The changes are designed to help better support local communities
The New Zealand government has adjusted its upcoming Online Casino Gambling Bill, introducing changes that will redirect new gambling levies toward local communities and grassroots organizations. The amendment includes a four percent increase to the existing 12% offshore gambling duty, with the added revenue specifically set aside to support sports clubs, charities, and community groups across the country.
Minister of Internal Affairs Brooke van Velden announced the measure while outlining the government’s broader plan to regulate online gambling for the first time under New Zealand law. She said that many New Zealanders currently use offshore gambling sites that operate without consumer protections or spending safeguards, leaving players exposed to harm. The new framework, she explained, would bring these operators under national oversight while also ensuring that local communities benefit financially.
Under the proposal, offshore casino operators targeting New Zealand players will be required to pay the higher levy, which will be ringfenced for community use. This revenue stream will be added to existing funding sources, such as pokies, Lotto, and the TAB, which already contribute millions of dollars annually to public projects. Van Velden emphasised that the new system adds fresh funds rather than reallocating existing ones.
The government also plans to monitor how the new online regulations affect the land-based gaming sector, particularly Class 4 pokies, which fund a significant portion of local community programs. Officials have committed to conducting a review two years after the online gambling rules take effect to assess economic and social outcomes.
Van Velden said the reform aims to strike a balance between consumer safety, responsible gambling, and public benefit. By tightening regulation of offshore operators while supporting community initiatives, the government hopes to create a safer and more equitable gambling environment for all New Zealanders.
