New Zealand’s proposed Online Casino Gambling Bill has been met with strong opposition as 33 sporting bodies in the country have stepped up to block the industry move.
They are fighting back against the potential loss of funding for sports across the country which mostly comes from the revenue of gambling companies, forecasting a bleak future where there are less opportunities for people to play and access sport.
With the current bill, it does not include a mechanism to return funds to the community. Plus there is a fear of displacement, as gamblers shift online, reducing the revenue overall which will reduce the funding for sport – and there has been no warning given to sports governing bodies who now fear the worst.
Martin Snedden, Board Chair at Cycling New Zealand, said: “It’s a huge deal. For 50 years there has been cross-party political support… that proceeds from gambling would go into community including sport.
“If there’s no provision in this new legislation to protect money going into community… it won’t be long before all of that money disappears.
“There’s been no consultation, no warning to us. I accidentally came across this six or seven weeks ago. Let’s not wait three years until what’s blindingly obvious becomes reality and there’s been damage caused.”
In July, the government had taken a step closer to regulating the offshore markets to ensure that online gambling is safer for people in the country by green-lighting new licences.
The bill proposed auctioning up to 15 online casino licences, with applicants required to meet strict conditions — including a robust harm prevention strategy and a proven record of regulatory compliance. In addition, licensed operators would contribute to New Zealand’s tax revenue and help fund services that address gambling-related harm.
Minister Brooke van Velden also commented on the concerns from the sporting body. Her statement claimed online operators will be required to pay fees to cover the costs of running the scheme and tax to the crown and contribute to the problem gambling levy, which funds gambling harm support services.
But she also said it is not proposing that they will also be required to make community returns. She continued to say that the Department of Internal Affairs has advised that funding community organisations through the proceeds of gambling creates a perverse incentive to increase gambling activity in order to increase revenue for these organisations.
The concerns from those opposed revolve around the fear that profits will go offshore and that New Zealanders lose both money and community support systems In addition, there could be a critical loss of amateur sport funding with the shift to online gambling.
This would leave no current requirement for offshore operators to reinvest into local communities. There’s also been a lack of consultation during the bill’s development, adding further concern.
