Proposed New Zealand online casino law faces pushback from sports sector

New Zealand's effort to regulate offshore online casino gambling has drawn opposition from more than 50 sports organizations, which warn that the bill’s failure to mandate community contributions could dismantle a system that channels NZ$170 million (US$100 million) annually into grassroots sport.

Introduced in June by Internal Affairs Minister Brooke van Velden, the Online Casino Gambling Bill seeks to bring offshore casino platforms under regulation by issuing up to 15 licenses to international operators.

The bill passed its first reading in Parliament in July by a vote of 83–39 and is currently under select committee review. Public submissions on the bill are open, allowing concerned stakeholders to voice their opinions and suggest changes. Public submissions close on August 17.

A coalition of national and local sports bodies has raised concerns that the bill lacks any requirement for licensed online operators to contribute to community funding, which is currently supported by gaming machine grants. These grants are distributed by gaming trusts and are used exclusively to support community-level sport, not professional organizations.

Sporting leaders say the bill’s failure to require operators to return a share of their profits to the community is a glaring and dangerous omission, reports the NZ Herald. The omission could potentially leave a significant gap in funding if online operators take market share from the retail sector.

Cycling New Zealand chair Martin Snedden is leading the sector’s response and said the legislation carries significant financial risk. “This is a crazy move by the Government,” Snedden said. “Sport has thrived for decades off the back of community gambling grants. It all goes to clubs, not professional sport.”

“There had been no consultation with the sport sector, no warning that this was coming. As soon as I saw it, I recognized the extent of the risk to community funding,” he added.

Snedden said many clubs are already dealing with increased operational costs, reduced sponsorship, and limited support from local governments. “It is obvious this will hurt community funding. Do we wait three years to confirm what is already clear, or act now to future-proof funding from international operators?” he added.

He is urging lawmakers to revisit earlier drafts of the bill, which he said included provisions for international operators to contribute to community sport.

“The Government should be saying to the international operators, you are going to be contributing if you want to operate in New Zealand,” Snedden said. “Part of the reason you’re allowed to do so is that part of your money is going to be going into the community, and that’s a good thing.”

The current version of the bill includes measures such as age verification requirements, advertising restrictions designed to protect minors, a levy on operator profits to support gambling harm services, and tax obligations for licensed platforms. However, it does not allocate any portion of operator revenue to sports or community organizations.

Van Velden defended the bill’s intent after the bill passed its first reading, stating: “New Zealanders can legally access thousands of offshore gambling websites. But the market is unregulated, so there are no player safety standards or oversight of harm minimisation.

“My intention with this bill is to ensure that online gambling is safer for New Zealanders who wish to gamble online to do so. In addition, companies providing this service contribute to tax revenue and funding the services that treat gambling harm in New Zealand.”