According to government estimates, the new funding model could generate between NZD 10 million and NZD 20 million in community returns within the first year of operation, starting from January 1, 2027. This projection is contingent on the overall GGR generated by the licensed online casino market, which is expected to grow as more operators enter the space.
The funds collected through this community funding requirement will be allocated to various local initiatives, including sports clubs, community groups, and grassroots activities. This financial support is crucial for sustaining programs that benefit the community, such as assisting athletes in the Special Olympics to participate in national competitions.
The introduction of the Online Casino Gambling Bill has been a focal point of discussion within the New Zealand Parliament. Initially, the government aimed for a launch date in July 2026; however, recent developments suggest that this timeline may be pushed back. The community funding requirement is set to take effect from January 2027, indicating that the launch of legal online gambling could be delayed by several months.
The bill has undergone extensive public consultation, receiving over 5,000 submissions from individuals and organisations. A significant portion of these submissions—nearly 4,000—expressed concerns regarding the potential impact of online gambling on community returns.
Minister of Internal Affairs, Brooke van Velden, has publicly acknowledged the importance of community returns in her statements regarding the bill. She emphasised that the government is committed to ensuring that online gambling contributes positively to local communities, addressing fears that increased online gambling could lead to reduced funding for community initiatives.
To further safeguard community interests, the government plans to conduct a review of the impact of online casino gambling on traditional gaming revenues after two years of operation. This review will assess whether the community returns are sufficient to meet the needs of local groups and organisations.
In addition to the community funding requirement, the government is also focused on mitigating potential gambling harm associated with the expansion of online gambling. Concerns have been raised about the normalisation of gambling and the potential for increased advertising leading to higher rates of gambling-related harm.
In response to these concerns, the government has indicated that the bill will include measures aimed at reducing gambling harm. These measures will be prioritised to ensure that the regulatory framework provides adequate protections for players, particularly in comparison to the current unregulated online gambling environment.
Should the Online Casino Gambling Bill pass, it is anticipated that up to 15 operators will be granted licenses to operate within the regulated iGaming market. Each operator will be required to adhere to strict regulations, including the payment of a goods and services tax, an offshore gambling duty of 12%, and a mandatory levy of 1.24% of profits to fund services aimed at addressing gambling harm.
The bill will also impose restrictions on advertising practices for licensed operators. For instance, advertising directed at minors will be prohibited, and operators will be required to implement robust age verification measures to prevent underage gambling.
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