Hon Brooke van Velden
Minister of Internal Affairs

Minister of Internal Affairs, Brooke van Velden, is listening to New Zealanders by introducing community funding returns through the Online Casino Gambling Bill, announced today.

"The message from communities was loud and clear – if we're regulating online gambling, they want to see benefits flow back to local sports clubs, community groups, and grassroots organisations," says Ms van Velden.

"I have listened, and now as a Government, we are delivering on what matters most to communities across the country,” says Ms van Velden.

“Problem gambling prevention and harm minimisation standards are non-negotiable and unchanged. Protecting Kiwis from gambling harm is still my number one objective.

“Community funding will not compromise this Government’s commitment to reducing gambling harm,” says Ms van Velden.

The proposed change increases the Offshore Gambling Duty from 12 percent to 16 percent with this 4 percent ringfenced specifically for community returns – creating an entirely new funding stream for New Zealand communities.

“While I am confident the regulated online casino market will provide new community funding opportunities for New Zealand sports clubs and community organisations, I do acknowledge that predicting the exact impact on existing Class 4 [pokies] returns creates some uncertainty.

“Cabinet has agreed on a two-year review after implementation of the community returns policy to assess the impact of online casino gambling on other forms of gambling and community returns.

“This evidence-based review will inform necessary adjustments allowing us to make informed policy decisions based on real-world data in future.

"This is new money on top of existing funding from pokies, Lotto, and TAB. We're not taking anything away – we're adding to what's already there," says Ms van Velden.

The Bill addresses a critical gap in New Zealand's regulatory framework.

"Right now, Kiwis are gambling on thousands of overseas websites with no safety nets, no spending limits, and no recourse when things go wrong. That's unacceptable.

"This Bill brings those operators under New Zealand law, with proper consumer protections, harm minimisation measures, and now – community benefits."

Notes:

The key features are:

•  Up to 15 licences through competitive process

•  Strict harm minimisation and consumer protection standards

•  Heavy penalties up to $5 million for unlicensed operators

•  A review of the online gambling regulatory system will be conducted within three-years of operation to ensure it is supporting tax collection, minimising harm, and providing consumer protections

•  New revenue stream for local communities

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