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The short answer to whether New Zealand is moving towards a regulated iGaming market is a resounding yes. Increasing numbers of Kiwis are flocking to offshore sites to get a fix of their favourite entertainment. While there are plenty of great platforms on offer, there are also some rogue operators and legislators are now looking to safeguard citizens and, to be honest, get a cut of the profits.
New Zealand is a paradox
When it comes to gambling, New Zealand is somewhat of a paradox. It has one of the highest percentages of adult populations anywhere in the world that take part in gambling, but it also has some of the most restrictive gambling laws. Seventy-five per cent of Kiwi adult’s gamble on a semi-regular basis, from playing the pokies and choosing numbers on a weekly lottery to sports betting and serious casino games.
There is a second paradox, too. While New Zealand’s land-based gambling is heavily regulated and is a source of income for worthy causes, those land-based operators are not allowed to run virtual versions of their businesses. However, that does not mean that New Zealanders are unable to access online casinos. Operators not headquartered in New Zealand are currently at liberty to set up offshore sites tailored to and targeted at New Zealand players. Offshore sites are legal for Kiwis to play.
Players are at risk in an unregulated market
However, this could potentially put players at risk if they come across a scam or dodgy site, and the state and good causes lose out on revenue. Analysts estimate New Zealand’s gambling market will be worth $600 million per annum by 2027, with most of the growth fuelled by the online sector. Legislators are now waking up to the hard truth that they cannot ignore this phenomenon any longer and are bringing forward legislation to close loopholes and create a modern, fit-for-purpose market. A regulated market will also have sufficient measures in place to protect players from potential gambling harms. While decent online sites prioritise player safety, others are less scrupulous.
Good review sites keep players safe
The wheels of government never move particularly quickly, so this is not going to happen overnight. Fortunately, other safeguards are already in place to help iGamers get the most out of their online experience and avoid bad operators. There are plenty of gambling experts out there who do all the hard work and then publish NZ casino reviews you can trust. However, they are not only looking for safe and reliable sites but also the ones that are the most fun. After all, iGaming is all about entertainment.
While regulation will bring things within a legal framework, iGamers do not want a beige or bland experience – they want to be entertained. Expert reviewers do all the donkey work behind the scenes to check out online operators from top to bottom. They rank and rate online casinos against criteria like site safety, payment options, account security and customer services. Once satisfied with all these elements, they turn their attention to how much fun there is to be had, and which games offer the biggest thrill or the most exciting ride.
Whatever happens with market regulation, the review process will still be an essential part of the player experience. The regulatory process is about legality and codified rules. The reviewer’s work starts from the basis that sites are legal and trustworthy and then explores which ones are the best from a player’s perspective. Bearing in mind that not everyone is looking for a similar experience, this three-sixty, unbiased approach allows players to find the kind of gaming that they are looking for. The regulators have a good deal of catching up to do, but the market has, to a large extent, been delivering what iGamers are looking for.
What is being proposed
It has been twenty-one years since New Zealand last enacted any gambling regulation. When the 2003 Gambling Act came into force, the online gambling sector was very much in its infancy. Fast forward to May 2024, and legislators thought the grey area of offshore gambling should be cleared up. The overseas operators will be required to apply for licenses, and a regulatory body similar to the UK Gambling Commission, will be needed to oversee their activity.
Internal Affairs Minister Brooke van Velden has confirmed that a new Online Gambling Bill will be drafted and that plans were first laid out in July when the Government set 2026 as the deadline for enforcement of the new regulatory framework. She advised that the bill’s purpose was to facilitate a safer and more compliant regulated online gambling market. She is quoted as saying,
“More importantly, it will prevent and minimise online gambling harm and limit opportunities for crime and dishonesty. …. minimise harm and set up a tax collection system.”
Ms van Velden went on to explain that the new regulations envision up to 15 operators being permitted to operate and that there will be stringent advertising rules in relation to children. They are talking of penalties of up to NZ $5 million for anyone breaching the new regulations. She clarified her position, saying,
“Currently, New Zealanders can and do gamble on thousands of offshore gambling websites. By introducing a regulatory system, my intention is to channel customers towards up to 15 licensed operators. 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 used in the existing Gambling Act and will give us more flexibility to adjust the regulations where necessary.”
“The new regulatory system will be in place by early 2026. I look forward to taking the Bill through Parliament next year and hearing feedback from the public during the Select Committee stage.”
There is even a timeline
The New Zealand Government plans to adopt the bill by April 2025, establish a regulator by the end of next year, start licensing by February 2026 and roll out operations by April 2026. With a firm timeline in place, the move towards a regulated market for iGaming seems to be set firmly in motion.