1 December 2025

Kia ora,

We recently updated you on the Government's decision to introduce community funding returns through the Online Casino Gambling Bill. 

The Minister of Internal Affairs, Hon Brooke van Velden has proactively released the Cabinet paper and associated materials regarding this decision. The document can be found on the DIA website: Proactive release Online Casino Gambling Bill - Community returns 

What you need to know about community returns

• The proposed change increases the Offshore Gambling Duty from 12 percent to 16 percent, with this 4 percent ringfenced for community returns.
• The proposed changes could result in community returns of between $10 million and $20 million in the first 12 months, depending on the total Gross Gambling Revenue generated by the licensed online casino gambling market.
• This community return option does not seek to replicate the not-for-profit Class 4 model. The most relevant comparison would be to land-based casinos in New Zealand, as they are for-profit entities, in comparison to Class 4 or Lotto.

Timeline update

Start date for licenced system
You will see from the information in the proactive release that there has been an update to the timeline for the licensing process. Under the proposed Bill, the new online casino licences will start on 1 December 2026.

Decisions on detailed regulations
The Minister recently sought Cabinet approval for the draft regulations on:

• harm prevention and minimisation
• consumer protection and record-keeping
• advertising and marketing
• fees, levies, or charges for cost recovery.

We hope to provide you with another update before the end of the month with detailed information on the regulatory decisions taken. 

In relation to the new timeframe, we can also confirm that the detailed regulations will be finalised by mid-2026. It is our intention to give the sector time with these finalised regulations before running the licensing process.

Ngā mihi nui,
Trina Lowry
Programme Director - Online Gambling Implementation