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Is New Zealand’s $81 Million Gambling Levy Really Making a Difference?
New Zealand’s commitment to tackling gambling harm by allocating $81 million annually has raised questions about its effectiveness. Despite the substantial sum, concerns are growing about whether this funding is truly making a difference in helping those affected by gambling. The country’s Gambling Commission is once again calling for a clearer demonstration of how this levy is making an impact.
So, what’s going wrong? And how can New Zealand Gambling programs be improved to ensure they are genuinely beneficial for those who need help?
The Big Question: Is the $81 Million Levy Really Working?
The ongoing debate about New Zealand Gambling policies centers around one key issue: outcome-based data. The Gambling Commission has called for clear, measurable results that show whether the $81 million levy is actually reducing gambling-related harm. This funding, which has been set aside specifically for harm prevention, research, and support services, has been scrutinized for not providing enough evidence that it is meeting its objectives.
Instead, critics argue that a significant portion of the funds is being used for administrative and operational costs, rather than directly supporting those who need help. The Ministry of Health, which is responsible for overseeing the levy, had planned to increase the levy to $92 million for the 2025–2028 period. However, in a move that’s left some questioning the government’s commitment, the decision was made to keep the levy at its current level of $81 million.
The Gambling Commission’s repeated request for better tracking systems is a key part of this criticism. Without clear data on where the money is going and how it’s making a difference, it’s difficult to assess whether these programs are genuinely helping to reduce gambling harm.
A Call for More Direct Action
Mental Health Minister Matt Doocey has expressed his concern about the lack of evidence demonstrating the levy’s success. Acknowledging the issue, the Ministry of Health has announced plans to review its current strategy. This review aims to determine whether the existing framework is effective or if a shift in priorities is necessary.
The current approach to reducing gambling harm is based on a combination of international research and local public consultations. However, a major flaw in the system is the absence of a clear, standardized method for measuring success. Without this, it’s challenging to understand which strategies are working and which ones aren’t.
One of the most notable concerns is the rising administrative costs. The Ministry of Health has explained that part of this increase is due to legal requirements under the Gambling Act. While these costs are necessary for ensuring compliance, critics argue that more funds should be allocated to direct services—such as treatment, prevention, and research—rather than running costs.
The Drop in Help-Seeking: A Worrying Trend?
A troubling statistic has emerged in recent years: fewer people are seeking help for gambling-related harm. In 2013-2014, over 6,500 individuals reached out for support. However, by 2023-2024, that number had fallen to just 3,600.
While it might seem like a positive trend at first glance, the Gambling Commission has raised concerns that this decline doesn’t necessarily mean the problem is going away. It may, in fact, be a sign that people are not accessing the support they need. The drop in the number of people seeking help could be due to several factors, such as poor outreach efforts, lack of awareness about available services, or barriers to access.
The Commission has emphasized the importance of improving outreach and raising public awareness about the support services available. More targeted marketing and better data collection are crucial in understanding the real scale of the gambling harm problem in New Zealand.
What Needs to Change?
Until the Ministry of Health provides tangible evidence that the $81 million levy is reducing gambling harm, doubts will continue to linger. The upcoming review of the strategy presents an opportunity to make necessary changes. Here’s what needs to happen next:
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Clear Framework for Success: The first step is to create a transparent system for tracking and measuring the impact of the levy. This includes defining specific metrics for success and setting clear targets to assess progress.
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More Funding for Frontline Services: The Ministry needs to allocate a larger portion of the levy to frontline services, such as prevention programs, counseling, and research. This would ensure that the money is being spent on initiatives that directly address gambling harm.
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Better Reporting and Transparency: There should be regular, detailed reports that explain how the funds are being used and what results have been achieved. Transparency will build trust and ensure that the public can see how their money is being spent.
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Tools for Progress Tracking: Improved tools and systems to track long-term progress are essential for understanding the true impact of the levy. This would include tracking how many people are accessing support, the effectiveness of different services, and overall reductions in gambling harm.
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Stronger Focus on Direct Help: Finally, the focus must shift toward providing direct support to those who need it most. This includes ensuring that people can access help quickly and easily, without facing long waiting times or other barriers to care.
The Future of New Zealand Gambling Harm Reduction
New Zealand’s approach to reducing gambling harm is at a crossroads. While the $81 million levy has the potential to make a real difference, there is a pressing need for better accountability and clearer evidence of its effectiveness. As the Ministry of Health reviews its strategy, it is essential that changes are made to ensure that the funding is being used in the most effective way possible. Only with improved tracking, better allocation of funds, and more direct support services can New Zealand make significant progress in the battle against gambling harm.
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