The Law

I needed money 'cause I had none,
I fought the law and the law won        The Clash (The Crickets)

   A few weeks ago I decided to check out the legal position regarding the playing of online poker in New Zealand. I don't recall what sparked this enquiry, but it wasn't hard to find the information I needed online. The situation seems pretty straightforward. It's illegal to run an online gambling site from within New Zealand. It's illegal to advertise online gambling sites in this country. But it is not illegal to play online poker. According to the Department of Internal Affairs website (www.dia.govt.nz/Gambling),  'It is not illegal for someone in New Zealand to participate in gambling over the Internet if that website is based overseas.' The site then goes on to warn of the possible dangers of playing for money on sites that are not covered by New Zealand law. This is pretty much what I expected. However the situation for live games is a little more complex.
   Before I go any further, let me make something clear. I am not a lawyer. I have no legal training nor any expertise whatsoever in legal matters. What follows is a summary of my understanding of the law as it relates to poker in New Zealand. Most of this information comes from the Department of Internal Affairs website mentioned above. I am not qualified in any way to offer advice on gambling law and anyone reading this should bear this in mind. Is that clear?
   Apart from casino games, which are in a different category altogether, poker games fall into one of four categories of 'gambling activity'.
   Private Gambling. This  covers any game played in a private residence: in other words, home games. Basically, no-one can profit from the game. There can be no rake, entry fee, commission or any other charge on players, and all stakes must be paid out. Apart from this, the game must not be advertised. So you can invite your mates around for a home game as long as you don't advertise it to all and sundry. Interestingly, there is no limit on the size of the prize pool in these types of games. Also, it must be 'primarily a social event'. I don't know how you could possibly make a judgement on that; isn't any live poker game a social event?
  Class 1 Gambling. This category of poker game is any that is held at a venue other than a private dwelling and where the total prize pool is less than $500. Once again, all prize monies must be paid out and no-one can profit from running the game. The rules and condition of the game must also be clearly spelt out to the participants. These types of games can be run either by an individual or by a 'society' (e.g. a club). However games run by a society have to meet special conditions, which also apply to class 2 games. So for all intents and purposes, class 1 games are those run by individuals.
   Class 2 Gambling. Any gambling activity where the prize pool is greater than $500 can only be run by a society for the purpose of raising money for 'authorised purposes'. The prize limit is $5000 and, unlike the other two game types, money MUST come out of the prize pool. This money goes to 'charitable or other purposes beneficial to the community'. There is a list of approved purposes on the DIA website. As before, no individual can profit from the running of the game.
   Class 3 Gambling. Any game where the prize pool exceeds $5000 must also be run by a society as above and also requires a licence from the DIA.

   I first checked out these rules a few years ago when I decided to run a poker cash game up at my club. Along with a fellow home game regular, I looked into the legal requirements, then we set up a Class 2 game by first getting the approval of the club committee. The charitable aspect was pretty simply done: we charged entrants a 10% surcharge on top of their buy-ins and that money was donated to charity. We did it this way because we thought the prize pool might go over the $500 mark but as it happened we only got 5 or 6 players in each session, which kept the stakes well under that level. Since then I've had a casual interest in the level of compliance of the various games that I've played in. It turns out that most of them have been more or less within the law.
   A few years ago my wife used to play in a monthly pool tournament held in a 'garage club' in South Auckland. I used to go along as a supporter (mainly supporting the bar) and sometimes joined in a poker game that was often played at this venue. This game was run by L, the owner of the venue. There was generally a house rake of one minimum bet for each hand. So the blind bet (usually $2) went to the house, which amounted to quite a bit over a few hours of play. Of all the games I've played in, this one would be the farthest outside the law.
   The home game that I used to hold at my place was kind of in a grey area. We also used to collect the blind bet for the host, which on the face of it is illegal. However it's not that simple.  Firstly, although the game was generally held in my home, the 'host' changed with each round. Each of the people in our group took a turn at being the designated host and collected the 'kitty' at the end of the evening. What's more, the designated host was expected to provide snacks for everyone, and also finger food for supper. Paying for this usually took up a big chunk of the money collected. So although this game didn't comply with the letter of the law, I think it was more or less in line with intention of the law.
   As for the games that I've played in that have been held in pubs and clubs, they've generally been pretty straight (with the possible exception of National Pub Poker League games). I guess it pays to stay on the right side of the law when you could end up losing your liquor licence. The game I used to play in at the Phoenix Tavern was a Class 1 game and, apart from a couple of special games, all the prize pool was paid out. And the one that I'm playing in now on Friday nights is a Class 2 game and as far as I'm aware, the ten per cent that comes out of the prize pool goes to charity as required.
   The one area where a lot of these games don't measure up is in providing information to the participants about the rules and conditions. It may be a bit of a hassle for the organisers, but I'd like to see someone get up at the start and briefly go through the game structure, prizes, and any relevant rules and conditions of play. But that's a small criticism. Overall, I'm pretty happy with the games that I'm currently playing in, whether live or online. It's nice to be able to play a little poker without the authorities breathing down your neck.