Sport Manawatū And Regional Sports Organisations Raise Alarm Over Online Casino Gambling Bill

Sport Manawatū is warning that the proposed Online Casino Gambling Bill, now before the select committee, risks stripping millions of dollars away from grassroots sport and recreation across the Manawatū, Tararua, and Horowhenua districts.

While Sport Manawatū would welcome better models, none exist today that can replace $5 million in our rohe. Until there’s a genuine alternative, removing this funding without a replacement just means kids miss out.

The Bill, which passed its first reading in Parliament, proposes licensing up to 15 offshore casino operators but does not require them to return any profits to New Zealand communities. Unlike Class 4 gaming, which currently directs a significant portion of proceeds back into local sport and community projects, offshore operators would keep all profits, with no obligation to support the New Zealand communities carrying the social cost of gambling.

On Wednesday 3 September, Sport Manawatū hosted a meeting with representatives from Regional Sports Organisations (RSOs) and local MP Tangi Utikere to discuss sector-wide concerns and the local impact of the Bill.

Organisations reported:

• A 20–40 percent drop in Class 4 funding already, leaving 5,000 children at risk of losing opportunities to participate.
• Rising costs in player fees and significant transport cost increases.
• Reliance on community grants to stay afloat, with a 25 percent reduction threatening the survival of clubs and programmes.
• The loss of professional expertise across the region in 2-5 years if jobs and volunteer roles disappear.

Regional sports representatives spoke bluntly about the strain:

• “We teach 5,000 children to swim each year, but without funding we could only reach half of them. In a country surrounded by water, that’s a risk we simply can’t take.”
• “Our organisation has seen costs jump by $9,000 this year alone. Without gaming grants, that shortfall gets passed directly to families — and many just can’t afford it.”
• “If funding keeps shrinking, kids in rural Tararua will have fewer opportunities to play. When sport is taken away, the risk of crime and poor health outcomes rises.”
• “Sport is more than games — it’s keeping young people safe, connected, and active. Without this support, our communities will pay the price.”

Sport Manawatū Chief Executive Kelly Shanks will present to the select committee in Wellington on Monday 8 September, calling on MPs to amend the Bill to ensure gambling revenue continues to benefit New Zealand communities.

“Class 4 grants are the backbone of sport and recreation in our rohe,” says Ms Shanks. “They pay for uniforms in Foxton, cover hall hire in Dannevirke, and buy gear for kids’ teams in Feilding. Without them, children and families will miss out.”

In 2024, more than $8 million in Class 4 funding was distributed across the region, with 66 percent directed to sport. Nationally, around half of all Class 4 proceeds are invested back into sport, but the higher regional share highlights just how critical these funds are for provincial communities.

Ms Shanks warns that without ring-fencing a portion of online gambling revenue for community purposes, the proposed Bill will strip millions of dollars out of the regions.

“If offshore casinos take market share but return nothing, the result is simple: kids are priced out of sport, volunteers are stretched even thinner, and facilities begin to decline. This Bill risks undoing decades of community building. We are not asking for more — we are simply asking to keep what our communities already have. The Government must regulate responsibly and ensure gambling profits continue to strengthen the regions who need them most.”

Sport Manawatū is urging the select committee to:

• Embed the community benefit principle into this Bill’s purpose, consistent with the Gambling Act 2003.
• Ring-fence a percentage of online casino profits for community distribution.
• Keep the system accessible, so a small rugby club in Shannon has the same shot at funding as a large organisation in Auckland.

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