New Zealand’s move towards regulating its online casino sector has long been anticipated and has now entered a decisive phase as the Government sets out the next steps. Soon, we’ll see a framework that is expected to change digital gambling access in 2026. The Department of Internal Affairs (DIA) has confirmed that the country is on track to introduce a licensing system for online casino operators at some point this year. This follows nearly two years of consultation and legislative development. With the current system still governed by the Gambling Act 2003, New Zealanders can only legally gamble online through the TAB and Lotto NZ, leaving the broader casino market unregulated.
This vacuum has led many players to rely on offshore services, including the top paying online casinos NZ has to offer, which are popular for strong payout rates and straightforward user experiences. These platforms have become the default option in the absence of a domestic licensing model. Their widespread use is evidence of the need for clearer oversight. The proposed reforms aim to bring more of this activity into a transparent framework, which will optimally give players access to regulated choices while maintaining room for innovation in the sector.
The draft Online Casino Gambling Bill, which was first introduced in July 2025, continues to progress through Parliament. It passed its first reading by 83 votes to 39. And, as of 9 January 2026, the Government has reaffirmed that the bill’s licensing structure (which allows for up to 15 approved operators) is still on schedule. According to the DIA’s most recent update in December 2025, a competitive auction for these licences is set to begin on 2 February 2026, with successful bidders expected to be announced in April. If the timeline holds, licensed platforms could be operating before the end of the year.
The legal changes also reflect the wider changes in how New Zealand is managing digital gambling activity. Amendments made earlier in 2025 to the Racing Industry Act 2020 formalised TAB NZ’s exclusive control over online sports and racing betting, closing the door to offshore bookmakers. The upcoming casino-specific framework extends this logic to the wider online gaming environment. It focuses on consumer protection measures like transparent dispute pathways and harm-minimisation tools. Officials have indicated that unlicensed operators will be banned from serving New Zealand customers after 31 December 2026. Proposed penalties for this reach up to NZ$5 million for non-compliance.
Tax settings are also set to change under the proposed system. The Ministry of Internal Affairs has backed an increase in the Offshore Gambling Duty from 12% to 16%. This is on the basis that it will ensure significant contributions to community and welfare funding. This adjustment was first floated in late 2025, and it aligns with public expectations that any expansion of online gambling access should also be able to deliver measurable social returns.
As New Zealand approaches the February licensing auction, industry groups, technology providers, and offshore operators are all keeping a close eye. The next 11 months will determine the pace and shape of the country’s first regulated online casino market.