The country’s plans to expand its gambling industry online aren’t welcome by sports organizations
The New Zealand government’s proposed Online Casino Gambling Bill is facing mounting criticism from more than 50 sporting organizations, who fear the legislation could slash vital funding streams that keep local clubs and programs alive.
Introduced in July by Internal Affairs Minister Brooke van Velden, the bill would allow up to 15 offshore casino operators to apply for licenses in New Zealand. The government argues that the framework would bring oversight to the currently unregulated online gambling market, generate tax revenue, and strengthen consumer protections. The proposal also includes NZD 81 million (US$47.48 million) earmarked for gambling harm prevention.
Opponents, however, argue that the bill threatens a long-standing system of community support linked to pokie machines. Profits from pokies in pubs and clubs currently return about NZD 170 million (US$99.64 million) annually to local causes, including youth sports, community health, and arts initiatives. These grants often pay for essentials like gear for junior teams and the upkeep of facilities in smaller towns where budgets are already tight.
Cycling New Zealand chair Martin Snedden said the concern is not about gambling itself, but about disrupting the model where gambling revenue has long been accepted because of its reinvestment into local communities. He and other leaders warn that if online casinos are licensed without similar obligations, many sports clubs will be left scrambling for resources at a time when sponsorships and council grants are already declining.
Experts echo those concerns. University of Auckland lecturer Blake Bennett noted that volunteer-driven clubs could collapse without stable funding, eroding social connections and widening gaps between wealthier urban centers and struggling rural towns. Sport Manawatū CEO Kelly Shanks estimated her region alone could lose NZD 5 million (US$2.97 million) in pokie funding.
Public submissions on the bill closed in August, and hearings are scheduled for September. Sports groups are now urging lawmakers to add requirements that would guarantee continued community funding, arguing that without such safeguards, grassroots programmes across the country may face serious setbacks.
