More than 50 national and regional sporting bodies across Aotearoa have banded together to oppose the Online Casino Gambling Bill, warning it would undermine one of New Zealand’s most critical community funding streams.
In a joint submission to Parliament, organisations including Sport New Zealand, national rugby and cricket boards, netball leagues and youth development agencies expressed concern that the proposed bill lacks a mandated funding model to replace the NZD $150 million currently generated annually by land-based gambling proceeds for community sport and recreation.
Under the current regime, funds from pokie machines operated by Class 4 gaming venues are distributed back into the community under the supervision of the Department of Internal Affairs (DIA). Sporting organisations rely heavily on these grants to deliver coaching, competitions, gear, and local infrastructure across the motu.
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But the new bill, designed to regulate offshore online casinos by introducing a domestic licensing regime, does not contain any provision requiring revenue reinvestment into grassroots or not-for-profit sectors. Critics say that creates a double standard—where online operators reap commercial gains in the New Zealand market without contributing to the social and sporting fabric of the country.
“We’re not anti-gaming,” said one regional netball administrator. “But any expansion of the gaming sector needs to come with mechanisms that sustain the communities that bear the social cost.”
The Ministry of Justice has yet to confirm how the licensing fees or gaming tax revenue from the proposed online market would be allocated. Industry analysts note that without a community funding clause, the bill risks eroding public trust and setting up a commercial regime that replicates the harms of offshore platforms—just under a New Zealand flag.
The select committee reviewing the bill is expected to hold public hearings in September, with several high-profile sporting organisations slated to speak. For now, the message from the sports sector is unified: any legalisation of online casinos in Aotearoa must protect—and preferably expand—the lifeblood of grassroots sport that has long relied on the gaming sector’s community return obligations.
