Minister tries for community funds from online casinos

The Government is working to set up a regulated market for online gambling and casinos. Its proposal, as outlined in the Online Casino Gambling Bill, would have seen 15 companies licensed to operate online casinos.

But the proposed law did not include any requirement for online casinos to give cash back to community organisations and clubs, which in-person poker machine and gambling operations are required to do.

A parliamentary select committee received about 5000 submissions, most of them from grassroots clubs worried about their future funding. Several Catholic schools and organisations made submissions expressing concern.

Ms Van Velden said she has written to Cabinet asking to change the bill so that licensed online casinos would be required to make community contributions. She said officials had advised that opening up a regulated online casino market wouldn’t take revenue from in-person pokies, but a lot of public feedback disagreed.

Under the current pokies rules, 23 per cent of revenue goes to community groups, 1.5 per cent is levied for problem gambling and, after tax, just 16 per cent of the revenue can be taken as profit.

The Auckland Diocese Justice and Peace Commission supported the intention to regulate online gambling and reduce harm, but stated that the bill raised serious concerns regarding equity and community wellbeing and should be dropped.

In a submission to the Parliament’s Government and Administration Committee, the commission warned of the potential for unprecedented harm that 15 online casino licenses could generate.

The commission also stated that gambling “should not form the basis of community funding”, and reducing “community dependency” on gambling funding was advocated.

However, the commission noted that the “communities most affected by gambling harm are also those most dependent on current funding streams from on-land gambling revenue, sometimes the sole funding for community projects, for example, sports, arts, education and social services, especially in rural, Māori, and Pasifika communities”.

“Removing this funding and support option for online casinos without offering alternatives risks a revenue drain from existing community trusts, and a potential decrease or removal of programmes necessary for a flourishing community due to lack of funding opportunity.”

FULL STORY

Community clubs’ victory: Minister agrees to revisit online gambling law (By Glenn McConnell and Steve Kilgallon/Stuff)

Submission from Auckland Diocese Justice and Peace Commission on Online Casino Gambling Bill