NZ to Tax Online Gambling at 16% | Extra Cash Ring-Fenced for Local Clubs

New Zealand is lifting the Offshore Gambling Duty from 12% to 16%, with the extra 4% locked for community funding.
The change arrives via an amendment to the Online Casino Gambling Bill from Minister of Internal Affairs Brooke van Velden and is the first time proceeds from online gambling will be directed straight to local initiatives.

The essentials

• Duty hike: 12% → 16%. The additional 4% is earmarked exclusively for grassroots sport, arts, education and other community groups.
• Local licensing: Any online casino serving NZ must obtain a New Zealand licence and comply with domestic law.
• Player protections unchanged: Mandatory spending limits, age checks, self-exclusion, and prominent links to support services remain non-negotiable.
• Additive funding: Community money supplements (not replaces) existing streams from pokies, Lotto and TAB.
• Built-in review: A two-year post-implementation review will track player behaviour, revenue flows and how grants are distributed.

Why it matters

Public consultation signalled strong support for making offshore gambling contribute locally. The Government says the reform closes a regulatory gap—many Kiwis currently bet with unlicensed offshore sites—and keeps harm minimisation front and centre while finally returning a slice of online revenues to communities.

Who’s affected

Operators: Expect licensing costs, compliance audits and tighter responsibility controls. Marketing and bonus practices will need to align with NZ standards.

Players: More consistent safety tools and clearer redress if things go wrong; access restricted to licensed sites.

Community groups: A new, ring-fenced funding stream on top of existing grants, offering more predictable support for volunteer-run programmes.

What’s next

Once implemented, the department will monitor outcomes and adjust settings after the two-year review, aiming for a data-led calibration of tax take, consumer protection and community impact.