Gates holds a three-stroke lead from Australian Andrew Dodt going into tomorrow's final round.
The Florida-raised Texas resident is competing in his first Nationwide Tour event with girlfriend Lauren Johnson as his caddy.
Gates shared the lead with Dodt and New Zealand's David Smail after the first round and was clear by a shot after the second.
He moved further ahead today by shooting 68, a round that featured six birdies and two bogies, to go to 16-under-par.
Dodt carded 70 to be 13-under, while fellow Australian Michael Curtain fired a second consecutive 68 to be 11-under.
Australia's Mark Hensby fired the round of the day, a 66, to move to 9-under alongside Matthew Griffin (Australia) and Kevin Chappell (United States).
The leading New Zealander is Phil Tataurangi, who shot 71 to finish eight shots off the pace.
