New Zealand Bets on Higher Gambling Duty to Fund Communities

_{New rules for New Zealand's gamblers. (Image: Sezer Ozger/Alamy)}

New Zealand is moving to raise the duty on offshore gambling from 12% to 16%, aiming to capture more tax revenue from online casino gaming and direct it toward community causes.

The increase, part of the country’s new Online Casino Gambling Bill, will apply to overseas casino operators that cater to New Zealand players. The additional 4% revenue will be ringfenced for grassroots organisations, local sports clubs, and community groups, according to the Department of Internal Affairs.

Regulating Offshore Gambling

Minister of Internal Affairs Brooke van Velden, who is spearheading the bill said: 

“Right now, Kiwis are gambling on thousands of overseas websites with no safety nets, no spending limits, and no recourse when things go wrong. That’s unacceptable,” 

The legislation aims to bring offshore casino operators under New Zealand law, enforcing harm minimisation measures and player protections similar to those already in place for domestic gambling.

“This Bill brings those operators under New Zealand law, with proper consumer protections, harm minimisation measures and now, community benefits,” van Velden said.

Reviewing the Local Impact

Van Velden acknowledged uncertainty about how the new rules will affect Class 4 gambling, New Zealand’s network of land-based gaming machines in pubs and clubs. These pokies currently fund many of the same community projects the online duty is intended to support.

To monitor potential overlap or impact, the government plans to review the law’s effects on the land-based sector two years after implementation.

“This evidence-based review will inform necessary adjustments allowing us to make informed policy decisions based on real-world data in future,” she said.

Funding Community Benefits

The minister emphasised that the online gambling levy represents additional revenue rather than a redistribution of existing funds.

“This is new money on top of existing funding from pokies, Lotto and TAB. We’re not taking anything away, we’re adding to what’s already there,” van Velden said.

If passed, the Online Casino Gambling Bill will mark New Zealand’s first comprehensive framework for regulating offshore gambling, bringing oversight and taxation in line with comparable markets such as Australia and the United Kingdom.