Implemented Gambling Legislation in New Zealand Threatens the Sports Sector
New Zealand's Online Gambling Bill Sparks Controversy Among Sports Organisations
A controversial online gambling bill is making its way through the New Zealand Parliament, raising concerns from sports organisations across the country. The bill, if passed, could potentially lead to a decline in community sport, according to critics.
Martin Snedden, a retired athlete and former executive at prestigious cricket organisations, is one of the voices speaking out against the bill. He argues that the government should act now rather than waiting for potential damage to be done.
The bill, aiming to establish a licensing system for online casinos, is gaining traction among lawmakers. If enacted, the system is expected to become law by the end of 2025, with the licensing vetting and auction process commencing in February 2026 and licensed providers able to start operating from April 2026.
The legislation intends not to expand online gambling but acknowledges that growth is likely since online gambling is already popular in New Zealand. The licensing system aims to provide more confidence for players and new marketing opportunities for providers.
However, sports organisations are concerned about insufficient funding from gambling revenues allocated to the sports sector. They are calling for a revised revenue model because the legislation currently lacks adequate funding for the sports sector. This indicates worries that sports groups may not receive sufficient financial resources from gambling profits under the new law, which could impact their operations and funding.
Snedden, the board chair at Cycling New Zealand, has expressed these concerns. Historically, operators in New Zealand have contributed approximately NZD 170 million ($100.1 million) to the local sports sector through pokies. Snedden predicts that this contribution could drastically decline due to the new iGaming bill, as people switch to online operators and quit playing pokies.
Snedden regrets that the government has not realised the problem for too long and suggests that they should consult industry experts to understand the problem better. He also disagrees with Minister Brooke van Velden's claim that the effects of the legislation cannot be predicted with certainty.
The New Zealand Herald reported the concerns of the sports organisations, which include 33 sports organisations in total. Snedden states that the gambling sector currently contributes NZD 350 million towards various community initiatives, with half of it going to sports. The main concern of these sports organisations is the lack of a provision requiring online operators to channel a portion of their proceeds towards the sports sector.
If the bill passes without addressing these concerns, it may indeed lead to a decline in community sport in New Zealand, as Snedden fears. The government is urged to reconsider the bill and ensure that the sports sector is adequately funded under the new online gambling legislation.
- The controversy surrounding the online gambling bill in New Zealand extends to the realm of politics, as sports organisations express concerns about insufficient funding from gambling revenues allocated to the sports sector.
- In light of the potential impact on community sport, Martin Snedden, former executive at prestigious cricket organisations and board chair at Cycling New Zealand, is advocating for a revised revenue model in the bill, calling for a provision requiring online operators to channel a portion of their proceeds towards the sports sector.
- The future of sports financing in New Zealand hangs in the balance, as the legislature deliberates the online gambling bill that could reshape the nation's casino landscape, from online gambling platforms to finance and sports organizations, and general news outlets closely monitor developments in the debate.
