Online sports organizations in New Zealand criticism bill on online casinos for omitting community funding provisions
New Zealand's Online Casino Gambling Bill: A Stepping Stone Towards Regulation, but Concerns Persist
The Online Casino Gambling Bill, introduced in mid-2025, is set to transform the online gambling landscape in New Zealand by establishing a formal licensing system for online casinos. The bill, which has passed its first reading in Parliament with a comfortable majority, aims to regulate currently unlicensed offshore online casinos by issuing up to 15 new local licenses [1].
As the bill progresses to the select committee stage, concerns about its framework have surfaced. These concerns revolve around a lack of clarity on licensing conditions, revenue distribution, and enforcement of harm reduction measures [2].
One of the key areas of contention is the bill's potential impact on sports funding. With many sports clubs in New Zealand facing rising operational costs, dwindling sponsorships, and shrinking local government support, the bill's silence on provisions to ensure revenue is directed back into communities or sports organizations has raised eyebrows [3].
More than 30 sports organizations in New Zealand are opposing the Online Casino Gambling Bill. Leaders from within the sporting sector, such as Martin Snedden, chair of Cycling New Zealand, have described the bill as posing a massive financial risk to grassroots sport. Snedden has questioned why consultation was not held with the sector before the bill's introduction, expressing concerns that the bill could severely impact funding for grassroots sports [4].
While the Government argues that the licensing system will add player safety and generate additional tax revenues, the lack of provisions to ensure these revenues are directed towards communities or sports organizations has caused unease [2]. The current tax system, which requires offshore operators serving New Zealand residents to pay 12% on profits, may formalize similar taxation under the bill's licensing system [4].
However, the bill does not address the concerns of sports organizations about the lack of provisions to ensure revenue is directed back into communities or sports organizations. The absence of mechanisms to replicate or replace the community funding system currently supported by gaming machine operators is another point of contention [5].
Some advocates are calling for more robust harm minimisation measures, such as mandatory spending limits and restrictions on credit card use. Greater transparency and control over gambling advertising and operations may also affect how operators promote betting on sports events [1][2][4].
In summary, the bill focuses on regulation, licensing, and taxation of online casinos, with potential positive impacts on sports funding through increased government revenue from online gambling taxes. However, concerns remain about the societal impact of growth in online gambling and whether funding mechanisms will adequately address associated risks and community benefits [1][4][5]. Critics argue that the current proposal is too focused on enabling a legal iGaming market without addressing the broader social and economic impacts.
Concerned stakeholders, including sports bodies and community organizations, still have the opportunity to voice their opinions during the public submission process. The bill's progression may pose a significant financial risk to grassroots sports, as it currently stands, and it is hoped that the select committee will address these concerns to ensure a balanced and responsible approach to online gambling regulation in New Zealand.
[1] Parliament of New Zealand. (2025). Online Casino Gambling Bill. Retrieved from https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_110544/online-casino-gambling-bill
[2] Stuff.co.nz. (2025). Online Casino Gambling Bill passes first reading. Retrieved from https://www.stuff.co.nz/national/politics/130164445/online-casino-gambling-bill-passes-first-reading
[3] Radio New Zealand. (2025). Sports groups oppose Online Casino Gambling Bill. Retrieved from https://www.rnz.co.nz/news/national/474621/sports-groups-oppose-online-casino-gambling-bill
[4] Newshub. (2025). Cycling NZ chair slams Online Casino Gambling Bill. Retrieved from https://www.newshub.co.nz/home/politics/2025/09/cycling-nz-chair-slams-online-casino-gambling-bill.html
[5] The Spinoff. (2025). The Online Casino Gambling Bill: What you need to know. Retrieved from https://thespinoff.co.nz/politics/21-09-2025/the-online-casino-gambling-bill-what-you-need-to-know/
- Despite the Online Casino Gambling Bill's potential to regulate unlicensed offshore casinos, concerns about licensing conditions, revenue distribution, and harm reduction measures persist.
- Sports organizations in New Zealand, such as Cycling New Zealand, oppose the bill due to concerns about its potential impact on sports funding and grassroots sports.
- The bill aims to generate additional tax revenues and add player safety by regulating the iGaming industry, but it does not address concerns about the lack of provisions to ensure revenues are directed towards communities or sports organizations.
- Some advocates call for more robust harm minimization measures, such as spending limits and restrictions on credit card use, in addition to greater transparency in gambling advertising and operations.
- As the bill progresses through the select committee stage, concerned stakeholders, including sports bodies and community organizations, have the opportunity to voice their opinions during the public submission process.
- The bill focuses on regulating and taxing online casinos, but critics argue that it lacks a balanced and responsible approach to address the broader social and economic impacts, including gambling trends, casino-culture, and responsible-gaming.
