University students have been warned about promoting overseas gambling websites on social media for financial gain. Photo: RNZ / Alex Robertson
- The Department of Internal Affairs has warned 10 university students about promoting overseas gambling websites on social media.
- It has not issued any fines or infringement notices, but says students could face a $5000 fine
- Several students have since removed their content.
- A new regime, due to come into effect next February, will regulate online gambling in New Zealand for the first time.
University students have been warned about promoting overseas gambling websites on social media for financial gain.
The Department of Internal Affairs has contacted 10 students, most of whom were from the universities of Otago and Canterbury, who appeared to be promoting gambling websites including Rainbet and SpinBet.
Internal Affairs had been cracking down on social media influencers using their platforms for promoting online gambling, resulting in a $5000 fine for internet personality Millie Elder-Holmes in May.
RNZ has seen a number of Instagram accounts with thousands of followers on which students post videos of themselves betting hundreds of dollars on overseas gambling sites.
Many displayed links, logos or referral codes encouraging others to sign up to the sites, with videos featuring students trying to make money back on purchases, parking tickets, petrol, broken items in their flat, or rent or student loan payments worth $300.
RNZ tried to contact account-holders, one of whom confirmed they contacted an offshore online casino and were being paid to promote the brand.
Internal Affairs director of gambling regulatory services Vicki Scott said the department was investigating complaints about tertiary students promoting the sites.
She said Internal Affairs had focused on educating the students that advertising or promoting overseas gambling websites was illegal.
"The students we've spoken to have been co-operative, and several have taken immediate steps to remove the content," she said.
"At this stage, no infringement notices have been issued, and we have not made any decisions regarding potential fines. However, we want to be clear: promoting overseas gambling websites is illegal and can result in a $5000 infringement fine. This includes sharing referral codes or content that encourages others to sign up or gamble."
At present, it is legal for New Zealanders to gamble online but online casinos are banned from advertising in New Zealand.
Problem Gambling Foundation director of advocacy and public health Andrée Froude said online casinos had used social media to circumvent the advertising ban for years.
"They might use a familiar face to New Zealanders, as they did in the case of 22Bet when they used Brendon McCullum, but in that situation Google did actually step in and remove the ads," she said.
Problem Gambling Foundation director of advocacy and public health Andrée Froude. Photo: RNZ / Cole Eastham-Farrelly
Froude said it was concerning to learn that university students had been involved in online gambling promotions.
"They're targeting young students who are often away from home and they might not have a lot of extra money to spend. It is appalling," she said.
RNZ contacted Rainbet and SpinBet for comment but the companies did not respond before deadline.
The government plans to establish a licencing regime for online gambling in New Zealand for the first time, under its online casino gambling bill.
Under the legislation, 15 online casinos - including offshore companies - would be able to be licenced within New Zealand.
Companies operating without a licence would be fined up to $5 million.
Internal Affairs Minister Brooke van Velden told RNZ in March that she expected overseas companies would win the majority of the online casino licences because of the country's smaller market.
In a statement, van Velden said she was aware of concerns about university students promoting online gambling.
"I am aware of cases of people, who appear to be university students, promoting online casino gambling through their social media accounts," she said.
"The department is investigating these cases and may issue a penalty, such as a formal warning or fine, if appropriate."
Internal Affairs Minister Brooke van Velden. Photo: RNZ / Samuel Rillstone
Green Party tertiary education spokesperson Francisco Hernandez, who has researched problem gambling, said he was concerned that overseas casino licences would result in more New Zealanders gambling.
"There is a risk legislation like that could end up mainstreaming the idea of online gambling and expose a wide range of people that may otherwise not have been introduced to the online gambling environment," he said.
"New Zealand-based operators that are able to comply with regulations and that have a range of interventions on problem gambling would be better than overseas ones."
While the sites were prevalent across the internet, young people were drawn to them because they were more likely to be financially vulnerable and typically had more exposure to the internet and video games with features designed to mimic gambling, Hernandez said.
Green Party tertiary education spokesperson Francisco Hernandez has researched problem gambling. Photo: VNP / Phil Smith
AUT gambling and addictions research centre director, associate professor Maria Bellringer, said the legislation would let offshore operators legally advertise in New Zealand for the first time.
She said the most recent New Zealand Gaming Survey found people aged between 15 to 24 - typically male - were most likely to gamble with online casinos.
"I imagine the harms are going to increase and particularly to our young people," she said.
"They're the people more likely to be doing things online than say older people who didn't grow up with the availability of the internet. We will have more people who are experiencing harm, because online gambling is more risky than land-based gambling. Those opportunities and the advertisements for them are going to be everywhere."
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