New Zealand Government Hikes Online Gambling Duty to Fund Local Communities
Last Updated on November 13, 2025
The New Zealand government has stepped in to address concerns about the Online Casino Gambling Bill. The goal? To make sure some of the revenue from offshore gambling sites makes its way back into the communities.
People were initially outraged because the original proposal didn’t include any contribution to community groups. However, the bill has now been adjusted to help sporting clubs, community groups, and other local organizations that usually rely on funding from pokies, Lotto, and TAB.
In a fresh update released on October 29, Minister of Internal Affairs, Brooke van Velden, said the government had heard the public feedback loud and clear, prompting quick action.
Increased offshore funding duty to fund local initiatives
The new bill, which is now before the Parliament’s Select Committee, raises the offshore gambling tax from 12% to 16%. The additional 4% will be “ring-fenced,” meaning that it will be set aside and spent only on community contributions, with no possibility of being reallocated for other purposes.
This change reflects the government’s broader push to have gambling winnings, particularly those of offshore providers, redirected to serve the needs of local communities without compromising the integrity of existing funding streams.
Minister Brooke van Velden reassured stakeholders that this increase in offshore gambling duty will not interrupt the revenue already being channeled to community organizations from existing sources. This is on top of what they already receive from pokies, Lotto, and TAB.
“We are not taking anything away,” she said. She also made it clear that the government’s strong commitment to responsible gambling and harm prevention remains firm, to ensure that the push for community funding does not compromise the work to reduce gambling harm. Licensed online casinos in New Zealand will be required to adhere to strict regulations, including age verification systems, spending limits, and self-exclusion tools for responsible gaming.
Tightening the regulatory landscape
The bill addresses what the government calls a major regulatory gap. Right now, thousands of Kiwis are betting on offshore websites that aren’t covered by New Zealand’s laws. These sites usually don’t have proper safety features or ways for players to get help if things go wrong.
The new setup will require every online casino operator to get a New Zealand license, which puts them under the local laws for the very first time.
This change should cut down the dangers of unregulated gambling while also bringing money back into the local economy. Local groups have given a big thumbs-up to the community funding because they rely heavily on those grants to keep their operations running and support youth programs.
To make sure the new policy works as intended, the government has also built in a two-year review period. During this time, the authorities will carefully monitor the impact of the increased offshore gambling duty on Class 4 gambling (pokies) returns, if any further adjustments are needed to achieve balance.
The review will use comprehensive information collected from licensed gambling operators and community groups to enable evidence-informed decision-making that promotes fairness and sustainability across all funding streams.
“The evidence-based review will lead us to do the right thing and enable us to make future policy based on facts,” Minister van Velden commented. The main goal of the review is to maintain a level playing field, ensuring that the new revenue from internet gambling integrates with the existing funding provided by pokies, Lotto, and TAB, without upsetting any apple carts. It’s about giving local communities a boost without destabilizing existing pathways.
A win for people, but the fight is far from over
Labour opposition spokesperson Lemauga Lydia Sosene called the government’s change a “big win for communities.” She gave complete credit to community movements and everyday Kiwis who spoke up and campaigned vigorously for the bill to be changed.
“This is a big win for communities,” Sosene said, pointing out that their action made all the difference. For that, though, she made it clear Labour still does not support the bill in total. They object that permitting offshore betting might be risky if the rules of protection are not strong enough.
Most people believe that the government’s review is a sincere step in the right direction. Others are, however, not very optimistic. The gambling bill is among many other controversial bills to be tabled in the New Zealand parliament, and critics are still worried about what will happen when the country opens its doors to let more offshore gambling operators in. They are asking: Will this actually be safe? Will it actually help, or could it be more harmful?
On the other hand, individuals who follow the industry closely report that the new regulations hit a fair balance. They believe one can expand online gambling and care for the needs of the community if the government keeps itself in check.
Setting a new standard
By ensuring that some of the revenue from offshore gambling comes directly to local charities, the New Zealand government is doing something worthwhile. It’s connecting the growth in online gambling to real, on-the-ground benefits such as investments in sports clubs, community associations, and grassroots initiatives. The message is clear: if online gambling is to grow, it has to benefit the neighborhoods and people who need it most.
