New Zealand’s upcoming online gambling legislation will guarantee funding for sports, cultural associations, and social initiatives, as the country prepares to regulate online gambling in 2026.
The New Zealand government has confirmed that the future Online Gambling Act will include a community funding provision, designed to protect local organizations as regulated online gambling is introduced nationwide.
This guarantee addresses a key public concern raised during consultations: that legal online gambling could reduce revenues from gaming machines (“pokies”), which currently provide funding for more than 5,000 sports clubs, cultural associations, and social initiatives.
Community Funding at the Core of the Reform
During the consultation process, nearly 4,000 of the 5,000 submissions received warned of a potential decline in community funding if gambling revenues were to fall.
According to government documents, licensed operators will be required to allocate 4% of their gross gambling revenue (GGR) to community purposes.
Initial estimates suggest that between NZD 10 million and NZD 20 million (approximately €5.6–11.2 million) will be distributed in the first year alone, supporting sports programs, cultural organizations, local charities, and participation in the Special Olympics.
Management of these funds may be entrusted to the Lottery Grants Board, which already oversees substantial community funding across the country.
A Regulated Online Casino Market
The bill—expected to come into force on January 1, 2027—also aims to reduce player risks by regulating online gambling and introducing safeguards that are stricter than those currently available through offshore platforms.
Only up to 15 operators will be licensed to legally offer online casino services, paying a 12% offshore gambling tax and an additional 1.24% levy on profits to fund gambling harm prevention and treatment.
Operators will be allowed to advertise their services, but under strict conditions: no advertising targeting minors, mandatory age-verification tools, and tight limits on promotional content.
These measures are intended to ensure that New Zealand’s regulated market stands apart from less controlled international offerings, even as consumers increasingly compare domestic platforms with the top online casinos 2026 operating globally.
Ongoing Concerns from Sports Groups
While the decision has been welcomed by most community organizations, several sports groups continue to express concern.
They fear that a shift toward online gambling could erode traditional funding streams from physical gaming machines, which have been crucial for decades in supporting grassroots sports and youth activities.
These groups argue that the historic link between gaming machines and local funding is not easily replicated in a digital environment, potentially reducing resources available for clubs, tournaments, and training programs.
The bill will now continue its parliamentary process, with the government stating that player protection and community benefits will remain at the center of the reform.
