More than 50 major sports organizations in New Zealand have jointly called for a reconsideration of the latest "Online Casino Gambling Act" (OCG), warning that the act could lead to a loss of at least NZ$150 million (about US$97 million) in community sports funding.
Leaders from the sports community, including representatives from rugby, soccer, and cricket, have stated that the new law will establish a licensing system for up to 15 offshore online casino operators, but these new license holders are not obligated to contribute funds back to community sports. This contrasts sharply with the current system, where approximately NZ$170 million from slot machine gambling revenue is earmarked to support amateur sports and community projects.
Martin Snedden, the chairman of Cycling New Zealand, told the media that the government lacked sufficient consultation before legislating, "For decades, community gambling subsidies have been key to the flourishing of sports, with these funds mainly flowing to grassroots clubs rather than professional sports."
Snedden emphasized: "The government should explicitly require international operators to contribute a portion of their funds to community development, otherwise they should not be allowed to operate in New Zealand." He also called on political leaders to address this issue to prevent long-term negative impacts on community sports.
However, the Minister of Internal Affairs, Brooke van Velden, confirmed that although the new law requires operators to pay taxes and fund gambling addiction services, there are no plans yet to allocate funds for grassroots sports support.
It is reported that the law stipulates that licensed operators must pay a 12% goods and services tax and an offshore gambling tax, and also pay 1.24% of profits for gambling harm mitigation. Licenses are expected to be issued starting in July 2026, and advertising will be strictly regulated, especially prohibiting promotions targeting minors.
Currently, several well-known operators including SkyCity, 888, Bet365, Super Group (parent company of Betway), and TAB NZ have expressed their intention to obtain licenses. The bill was first read and passed in Parliament in July, and the next step will be submitted to the Governance and Administration Committee, planned to complete its third reading by mid-November, with final approval expected by the end of the year.
The sports community is calling on the government to reconsider the details of the bill to ensure the future funding of community sports and to ensure the healthy and sustainable development of the emerging online gambling market.
