Communities to Receive Funding From Online Gambling After Backlash
New Zealand’s government has modified its proposed online gambling legislation following criticism from community organisations that feared losing crucial financial support. The revised bill now ensures that a portion of revenue from licensed offshore casinos will be directed back to local grassroots initiatives.
Government Responds to Concerns Over Funding Gaps
The Online Casino Gambling Bill, which would regulate and license up to 15 offshore online casino operators, is currently under review by a Select Committee. One of the strongest criticisms was that the legislation initially did not include a requirement for licensed operators to contribute to community funding – a key feature of the country’s existing gambling model.
Minister of Internal Affairs Brooke van Velden said the feedback from communities was “loud and clear”, prompting changes to ensure continued local support.
“The message from communities was loud and clear – if we’re regulating online gambling, they want to see benefits flow back to local sports clubs, community groups, and grassroots organisations.”
Money for Communities, Stronger Standards for Safety
Under the updated proposal, the offshore gambling duty will increase from 12 percent to 16 percent. The additional four percent will be ringfenced specifically for community returns.
Van Velden stressed that harm prevention remains the government’s top priority and that the expanded funding model does not signal a weakening of responsible gambling protections.
“Protecting Kiwis from gambling harm is still my number one objective. Community funding will not compromise this Government’s commitment to reducing gambling harm.”
The minister acknowledged uncertainty around how the new system could affect existing Class 4 gaming (pokies) returns. As a result, the coalition has agreed to conduct a formal two-year review once the policy is implemented.
“This evidence-based review will inform necessary adjustments allowing us to make informed policy decisions based on real-world data in future.
“This is new money on top of existing funding from pokies, Lotto, and TAB. We’re not taking anything away – we’re adding to what’s already there.”
Opposition Welcomes Change but Rejects the Bill
Labour’s internal affairs spokesperson, Lemauga Lydia Sosene, described the change as a major victory for community advocates. She credited local groups for speaking up and forcing the government to reconsider its approach.
“We’ve heard from countless groups – sports teams, marae, students – who were worried about what losing this funding would mean for them and their community.”
“It was their advocacy that forced Minister Van Velden to reverse her change, and I applaud them for it.
However, Labour still opposes the wider bill, citing concerns that increased access to offshore casino gambling could heighten the risk of gambling harm.
“While we back the regulation of online gambling and the Minister’s U-turn, ultimately we still do not support the Minister’s Online Casino Gambling Bill which opens up our doors to offshore online casinos, without a strong plan for harm reduction.”