New Zealand has always been an attractive market for online gambling. The revenue of this industry has been experiencing quite a steep rise in the past decade. Research states that it can go up to NZ$2 billion annually by 2030.
What’s even more impressive is that all three verticals of online gambling in NZ are popular – casinos, sports betting and lottery. Kiwis are fond of gambling on Internet sites, but up until this point, there has been a major obstacle along the way – the regulation.
So far, the only governing body that regulated gambling in the country was the NZ Gambling Commission. The laws stated that even though land-based gambling for players over 18 is legal, online gambling isn’t.
Online gambling operators weren’t allowed to be based in New Zealand. However, the law lacked details, which is why offshore operators were able to offer their services to Kiwi players. Not only that, but Kiwi players faced no repercussions when accessing them and playing their featured games for real money.
It seems that all of that is about to change as New Zealand’s government is close to finalizing regulations for casino sites.
Regulated Online Casinos Will Offer Players Tons of Security
One of the biggest benefits of having specific regulations for online casinos is the fact that players will be able to enjoy maximum security. Currently, since all types of casino sites can offer their services in the country, many scam sites might target you.
If you want to register and play at a legitimate site, you must do proper research. You can also rely on reputable gambling experts to find the best online casinos in NZ. According to this casino list on Kiwibets, there are quite a few casino operators in New Zealand that you can choose from. Most of these casino have licenses from Curacao and MGA.
Brooke van Velden, the Minister of Internal Affairs, recently spoke about the approach that the government is planning to take regarding online casinos. He stated that “there will be a licencing system for online casinos” and that will require operators to “comply with a set of criteria” before they can start offering their services to Kiwi players.
Helden doubled down by saying that the licencing process isn’t just a tool to increase the number of operators, but to ensure that operators meet “requirements for consumer protection” and that they pay their due taxes. There aren’t any specific details as to how the government will use the tax money, though.
How Many Operators Will Be Able to Offer Their Services?
One of the main concerns regarding online casino regulation in New Zealand was the number of operators that could legally offer their services. Helden stated that there will be a limited amount of licenced operators and that they will have several limits. Additionally, sponsorship by gambling operators will be forbidden.
A similar approach has been taken by the UK Gambling Commission. Recently, new regulations in the UK stated that sports teams in the Premier League will have to drop their gambling sponsors. The new rules will be in effect in 2026, which is when the final sponsor agreements with clubs and gambling operators expire.
In terms of when will the new regulation in New Zealand be in effect, van Helden stated that he hopes for a 2026 launch. He didn’t share a specific month, so it could be at any time during that year. Once the new rules are in effect, van Helden said that “the Department of Internal Affairs will be the regulator.”
Creating gambling regulation has been one of the biggest hardships for NZ authorities in the past couple of years. There were many efforts, but none of them quite made the light. This effort, however, seems like it has a bright future as the momentum behind it is massive.
What are the Possible Advantages of Having a Regulated Online Gambling Industry?
Currently, the proposed changes regarding online gambling in New Zealand are still in the early development stage. They will have to overcome several obstacles before they can become laws. One thing is certain – the interest from operators will be huge as many like to offer their services to Kiwi players.
So what exactly are the advantages that might come from having a regulated online gambling industry? The first and most obvious one is player security. Unlicenced online casinos will be blocked by the Department of Internal Affairs. That way, players won’t face the risk of accessing scam sites and potentially being victims of fraud.
The second advantage is related to responsible gambling. Since the number of licenced operators will be limited, players won’t have to be constantly on the lookout for platforms with more gambling features. Not only that, but the licenced sites will have certain limitations in terms of maximum bet per round and maximum loss limits.
Finally, the government of New Zealand will be able to collect tax money and invest it in the community. Many regulated markets use the gambling tax revenue to invest in education, healthcare, infrastructure and even responsible gambling agencies.
Numerous jurisdictions from across the world have taken this approach. Certain countries, like Serbia, even donate tax money from online gambling to the Red Cross. By investing the money into society, the government will be able to offer more effective help to those suffering from gambling harm, but also make sure that the problem doesn’t occur in the first place.
Investing in education means that authorities will inform people, especially the younger population, of the importance of playing responsibly. Additionally, these types of investments lead to bigger economic growth.
As for the potential sum, it is still hard to say. Take New Jersey, one of the most prominent gambling markets in the US. The state is able to generate over NZ$20 million in tax revenue each month. On an annual basis, the total sum can go over NZ$500 million.
Of course, these numbers are not to be compared with New Zealand, but they can act as an indicator of the potential that the gambling industry can have.
