Government releases new Gambling Harm Strategy

5 June 2025

Circular 25-040

Relevant for Club Officers and Management

The Minister for Mental Health Matt Doocey has today released the Strategy to Prevent and Minimise Gambling Harm 2025/26 to 2027/28. The strategy outlines the Governments plans to fund and address gambling harm. The strategy continues a public health approach, with total investment of $81.358 million funded through the problem gambling levy imposed of the gambling industry.

While Clubs New Zealand supports efforts to reduce gambling harm, we are disappointed that the strategy fails to recognise clubs as a distinct sector for the purposes of the levy calculation. Clubs New Zealand has consistently advocated for clubs to be treated separately, reflecting our unique community-based model and responsible approach to gaming machine operations.

Instead, the non-casino gaming machine (NCGM) sector remains grouped together, with Class 4 venues like clubs and pubs sharing the highest levy rate of 1.24% of player expenditure, accounting for nearly half (49%) of the total levy collected.

The strategy rightly identifies that the gambling landscape is changing rapidly, particularly with the continued growth of online gambling. Alarmingly, online participation has grown to 31% of adults, including 3.6% gambling through unregulated overseas providers (we believe this is just the tip of the iceberg). Despite this, the strategy contains limited action to address the significant and growing harm from online gambling. While new legislation to regulate offshore online casinos is expected in 2026, it remains unclear how or when these operators will be included in the levy framework.

The omission is deeply concerning. Clubs New Zealand believes that any serious strategy to minimise gambling harm must include robust regulation and resourcing to address online gambling, which is available 24/7, unregulated, and poses a significant risk, particularly to young people and vulnerable communities.

The strategy does include a commitment to evaluate the effectiveness of current services, grow the gambling harm workforce, and improve access to culturally responsive services. Clubs New Zealand support these measures but remain concerned that community-focused venues like ours, which return significant funds to the local community and operate under strict harm minimisation obligations, are being unfairly penalised.

We do, however, welcome the inclusion of an independent review built into the strategy. This will be an important opportunity to assess whether current approaches are effective and fair. Clubs New Zealand looks forward to contributing to this review and advocating for a levy system that better reflects the realities of today's gambling environment.

You can read the ministers release here

Download the Strategy to Prevent and Minimise Gambling Harm 2025/26 - 2027/28

Levy Rates 2025/26 - 2027/28 coming into force 1 July 2025

  NCGM Casinos TAB NZ Lotto NZ
Sector levy rates 1.24 0.89 0.74 0.69

 

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