Sporting organisations across New Zealand are protesting the proposed Online Casino Gambling Bill that could drastically change the way that online gambling is regulated in the nation. While experts support a regulated market, they fear that the financial implications of the bill could restrict critical community funding, affecting grassroots clubs that are already struggling to find sponsors.
NZ Sports Leaders Unite Against Gambling Bill: Key Insights
- Several of the country’s top sports organisations have publicly opposed the New Zealand Online Casino Gambling Bill. Sports leaders warn that the regulation could choke the nation’s community sport funding infrastructure.
- The Bill offers 15 gambling licences but does not guarantee proceeds to community organisations, unlike the current arrangement, where small communities receive €86 million annually from local pokies venues.
- Without a mandate for offshore gambling operators to contribute toward community development, local sports organisations fear losing their primary revenue source if the new gambling bill comes into effect.
Lack of Community Funding Provisions at the Core of the Backlash
Sports bodies across New Zealand have sounded the alarm over the proposed Online Casino Gambling Bill. Industry stalwarts fear that the Online Casino Gambling Bill introduced by the government does not mandate licensed online gambling operators to contribute to the betterment of local sports.
Historically, small sports bodies in New Zealand have relied on contributions from the country’s gambling industry to stay operational. Under the new licensing regime, regional and youth-focused organisations will lose their primary source of income. As the bill inches closer to receiving Parliamentary approval, stakeholders feel left out of the conversation.
Earlier this July, NZ MPs voted 83-39 in favour of the new gambling bill during its first Parliamentary reading. Minister van Velden, while introducing the bill, stated its function in “protecting New Zealanders who enjoy gambling online by introducing robust safety measures for licensed operators.”
Under the current provisions, the Online Casino Gambling Bill offers 15 gambling licences to private operators. Licensees are required to pay a goods and services tax, a 12% offshore gambling duty, and a 1.24% share of profits to fund services aimed at minimising gambling harm. Local sports organisations are overlooked from the revenue share.
Sports Bodies Call for Consultation
Over 50 local sports organisations representing cricket, football, cycling, and rugby, among others, have asked for a rethink of the gambling bill. Cycling New Zealand Chair Martin Snedden explained the situation further at Newstalk ZB:
“Everyone has come in behind this, and I’ve got fifty organisations that have signed up to this that are authorising me to speak on their behalf and to tell the story of why this is a crazy move by the government.
At the moment, sports are really struggling with the economic environment. Accessing sponsorship money is impossible. Local governments are naturally pulling back because they’re in financial trouble themselves, so there’s a whole confluence of economic problems that are just falling on top of these clubs. And then to have this on top of it is really going to test the future sustainability of clubs.”
Noting that the bill comes at a challenging time, and there should be a greater consultation with local stakeholders, Snedden added:
“The Prime Minister, the Minister of Sport, Mark Mitchell, the Associate Minister of Sport, Chris Bishop, they all love sport dearly. I’m sure they’re not going to allow something to go through that is ultimately going to have a dramatic negative impact on the future of community sport. I just can’t imagine that they would be prepared to do that and to take that risk.”
Snedden concluded:
“The Government should be saying to the international operators, you are going to be contributing if you want to operate in New Zealand. Part of the reason you’re allowed to do so is that part of your moneys are going to be going into the community and that’s a good thing.”
While online gambling operators will be taxed and asked to contribute to responsible gambling measures, there are no plans to ask them to contribute to grassroots gaming, Internal Affairs Minister Brooke van Velden confirmed. Licensed operators are expected to commence offering and marketing their services by July 2026, albeit with a few restrictions.
Several globally-renowned operators and sportsbook software providers have expressed interest in participating in the upcoming auction. The bill will now be passed on to the Governance and Administration Committee, and after second reading in Parliament, to the Committee of the Whole House.