Key Moments:
- The Government has revised its online gambling bill to channel offshore casino profits into local communities.
- The offshore gambling duty is set to increase from 12% to 16%, with the additional 4% allocated specifically for community use.
- The revised bill introduces a two-year review period to evaluate its impact on existing funding systems.
Legislative Response to Community Advocacy
Widespread public feedback has prompted New Zealand’s Government to amend its online gambling bill. The original proposal, under heavy scrutiny for omitting community contributions, faced strong objections from sports clubs, charities, and regional organizations that have traditionally relied on funding from gambling channels such as pokies, Lotto, and the TAB.
Bill Overview and Key Adjustments
The Online Casino Gambling Bill, now under consideration by Parliament’s Select Committee, seeks to license as many as 15 offshore casino operators. The Government has addressed criticism by ensuring that a portion of revenues from offshore gambling will support local groups. Minister of Internal Affairs Brooke van Velden highlighted the importance of directing regulated online gambling benefits back to the community, affirming:
“The message from communities was loud and clear. If we are regulating ONLINE GAMBLING, people want to see benefits flow back to local sports clubs, community groups and grassroots organisations.”
Increase in Gambling Duty and Revenue Allocation
The duty levied on offshore gambling operations will rise from 12% to 16%. The additional 4% is earmarked exclusively for local investment, in response to advocacy from various community interests. The rest will be allocated towards regulatory expenses and measures promoting responsible gambling practices. Van Velden clarified that this adjustment does not reduce existing community funding from pokies, Lotto, or TAB:
“This is new money on top of what already comes from pokies, Lotto and TAB. We are not taking anything away.”
| Previous Duty Rate | New Duty Rate | Additional Allocation for Community Funding |
|---|---|---|
| 12% | 16% | 4% (ringfenced for local use) |
Safeguards and Scheduled Review
The revised legislation incorporates a two-year review period, intended to monitor the effects of the online gambling duty on existing Class 4 machine (pokies) funding streams and determine whether further adjustments may be warranted. Authorities state the review will be based on data from both licensed operators and community recipients to ensure fair and well-informed outcomes. The aim is to maintain current funding levels while managing the impact of new online revenue streams.
Political Perspectives and Ongoing Debate
Reactions to the bill remain mixed. Opposition spokesperson Lemauga Lydia Sosene described the update as “a U-turn” and “a big win for communities,” crediting advocacy groups for influencing the Government’s pivot, while reiterating opposition to the broader bill over concerns that offshore gambling may pose risks and lacks adequate harm-reduction provisions.
Broader Implications for Regulatory Policy
This legislative approach demonstrates an effort to connect new market growth to social responsibility, with New Zealand aiming to foster a sustainable gambling sector that also supports local organizations. As Parliament prepares for further debate, the focus will remain on how the country’s online gambling framework can reconcile economic interests with fairness, accountability, and public trust.
- Author
Daniel Williams
