A new online gambling bill is set to be drafted in New Zealand that promises 15 licenses to online casino operators. This step is taken in preparation for 2026, by which time the country intends to regulate the online casino market.
Current State of Gambling in New Zealand
New Zealand’s gambling market is heavily regulated, with most online gambling activity restricted to the New Zealand Lotteries Commission and online sports betting with TAB. NZ online casinos are, therefore, currently limited to offshore sites. These casinos are regulated in places like Malta and are safe for those in New Zealand to use. However, there are concerns among lawmakers about lost revenue and consumer protections.
There is currently no framework that allows international operators to provide regulated online casino services in New Zealand. This limits the choice for players and means there is also no government oversight of the industry.
Details of the New Bill
The new gambling bill was introduced to reshape New Zealand’s digital gambling sector. The legislation proposes the issuance of up to 15 licences for online gambling operators so that they can operate in a controlled and regulated environment. The licences will cover various gambling activities, including online casino games, and each will be valid for seven years.
Operators will have to comply with a set of criteria, including responsible gambling measures, local tax contributions and strict advertising guidelines.
According to Internal Affairs Minister Brooke van Velden, the goal is not to encourage gambling, but to keep players safe. “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,” stated van Velden.
The government is trying to capture offshore gambling revenue and also offer players safer platforms. According to reports, operators will be taxed 20% with additional levies allocated to gambling harm prevention programmes and community funding.
The government believes that this bill represents a significant shift in how they approach online gambling in New Zealand, offering a balance between freedom of choice and stringent regulation.
Operators Vying for Licences
The announcement of the bill has drawn the attention of gaming giants across the world. Major operators like 888, Betaway and Bet365 have already expressed intentions to apply for licences, and their interest shows the potential of a regulated market. Each operator will bring experience from other regulated jurisdictions, which will help refine the framework in NZ.
It is believed that gambling operators see New Zealand as a promising market. Usually, the priority of these reputable brands is delivering a world-class gaming experience while ensuring compliance with the highest standards of player protection.
Local stakeholders, which include community groups and gambling harm reduction advocates, are pushing the government to prioritize operators that have proven track records of responsible gambling and contributing to local communities.
Impacts on Players and the Economy
Regulating online gambling is expected to provide various benefits for New Zealand. Players will have access to safer and more transparent platforms which will reduce the many risks associated with offshore platforms. The government will also gain tax revenue which can be reinvested into public projects. Finally, the new legislation will establish NZ as a leader in responsible online gambling practices in the mostly unregulated Asia-Pacific region.
However, critics argue that the proposed 20% tax rate will deter operators and limit competition in the industry. Advocates of the bill argue that a market that prioritises player safety will outweigh these concerns.
How the Bill Compares at a Global Level
New Zealand’s move follows trends seen in other countries like the UK and Australia, where similar frameworks have been successfully implemented. In these countries, operators are mandated to contribute some of their revenue to social causes, and advertising restrictions are strongly enforced.
According to van Velden, “Further regulations will be developed on the detailed rules around advertising, as well as harm minimisation and consumer protection requirements. This is the same approach use in the existing Gambling Act and will give us more flexibility to adjust the regulations where necessary.”
New Zealand’s framework is focused on harm prevention and community funding, and it aligns with the best practices observed internationally.
Wrapping Up
The introduction of New Zealand’s online gambling bill marks a milestone for the industry. By opening the market to international operators who must comply to regulatory measures, the government will create a safer and more fair gambling environment in the country. With global gambling giants competing for just 15 licences, New Zealand’s gambling sector is set for a competitive and exciting future.