106 Corporate society must apply or distribute net proceeds from class 4 gambling to or for authorised purpose

(1)

A corporate society must apply or distribute the net proceeds from class 4 gambling only to or for an authorised purpose specified in the corporate society’s licence.

(1A)

To avoid doubt, the requirement in subsection (1) for a corporate society to apply or distribute the net proceeds from class 4 gambling is subject to the restriction in section 52A relating to the circumstances in which a corporate society may apply, rather than distribute, those net proceeds.

(2)

A corporate society that fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $10,000.

(3)

A court that convicts a corporate society of an offence under this section may—

(a)

make whatever orders are necessary to recover an amount of proceeds wrongly applied or distributed or to safeguard an amount not applied or distributed; and

(b)

order the application or distribution of an amount of proceeds not yet applied or distributed.

(4)

The effect of a conviction under this section is that—

(a)

the class 4 operator’s licence and all class 4 venue licences held by the corporate society are cancelled; and

(b)

the corporate society does not have a right to appeal the cancellation.

Section 106(1A): inserted, on 3 March 2015, by section 63(1) of the Gambling Amendment Act 2015 (2015 No 3).

Section 106(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 106(3)(b): amended, on 3 March 2015, by section 63(2) of the Gambling Amendment Act 2015 (2015 No 3).