More information now available on Lottery Fund changes
More information now available on Lottery Fund changes
Earlier this year, we shared updates on changes to the Lottery Grants Board system, including the new funding arrangements linked to the Online Casino Gambling Act.
The Department of Internal Affairs (DIA) has released further information about how the Lottery Fund will operate from 1 July 2026, providing greater certainty for community organisations about how future funding applications will be assessed.
Sport and recreation identified as a priority area
The new Lottery Fund framework confirms sport and recreation as 1 of 5 areas that funding can support towards building strong, sustainable communities. The 5 areas are:
community self-reliance, capacity building and stability
opportunities for participation and reducing barriers to participation
community and environmental health
arts, culture, heritage and national identity
sport and recreation.
Many sport and recreation organisations, clubs and community groups may be eligible to apply through one or more of these categories, depending on the nature of their project or activity.
New committee structure now in place
The former Lottery Grants Board committee structure has been replaced by:
6 regional committees
1 national committee.
DIA has also confirmed that applications will be received and administered centrally before being assigned to the appropriate regional committee. This includes applications previously considered for the Community Facilities Fund.
There will be a sub-committee of the national committee which will distribute proceeds from online gambling. Funding from this committee will not be available until 2027 and criteria for the use of that funding are yet to be confirmed.
A reminder that these changes do not affect Sport NZ's Lottery funding allocation, which is allocated separately by the Lottery Grants Board national committee. However, the changes are relevant for many sport and recreation organisations, clubs and community groups that apply directly for Lottery funding.
Applications now open
DIA has confirmed there will be 4 funding rounds each year under the new structure.
The first funding round is now open and applications close on 18 August 2026.
Organisations considering an application should review the guidance and eligibility criteria available on the Lottery Fund website.
Clarification on eligibility for schools and territorial authorities
DIA has confirmed that schools (state and state-integrated) and territorial authorities may still be eligible to apply for Lottery funding through Community Projects or Community Facilities funding.
Applications from these organisations must demonstrate a clear public community benefit and show that the proposed activity is additional to their usual publicly funded responsibilities.
This means schools and territorial authorities are not automatically ineligible under the new funding approach, but applications will need to meet the relevant eligibility criteria and funding priorities.
Organisations should refer to the Lottery Fund website for full guidance and eligibility information.
