The New Zealand government has revealed comprehensive plans to establish a regulated online casino gambling market by 2026. With the introduction of licenses and a focus on consumer protection, the proposed system aims to create a safer gambling environment while addressing the risks associated with unregulated offshore platforms.
Under the new system, up to 15 licenses will be issued to online casino operators, each requiring strict compliance with harm prevention strategies and age verification measures. These licenses will be distributed through an auction process starting February 2026. Licensed operators will commence operations in April 2026.
In her statement, Internal Affairs Minister Brooke van Velden emphasized, "My goal is not to increase the amount of gambling that is happening online, but to enable New Zealanders who wish to play casino games online to do so more safely than they can today."
The government’s high-level approach, first announced in July, aims to regulate online casino activities while excluding other forms of online gambling such as sports betting and lotteries.
At present, online casino gambling in New Zealand operates without regulation, leaving players vulnerable to offshore platforms that lack consumer protection measures. The Ministry of Internal Affairs estimates that thousands of New Zealanders engage in gambling through such platforms.
Research from Statista highlights the growing popularity of online gambling, with revenue projected to grow annually by 6% between 2024 and 2029. The rise in smartphone use has further driven this trend.
The proposed regulations include a stringent framework to safeguard players. Operators will face fines of up to NZ$5 million for breaching harm prevention or consumer protection requirements. Additional measures include a ban on advertising to minors and detailed restrictions on gambling advertisements.
Van Velden stated that the regulations aim to guide players toward licensed platforms, ensuring a safer and more controlled gambling experience.
The forthcoming legislation will also establish a public register of licensed operators, enabling transparency and accountability. Furthermore, rule violators will face take-down notices and referral to overseas regulators, which could jeopardize their licenses in other jurisdictions.
Cabinet documents suggest interest from both local and international operators, including land-based casinos such as SkyCity, Christchurch Casino, and Dunedin’s Grand Casino. The documents noted that 36 operators currently pay Goods and Services Tax (GST) to New Zealand, with the top 15 accounting for over 90% of this revenue.
However, the government plans to exclude TAB NZ, the nation’s online betting monopoly, from the online casino regulatory framework. Decisions regarding its participation will fall under the purview of the Minister for Racing.
The legislative process is scheduled to begin in April 2025, with the bill expected to pass by the end of the year. This phased approach allows time for refining the regulations, particularly concerning advertising and player protection measures.
"Further regulations will be developed on the detailed rules around advertising, as well as harm minimisation and consumer protection requirements," Van Velden added.
By implementing these measures, New Zealand aims to foster a well-regulated online casino market, balancing consumer safety with industry growth.
Source:
''Unlicensed online casinos face $5m fines in gambling crackdown'', rnz.co.nz, November 13, 2024.
''New Zealand plans to limit online casino gambling licenses, ban ads aimed at children'', reuters.com, November 13, 2024.