NZ Online Casino Bill Adds Community Funding For 2027
New Zealand's government will ring-fence an estimated NZ$10 million to NZ$20 million a year for community groups once its Online Casino Gambling Bill takes effect, after reversing an earlier decision not to attach any community-funding requirement to the new licensed market.
Cabinet papers proactively released by the Department of Internal Affairs confirm the Offshore Gambling Duty will rise from 12% to 16% of Gross Gambling Revenue from 1 January 2027, with the additional four percentage points hypothecated for community returns.
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A Reversal After Public Backlash
Cabinet had originally agreed in July 2024 that the new licensed online casino system, which will see up to 15 overseas operators licensed from 1 December 2026, would carry no requirement to return funding to communities.
That position drew sustained criticism once the Online Casino Gambling Bill reached select committee: nearly 4,000 of the more than 5,000 submissions received raised concerns that a shift to online betting would shrink the funding pokie machines currently generate for local sports clubs and community groups.
Minister of Internal Affairs Brooke van Velden said the government had listened. "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.
"Submissions clearly showed New Zealanders want community returns from online gambling activity to ensure communities continue to get the funding they need. Cabinet agreed to provide these returns, and the committee supported that decision."
Lottery Grants Board to Distribute the Money
Parliament's Governance and Administration Committee recommended that the Lottery Grants Board, which already distributes gambling proceeds to community causes such as buying kayaks for local sea scouts or sending Special Olympics athletes to national competitions, also handle distribution of the new online casino community returns.
The Cabinet paper estimates the ring-fenced share will generate between NZ$10 million and NZ$20 million in its first 12 months, depending on the total Gross Gambling Revenue the licensed market produces.
Harm Minimisation Rules Unchanged, Review Planned
Van Velden said problem-gambling prevention and harm-minimisation standards in the bill are non-negotiable and have not changed as a result of the funding decision.
Cabinet's paper commits to a review of the wider online casino gambling regulatory system within three years of operation, including an assessment of its impact on other forms of gambling and on community trusts; separately, the minister has said the specific impact on gambling-machine revenue will be reviewed after two years.
The duty increase itself is timed for 1 January 2027, a month after licences begin, so it aligns with an existing filing period and limits transition costs for operators and Inland Revenue.
