As New Zealand charts a bold new course for its online wagering industry, the government is introducing the Online Casino Gambling Bill, set to launch in February 2026. With its potential to spark a NZ$3 billion market, the reform promises to reshape the landscape of online gambling in NZ – transitioning it from an unregulated offshore grey zone to a tightly controlled domestic market.
Why Now? Addressing a Growing Gap
Currently, “remote interactive gambling” – including offshore casino sites – is technically outlawed unless licensed under the 2003 Gambling Act. Yet in practice, Kiwi players freely access offshore platforms with no oversight or taxation. A 2025 report found that gamblers on offshore platforms are over twice as likely to be moderate-risk, and more than three times as likely to be problem gamblers – compared with those using licensed, local services
By introducing up to 15 licenses for online casinos, the Bill confronts this gap head-on – requiring operators to put robust consumer protection, age verification, and harm minimisation measures in place. Offenders running unlicensed platforms would face penalties of up to NZ$5 million, with advertising breaches also punishable.
A Carefully Designed Licensing Structure
The heart of the reform lies in a competitive licensing process:
- Fifteen licences will be auctioned, each valid for three years with the option to renew for an additional five.
- Licences will be tied to a specific brand or platform, must go live within 90 days of issue, and operate at least 270 days per year.
- To prevent monopolies, no single entity can hold more than three licences – fostering diversity among online casinos in NZ.
The Department of Internal Affairs will manage the application process, setting a reserve price and vetting both domestic and international bids equally – leveling the playing field.
Consumer Safeguards at the Forefront
Consumer protection is baked into the Bill:
- Mandatory age gates to prevent under-18s from registering.
- Licensed operators must commit 1.24 % of profits to a problem gambling levy funding treatment services.
- Platforms will require harm prevention strategies, monitoring tools, self-exclusion options, and age verification – especially to block minors.
- Stricter advertising rules: no targeting minors, and only licensed operators may advertise legally.
These measures echo global trends – New Zealand’s efforts mirror moves in the UK and Europe to reduce gambling exposure and enhance regulatory oversight.
Balancing Revenue Gains and Risk
Economic forecasts are optimistic: the government expects online casino revenue to soar between NZ$2.5 to 3 billion annually, bolstering tax coffers and funding support systems. One industry analyst notes that the racing and sports betting monopoly TAB NZ – which already oversees traditional gambling – could see limited competition in the new online casino market.
However, some experts caution against unintended consequences. The Problem Gambling Foundation warns the changes might increase accessibility and, potentially, harm – suggesting stricter pre-commitment settings and a ban on credit card deposits.
What Comes Next
With the Bill having cleared its first reading by an 83–39 conscience vote, it now enters the select committee phase – where public and expert submissions will be heard.
Key upcoming milestones include:
- EOI and bidding in March/April 2026
- Licensing auctions begin in February 2026
- Licensed operators must launch within 90 days, with unlicensed sites blocked by July 2026.
- Full implementation of minors’ protections and penalties starting July 1, 2026, with unlicensed gambling banned entirely by December 31, 2026.
The Stakes: Safety, Sovereignty, and Sustainability
This reform is more than legislative housekeeping – it represents New Zealand’s bid to rein in unregulated offshore gambling, shield vulnerable users, and reclaim billions in lost revenue. By thoughtfully structuring licenses, stipulating strong safeguards, and enforcing accountability, the Bill offers a path toward safer, sustainable online casinos in NZ.
But success depends on meticulous oversight: regulators must enforce the rules vigorously, licenced sites must adopt best-practice harm measures, and money raised must tangibly support prevention and treatment.
With its tectonic shift from offshore fragmentation to local regulation, New Zealand’s bold policy signals global significance – melding economic opportunity with ethical responsibility. As the Bill proceeds through Parliament, the world will be watching – even more so when auctions open in early 2026. How New Zealand shapes this market may well influence public policy from Canberra to London.