New Online Casino Gambling Bill to Deliver Community Funding Returns

The Government has unveiled a major reform to New Zealand's gambling laws through the Online Casino Gambling Bill, introducing a new funding stream for local communities while strengthening consumer protections. Minister of Internal Affairs Brooke van Velden announced the legislation today, confirming that for the first time, a portion of online gambling revenue will be directed to support grassroots sports, community organisations, and local initiatives across the country.

A Balanced Approach: Community Returns with Strong Safeguards

Minister van Velden said the Bill responds directly to public feedback gathered through nationwide engagement on online gambling regulation. "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," she said.

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

The proposed changes increase the Offshore Gambling Duty from 12 percent to 16 percent, with the extra 4 percent ring-fenced specifically for community returns. This will create an entirely new funding stream to benefit local projects, while ensuring that the Government maintains strong standards for harm prevention and responsible gambling.

"Problem gambling prevention and harm minimisation standards are non-negotiable and unchanged," van Velden said. "Protecting Kiwis from gambling harm is still my number one objective. Community funding will not compromise this Government's commitment to reducing gambling harm."

Addressing the Regulatory Gap in Online Gambling

The Online Casino Gambling Bill fills what the Minister described as a "critical gap" in New Zealand's gambling framework. Currently, thousands of New Zealanders use offshore casino websites that operate outside the reach of national regulation.

"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," van Velden said.

The Bill will require online casino operators to obtain a New Zealand licence, adhere to local laws, and meet robust consumer protection and harm minimisation standards. Licensed operators will need to implement spending limits, self-exclusion tools, age verification systems, and access to support services for problem gamblers.

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

Supporting Local Clubs and Grassroots Organisations

The Government's move to earmark part of the offshore gambling duty for community use has been widely welcomed by local organisations. Community funding from gambling already supports sports, arts, education, and social services, but the new legislation introduces an additional revenue stream without taking away from existing sources.

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

The additional funding is expected to benefit thousands of volunteer-driven groups, many of which rely on grants for operating costs, equipment, and youth development.

Evidence-Based Policy and Ongoing Review

While the new funding system offers major benefits, the Minister acknowledged some uncertainty about its impact on existing Class 4 (pokies) funding streams. To manage this, the Government has agreed to conduct a two-year review after the policy is implemented.

"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," van Velden said. "This evidence-based review will inform necessary adjustments, allowing us to make informed policy decisions based on real-world data in future."

The review will examine how the introduction of regulated online casinos affects player behaviour, revenue distribution, and community funding across all gambling sectors.

Building a Safer, Fairer Gambling Environment

The introduction of the Online Casino Gambling Bill marks a significant step toward a modern, controlled online gambling market in New Zealand. It aligns with international best practice by ensuring that gambling platforms contribute to local communities and are held accountable for player protection.

Under the proposed system, licensed operators will:

• Contribute a 16 percent Offshore Gambling Duty, including 4 percent dedicated to community funding.

• Be required to comply with strict harm minimisation protocols.

• Operate under New Zealand regulatory oversight, ensuring transparency and player protection.

The Bill also represents an effort to repatriate gambling expenditure currently flowing offshore. According to industry estimates, New Zealanders spend hundreds of millions annually on unregulated overseas gambling websites, none of which currently contribute tax revenue or community support.

By regulating this market, the Government expects to capture new revenue while improving safety standards and ensuring that more money stays within New Zealand to benefit its people.

Community-Centred Reform

Van Velden described the Bill as a pragmatic, community-centred reform that delivers on public expectations. "Our communities told us they want to see tangible benefits if we move forward with regulating online gambling — and that's exactly what this Bill provides," she said.

"The changes mean more funding for local sports, youth programmes, and volunteer organisations — while still putting harm minimisation at the core of our approach."

If passed, the Online Casino Gambling Bill will establish a transparent licensing system, increase Government oversight of gambling platforms, and introduce a dedicated community funding mechanism for the first time in New Zealand's online gambling history.

"This is a modern, responsible framework that strikes the right balance between freedom, fairness, and protection," van Velden concluded. "It ensures that if people choose to gamble online, they do so safely — and that their money helps support the communities they live in."