Online Sports Organizations Predict Financial Calamity Due to Online Gambling Legislation

In the heart of New Zealand, the Manawatu region is bracing for potential changes that could impact local sports clubs and community groups. The Internal Affairs Minister, Brooke van Velden, has proposed a bill in June that would allow up to 15 offshore casino operators to get licenses in New Zealand.

Currently, grants from pokies, or gambling machines, provide about NZD 170 million ($99.9 million) each year to help pay for sports clubs, community groups, health services, and arts programmes across the country. Past governments in New Zealand have kept a "social contract" allowing gambling if some profits go back into local communities.

However, Van Velden argues that the bill would make online betting safer and ensure companies pay their fair share of taxes. The bill aims to bring control to an unchecked market, boost protections for users, and create more tax money, with NZD 81 million ($47.6 million) set aside to treat and prevent gambling harm.

Sport Manawatu CEO, Kelly Shanks, highlights that grants help buy uniforms in small towns, rent spaces in rural areas, and cut costs for sports programs for thousands of kids. Without these funds, families would need to pay more, which many cannot afford. Sport Manawatu will present its case to Parliament on September 8.

Martin Snedden, who chairs Cycling New Zealand, has become a key opponent of the bill. Snedden claims that clubs already struggling with higher costs, fewer sponsors, and less council backing cannot afford to lose such a crucial source of income. In the Manawatu region, local leaders predict a potential loss of NZD 5 million if pokie money decreases.

The bill's potential impact on community groups is a concern shared by academics and regional sports trusts. University of Auckland senior lecturer Blake Bennett's studies indicate that community groups face challenges in attracting and retaining volunteers. Red tape and rising living costs are currently deterring people from volunteering for community groups.

Cutting off a major source of funds for community groups could accelerate club closures, reduce participation, and widen the gap between rich and poor neighborhoods. Martin Snedden asks ministers to make sure online casinos follow the same rules as those with pokies in terms of giving back earnings to local communities.

The bill's opponents, including Snedden and multiple sports organizations, argue that the new law might hurt grassroots sports. Some people are worried that the new law might hurt grassroots sports, as online casinos with licenses would not have to give some of their earnings back to local areas.

Public input on the bill ends on August 17. The outcome of this bill could significantly impact the landscape of community funding and grassroots sports in New Zealand.

Online Sports Organizations Predict Financial Calamity Due to Online Gambling Legislation