New Zealand Online Gambling Bill to introduce 4% levy for community funding

The government’s Online Casino Gambling Bill introduces a mandatory levy to protect community funding.

New Zealand.- The government has confirmed that the final Online Gambling Bill will introduce a 4 per cent levy on igaming gross gaming revenue for community funding. The measure is intended to offset expected declines in returns from land-based venues. The commitment forms a core part of the country’s Online Casino Gambling Bill, which has passed its first reading.

The proposal follows concerns raised during public consultation in which nearly 4,000 of more than 5,000 submissions warned that legal online gambling could erode community funding from land-based gaming machines. The funding finances grassroots sports, cultural projects, disability initiatives and other programmes. It’s estimated that the ring-fenced levy could generate between NZ$10m (US$5,7m) and NZ$20m (US$11,5m) in its first year once the regulated igaming market begins.

Several prospective operators warned that the additional contribution may affect profitability and slow investment. They argue that increased financial obligations could reduce market competitiveness. Community groups have welcomed the move, expecting it to provide stability as gambling shifts online.

Papers say the levy would apply from January 1, 2027, which suggests the launch of legal igaming in New Zealand could be delayed beyond the initially targeted July 2026 start. Officials say the final date will depend on the remaining legislative stages and the time required to establish a regulatory framework.

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The government’s Online Casino Gambling Bill introduces a mandatory levy to protect community funding. New Zealand.- The government has confirmed that the final Online Gambling Bill will introduce a 4…