Auckland cricket clubs fear funding loss under New Zealand’s proposed online gambling bill
The Auckland Cricket Association has warned that New Zealand’s proposed Online Casino Gambling Bill could cut off crucial funding for community sport, threatening the future of grassroots cricket across the region.
At present, New Zealand’s Class 4 gaming system requires a minimum of 40% of net proceeds to be returned to the community via grants.
The new bill would allow up to 15 online casinos to operate in New Zealand but there is nothing to state that the operators would have to redistribute any of their profits via community grants, despite having to pay fees and taxes.
Auckland Cricket Association claims that this could negatively impact clubs and their ability to serve their communities.
In a letter sent to MPs, the chairs of 16 principle cricket clubs expressed deep concern over the bill currently before the Governance and Administration Select Committee.
The clubs said they represented 12,895 registered players in 2024/25, comprising approximately 40% South Asian, 35% New Zealand European, and 1,384 women and girls, with the majority aged 5–13.
The letter said clubs deliver social and health benefits through inclusion, youth pathways, and school partnerships, but face rising costs for facilities and equipment.
Collectively, the 16 clubs received more than NZ$1 million (US$574,900)1 NZD = 0.5749 USD
2025-10-24Powered by CMG CurrenShift in Class 4 gaming funding for the 2025 financial year, including over NZ$300,000 (US$172,470)1 NZD = 0.5749 USD
2025-10-24Powered by CMG CurrenShift for coaching and NZ$350,000 (US$201,215)1 NZD = 0.5749 USD
2025-10-24Powered by CMG CurrenShift for equipment, much of it for children.
The clubs forecast NZ$1.5 million (US$862,350)1 NZD = 0.5749 USD
2025-10-24Powered by CMG CurrenShift in gaming revenue for 2026 but warned that any drop would force fee increases and disproportionately impact the most vulnerable people in the community.
They called on MPs to ensure the bill aligns with the Gambling Act provision that gambling should benefit the community and that profits are shared accordingly.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
Why community sport sees risk in New Zealand’s online shift
New Zealand’s push to legalize and regulate online casinos has set off a clash between modernizing a fast-growing digital market and preserving a decades-old principle that gambling should return money to local communities. Grassroots sport has become the flashpoint. As Wellington considers licenses for up to 15 online operators, critics warn the legislation could drain funds from clubs that have long relied on grants from gaming machine profits. The bill’s current shape would impose taxes and a problem gambling levy on licensed online casinos but would not require them to share profits with the public. That gap has fueled fears that as play migrates online, community funding could shrink.
The legislative effort cleared an early milestone when Parliament advanced the measure to a select committee. Supporters say the framework would bring player protections, oversight and penalties to an unregulated offshore market that New Zealanders already use. But the absence of a mandated community return has sparked a broad backlash that places the bill’s design under fresh scrutiny.
From first reading to fury over missing community returns
The proposal arrived with a clear goal: bring order and accountability to a market that has been operating beyond domestic rules. The plan, introduced by the internal affairs minister, would create a licensing regime with strict eligibility, age checks, harm prevention duties and penalties up to $5 million for breaches. It also contemplates advertising restrictions to shield minors. That initial outline drew industry praise for its clarity and enforcement teeth, and the bill secured enough support for a first reading, moving it to a public consultation phase where the details would be tested. Read more about the framework that cleared its first hurdle in Parliament.
As the bill moved forward, objections crystallized around what it left out. New Zealand’s Class 4 regime for gaming machines requires that at least 40 percent of net proceeds flow back to the community in grants, a rule that underpinned NZ$345 million in distributions last year. By contrast, the online bill would let licensed operators pay taxes and levies and keep remaining profits, with no binding community return. The omission spurred more than 5,000 submissions, most calling for a requirement to share profits. Critics argue that as consumer behavior tilts toward online play, the funds that support local sport, charities and cultural groups will erode without a dedicated mechanism. The mounting criticism is detailed in coverage of the backlash against the bill’s missing community benefit.
Momentum and money: how online gambling reshapes markets
The stakes go beyond process. Policymakers confront a broader shift in gambling, accelerated by mobile use and digital payments. Regulators worldwide are updating rules to meet players where they are while curbing harm. Some, like Singapore, are fine-tuning guardrails rather than expanding casino-style offerings. The Gambling Regulatory Authority is consulting on changes to its class license for lower-risk remote games of chance, including allowing Type 2 games with in-game prizes and limited player-to-player marketplaces under strict conditions that ban operator buybacks. The consult signals a pragmatic approach to behavior already present on third-party platforms and remains open until Aug. 20, 2025. The review reflects the city-state’s calibrated push to balance player experience and safeguards. For legal context, Singapore’s Gambling Control Act and related order frame the class-licensing regime.
Elsewhere, crackdowns highlight the risks of overcorrection. In India, a sweeping ban that targets fantasy sports and online card games, with potential prison terms of up to five years, has jarred a sector that was projected to reach $9 billion by 2029. The policy has already disrupted sports sponsorships, including a major cricket deal, and industry voices warn it is pushing play to offshore sites via VPNs and proxy payments. The pattern is explored in reporting on how India’s ban may drive players to illegal platforms, with earlier market growth expectations captured by analysts who forecast a multibillion-dollar industry.
Philippine flashpoint: stricter rules, soaring revenues and social pushback
The Philippines offers another case study in rapid change and mixed signals. A senator’s proposal to tighten know-your-customer rules, limit advertising, impose a PHP10,000 minimum top-up and block popular e-wallets from gambling payments rattled investors in a major igaming company, sending its shares sharply lower. Faith leaders amplified criticism, arguing online gambling has entered homes and phones, ensnaring families and minors, while questioning the government’s uneven approach to onshore and offshore operators. The debate coincides with the regulator’s report of record industry growth, with gross gaming revenue hitting PHP104.12 billion in the first quarter, up 27 percent year over year, and e-games driving nearly half of that total. The crosscurrents are outlined in coverage of the Philippine proposal and reaction, alongside the regulator’s first-quarter revenue disclosure and a church leader’s public critique of igaming’s spread.
For New Zealand, these examples underscore the importance of getting incentives and protections right. Too little structure can leave consumers exposed and starve public services of revenue. Too much restriction can unintentionally push players offshore and destabilize legitimate businesses that fund sport and media. The middle ground is hard to strike.
What it means for clubs, charities and lawmakers now
As New Zealand’s select committee weighs changes, the immediate question is whether the final bill will embed a community return for licensed online casinos, mirroring the Class 4 requirement or establishing a separate mechanism that scales with digital growth. Community groups argue the principle should be technology-neutral: if gambling migrates online, the social dividend should follow the player.
The government’s case centers on consumer protection and channeling activity into a regulated space, where age checks, loss limits and redress are enforceable. That rationale helped the bill advance, as laid out in the first-reading coverage. Yet public feedback has made clear that legalizing online gambling without dedicated community benefits would mark a break with two decades of policy. The scale of opposition, captured in reporting on the backlash and more than 5,000 submissions, suggests lawmakers may face pressure to amend.
Global precedents offer cautionary lessons. India shows the cost of abrupt bans that shift activity to the shadows and kneecap sports sponsorships. The Philippines highlights how tightening rules can rattle markets even as tax receipts rise, and how social opposition can shape the political climate. Singapore’s incremental approach indicates that targeted adjustments, informed by observed behavior, can manage risk without overreach.
For New Zealand’s clubs and charities, the outcome will be measured in coach hours, equipment purchases and fee relief. For operators, clarity on obligations and marketing rules will determine whether they bid for licenses. For ministers, the task is to reconcile revenue, harm minimization and the country’s tradition that gambling should benefit the community. The bill’s next draft will show where that balance lands.
