consultation with Clubs New Zealand and RNZRSA.

It is very important to understand that these guidelines can only be enforced if the club has incorporated specific rules in their constitution around signing in guests by club members. Having signs up in the gaming room is not sufficient to prevent paying out non-members any winnings they make have accumulated.

The Gambling Act 2003 requires club venues to be non-commercial premises used mainly by club members. While there are no rules in the Gambling Act 2003 preventing non-members, not signed in as guests, from playing gaming machines and collecting winnings, any rules applied by a club are consistent with the non-commercial nature of club.

The DIA considers if a club has a rule and displays suitable and easily visible signage, clearly stating that non-club members who are not signed in as guests cannot play the gaming machines and will not be paid winnings, then clubs can withhold payment. This includes jackpot winnings and cancelled credits.

To ensure player fairness signage must be suitable and easily visible, clearly warning non-members that if they are not signed in as guests they cannot play gaming machines and will not be paid out if they win.

The club's 'sign in' procedures and the requirement that all non-members be signed in by a member of the club as their guest must also be made clear to non-members before they enter the club.

The DIA suggests that a best practice approach would also include bar staff checking gaming machine patrons' eligibility to continue gambling when they request an Eftpos cash withdrawal or order drinks, and reminding patrons of the rule when clearing glasses from the gaming room etc. Staff should have a good idea of who are club members.

There are specific requirements under the Gambling Act (Class 4) Game Rules 2006 (the Game Rules) relating to the non-payment of gaming machine winnings. Player disputes and unpaid winnings are dealt with under Game Rules 82-85 and adjustments to the Electronic Monitoring System (EMS) recorded data are dealt with in Game Rule 133:

• If gaming machine winnings are not paid for any reason an "Unpaid Prize Report" must be completed.

• If a player disputes the non-payment of gaming machine winnings a "Gaming Equipment Fault/Player Dispute Report" must be completed.

• If winnings are unpaid, an EMS adjustment must be posted equal to the amount of the win.

If a club does not have a rule suitably displayed as described above, a club must pay out all prizes in accordance with the Gambling Act 2003.

(SOURCE: Gambits, page 6, September 2010)