The New Zealand government has taken action to address public concerns regarding the Online Casino Gambling Bill by ensuring that a portion of revenue from offshore casino operators will be redirected to support local communities. Initially criticized for lacking provisions for community contributions, the bill has now been modified to include a mechanism for funding local sports clubs, grassroots organizations, and other community groups, which have traditionally relied on gambling revenue from pokies, Lotto, and TAB.

Minister of Internal Affairs, Brooke van Velden, confirmed that the government had listened to the concerns raised by various groups. The revised bill, which is currently before the Select Committee in Parliament, will now include an increase in the offshore gambling duty, with 4% of it specifically earmarked for community investment.

Increased Offshore Gambling Duty for Community Funding

Under the updated bill, the offshore gambling duty will rise from 12% to 16%. The additional 4% will be “ringfenced,” ensuring it is directly used for community contributions. This move comes as part of the government’s commitment to redirecting gambling profits to benefit local communities without undermining the existing funding mechanisms.

Van Velden reassured stakeholders that the increase in offshore gambling duty would not come at the expense of existing revenue streams. “This is new money on top of what already comes from pokies, Lotto, and TAB. We are not taking anything away,” she stated. Additionally, she emphasized that harm prevention and responsible gambling measures would remain unchanged, ensuring that community funding does not compromise the government’s commitment to reducing gambling harm.

To ensure that the revised policy is effective, the government has introduced a two-year review period. This review will assess the impact of the offshore gambling duty on the returns from Class 4 (pokies) gambling and whether further adjustments are necessary. The review will rely on data collected from both licensed operators and community organizations to make evidence-based decisions and ensure fairness across all funding sources.

“This evidence-based review will inform necessary adjustments allowing us to make informed policy decisions based on real-world data in the future,” van Velden explained. The goal of the review is to balance new revenue from online gambling with existing funding systems while ensuring that local communities benefit without causing disruptions to other funding channels.

A Victory for Communities, but Debate Continues

As reported by RMZ, opposition spokesperson Lemauga Lydia Sosene hailed the government’s revision as a significant victory for local communities. “This is a big win for communities,” Sosene said, crediting grassroots advocacy for pushing the government to revise the bill. However, Sosene maintained that Labour still opposes the bill as a whole, arguing that it exposes New Zealand to potential risks from offshore gambling without a sufficiently strong harm-reduction framework in place.

While the government’s revision is seen as a step forward by many, critics remain concerned about the potential consequences of opening up New Zealand’s market to offshore operators. Despite these concerns, industry observers suggest that the new bill could provide a balanced approach that fosters growth while prioritizing social responsibility.

The New Zealand government’s decision to include a portion of offshore gambling profitsfor community funding sets an important precedent. By linking the expansion of online gambling with the direct benefit of local communities, the government is working to ensure that the growth of the gambling industry also helps support sports and grassroots initiatives.