Sports Leaders Urge Government to Protect Community Funding Amid Gambling Bill

On March 15, 2024, New Zealand Football reached out to footballers and their families, soliciting opinions on the proposed Online Casino Gambling (OCG) Bill. This initiative is part of a broader coalition involving 33 major sports codes, all warning the New Zealand Government about the potential negative impact this legislation could have on community sports.

The proposed bill, which would regulate online casino activities in New Zealand, raises significant concerns regarding funding for local sports clubs. If new online gambling platforms are not mandated to contribute a portion of their revenues to community initiatives, the cost of participating in sports could rise substantially for families. For decades, a system has been in place where a share of gambling profits—approximately $170 million annually—has been allocated to support community sports through gaming trusts. This balance acknowledges the duality of gambling: it is legal, but it also carries social costs.

Impacts of Online Gambling Expansion

The global online casino market is witnessing remarkable growth, valued at around US $19.7 billion in 2024 and projected to reach US $56.8 billion by 2033. Currently, New Zealanders have access to offshore gambling platforms, although hosting such sites domestically remains illegal. To address this, the Government is proposing a framework that would license up to 15 online casino operators in New Zealand. This approach aims to ensure that some revenue returns to the local economy while providing necessary consumer protections.

Despite the apparent benefits, critics argue that the new framework lacks essential provisions for community contributions. As online gambling grows, traditional gambling outlets may see a decline in patronage, leading to reduced funding for sports organizations. This situation could threaten the viability of grassroots sports, which are already facing financial challenges. Many clubs rely on grants, and diminishing revenue from gambling would exacerbate the situation, making sports participation less affordable for many families.

Community Sports: A Cultural Cornerstone

Francesca Rudkin, a commentator on this issue, highlights the significance of community sports in New Zealand culture. She argues that sports activities foster physical health, social connections, and valuable life lessons such as teamwork and resilience. The potential reduction in funding threatens not only the existence of local clubs but also the cultural fabric of community engagement.

“Without community sports, we risk losing an essential part of our communities,” Rudkin stated. “This is not just about funding; it’s about preserving opportunities for young people to engage, learn, and grow.”

Moreover, Rudkin challenges the argument that requiring online casinos to contribute to community funding would create a perverse incentive for increased gambling activity. She asserts that maximizing gambling revenue is already a fundamental objective for these enterprises, regardless of community contributions.

The Government’s concern about New Zealand becoming one of the most heavily taxed jurisdictions for online gambling also raises questions. Advocates suggest that a portion of the tax revenue could be allocated to compensate for the anticipated decline in community funding, ensuring that grassroots sports remain viable.

As discussions around the OCG Bill continue, the call for community contributions from online gambling operators remains a critical point of contention. The outcome of this legislation could profoundly affect the landscape of community sports in New Zealand, impacting not just clubs and athletes but the broader societal values they represent.

In a landscape where sports are deeply intertwined with New Zealand’s identity, the stakes are high. The potential loss of community sports funding highlights a pressing need for a balanced approach to gambling legislation that prioritizes both economic growth and social responsibility.