NZ Sporting Bodies Warn of Funding Crisis Over Online Gambling Bill

Over 50 sporting groups in New Zealand have united to fight the Government’s planned Online Casino Gambling Bill. They claim it might rob grassroots sport of key resources.

New Zealand Struggles to Balance Safe Gambling and Community Support

Brooke van Velden, the Internal Affairs Minister, put forward the bill in June. It would allow up to 15 offshore casino operators to get licenses in New Zealand. Those who back the bill say it would bring control to an unchecked market, boost protections for users, and create more tax money. This includes NZD 81 million ($47.6 million) set aside to treat and prevent gambling harm, reported the New Zealand Herald.

However, some people are worried that the new law might hurt grassroots sports. Online casinos with licenses would not have to give some of their earnings back to local areas, unlike places with poker machines. Right now, grants from pokies provide about NZD 170 million ($99.9 milllion) each year to help pay for sports clubs, community groups, health services, and arts programs.

Martin Snedden, who chairs Cycling New Zealand, has become a key opponent of the bill. He claims that clubs already struggling with higher costs, fewer sponsors, and less council backing cannot afford to lose such a crucial source of income. He points out that past governments have kept a “social contract” allowing gambling if some profits go back into local communities. He asks ministers to make sure online casinos follow the same rules.

New Gambling Rules Might Hurt Volunteers and Families the Most

Academics and regional sports trusts have the same worries. University of Auckland senior lecturer Blake Bennett‘s studies show that community groups already face difficulties in drawing in and keeping volunteers. Red tape and rising living costs stop people from joining in. He cautioned that cutting off a major source of funds would speed up club shutdowns, reduce participation, and make the gap wider between rich neighborhoods and poorer areas.

In the Manawatū, local leaders have drawn a grim picture. Sport Manawatū CEO Kelly Shanks thinks the region might lose NZD 5 million ($2.9 million) if pokie money drops. She points out that grants help buy uniforms in small towns, rent spaces in rural areas, and cut costs for programs that let thousands of kids play sports. Without these funds, families would need to pay more, which many cannot afford.

Van Velden stands by the bill. She says Kiwis already bet on thousands of foreign websites with no safety rules. She claims that laws would make online betting safer and ensure companies pay their fair share of taxes.Public input on the bill ends August 17, and Sport Manawatū will make its case to Parliament on September 8.