New Zealand begins process to regulate online casinos
The New Zealand government is set to regulate online casinos for the first time, with a licensing framework currently under development and expected to be implemented by 2026.
The government has endorsed a high-level strategy for online casino regulation, aimed at reducing harm, ensuring tax compliance, and providing consumer protections for New Zealand players.
According to Brooke van Velden, the Minister of Internal Affairs, the new regulations will make it illegal for unlicensed operators to target players within the country.
Online casino licenses in New Zealand to be auctioned
While the regulatory framework is still being developed, van Velden shared some key details. Her department will oversee the regulation of
online casino operators in New Zealand.
A limited number of licenses will be available through an auction process, with bidders required to meet specific regulatory criteria. Players must be at least 18 years old to participate.
Although advertising for licensed operators will be allowed, it will be “strictly limited,” and online casinos must be kept separate from other gambling products. The government specified that sports betting and lottery offerings must not be combined with online casino services.
“This initiative is not intended to increase gambling activity among New Zealanders but to ensure operators adhere to consumer protection and harm minimization requirements, as well as fulfill their tax obligations,” van Velden stated.
The public will have the opportunity to provide feedback on the regulatory proposals during the select committee process.
The government plans to introduce the new regulatory framework for online casinos by 2026.
Industry Response to the New Regulations
SkyCity Entertainment Group, a major casino operator, has already expressed its support for the new regulations.
“We fully support the regulation of online casino gaming in New Zealand, with a focus on strong host responsibility and delivering community benefits,” SkyCity commented.
In a LinkedIn post shortly after the announcement, SkyCity’s CEO, Jason Walbridge, particularly welcomed the plans to limit the number of licenses and advertising.
“SkyCity has long advocated for the regulation of online gambling to minimize harm and protect New Zealanders,” he said. “Restricting advertising and the number of operators in New Zealand is a good approach.”
“Currently, a significant amount of money is going offshore that should be retained in New Zealand for tax and community benefits. We hope this will be a key aspect of the new regulatory framework.”
Shifts in New Zealand’s Gambling Landscape
If New Zealand proceeds with its plan to regulate online casinos, it will mark the first significant change to the country’s gambling laws under the new government. The National Party won last year’s election, ending the Labour Party’s tenure in power.
During the election campaign, the two major parties debated the issue of offshore gambling revenue. The National Party estimated that it could generate NZ$179 million annually from offshore operators and criticized the lack of goods and services tax (GST) collection from the black market. They proposed requiring online casino operators to register and report their earnings.
However, the Labour Party disputed these figures, stating that GST generates around $40 million annually. Since October 2016, New Zealand has collected GST at a rate of 15% on services and intangibles provided remotely by offshore suppliers.
In addition to these developments, the horse racing industry in New Zealand has undergone significant reforms. In August 2020, TAB New Zealand assumed control of the country’s horse racing industry.
TAB NZ replaced the Racing Industry Transition Agency, which succeeded the New Zealand Racing Board (NZRB) in managing the transition to a new governance model. However, rising costs and capital constraints last year led TAB NZ to seek an external partner for wagering and broadcast services, with Entain stepping in to fill this role.