Online Gaming Regulations Threaten Financial Instability for New Zealand Sports Organizations

In a heated debate, academics, regional sports trusts, and community leaders are expressing concerns about the potential impact of the Online Casino Gambling Bill, proposed by New Zealand's Internal Affairs Minister, Brooke van Velden, in June.

The bill, if passed, would allow up to 15 offshore casino operators to obtain licenses in New Zealand, potentially revolutionising the country's gambling landscape. However, opponents argue that it could have detrimental effects on local communities.

Martin Snedden, who chairs Cycling New Zealand, has become a key opponent of the bill. Snedden points out that past governments have maintained a "social contract" allowing gambling if some profits go back into local communities. Currently, grants from pokies (gaming machines) provide approximately NZD 170 million ($99.9 million) annually to support sports clubs, community groups, health services, and arts programmes.

Online casinos with licenses, unlike places with pokies, would not be required to return a portion of their earnings to local areas. This concern is further emphasised by University of Auckland senior lecturer Blake Bennett's studies, which suggest that community groups face difficulties in attracting and retaining volunteers. Bennett warns that cutting off a major source of funds could lead to club shutdowns, reduced participation, and widening gaps between rich and poor neighbourhoods.

Snedden claims that clubs already struggling with higher costs, fewer sponsors, and less council backing cannot afford to lose a crucial source of income. In the Manawatu region, local leaders predict a loss of NZD 5 million ($2.9 million) if pokie money decreases. Sport Manawatu CEO Kelly Shanks explains that grants help buy uniforms, rent spaces, and cut costs for sports programs in small towns and rural areas.

The bill's supporters argue that it would bring control to an unchecked market, boost protections for users, and generate NZD 81 million ($47.6 million) for treating and preventing gambling harm. Van Velden continues to support the bill, arguing that it would make online betting safer and ensure companies pay their fair share of taxes.

Some groups in New Zealand, including over 50 sporting groups, are opposing the bill, claiming it might rob grassroots sports of key resources. The deadline for public input on the bill is August 17. Sport Manawatu will make its case to Parliament on September 8.

Despite the ongoing debate, the name of the person leading the opposition to the Online Casino Gambling Bill in New Zealand remains unknown in the search results. Regardless, the issue remains a hot topic, with both sides presenting compelling arguments for their respective positions.