New Zealand's 33 national sports organizations have united to voice their opposition to the government's proposed Online Casino Gambling (OCG) Bill, warning that the legislation could severely impact the funding sources for grassroots sports nationwide. The New Zealand Herald reports that the bill allows for the issuance of licenses to 15 offshore online gambling operators, but does not explicitly protect the existing mechanisms for the distribution of gambling funds to the community.
Currently, about NZ$170 million (approximately US$102 million) from slot machine revenues is allocated annually to sports clubs and regional sports organizations in New Zealand through a four-tier gambling trust system, accounting for nearly half of the trust's annual distribution.
Martin Snedden, the chairman of Cycling New Zealand, stated that the bill could end a "long-standing bipartisan consensus" that gambling profits should be returned to the community. He noted that the rise of global online gambling is rapidly eroding the revenue from physical slot machines, and the new policy, if it does not mandate contributions from offshore operators, could risk cutting off grassroots sports.
From the government's side, Minister Brooke van Velden, who is responsible for the legislation, acknowledged the importance of this issue but stated that a decision on the funding security mechanism has yet to be made. She pointed out that the new bill requires licensed operators to pay taxes and support problem gambling treatment services, but does not mandate donations to sports or community organizations. She warned that linking community grants to gambling revenue could create "inappropriate incentives."
In response, Snedden criticized the government for lacking effective communication with the sports community and urged immediate adjustments to the legislative proposal, "We don't need to wait three years to prove that this bill will weaken grassroots sports development; action should be taken now to ensure that the profits from online gambling platforms continue to serve the local community."
Currently, the bill is still under consideration but has already sparked widespread concern and policy maneuvering within the sports community.
