New Zealand locks in 4% iGaming GGR levy for community funding in Online Casino Gambling Bill

New Zealand’s government has confirmed that its final Online Casino Gambling Bill will introduce a 4% levy on online casino gross gaming revenue for community funding, aiming to offset expected declines in grants from land-based gambling venues.

New Zealand’s government has formally committed to a dedicated community funding mechanism as part of its long-awaited Online Casino Gambling Bill. Cabinet papers released at the end of November and recent Select Committee reports confirm that licensed online casino operators will face an Offshore Gambling Duty of 16% of gross gaming revenue (GGR), with an amount equivalent to 4% of GGR ringfenced specifically for community returns.

The move responds to sustained pressure from sports bodies, charities and regional groups, which warned that legalising iGaming without a community levy could erode one of the country’s main funding pipelines now supported by pokies in pubs and clubs. In late October, Internal Affairs Minister Brooke van Velden confirmed that the government would adjust the bill so that a share of online casino revenue flows back to grassroots sport and community organisations, with distribution managed through the New Zealand Lottery Grants Board.

Under the revised model, the 4% community share will sit alongside existing GST, the Problem Gambling Levy and the remaining 12% of Offshore Gambling Duty, which will help cover regulatory costs and harm-minimisation work. The government’s own analysis suggests the community levy could generate between NZ$10m and NZ$20m in the first 12 months from 1 January 2027, depending on how quickly the licensed online casino market scales.

The Online Casino Gambling Bill passed its first reading in June 2025 and is now advancing through Parliament following a favourable report from the Governance and Administration Committee. The bill would allow the Department of Internal Affairs to issue up to 15 online casino licences, bringing currently offshore activity into a supervised regime with strict rules on age verification, advertising and consumer protection.

For community and sports groups, the 4% GGR levy is seen as a key safeguard against potential declines in land-based returns. For operators, it sets an explicit price of entry into the New Zealand market: participation in a regulated online casino regime will be tied directly to ongoing, measurable contributions to local communities.