New Zealand is preparing to implement a regulated framework for online casinos by early 2026, aiming to create a safer environment for players while curbing potential harm. Internal Affairs Minister Brooke van Velden announced that up to 15 operators would be licensed under the new system, which includes strict measures for consumer protection.
“Currently, New Zealanders can and do gamble on thousands of offshore gambling websites,” Van Velden stated. “By introducing a regulatory system, my intention is to channel customers towards up to fifteen licensed operators.”
The government had first announced plans in July to regulate online casinos, restricting operators to providing only casino games and excluding sports betting and lottery services. Players must be at least 18 years old to access these platforms, and operators will face fines of up to NZ$5 million if they fail to comply with the new rules.
Licensing Framework and Player Safeguards
The proposed regulatory system includes several measures to enhance safety and accountability. Operators will need to establish robust age verification systems and implement harm prevention strategies. Additionally, advertisements targeting children will be strictly prohibited. Rule-breaking operators risk severe penalties, including take-down notices and potential loss of international licenses.
To streamline operations, a public registry will list all licensed brands. The government plans to introduce the necessary legislation in 2025, followed by an auction process for the licenses in early 2026. According to Van Velden, further regulations will outline advertising rules and consumer protection requirements, ensuring flexibility to adapt over time.
The approach draws from New Zealand’s existing Gambling Act, which prioritizes harm minimization and tax revenue collection. This structured system aims to channel players toward licensed operators, significantly reducing the risks posed by unregulated offshore websites.
Balancing Regulation with Market Demand
The forthcoming legislation also seeks to balance the online casino market with the interests of local stakeholders. Current cabinet filings highlight that several established operators, including land-based casinos like SkyCity and Christchurch Casino, may apply for online licenses. Notably, the government has recommended that TAB NZ, the country’s betting monopoly, be excluded from the online casino framework unless Racing Minister Winston Peters decides otherwise.
The limited number of licenses is a deliberate strategy to keep regulatory costs manageable while maximizing revenue. Inland Revenue data shows that the top 15 operators currently generate over 90% of the Goods and Services Tax (GST) from online gambling, underscoring the financial efficiency of limiting the market.
Van Velden reiterated that the primary goal of the regulation is safety: “My goal is not to increase the amount of gambling that is happening online, but to enable New Zealanders who wish to play casino games online to do so more safely than they can today.”
As the country progresses toward a regulated online casino market, the government aims to strike a balance between consumer protection and market efficiency, setting a precedent for responsible gambling practices.
Source:
- “New Zealand plans to limit online casino gambling licenses, ban ads aimed at children,” Reuters, November 13, 2024.
- “Unlicensed online casinos face $5M fines in gambling crackdown” RNZ, November 13, 2024.
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