Currently, local gambling operators in New Zealand are prohibited from lawfully offering online casino services. Individuals in New Zealand who engage with international online casinos do so at the discretion of the service provider. If they encounter issues with the site, no regulatory bodies will assist them.
However, this situation may alter in the forthcoming years, as a new Online Gambling Bill is being created to establish a legal framework for online gambling and enhance player safety. The government will issue 15 licenses for operators, who are expected to begin operations in April 2026.
Today, we’ll examine the advantages of regulation for all stakeholders, the potential gameplay for participants, and the future landscape of online casinos in New Zealand in relation to other nations.
How Does Regulation Impact iGaming in NZ?
A Win-Win for Players
Players have a strong interest in online casino gambling, yet they engage with foreign sites due to the activity’s ambiguous legal status. Regulation is safe, yet it guards players and prevents them from becoming vulnerable to possibly dubious or unethical operators. The issuance of licenses indicates that an online casino adheres to the requisite high operational standards.
New Zealand Overall
The legalisation of online casino gambling may stimulate interest among current conventional casino operators in the nation, prompting them to seek licensure and generate employment possibilities. The charge, along with the tax accrued on the casinos’ earnings, would produce income for the nation.
A growing industry
The online casino sector is seeing continuous growth. Regulation will facilitate its growth in popularity with the support of platforms like as Gambling.com. Currently, we’re only in the initial stages, but the New Zealand market could very weel expand to include other providers in the future.
Advertising as a Principal Market Catalyst
Current legislation prohibits offshore gaming businesses from advertising in New Zealand. Nonetheless, a briefing from the Department of Internal Affairs (DIA) to the minister recognised that an operational regulated market necessitates transparency for registered operators. Van Velden justified the judgment, asserting that enterprises must be permitted to market themselves to thrive.
“If you operate an online gambling enterprise and are unable to promote your product in a legitimate market, you may find yourself questioning your existence in this space,” Velden commented.
New Zealand intends to auction 15 internet casino licenses, with officials reasoning that rescinding the advertising prohibition will help differentiate licensed businesses from unregulated entities. Nonetheless, the judgment has raised apprehensions over possible gambling-related damage, especially among at-risk communities.
Anticipated Dominance of Foreign Operators
The regulation change aims to subject internet gaming to governmental supervision, with the majority of licenses anticipated to be granted to global gambling corporations. DIA authorities propose that these companies possess the requisite resources and skills to contend in the digital gaming sector.
Local operators, such as SkyCity and TAB, have condemned the licensing system, contending that it may jeopardise their business models and diminish community support. At present, revenues from terrestrial casinos and gaming devices fund local charities, athletic groups, and public initiatives. Nonetheless, the new system does not mandate licensed internet businesses to contribute to these projects, prompting apprehensions over the diversion of cash to offshore stockholders.
Apprehensions Regarding Escalated Problem Gambling
Advocacy organisations have cautioned that allowing gambling advertisements will facilitate the institutionalisation of wagering. Andree Froude of the Problem Gambling Foundation contended that advertising may result in more inducements, which she advocates should be banned.
Likewise, Martin Cheer, managing director of Pub Charity Ltd, warned that New Zealanders should brace for a significant influx of gambling advertisements once the industry is established. He cited overseas instances, like the UK and Australia, where investigations have associated gambling advertising with a rise in problem gambling.
Van Velden recognised these worries but emphasised that rules will stringently govern the marketing of gaming, especially online.
New Zealand’s iGaming Market Booms Without Regulation
Notwithstanding the existing limitations, internet gaming has emerged as a substantial sector in New Zealand. A DIA briefing projected that the industry generated a minimum of NZ$304 million in yearly income, with turnover possibly approaching NZ$3 billion. The data indicates that several New Zealanders are now participating in internet gambling despite the lack of legal rules.
The government contends that a systematic regulatory framework will enhance monitoring, incorporating steps to avert fraud and money laundering. Unlicensed operators that persist in targeting New Zealand gamers will incur fines of up to NZ$5 million.
The Potential of Regulated iGaming in New Zealand
Similar to several other nations, individuals in New Zealand have demonstrated a strong enthusiasm for gaming. However, obstacles remain, rendering it doubtful that New Zealanders may lawfully commence gaming at this time. Should the plans receive approval, this may facilitate increased online sports betting chances in the nation since only a limited number of operators are permitted to provide such services now.
The nation’s inclination to engage with international online casinos may prompt these operators to explore entry into the New Zealand market. If gamers are restricted to New Zealand online casinos, they may forfeit devoted patrons who may opt to avoid hazards associated with international sites.
The initiative to establish a regulated online casino market represents a significant advancement in New Zealand’s gambling sector. Attention will be focused on further developments, after which the competition for licenses will ensue. Should the plan be implemented, New Zealand may derive significant advantages from regulation.