A new draft provision to increase social funding from online gambling has been tabled in the New Zealand government.

The bill to regulate the sector passed first hearing back in mid-July, reaching a Select Committee for a review.

Hon Brooke van Velden, Minister of Internal Affairs, who is spearheading the initiative, has now drafted another proposal, based on public feedback, that would see the envisioned Offshore Gambling Duty being raised from 12% to 16% – with the 4% difference set aside to fund community initiatives.

She said: “The message from communities was loud and clear – if we’re regulating online gambling, they want to see benefits flow back to local sports clubs, community groups, and grassroots organisations.

“I have listened, and now as a government, we are delivering on what matters most to communities across the country.”

Van Velden was also clear that this would not take away from the government’s efforts to push the black market away and reduce gambling harm in the island nation.

If fully approved, the legislation will launch an online casino market in New Zealand with up to 10 licence holders. This has been met with a mixed response from the existing industry.

Sky City, New Zealand’s largest casino operator, has protested the development, although Entain – which holds the exclusive right to operate sports betting in the country – appears more relaxed.

Van Velden explained the government’s motives further: “Problem gambling prevention and harm minimisation standards are non-negotiable and unchanged. Protecting Kiwis from gambling harm is still my number one objective.

“Right now, Kiwis are gambling on thousands of overseas websites with no safety nets, no spending limits, and no recourse when things go wrong. That’s unacceptable.

“This Bill brings those operators under New Zealand law, with proper consumer protections, harm minimisation measures, and now – community benefits.”

Currently under review by a Select Committee, if the Bill becomes enacted the government will conduct a two-year review which will assess the community returns impact of online gambling.

“This evidence-based review will inform necessary adjustments allowing us to make informed policy decisions based on real-world data in future,” van Velden concluded.

“This is new money on top of existing funding from pokies, Lotto, and TAB. We’re not taking anything away – we’re adding to what’s already there.”