Over 50 sports organizations in New Zealand have united in a growing opposition to the government’s Online Casino Gambling Bill, warning that it could spell disaster for community sport funding across the country. The bill, introduced by Internal Affairs Minister Brooke van Velden in June, aims to regulate offshore online casino gambling by licensing up to 15 international operators. However, sporting leaders have voiced concerns about a crucial omission in the bill: the failure to mandate that these operators contribute a portion of their profits to community sport.
The Bill and Growing Opposition
The bill passed its first reading in Parliament in mid-July, with 83 votes in favor and 39 against. Supporters, including the Green Party, argue that the bill will provide greater protection for New Zealanders by ensuring safer online gambling through regulation. Minister van Velden highlighted the importance of the bill in curbing unregulated gambling websites and ensuring that online gambling is safer for New Zealanders who wish to participate.
However, sporting bodies across the country, including 33 national sporting organizations, have expressed alarm over the proposed structure of the bill. The primary concern is that it does not include provisions for operators to contribute to community sports funding, unlike the current system where gaming trusts distribute around NZ$170 million annually to support amateur and community sports.
Impact on Community Sports Funding
Martin Snedden, Chair of Cycling New Zealand, has been one of the most vocal critics of the bill. He argued that the legislation poses a significant risk to community sports, which depend heavily on funding from gaming activities such as pokies. “Sport has thrived for decades off the back of community gambling grants. It all goes to clubs, not professional sport,” Snedden told Newstalk ZB. He added that without this critical funding, many clubs already struggling with rising costs, reduced sponsorship, and local government financial pressures would face even greater challenges.
Snedden also criticized the lack of consultation with the sport sector prior to the introduction of the bill. “There had been no consultation with the sport sector, no warning that this was coming,” he said. “As soon as I saw it, I recognized the extent of the risk to community funding.” The current gambling model, which channels funds from pokies into local sports, has been an essential source of income for these clubs, and the proposed bill’s failure to ensure a similar contribution from international online operators is seen as a major flaw.
Minister’s Position and Industry Concerns
Despite these concerns, Minister van Velden maintains that the bill is necessary to protect New Zealanders from the risks associated with unregulated online gambling. In her comments, she emphasized that the bill aims to ensure that online gambling operators adhere to strict safety measures and contribute to the country’s tax revenue, including funding for problem gambling services. However, there has been no commitment to channeling a portion of these funds back into community sports, leaving sporting organizations worried about the bill’s impact on their future.
Van Velden noted that the bill would grant up to 15 licenses to international online gambling operators through an auction process, but this would not include any requirement for them to contribute to local sports funding. The auction period is expected to begin next year, with licenses being issued for three-year periods.
A Call for Changes
Sporting organizations are urging the government to revisit the bill and restore provisions that would ensure international online operators contribute to local sports funding. Snedden, along with other leaders, has stressed that this is a critical issue for the survival of community sports in New Zealand. He warned that without such provisions, the bill would create a significant gap in funding for grassroots sports, which is already under financial strain.
Snedden also pointed out that the government’s decision could have a profound long-term effect on the country’s sports ecosystem. “The Government should be saying to the international operators, ‘You are going to be contributing if you want to operate in New Zealand,’” Snedden said. “Part of the reason you’re allowed to operate here should be that part of your money goes into the community, and that’s a good thing.”
Public Submissions and Future Discussions
As the bill continues through the legislative process, public submissions are open until August 17, allowing for further debate on the issue. While the government has acknowledged the concerns of the sporting sector, the bill’s future remains uncertain. Ministers are expected to carefully review submissions and determine if any amendments to the bill are necessary before it proceeds.
Sports organizations are hopeful that by uniting their voices, they can influence the government to address their concerns and protect community funding that supports New Zealand’s youth and grassroots sports.
Source:
New Zealand Sporting Bodies Unite to Fight Proposed Online Casino Gambling Bill, nzherald.co.nz, August 3, 2025.
