The sale of the first iGaming licenses including permits for online poker in New Zealand are currently forecasted for December 1, 2026, with the first platforms possibly going live in the early months of 2027.
The recently leaked Cabinet papers related to the upcoming gambling bill reveal a plan to impose a four percent community funding levy, which will be channeled to community causes such as sports groups and other local community initiatives that could lose their income from the discontinuation of the physical gaming machines, which are mainly pokies.
While the provision of community funding is reported to have been a cause of a few months’ postponement in the launching, the new measure is expected to lead to a more balanced and resilient iGaming market, which will be to the advantage of all shareholders.
The initial formal legislation for iGaming in New Zealand is frequently referred to as the Online Casino Gambling Bill. It is anticipated that this bill will establish an official, fully-licensed, government-regulated online gambling market in the country. As with most bills of this kind, the bill is anticipated to function as a measure to combat problem gambling, reduce the dependence of players on offshore gambling sites, and increase iGaming revenues for community-oriented programs, among other things.
New Zealand’s Minister of Internal Affairs Brooke van Valden said:
The government has taken into account the concerns relating to problem gambling very thoroughly and is still very much committed to putting harm reduction first and foremost.
The bill, once enacted, will be the first time online gambling becomes state-controlled in New Zealand, and there will be a total of fifteen iGaming licenses issued. iGaming operators will have to pay GST, a 12% international gambling tax, a 1.24% levy to gambling harm prevention, and the 4% community funding contribution. With such heavy levies, the government will not only be able to carry out various community projects but also provide players with safer and more strictly controlled gambling platforms.
Besides, the bill tackles gambling ads by laying down clear rules and limitations, mainly directed at the protection of minors against gambling risks. The bill will go through further discussion and changes in Parliament before the last reading and voting, which are anticipated in the latter part of 2026.
Sports Organizations Push for Inclusion of Community Funding Requirement
The newly introduced community funding clause in the Online Casino Gambling Bill was the result of the almost 5,000 organizations consultations and most of them were concerned about the potential impacts of online gambling on different community projects.
The issue focused predominantly on sports clubs and similar organizations that stand to lose a big chunk of the income they currently take from the gaming machines (pokies) at their premises. As such clubs are at risk of losing the pokies income, the community funding provision was one of the demands of these organizations to the government, which the government has agreed to. Due to the changes made in the bill, a community funding mechanism is to be set up and thus no licensed operator can legally not contribute 4% of their GGR to initiatives for the community that will be focused on those entities potentially negatively affected by the bill. The government also intends to assess the online casino market formally after it has been operating for two years so as to give a clearer picture of how online gambling impacts the other sectors.
