The New Zealand government has revealed a 4% increase in the betting duty it will charge its licensed online gambling operators in response to community concerns that the introduction of a legal iGaming industry will impact poker machine revenues in pubs and clubs across the country.
Minister of Internal Affairs, Brooke van Velden, has proposed increasing the Offshore Gambling Duty from 12% to 16% with the 4% increase “ringfenced” specifically for community returns in order to create a new funding stream for New Zealand communities.
Van Velden announced last year that the government would introduce the Online Casino Gambling Bill and issue up to 15 licenses to online operators in order to minimize the proliferation of illegal offshore gambling across the country.
“The message from communities was loud and clear – if we’re regulating online gambling, they want to see benefits flow back to local sports clubs, community groups and grassroots organisations,” van Velden said.
“I have listened, and now as a government, we are delivering on what matters most to communities across the country.
“Problem gambling prevention and harm minimization standards are non-negotiable and unchanged. Protecting Kiwis from gambling harm is still my number one objective.
“Community funding will not compromise this Government’s commitment to reducing gambling harm.”
Van Velden also revealed that the government would conduct a review of the new online gaming industry after two years following its introduction early next year.
“While I am confident the regulated online casino market will provide new community funding opportunities for New Zealand sports clubs and community organizations, I do acknowledge that predicting the exact impact on existing Class 4 [poker machine] returns creates some uncertainty,” she continued.
“Cabinet has agreed on a two-year review after implementation of the community returns policy to assess the impact of online casino gambling on other forms of gambling and community returns.
“This evidence-based review will inform necessary adjustments allowing us to make informed policy decisions based on real-world data in future.
“This is new money on top of existing funding from pokies, Lotto and TAB. We’re not taking anything away – we’re adding to what’s already there.”
The minister, meanwhile, doubled down on the need for a legal iGaming industry, explaining that the Online Casino Gambling Bill – which was introduced to parliament in late June – addresses a critical gap in New Zealand’s regulatory framework.
“Right now, Kiwis are gambling on thousands of overseas websites with no safety nets, no spending limits and no recourse when things go wrong. That’s unacceptable,” she said.
“This bill brings those operators under New Zealand law, with proper consumer protections, harm minimization measures, and now, community benefits.”
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