New Zealand’s Governance and Administration Committee just backed a plan to share online casino profits with local communities. The committee reviewed over 5,000 submissions on the Online Casino Gambling Bill. Nearly 4,000 of those raised the same worry: where would the community funding go?
Minister of Internal Affairs Brooke van Velden supports the committee’s findings. She says the Cabinet already has a distribution plan ready.
The Lottery Grants Board will handle the actual money flows to community groups.
Why Community Returns Matter Now
Many New Zealanders feared online casinos would pull players away from pokie machines. That shift would cut funding for community and sports groups who rely on gaming revenue. It’s not a small concern.
Van Velden addressed this directly. “Submissions clearly showed New Zealanders want community returns from online gambling activity to ensure communities continue to get the funding they need,” she said during her response to the report.
Community groups across New Zealand depend on gambling revenue for their operations. Without guaranteed returns from the new online market, these organisations faced potential funding shortfalls. The committee report confirmed this concern dominated public feedback.
What the Bill Actually Does
The Online Casino Gambling Bill brings online casino gambling under New Zealand law for the first time. It creates a regulated market where none existed before.
Cabinet agreed to mandatory community returns from online gambling revenue. The committee backed this decision in their latest report. Van Velden called this “a crucial step forward in advancing online gambling regulations that protect Kiwis from harm.”
The government will review the bill’s impact after two years. They’ll specifically check whether pokie revenue drops affect community funding levels.
The bill also tackles advertising concerns. Public submissions highlighted worries about increased gambling ads and potential harm from a regulated market, and there’s precedent for enforcement. The Department of Internal Affairs handed out NZ$125,000 (US$39,000) in fines during early Q4 for inappropriate gambling advertisements and promotions.
How This Changes the Market
The guaranteed community returns address the biggest public concern about regulation. Without this commitment, the bill faced significant opposition from community organisations.
New Zealand’s approach differs from purely commercial gambling markets. The country’s mixing revenue generation with social responsibility requirements.
Operators will need to factor community contributions into their business models. This isn’t optional, it’s built into the regulatory framework from day one.
Van Velden emphasised that player protection remains the government’s top priority. “This is an important piece of legislation that will bring online casino gambling under New Zealand law for the first time. I look forward to seeing it progress through the House,” she said.
The two-year review period lets authorities track real impacts before locking in the funding structure permanently. The bill now moves through Parliament with its community funding mechanism secured.
