Community leaders demand pause on New Zealand's online casino reform: Report
New Zealand’s proposed online casino licensing reform is facing mounting opposition from iwi leaders, who argue that the government failed to engage meaningfully with communities most likely to be impacted. The reform includes auctioning 15 online casino licences. Yet, according to a report by Radio New Zealand (RNZ), iwi groups say there was no prior consultation with Māori and Pasifika communities, who are disproportionately affected by gambling harm.
The Online Safety Iwi Leaders Group is calling for a halt to the process, pressing for wider input from community leaders and experts before the reform takes effect in February 2026.
Government plans to open market to offshore operators
Internal Affairs Minister Brooke van Velden has indicated that the majority of the licences are expected to be secured by large international operators. Successful licensees will not be required to make financial contributions to community initiatives. According to the RNZ report, critics argue that this approach prioritises commercial interests over social welfare. Documents obtained through the Official Information Act reveal that both SkyCity Casino and the New Zealand TAB strongly opposed the plan, citing concerns over market saturation and the potential negative impacts of expanded online gambling access.
Iwi leaders warn of community and cultural impact
Rāhui Papa, chair of Pou Tangata, part of the National Iwi Chairs Forum, described the reform as an underhanded way of expanding gambling access. He warned that allowing people to gamble via mobile devices at home could lead to widespread dependency, undermining the well-being of whānau and communities. Papa also questioned the absence of mechanisms to ensure offshore licensees are bound by the Treaty of Waitangi or are held accountable for contributing to local harm prevention efforts.
The lack of robust research into the social and psychological consequences of online gambling is another issue iwi leaders are raising. They argue that the government’s approach does not adequately address the cascading harm that could affect families, particularly younger generations and those already vulnerable to gambling addiction.
Youth and Māori communities at heightened risk
Leaders highlight that Māori and Pasifika people already face elevated gambling-related risks and that the introduction of licensed online casinos could intensify these effects. They said online gambling’s discreet nature means it often escapes the notice of parents and caregivers, potentially exposing Māori youth to higher risk levels. According to critics, this could deepen existing social disparities and lead to long-term harm within Indigenous communities.
Government defends regulatory objectives
Van Velden maintains that the proposed regulatory system will offer improved protection compared to the current environment, where New Zealanders can access thousands of unregulated offshore gambling sites. She argues that licensing will impose mandatory safeguards, including age verification and harm minimisation protocols. These requirements aim to ensure greater consumer protection and accountability.
In addition to regulatory conditions, licensed operators will be subject to tax obligations, including Goods and Services Tax, an offshore gambling levy, and a problem gambling levy. The government asserts that these funds will support services for individuals experiencing gambling harm.
Public consultation to begin later in 2025
Despite the criticism, the government intends to move forward with its reform plans, with legislation expected to be introduced to Parliament later this year. A public consultation phase will be conducted through the Select Committee process, during which individuals and organisations can submit their views. Van Velden has expressed confidence that the new framework will guide gamblers toward safer, regulated platforms while reducing reliance on unregulated offshore websites.
