New Zealand’s leading sports organisations have united to oppose proposed gambling legislation they say could strip more than NZ$150 million from community sport funding.
More than 50 bodies, including those representing rugby, football and cricket, have called for a rethink over the recently announced Online Casino Gambling Bill.
The legislation, introduced by Internal Affairs Minister Brooke van Velden, would establish a licensing system for up to 15 online casino operators. However, sports leaders are concerned that these new online licensed operators will not be obliged to contribute back to the community. This is in contrast to the existing arrangement, with around NZ$170 million of gaming trust revenue from pokies machines diverted to amateur sport each year.
In July, MPs voted 83-39 in favour of the iGaming bill during its first reading in parliament.
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Cycling New Zealand Chair Martin Snedden told the New Zealand Herald there should have been greater consultation before the legislation was introduced.
He added: “This is a crazy move by the government. Sport has thrived for decades off the back of community gambling grants. It all goes to clubs, not professional sport.
“The government should be saying to the international operators, you are going to be contributing if you want to operate in New Zealand. Part of the reason you’re allowed to do so is that part of your money is going to be going into community and that’s a good thing.”
He further added: “The prime minister, the minister of sport, Mark Mitchell, the associate minister of sport, Chris Bishop, they all love sport dearly. I’m sure they’re not going to allow something to go through that is ultimately going to have a dramatic negative impact on the future of community sport.”
However, Minister Van Velden confirmed that while online casino operators will be taxed and required to fund problem gambling services, there are currently no plans for them to contribute towards grassroots sport.
How the bill is progressing
The bill sets out plans for operators to pay a goods and services tax and an offshore gambling duty of 12%, as well as a mandatory levy of 1.24% of profits to fund services for gambling harm.
Licensed operators are expected to go live by July 2026. Licensees would be allowed to advertise gambling activities with limitations, such as avoiding marketing to children. A suitable age verification tool will be required.
The 15 available licences would be awarded by auction. A number of operators have previously expressed an interest in being awarded a licence, including SkyCity, 888, Bet365, Super Group (owner of Betway) and TAB NZ, the monopoly operator of sports betting in New Zealand.
The bill will now advance to the Governance and Administration Committee. The following stage would be a second reading in parliament, before being sent to the Committee of the Whole House.
Van Velden has motioned for this to happen by 17 November. This would then lead to a third reading before the bill could be signed into law. This could mean the bill is voted into law before the end of the year.
More than 50 bodies, including those representing rugby, football and cricket, have called for a rethink over the Online Casino Gambling Bill.