Over 50 Sports Organizations Urge Reassessment of Online Casino Gambling Legislation
A coalition of New Zealand’s most prominent sports organizations, spanning rugby, football, and cricket, is sounding the alarm over the potential impacts of the proposed Online Casino Gambling Bill, which they assert could result in a loss of over NZ$150 million in funding for community sports.
The legislation, championed by Internal Affairs Minister Brooke van Velden, proposes a licensing framework for up to 15 online casino operators. However, leaders in the sports community express concerns that these new operators will not be mandated to reinvest in local initiatives. This is a significant shift from the current model, where approximately NZ$170 million from gaming trust revenues, primarily from gaming machines, supports amateur sports annually.
During its first reading, members of parliament supported the iGaming bill with a vote tally of 83-39 in favor.
A Call for Greater Dialogue
Martin Snedden, Chair of Cycling New Zealand, voiced his discontent regarding the lack of prior consultation before the introduction of the bill. He criticized the government’s approach, stating, “This move seems reckless. For years, community grants from gambling have bolstered local sports, not just the professional leagues.”
Snedden argues that any international operator hoping to enter the New Zealand market should be compelled to contribute to the grassroots sports sector. “The rationale for their operation should include community contributions—it’s simply fair,” he emphasized.
He remains hopeful that New Zealand’s leadership, including the Prime Minister and sports ministers, will reconsider the bill amidst concerns about its potential adverse effects on community sports.
Government’s Position on Online Gambling Contributions
Despite pushback from sports leaders, Minister Van Velden clarified that while the online casino operators will pay taxes and contribute to services aimed at addressing problem gambling, there are no existing plans for them to support grassroots sports financially.
Progress of the Bill
The proposed legislation outlines that operators would be subject to a goods and services tax, along with a 12% duty for offshore gambling. Additionally, they would face a compulsory levy of 1.24% on their profits to fund gambling harm services.
If passed, licensed operators could be operational by July 2026, with advertising restrictions in place to protect vulnerable populations, including children, through age verification tools.
The 15 licenses will be distributed via auction, with expression of interest already seen from notable entities like SkyCity, 888, Bet365, Super Group, and TAB NZ.
Currently, the bill is set to advance to the Governance and Administration Committee, with the next parliament reading scheduled before it progresses to the Committee of the Whole House. Minister Van Velden aims for this process to be completed by November 17, potentially leading to a law enactment before the year’s end.
As discussions continue, community sports supporters maintain hope that their concerns will be recognized and addressed.