The gambling industry in Aotearoa New Zealand has long been a contentious issue, with research consistently showing that while gambling contributes to the economy, its broader social costs—particularly around addiction and mental health—are understated. The latest figures from the Ministry of Health and the Alcohol and Drug Foundation highlight a troubling trend: problem gambling is not just an individual issue but a systemic one, disproportionately affecting Māori and Pacific communities, where rates of gambling-related harm are nearly twice as high as for Pākehā. The government’s 2023 Gambling Harm Reduction Strategy acknowledges this, but implementation remains uneven, with gaps in funding for prevention and treatment programmes.
The economic and health toll
Gambling-related harm costs the country an estimated $1.7 billion annually, according to the Royal Society Te Apārangi’s 2022 report. This figure includes direct medical expenses—such as those from anxiety and depression linked to gambling addiction—and indirect costs like lost productivity. The most severe impacts come from underage gambling, where the Ministry of Health reports that 10% of 15- to 24-year-olds have engaged in problem gambling, often through illegal or unregulated platforms. The rise of online betting, particularly during the pandemic, has accelerated this trend, with data from the Alcohol and Drug Foundation showing a 40% increase in young people reporting gambling-related harm since 2019.
The data also reveals stark disparities between demographic groups. A 2023 study by the University of Auckland found that Māori and Pacific people are more likely to gamble compulsively, with 20% of Māori and 18% of Pacific participants reporting severe gambling-related harm, compared to just 8% of Pākehā. This aligns with broader social inequities, where gambling is often seen as a way to cope with economic stress or cultural pressures. The lack of culturally appropriate support services exacerbates these disparities, leaving many at risk of long-term harm.
Policy gaps and unmet needs
The government’s response has been mixed. The Gambling Harm Reduction Strategy, launched in 2023, aims to reduce harm through better regulation, increased funding for prevention, and expanded access to treatment. Yet critics argue that enforcement remains weak, and funding for harm reduction programmes has not kept pace with the industry’s growth. For example, the National Problem Gambling Service (NPGS) has seen wait times of up to six months for treatment, a delay that disproportionately affects those most in need. Meanwhile, the rise of offshore betting platforms—many operating without New Zealand’s licensing requirements—has created a legal grey area, allowing unregulated activity to thrive.
One key area of failure is the lack of mandatory age verification for online gambling. While the Gambling (Parental Controls) Amendment Act 2021 introduced some restrictions, enforcement has been inconsistent, and loopholes exist for platforms that bypass age checks. The result is a persistent underage gambling problem, with reports from the Ministry of Health indicating that 1 in 5 young people have gambled illegally in the past year. The government’s recent push to tighten parental controls is a step forward, but it must be paired with stronger penalties for operators who exploit gaps in the law.
- Gambling-related harm costs Aotearoa $1.7 billion annually, including medical and productivity losses.
- Problem gambling rates are nearly double for Māori and Pacific communities compared to Pākehā.
- Online gambling surged by 40% among young people since 2019, with 10% of 15- to 24-year-olds reporting problem gambling.
- Underage gambling remains rampant, with 1 in 5 young people gambling illegally in the past year.
- Offshore betting platforms operate largely unregulated, allowing unchecked access to gambling.
- Treatment wait times for the NPGS exceed six months, delaying critical support for those in need.
What’s required to turn the tide
The path forward demands a multi-pronged approach: stronger enforcement of existing laws, increased investment in prevention and treatment, and a commitment to addressing the social factors that drive gambling harm. One promising model is the Māori-led initiative Whakapapa o te Rangi, which uses cultural approaches to reduce gambling harm among Māori communities. While not yet widely scaled, its success suggests that culturally sensitive programmes could make a significant difference. The government must also prioritise digital literacy programmes to help young people recognise the risks of online gambling.
Ultimately, the issue is not just about regulating the industry but about creating a society where gambling is seen as a recreational activity, not a coping mechanism. This requires collaboration between policymakers, health professionals, and communities to build a culture where harm reduction is the default, not the exception. Until then, the human cost of gambling will continue to rise, with Māori and Pacific people bearing the brunt of an industry that prioritises profit over people.
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