Source: New Zealand Ministry of Health
Taking a public health approach, this study examines the economic and social costs associated with gambling harm in New Zealand. The purpose is to provide a foundation and evidence base of the impact of gambling harm to inform targeted policy development and harm minimisation interventions and to support further refined and revised costings.
The costing framework integrated tangible costs (eg, healthcare and justice systems) with intangible costs, which are not easily monetised but represent significant impacts. The intangible costs are determined using the health-related quality of life measure (HRQoL). The study drew on the New Zealand Gambling Survey, previous New Zealand-specific research on gambling harm, and other relevant national statistics and literature. The quantitative analysis was further informed by community consultation.
Total social cost
The study found that the total estimated social cost of gambling problems in New Zealand for the 2023/24 period was $4.219 billion ($3.72 – $4.73 billion, 90% confidence interval). This represented the economic burden arising from gambling-related harm across individuals, whānau, and society. The total estimated social cost was primarily driven by health (physical and psychological) and financial impacts. Offshore online gambling imposed a substantial and disproportionate burden.
Addressing risky gambling forms, particularly offshore online gambling, is necessary to address harm
The riskier forms of gambling (particularly pokie machines and equivalent games online) are major drivers in the total social cost. These types of games present a critical challenge and highlight the importance of effective regulation and enforcement.
Significant costs are borne by affected others
Policy work and the funding of support services have not always recognised the need to provide dedicated support for families, whānau and friends, despite the significant costs borne by these groups.
Substantial reductions in social costs are possible
The report’s economic modelling suggests that structural changes aimed at the highest-harm products offer significant potential for harm reduction. Targeted interventions, such as ones focused on land-based pokie machines, could potentially deliver disproportionately large benefits to Māori and Pacific communities.
