The regulation of online casinos in New Zealand is gaining significant momentum as the Governance and Administration Committee reviews public feedback on the proposed legislation.
The consultation phase has generated substantial engagement, with over 5,000 responses submitted regarding key aspects of the bill, highlighting the public’s keen interest in the future of digital gambling in the country.
A major point of discussion has been the allocation of revenue for community initiatives. According to the government, nearly 4,000 of the responses expressed concern about how online gambling might impact funding for community groups, which traditionally relies heavily on revenue from physical “pokie” machines.
There is a fear among some stakeholders that a shift toward online play could reduce the funds returning to local communities.
In response, the Cabinet has agreed to ensure that online gambling activity contributes to community returns, a decision supported by the Committee. The Committee has specifically recommended that the Lottery Grants Board take responsibility for distributing these funds to ensure they reach the appropriate community and sports groups.
Beyond financial concerns, the consultation also addressed fears that regulating online casinos could normalize gambling and increase harm. Minister of Internal Affairs Brooke van Velden, who is spearheading the regulations, emphasized that harm reduction is the primary goal of the new framework.
She noted that the current status quo lacks sufficient safeguards for New Zealanders gambling online and that the bill represents a significant improvement in consumer protection.
To ensure the system works as intended, the government has committed to reviewing the impact of online casino gambling on pokie revenue after two years. This review will assess whether community returns remain adequate.
Brooke van Velden, Minister of Internal Affairs:
“Many groups were concerned that more gambling online would mean less gambling on pokie machines, and therefore a decrease to the level of funding returning to community groups. Submissions clearly showed New Zealanders want community returns from online gambling activity to ensure communities continue to get the funding they need. Cabinet agreed to provide these returns, and the Committee supported that decision.”
