More than 50 sports organisations in New Zealand have joined forces to oppose a proposed Online Casino Gambling Bill.
More than 30 sports organisations across New Zealand have joined forces to oppose the country’s proposed Online Casino Gambling Bill, warning that it could severely impact funding for grassroots sports.
The NZ Herald reports that these organisations, which span both national bodies and local clubs, argue the online casino legislation threatens to dismantle a system that currently channels approximately NZ$170m annually into community sport through gaming machine grants.
The organisations’ central concern is that the bill does not include any requirement for licensed online casino operators to contribute to these community or sporting grants, potentially leaving a significant gap in funding if online operators take market share from the retail sector.
Many sports clubs in New Zealand are already grappling with rising operational costs, dwindling sponsorships, and shrinking local government support.
Martin Snedden, chair of Cycling New Zealand, is leading the charge against the initiative, and said: “It is obvious this will hurt community funding. Do we wait three years to confirm what is already clear, or act now to future-proof funding from international operators?”
Without the continued flow of gaming grant funding, local clubs fear they will be unable to sustain their programmes, staff, or facilities.
Leaders from within the sporting sector have described the bill as posing a massive financial risk to grassroots sport and have expressed frustration that no consultation was held with the sector before the bill was introduced.
The bill, introduced by the government in June, seeks to regulate currently unlicensed offshore online casinos by issuing up to 15 new local licences.
It aims to impose age-verification requirements, levy a small percentage of operator profits to fund harm reduction programmes, and introduce restrictions on advertising, particularly to protect minors.
However, it makes no provisions to ensure revenue is directed back into the communities or sports organisations that have traditionally relied on gambling-related funding.
Legislation making progress
The legislation passed its first reading in Parliament with a comfortable majority and has now progressed to the select committee stage.
Public submissions on the bill are open, allowing concerned stakeholders, including sports bodies and community organisations, to voice their opinions and suggest changes.
There are concerns, however, that the bill’s framework lacks clarity on several key issues, including licensing conditions, revenue distribution, and enforcement of harm reduction measures.
Critics of the bill argue that the current proposal is too focused on enabling a legal iGaming market without addressing the broader social and economic impacts.
In particular, there is widespread disappointment that no mechanisms are in place to replicate or replace the community funding system currently supported by gaming machine operators.
Some advocates are also calling for more robust harm minimisation measures, such as mandatory spending limits and restrictions on credit card use.