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New Zealand’s online gambling market is set to see considerable changes in the coming years as the government works towards regulating online casino gambling. Under current rules, gambling is covered by the Gambling Act 2003, but online gambling was still in its infancy when the Act was drawn up.
Online casinos and other online gambling websites are not currently regulated. This means players who wish to gamble online have to use offshore websites: those that are licensed in other countries. There are thousands of offshore casinos, including online casino instant payout sites that enable players to gain immediate access to their winnings after withdrawal. Many of them also provide appealing bonuses and cashback options, aware that in some parts of the world, people can turn only to such platforms for iGaming experience (New Zealand included).
Still, local authorities want to regulate online casinos. It will enable the New Zealand gambling administration to license sites and set its own rules for licensing. Regulators have said they are making the move to regulate iGaming sites so they can offer closer protection for their citizens. They have also pointed to the fact that regulation will also enable them to collect taxes from these sites.
Following its election victory in 2023, the New Zealand National Party outlined its intention to create a regime that would require offshore operators to pay tax, and it would require offshore operators to register and report earnings. Any sites that do not meet the requirements would face IP blocking, which means unregulated offshore sites may become inaccessible to players. The party went on to say they expect this taxation to raise NZ$179 million a year, on average.
Six physical casinos currently operate in New Zealand and new casinos are prohibited. Under the proposed new regulations, the government will issue a limited number of licenses. Licenses will be won via an auction and estimates of how much revenue regulated online casinos will generate vary from NZ$500 million to NZ$900 million a year.
Experts have pointed to the fact that online gambling is already very popular in the country, and this is only likely to increase with the introduction of regulated sites. Public consultation will take place through 2025, but, currently, it is believed that operators will be prohibited from offering sports betting or lotteries as well as online casinos.
Some believe that physical casino operators in the country lobbied to ensure that only a limited number of licenses would be granted, in a bid to protect their own revenues and income. It is possible that the limited licenses stipulation may be scrapped during public consultation, and that the number of permitted online casinos will be unrestricted.
There is still a lengthy process to go through before online casinos are regulated in New Zealand. A draft of the regulation has been approved, but this would need to face public consultation, which is expected next year. Changes would then need to be made before any act or amendment is made official, but experts and the government have said that the framework is likely to be in place and the licenses issued in 2026.