Pou Tangata chair Rāhui Papa says the gambling law reform will create another set of dependents. Photo: Angus Dreaver / RNZ
Iwi leaders say it's "astounding, disappointing and concerning" there has been no initial consultation with the communities most likely to be affected by plans to auction off 15 online casino licenses.
Last month RNZ reported that successful bidders for the online casino licenses would not be required to pay any money to community groups, with Internal Affairs minister Brooke van Velden saying she expected large, offshore gambling companies to win the majority of the licenses.
Documents about the new online casino market, obtained by RNZ using the Official Information Act, showed that both Sky City casino and the TAB wrote to ministers, strongly opposing government moves to open up a large market with 15 operators.
This week the Online Safety Iwi Leaders Group called for the government to "push pause" on its auction plans, saying it also wanted experts and community leaders to have their say before the new regime, slated for February 2026, comes in.
The reform is "gambling by stealth", said Rāhui Papa, who is chair of Pou Tangata, part of the National Iwi Chairs Forum.
"We think this will create another set of dependents. People will be able to sit in their homes and have a casino in their hand and in their pocket. It will ultimately affect the way of life for some of our families."
There were "a number of concerns" with the reform, he added.
"If it's offshore then there is no compulsion to honour Te Tiriti o Waitangi, that there is no feedback into the community, and financial support for harmful gambling.
"In our view the lack of research into the harmful effects, the flow-on effects - the physical, the financial and psychological that will happen to families. Not just Māori families but to families in Aoteroa."
However Māori and Pasifika were disproportionately affected by gambling and taiohi Māori were particularly at risk, with online gambling under the radar of caregivers, he added.
"Let's be clear, this reform will expose more young people to risk. It is gambling harm by stealth."
Van Velden said the Bill would go through Parliament later this year and the public would get to have their say. "Interested parties will be able to have their say on the regulatory system through the Select Committee process."
The new regulatory system would help making online gambling safer, she said. "Under the status quo, New Zealanders can and do gamble with thousands of unregulated offshore gambling websites. These gambling sites do not have minimum standards, for example they are not required to prevent children from playing on their sites or to pay out players for their winnings."
The licensed companies would have to meet strict entry criteria and safeguards, including age verification and harm minimisation standards, van Velden said. "Allowing licensed companies to advertise will help to guide people towards the regulated sites and away from unregulated ones."
Online gambling companies would also be required to pay GST, the offshore gambling levy, and the problem gambling levy (which is used to fund services that treat gambling harm), she said.
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