NZ: 4% GGR for community funding in iGaming regulation
The New Zealand government has decided to incorporate a mandatory contribution of 4% of the gross gaming revenue (GGR) for operators licensed for online casinos, with the aim of ensuring that communities continue to receive resources similar to those currently coming from land-based gambling.
The measure arises amid parliamentary debate on the Online Casino Gambling Bill, a project moving towards the legalization of iGaming in the country. According to official documents dated November 28, this fund allocation could generate between 10 and 20 million New Zealand dollars during the first twelve months of operation, depending on the size the regulated market reaches.
Community funding is a pillar of the current system: part of the revenues from physical venues, including pokie machines, is distributed to sports clubs and local organizations. Almost 4,000 of the more than 5,000 submissions made in the public consultation expressed concern about a possible decline in this flow if online gambling attracts players from the land-based channel.
Possible delay in the iGaming market launch
The community contribution mechanism would begin to apply on January 1, 2027, suggesting that the launch date of the regulated market could be postponed from the initial target of July 2026. Legal experts had already warned that the original timeline was too tight, given the scope of the consultation process.
Government commitment and measures to reduce gambling harm
The Minister of Internal Affairs, Brooke van Velden, publicly confirmed that the law will include guarantees to channel part of the online GGR towards community activities. She also announced that, two years after the regulation is implemented, its impact on revenues from physical pokies will be reviewed.
Concerns about gambling-related harm also dominated the public consultation. In response, Van Velden assured that the project incorporates specific safeguards and that regulating the market will reduce current risks, given that today players access offshore platforms without any protection.
The parliamentary committee recommended that the Lottery Grants Board be the body responsible for distributing community funds derived from iGaming.
How the regulated market would work
If the law is passed, up to 15 licenses will be granted to operate online casinos in New Zealand. Operators will have to pay:
- GST (goods and services tax)
- 12% offshore gambling duty
- 1.24% of profits to finance gambling harm prevention programs
The legislation will allow limited advertising, always with restrictions such as the prohibition of targeting minors. To operate, companies will have to implement an appropriate age verification system.
Tags: New Zealand, New Zealand betting regulation, online betting regulation