NZ Government Holds Problem Gambling Levy Despite GC Concerns

At the start of last month, New Zealand officials revealed their ambitious plan to cut gambling harm and invest over NZD $81 million ($48.93 million) in prevention, workforce development, and support services.

The strategy was regarded as the country’s most targeted effort to fight off gambling addiction as of yet. 

However, a recent report from the Gambling Commission clearly expressed concerns regarding the actual effectiveness of these strategies. Despite the critical results shown in the report, the government has decided not to increase the problem gambling levy on the industry.

No Evidence on the Table

The independent regulator noted that the Ministry of Health has yet to provide clear evidence proving that the funds collected from the levy are making a real difference in curbing problems related to gambling. 

This is not the first time for the commission to put pressure on the ministry to demonstrate the impact of its initiatives.

Minister for Mental Health Matt Doocey expressed concern about the slow progress in proving the strategy’s success. 

“I think that it’s concerning that it’s taken so long to see what changes are being delivered as a result,” he said. 

Doocey further explained that the ministry was currently reviewing its approach, with plans for the Cabinet to reconsider the levy next year, while emphasizing the need for investments to generate benefits for individuals and communities that have been affected by gambling harm.

Originally, the Ministry of Health proposed a 20.6% increase in the levy for 2025–2028, bringing the total to NZD $92 million. 

However, Cabinet members decided last month to maintain the levy, which applies to casinos, sports betting, operators of slot machines, and Lotto, but excludes online gambling sites, at NZD $81 million for a three-year period. 

Operating Costs Will Double

The Gambling Commission’s report noted the ministry’s inability to run a comprehensive strategic review as requested in 2022. 

Chief Gambling Commissioner Susan Hughes KC wrote that despite significant spending over the years, there is no solid proof that the current strategy has reduced gambling harm in New Zealand. 

Hughes also raised concerns about how levy funds are allocated, pointing out that the ministry’s operating costs are set to double while funding for research and new services is expected to drop.

The commission also discussed the dramatic decrease in the number of individuals asking for professional help from 6,525 in 2013-2014 to 3,615 a decade later, noting that the figures did not reflect the reality in the country.

In response, the Ministry of Health explained that its 2025–28 gambling harm strategy was based on both global and local research, thus reflecting wider consultations with stakeholders. 

The ministry pointed to new investments aimed at improving prevention, early intervention, treatment, and support. 

Regarding increased operating costs, a spokesperson explained that rising expenses are required to implement the strategy under the Gambling Act.
Several problem gambling organizations, including the Problem Gambling Foundation, support raising the levy. Foundation chief executive officer Melissa Thompson told the commission that the proposed increase is modest compared to the growth in gambling revenue.