Concerns Raised Over New Zealand’s iGaming Bill Impacting Sports Funding

Widespread Opposition from Sports Groups

In New Zealand, more than 30 sports organizations have voiced strong opposition to the nation’s proposed online gambling legislation. Their primary concern is that the bill does not include any clauses requiring online gambling operators to allocate a portion of their earnings to support the sports community.

The iGaming Bill Sparks Debate

New Zealand has been deliberating on regulating online gambling for several years. Recently, the introduction of a new online casino bill marked significant progress, but it has faced criticism from various sectors, especially sports bodies. These groups are worried about the absence of mechanisms within the bill to direct gambling revenues back into sports funding.

Traditionally, gambling companies in New Zealand have contributed substantially to sports financing, establishing a symbiotic relationship between the two industries. Although the bill proposes licensing up to 15 offshore operators, it lacks any requirement for these operators to support sports, prompting fears that community sports could suffer severe setbacks.

Industry reports indicate that currently, the sports sector benefits from approximately NZD 170 million generated by pokies operators. Experts warn this figure may significantly decrease once online casinos become widely accessible.

The Shift Toward Digital Gambling Platforms

Martin Snedden, Chair of Cycling New Zealand’s board and a former athlete and sports executive, has publicly shared his concerns about the bill’s potential negative effects. He highlighted that the gambling industry currently contributes around NZD 350 million towards various community causes, about half of which supports sports initiatives. The new legislation’s failure to mandate contributions to community projects could lead to substantial funding losses.

Snedden emphasized that as daily activities increasingly transition to digital platforms, many gamblers will likely move from traditional pokies to online gambling, which does not guarantee the same level of community support. This shift could have serious ramifications for sports funding.

Calls for Government Consultation and Prompt Action

Snedden also criticized the government for not engaging the sports sector earlier in the legislative process to address these concerns adequately. He expressed disappointment over the government’s delayed recognition of the issue.

When questioned about the government’s stance that the bill’s impacts are uncertain, Snedden argued that anyone with knowledge of sports and gambling should foresee the potential risks. He urged lawmakers to take immediate action to prevent foreseeable damage rather than waiting until problems manifest.