Bill to allow online charity lotteries passes first reading

Minister of Internal Affairs Brooke van Velden says the Government is moving at pace to ensure lotteries for charitable purposes are allowed to operate online permanently. Charities fundraising online, such as those run by the Heart Foundation, Coastguard NZ, Auckland Rescue Helicopter Trust and local hospices will continue to do so for the benefit of all Kiwi communities.

“If the law does not change charities would be required to return to selling tickets via post or in person from November this year. My Bill, which passed its first reading today, will allow charities to continue running their lotteries online permanently. This means New Zealanders will continue to receive help from the work charities do. Many Kiwis and their families have benefitted from the services offered by these non-profits, often in life-changing and touching ways, and this Bill will ensure this continues,” says Ms van Velden. 

Charity groups are very supportive of the change and the impact the change will make on their work with Kiwi communities. 

“This was a case where legislation in New Zealand was not set up permanently to help organisations and groups trying to help the community and we’re grateful that we are now heading towards a permanent solution. We commend this change and the leadership shown to ensure the sustainability of a popular and significant source of charitable income that helps fund vital lifesaving work,” says Clive Nelson, Chief Executive, Heart Foundation. 

The Auckland Rescue Helicopter Trust provides a search and rescue service for the community and says they support the Bill, “This is a very welcome change and will put in place a pragmatic solution that is fit for today’s operating environment. The world has changed considerably since 2020. Banks no longer issue or accept cheques, and newspapers have shifted to be largely online, from paper copies where fundraising lotteries could be advertised,” says General Manager, Shaan Hulena.

“With the law change set to expire in October, it’s important that we ensure continuity for charities like ours that rely on lottery sales to fund our operations, which help keep Kiwis safe on the water,” says Coastguard Acting Chief Executive Phil Harkness.

“These lotteries are a significant source of funding for charities which positively impacts Kiwi communities across the country,” says Ms van Velden. 

“They pose a very low risk of harm to our communities, and I have been assured that during the time the temporary exemption has been in place there has not been an increase in people presenting for gambling harm from these types of lotteries,” says Ms van Velden. 

“I am pleased the Bill has passed its first reading and look forward to having the legislation in place before 31 October,” says Ms van Velden. 

Digital marketing and ticket sales for non-commercial lotteries with a prize value of over $5000 are currently only allowed to operate online until October 2024. This was due to temporary legislation put in place by the previous government during the response to the COVID-19 pandemic. 

Source: Beehive