Photo: 123RF
The government is changing its proposed online gambling laws so community organisations, many of whom run local sports, still get a cut.
The Online Casino Gambling Bill, that would regulate and license up to 15 offshore casino operators, is currently before Select Committee.
It had received criticism there was no requirement for licensed online casinos to return a share of their revenue to community funding.
Brooke van Velden Photo: RNZ / Mark Papalii
Minister of Internal Affairs Brooke van Velden said she had taken this feedback on board and would be making changes to the bill.
"The message from communities was loud and clear - if we're regulating online gambling, they want to see benefits flow back to local sports clubs, community groups, and grassroots organisations," she said.
Van Velden said the coalition would increase the offshore gambling duty from 12 percent to 16 percent, with the additional four percent ringfenced for community returns.
Problem gambling prevention and harm minimisation standards were non-negotiable and unchanged, she said.
"Protecting Kiwis from gambling harm is still my number one objective. Community funding will not compromise this Government's commitment to reducing gambling harm."
The Minister said predicting the exact impact on existing Class 4 (pokies) returns created uncertainty, so Cabinet had agreed on a two-year review after implementing the community returns policy.
"This evidence-based review will inform necessary adjustments allowing us to make informed policy decisions based on real-world data in future.
"This is new money on top of existing funding from pokies, Lotto, and TAB. We're not taking anything away - we're adding to what's already there."
Labour's internal affairs spokesperson, Lemauga Lydia Sosene, called it a "u-turn" and a big win for the community.
"We've heard from countless groups - sports teams, marae, students - who were worried about what losing this funding would mean for them and their community," she said.
"It was their advocacy that forced Minister Van Velden to reverse her change, and I applaud them for it.
"While we back the regulation of online gambling and the Minister's U-turn, ultimately we still do not support the Minister's Online Casino Gambling Bill which opens up our doors to offshore online casinos, without a strong plan for harm reduction."
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