What New Zealand’s Online Casino Bill Means For The Future
Last Updated on September 23, 2025
Pokies and the community
It is no secret that Kiwis enjoy gambling, and we have a particularly strong tie to our beloved pokies. It is just one of the things we love to do for entertainment. There has always been that mutually beneficial relationship between the pokie and the punter. While the player has a fun and entertaining time, knowing that in the long run they are probably not going to win a fortune, there is the comfort that all of their losses are not just flowing into commercial hands.
Each year, the gaming machine profits pump around NZ$170 million back into communities in the form of grants for sports clubs, arts groups, local charities, and community health initiatives. The grants are not just for nice-to-have items, but are what keep many of these community projects going. The pokie revenue has been redistributed in this way for decades, but there is now concern that the pipeline is in danger of being turned off.
How will the Online Gambling Bill change the current situation?
The Online Casino Gambling Bill will offer up to 15 operators a license to offer online casino gambling services in New Zealand’s regulated online marketplace. The market is currently unregulated, with offshore casino companies being legally able to provide gambling services to the population. This means that anyone wanting to play online pokies or who is looking for online bonuses is lawfully able to do so. With the assistance of expert review companies like Casino.org, they can safely navigate their way to the best and most reputable sites. However, currently, no revenue from the online casinos flows back into the treasury or through to grassroots organisations.
The expectation for many was that when the new act came into force, part of its remit would be to ensure that the community groups did not lose out. However, the government seems to have been focusing its attention elsewhere. It is more concerned about reducing overall gambling harms and preventing the rise in influencers promoting content to people who may never have considered playing pokies at all, as Australia has witnessed. This seems like a sensible approach – reining in an unregulated industry while protecting consumers and delivering welcome tax revenue.
No community benefit
However, as the old saying goes, the devil is in the details. In the case of the Online Casino Gambling Bill, it is the lack of specific detail that is causing concern. As the law is drafted, there will be no requirement for the newly licensed entities to be mandated to return a share to fund community projects. The act could be a real blow, and the sports sector is uniting behind Martin Snedden, former NZ Cricket boss, to demand changes before the law comes into force.
So far, there has been ‘radio silence’ from the government despite emails and phone calls to the Prime Minister’s office. Snedden is not impressed and has insisted that the government needs to start talking to the communities that will be affected. Suppose online casinos are allowed to operate without community return requirements. In that case, there is a concern that the gambling dollars will all be in the operators’ pockets and the community organisations will be left high and dry.
Snedden has described it as a “crazy move” that would be a “massive risk” to community and grassroots sports clubs. Without the pokie revenue, small, volunteer-run organisations may not be able to survive.
Bill has a different purpose
Many would, and do argue, that millions of dollars already flow offshore to online operators. Supporters of the Online Casino Gambling Bill say that its purpose is not to shift people from physical to online gambling but to provide a safer, regulated marketplace. The aim is to protect consumers, generate tax revenue, and impose strict age limits. There will be a crackdown on advertising and fines for non-compliance. In addition, the government has promised to provide NZ$81 million to support those affected by gambling harms.
A fairer system called for
For some time, there has been a call for a fairer system, one that ensures grassroots and community projects are not reliant on pokie revenue and instead sees direct government funding for grant recipients. However, none of this is detailed in the bill. In fact, community organisations seem to have been completely ignored.
There are calls for a consistent approach to online and offline pokies. While it would mean a U-turn for the government, it would show they are listening to concerns if they implemented all or any of the following changes before the bill becomes law:
- Mandating that the licensed operators contribute a fixed percentage of gross gambling revenues to community trusts.
- Ring-fencing tax revenues raised from online gambling to be used for community funding and not just for gambling harm services.
- The establishment of a transparent framework allowing communities to see the money flows and where the trust money is used.
As the new gambling laws are about bringing in revenue as much as preventing gambling harms, it is strange that the funding of the community projects has not been considered. Those arguing against online casino funds going to community projects say that people are already playing at online casinos, and the bill will not affect those who play at physical machines. In other words, the tax generated from the Online Casino Gambling Bill will be new money; It will not diminish the existing revenues that the community projects derive from pokies.
Growing online market
However, in an increasingly digital world, it is hard to imagine that the physical terminals will not come under pressure from ‘government-approved’ online options. Many players are probably unaware that this could be the outcome and will assume that their flutter will still be doing some good. Those in favour of community benefit argue that if the New Zealand government is going to allow gambling to expand, its downstream impact should be positive.
Pokies have long been a source of contention in the country, and the Online Casino Gambling Act does not seem to be doing anything to ease that contention. It seems to be just another twist in the country’s complicated relationship with gambling.
