Parliament’s Governance and Administration select committee has begun hearing oral submissions on New Zealand’s proposed Online Casino Bill, and opposition voices were quick to warn of serious risks. Critics argued that lifting the current advertising ban would expose the public to a barrage of gambling promotions and undermine funding currently provided by pokie machines to community organizations.

Fierce Debate Over Proposed Legislation

Martin Cheer, managing director of Pub Charity, told MPs that licensed online casinos would unleash a flood of aggressive marketing tactics if permitted to advertise. “There’s going to be a tsunami of promotion. People will be sick of it. If you are sick of Entain and the TAB advertising on TV, you ain’t seen nothing yet,” he cautioned. He described scenarios where push alerts and promises of “free money” incentives would dominate consumer experiences, such as “$100 free credit, get started.”

The bill would allow the Government to issue up to 15 licenses through auction, creating a regulated online casino market that could be taxed and monitored. At the same time, it introduces geo-blocking provisions intended to stop unlicensed offshore operators from reaching New Zealand players. However, Cheer dismissed those measures as ineffective, warning that determined users could bypass restrictions with VPNs. “You cannot stop the ‘worst of the worst’ in that environment,” he said.

Another central concern is the bill’s failure to prohibit inducements. Problem Gambling Foundation spokesperson Andree Froude described the absence of such a ban as “particularly concerning.” She explained, “That scares us the most. Inducements aren’t harmless offers. They exploit impulsivity in young people and lure those already struggling back in.”

Froude shared the story of a woman who responded to an email promising a “$1000 welcome bonus with no deposit required.” She initially won and accumulated NZD $2500, only to discover that the bonus terms required her to wager 40 times before a withdrawal could be made. Critics highlighted such cases to show how inducements can trap individuals in harmful gambling cycles.

Calls to expand protections went further. The Problem Gambling Foundation suggested banning all forms of gambling advertising outright and advocated restrictions on credit card use for gambling, mirroring regulations already adopted in the UK and Australia.

Community Impact and Industry Interests

Cheer also emphasized the threat to community funding. Revenues from pokies currently support charities and local groups, but he argued that the proposed legislation would divert money away from these causes. “It’s just a bad deal. This is not a plan for economic growth, it’s a plan for economic degradation,” he told the committee.

Martin Snedden, spokesperson for the Community Sport Collective, echoed the concern, warning that sports organizations relying on pokie contributions would face an inevitable funding decline. “There is no other replacement. That’s unless you guys decide you want to give it to us out of the tax take, and I’m sure you don’t because you’re not in the greatest financial position at the moment,” he said.

Despite widespread criticism, the hearings also featured supportive perspectives. TAB expressed its desire to secure a license, noting the competitive threat if it stayed out of the online casino market. “The online casino market could and potentially will take away from our betting market and reduce our returns to community sport and racing, so we need to get into this new form of gambling,” said board member David Bennett, as reported by The Post. TAB indicated it would likely outsource operations to Entain, its existing partner.

International operator SGHC also endorsed the proposal, though it called for the cap on licenses to be lifted beyond 15. Senior vice president Antony Gevisser told MPs, “When it comes to operators like us, this bill places you in control. You regulate us, you tax us, you set the standards.” SGHC argued that its harm minimization measures and community contributions demonstrated that global firms could be reliable partners in a regulated environment.