Understanding online casino security measures in New Zealand

The popularity of online gambling is growing in Aotearoa. However, under the bright lights and alluring graphics, a more sought-after question lurks—how safe are these online casinos?

The use of online casinos has been on the rise in New Zealand. A report by the Department of Internal Affairs (DIA) in 2024 indicated that close to 13% of adult Kiwis participated in some form of gambling online in the preceding year, which is an increase from 8% five years ago. There has been an increase in the use of offshore online casinos, which is largely attributed to the legal void that New Zealand laws create.

With the increase in the usage of offshore online casinos, worries about their regulation arise. Other concerns, such as the safety of the users, fairness of the casino, and adequate measures to protect the player, have also emerged due to this increased usage. In this article, we will discuss the regulation framework that exists for casinos and the measures taken by them to ensure compliance.

The Significance of Safety in Online Casinos

Although online gambling isn’t an entirely new invention, transitioning from pub pokies to smartphone apps brings about new threats. Issues such as data leaks, rigged games, and fraudulent operators, unstable betting markets have made international headlines already. In 2023 alone, Australian authorities seized over 600 illegal gambling websites for unlicensed activity. Many of the sites sparked interest with Kiwi users as well.

As for New Zealand, the only operators permitted by the Gambling Act 2003 to provide online casino services are the Lotteries Commission and TAB. However, there is also no law which stops foreigners from using gambling sites not located within New Zealand’s borders. Unfortunately, this legal loophole places the burden of verifying the legitimacy and safety of the site on the user.

Players have a wide variety of tools to verify whether a casino is operating transparently and securely. These include protecting information through encryption, other verifying measures such as robust firewalls, auditing by an independent party, and responsible gambling measures. With the overwhelming amount of appealing promotion ads, such as common bonuses like the $20 casino bonus on registration seen on multiple international sites, discerning trustworthy casinos from shady ones becomes exceedingly difficult.

Regulatory Bodies in New Zealand

When it comes to offshore operators, New Zealand’s regulatory framework regarding online casinos isn’t particularly strict. The Department of Internal Affairs (DIA) is responsible for domestic gambling compliance, but it doesn’t control affairs outside of New Zealand. Thus, enforcement capabilities are limited.

On the bright side, the DIA supervises advertising and can ban false or unlawful advertising of gambling activities. In early 2024, it warned several digital hosts of unlicensed casino ads over the alleged exploitation.

“Empowering” is the best term to describe casino players who use overseas sites, as their best approach is trusting the operator’s published licensing body. Malta (MGA), the United Kingdom (UKGC), and Curaçao mark authoritative jurisdictions. Although all three have varying degrees of oversight, UK and Malta-licensed casinos generally require adherence to stronger anti-money laundering and responsible gaming measures, unlike others.

Nevertheless, not every authorising body merits as much attention, with a critical case being cited. A 2023 study conducted by the Netherlands Authority for Consumers and Markets exposed that over 30% of operators licensed in Curaçao do not meet even the most fundamental standards for consumer protection.

Licensing and Compliance Standards

Other than the state-run NZ Lotteries and TAB, no online casinos in New Zealand possess an official license. However, they are bound by the terms of the foreign licenses they operate under. At the very least, lower-tier licenses should include the requirements of SSL encryption, independent game audits from eCOGRA or iTech Labs, and KYC protocols.

Accessibility to the terms, along with the practicality of the measures taken, also shows how seriously an operator takes compliance. Responsible gambling measures, along with deposit limits, self-exclusion, and session reminders, are standard in well-regulated casinos. On the other hand, difficult withdrawal processes, excessive personal requirements, and lack of support responses are major red flags.

Removing initial deposit requirements with promotional bonuses can get new players in the door, but they can be problematic when it comes to withdrawals. For example, the $20 casino bonus on registration is often tied to wagering requirements. A consumer watchdog report in New Zealand found that 61% of respondents claimed to either misunderstand or be unaware of the conditions tied to such promotions, which led to disputes over withdrawals.

Looking Ahead

The due diligence needed in online gambling now fully rests on the shoulders of players, with more of it becoming intricately woven into New Zealand’s digital culture. Domestic legislation continues to be outpaced by international frameworks. Users are on their own to navigate what makes a casino platform safe, fair, and legally compliant.

The good and bad are equally abundant. But informing oneself about the limits of local laws, recognising meaningful security and fraud prevention standards, and thoroughly examining the terms and conditions of enticing promotional offers all help mitigate the risks associated with engaging in online gambling.