In a ground-breaking move, New Zealand’s authorities have announced that they’re planning to start to regulate the online casino industry. According to the details, the new regulatory framework is set to go into effect in 2026 and will restrict unlicensed operators from offering their services to Kiwi players.
The Goal is To Minimise Harm and Increase Tax Collection
While speaking on the development, Brooke van Velden, New Zealand’s ministry of internal affairs, said that casinos that don’t have a domestic licence won’t be able to operate on the NZ market. The goal of the new regulatory framework is to increase customer protection and tax collection.
Authorities will be able to block unlicensed sites and thus, minimise harm to consumers. Due to the fact that the online gambling industry is unregulated at the moment, there are a lot of scam sites that lure NZ players. While speaking about the plan, Van Velden noted that the ministry of internal affairs will be responsible for regulating gambling sites. Licences will be issued through auctions and their number will be limited. Bidders will also have to meet regulatory requirements. Additionally, the NZ government stated that the licences will be issued strictly for casino gaming. They won’t cover lottery or sports betting products. Currently, the sole provider of sports betting (and horse racing) in New Zealand is TAB.
Back in March 2023, TAB NZ penned a 25-year strategic partnership with Entain, which saw the former boosting sports betting, horse racing and communities for a generation. Mark Stewart, the chairman of TAB NZ stated that the board gave its full support to the partnership.
Key Objectives of the New Regulatory Framework
According to Brooke van Velden, New Zealand’s Minister of Internal Affairs, the primary goal of the new legislation is to protect consumers and increase tax collection. The ministry will oversee the process, issuing limited licenses through auctions to ensure only qualified operators meet the stringent requirements.
Highlights of the New Regulation:
Unlicensed operators will be banned, preventing them from targeting New Zealand players.
Licenses will focus solely on casino gaming, excluding lottery and sports betting, which remain under the jurisdiction of TAB NZ.
Site-blocking measures will prevent access to unregulated platforms, reducing the risk of scams and unsafe gambling practices.
This regulation is a response to the current unregulated market, which has allowed offshore operators to thrive, often at the expense of Kiwi players who fall victim to rogue sites.
SkyCity Entertainment Group Welcomes the Changes
SkyCity Entertainment Group, one of New Zealand’s largest gambling operators, has expressed full support for the new framework. Jason Walbridge, CEO of SkyCity, stated that these changes will help minimize harm while keeping gambling-related revenues within New Zealand to benefit communities and public services.
Walbridge also noted that limiting the number of licenses and advertising would further enhance player protection. Currently, a significant portion of gambling revenue is lost to offshore casinos. The new framework ensures that these funds stay within New Zealand as taxes and community benefits.
Strict Licensing Requirements
Operators bidding for licenses will need to:
Meet regulatory standards, including the implementation of advanced security measures and responsible gambling tools.
Prove their financial stability and ethical conduct, with no history of criminal activity.
Focus exclusively on casino gaming, as lotteries and sports betting will remain under TAB NZ’s control.
This approach aims to keep the number of operators manageable, reducing the potential for market oversaturation and gambling-related harm.
Offshore Gambling Operators Under Scrutiny
The regulation also addresses long-standing debates over offshore gambling revenue. The National Party, which won the October 2023 elections, had proposed closing tax loopholes to ensure offshore operators contribute their fair share. Nicola Willis, the party’s deputy leader, estimated this move could generate NZ$179 million annually by enforcing goods and services taxes (GST) on offshore platforms.
Labour Party representatives previously countered this claim, stating that GST already collects NZ$40 million annually from such operators. However, with the National Party now in power, the focus has shifted towards effective taxation policies and ensuring that New Zealand benefits financially from online gambling.
What This Means for Kiwi Gamblers?
For players, the new framework promises:
Safer Gambling Environment
Licensed casinos will feature strong security measures, responsible gambling tools, and reliable payouts.
Fewer Scam Sites
Site-blocking technology will protect players from unlicensed and potentially fraudulent platforms.
Better Game Selection
Licensed casinos will likely partner with top providers, offering high-quality games with fair RNG systems.
However, the changes could also limit the number of platforms available, making it essential for players to carefully choose from approved operators.
TAB NZ’s Continued Monopoly on Sports Betting
While casino gaming licenses will be auctioned, sports betting remains under the control of TAB NZ. In 2023, TAB partnered with Entain for a 25-year agreement, strengthening sports betting, horse racing, and community funding initiatives.
This strategic move ensures that sports betting revenue remains tightly regulated, maintaining the government’s goal of minimizing harm and maximizing community benefits.
A Positive Shift for the Industry
New Zealand’s decision to regulate the online casino market marks a significant step forward, balancing player protection with revenue generation. By ensuring that only licensed operators can access the market, the government is creating a safer, more transparent gambling environment while keeping profits within the country.
As the new framework develops, players can look forward to a more secure and enjoyable online gambling experience, knowing their interests are protected.