New Zealand Parliament’s Select Committee for Governance and Administration has passed the Online Casino Gambling Bill with a majority. The bill aims to regulate online casino gambling and its promotion, specify conditions, tax laws and requirements for licensed operators, and establish enforcement mechanisms to drive compliance. After examining over 4,837 submissions from groups and individuals, the Select Committee recommended that the bill be introduced with two key amendments.
NZ Select Committee Passes Online Casino Gambling Bill with Two Amendments: Quick Summary
- The Select Committee approved the proposed remote gambling tax hike from 12% to 16% of the Gross Gambling Revenue (GGR). The additional revenue will be used to fund local community development initiatives.
- The Committee observed that capping the total number of gambling licences at 15 strikes a reasonable balance between providing choices to the consumer and ensuring a reasonably competitive market.
- The Committee recommended establishing a central database for self-exclusions by December 1, 2027. Operators must take reasonable steps to ensure that people registered for self-exclusion cannot access their platform.
Proceeds From Online Gambling to Return to the Community
The New Zealand government presented the new Online Casino Gambling Bill to Parliament in May. The bill prohibits online gambling and its promotion without a local licence, specifies conditions and requirements for operators to apply for gaming permits, and establishes a framework to oversee compliance and enforcement.
The Parliament Select Committee for Governance and Administration recently cleared the bill, with a few key amendments. Minister for Internal Affairs Brooke van Valden welcomed the decision, calling it “a crucial step forward in advancing online gambling regulations that protect Kiwis from harm”.
The Committee received 4,837 submissions from individuals and groups. Out of these, 3,996 raised the issue of community returns. The initial draft bill did not guarantee that proceeds from gambling taxes would be returned to local communities, prompting local sports bodies to protest unitedly.
Gambling sponsorship is a significant revenue source for grassroots sports clubs in New Zealand. These organisations claimed that without guaranteed returns, the new Online Casino Gambling Bill would put a chokehold on their finances. This collective blowback prompted the government to revise the bill to meet the community’s demands.
In October, Minister van Valden announced that the government would be increasing remote gambling taxes from 12% to 16%. The additional revenue would be returned to the community. The Committee approved the government’s decision and suggested adding clauses to enable the Lottery Grants Board to distribute another 25% of gambling taxes to local community development projects.
Government Announces Licensing Window for New Applicants
Earlier this week, the Kiwi government announced that private operators can apply for gambling licences starting December 1, 2026. Detailed regulations for permit holders will be announced during the first half of the year. The Select Committee has approved of the government’s decision to limit the number of licences to 15.
The committee confirmed receiving 114 submissions against the licence cap. While some submissions claimed 15 operators would be too low, others considered it to be too many. The Select Committee observed that 15 licences strike the perfect balance between providing consumers with choices, ensuring a reasonably competitive market and managing regulatory complexities and expenses.
The draft bill requires operators who have successfully won a gambling licence to pay the fee within 20 working days. The committee observed that the timeline might seem rushed. They recommended that suitable clauses be amended, allowing the Chief Executive of the Department of Internal Affairs to extend the timeframe at their discretion.
In her official press release from December 4, Minister van Valden emphasised that gambling taxes are a significant revenue source for local communities. She explained that the number of submissions clearly showed that New Zealanders want community returns from online gambling activities.
Van Valden said:
Many groups were concerned that more gambling online would mean less gambling on pokie machines and therefore a decrease to the level of funding returning to community groups. Submissions clearly showed New Zealanders want community returns from online gambling activity to ensure communities continue to get the funding they need. Cabinet agreed to provide these returns, and the Committee supported that decision.
Other important topics in the submissions were concerns that normalising online gambling would lead to greater harm and the potential dangers of gambling advertisements. The Minister allayed the fears and reiterated that the bill has provisions to protect consumers from gambling harm.
She explained:
I’ve listened carefully to these concerns. The regulatory settings the Bill will put in place are intended to reduce gambling harm first and foremost. This represents a significant improvement from the status quo, where there are no safeguards to protect Kiwis gambling online. We will review online casino gambling’s impact on pokies revenue after two years to ensure that community returns are still providing adequate funding for community and sports groups. This is an important piece of legislation that will bring online casino gambling under New Zealand law for the first time. I look forward to seeing it progress through the House.