NZ takes major step toward safer online gambling with new regulatory bill

The report represents significant progress in the Government’s goal to regulate online casino gambling—an area that has long operated without clear legal oversight.

Minister of Internal Affairs, Brooke van Velden, has welcomed the Governance and Administration Committee’s report on the Online Casino Gambling Bill, calling it a “crucial step forward” in creating a safer and more accountable online gambling environment for New Zealanders.

The report represents significant progress in the Government’s goal to regulate online casino gambling—an area that has long operated without clear legal oversight. According to Minister van Velden, the Committee’s recommendations “strongly align with Government decisions,” especially around reducing gambling harm and ensuring communities continue to benefit from gambling revenue.

Strong Public Engagement and Concerns About Community Funding

The Committee received more than 5000 submissions, including from individuals, community organisations, and industry groups. A significant 3,966 submissions highlighted worries about the potential loss of community returns—funding distributed to grassroots organisations from gambling proceeds.

Community returns serve as a vital financial lifeline for local groups, helping to support activities such as youth sports, cultural programmes, recreational clubs, and disability support initiatives. Past funding has enabled purchases like kayaks for local sea scouts and helped Special Olympics athletes travel to national competitions.

Many submitters feared that a shift from pokie machines to online gambling could reduce this revenue stream, negatively affecting community groups nationwide.

Ensuring Community Returns Continue Under Online Gambling

In response to these concerns, the Government reaffirmed that community returns will also be required from online casino gambling, ensuring funding remains robust even as gambling activity moves into digital spaces. The Committee endorsed this decision and further recommended that the Lottery Grants Board oversee the distribution of these online-generated community funds—bringing consistency with recent Cabinet direction.

Addressing Gambling Harm and Advertising Concerns

Submitters also raised broader concerns about the normalisation of gambling, the risk of increasing harm through easy online access, and the impact of online gambling advertising—especially on young people and vulnerable communities.

Minister van Velden acknowledged the public’s concerns, noting that the new regulatory framework prioritises harm minimisation. Under the Bill, online casinos operating in New Zealand will be required to implement safety measures such as identity verification, spending limits, self-exclusion tools, and strict advertising controls. These protections do not exist under the current unregulated environment, where offshore platforms face no obligation to protect New Zealand consumers.

Future Review to Protect Community Funding

To ensure community groups are not adversely affected, the Government will review the impact of online casinos on pokie revenue after two years. This review will assess whether community and sporting organisations continue to receive adequate financial support and whether additional policy adjustments are needed.

A Landmark Move Toward Modern Gambling Regulation

If passed, the Online Casino Gambling Bill will bring offshore online gambling under New Zealand law for the first time, marking a major milestone in modernising gambling legislation. Minister van Velden expressed confidence in the Bill’s direction and looks forward to its progression through Parliament.