Licensed online casino operators in New Zealand will contribute to community groups through the Lottery Grants Board from 1 January 2027, with officials anticipating NZ$10 million to NZ$20 million per year. iGaming Business reported on 7 October 2026 that the policy had been published for viewing the week before.
The community funding will be calculated as the equivalent of 4% of operator gross gambling revenue and was designed to complement existing funding from Lotto, Class 4 gambling and TAB proceeds. Under the online casino regime, licensed operators will pay an online gambling duty rising from 12% to 16%, plus 15% GST, a 1.24% problem gambling levy and a 3.5% licensing fee.
Consultation highlighted worries about pokies funding
Of the 4,837 consultation submissions received, 3,966 highlighted worries about community returns, including how online gambling might affect existing funding from pokies. Government papers said evidence on the impact of online gambling on existing funding was mixed. The papers committed to reassess the community funding arrangements two years after implementation, with the review to seek views from licensed and prospective operators and community groups.
Up to 15 online casino licences are available under the regime, with the licensed market expected to be fully operational in 2027.
Report listed costs and limits of valuation
The report listed direct costs to operators, administrative costs for government, risk to Lotto NZ and a low risk of increased gambling harm. The report stated: “While this proposal creates benefits for community groups and these groups highly value grants, the benefits cannot be monetised easily as the value of them is unknown.” It concluded: “On balance therefore, we consider that there is a risk that these costs may outweigh community benefits.”