New Zealand To Welcome Regulated Online Casino Market by 2026

Article by : Erik Gibbs Jul 31, 2024

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In a landmark and unprecedented move, New Zealand is set to welcome a regulated online casino market by the year 2026. This strategic decision marks a significant shift in the country’s approach to online gambling, aiming to establish a controlled environment that prioritizes consumer protection, harm minimization, and tax collection.

The forthcoming regulatory framework, as outlined by the government, will introduce a licensing system that mandates online casino operators to adhere to stringent criteria before they can offer their services to New Zealanders.

The Minister of Internal Affairs, Brooke van Velden, has emphasized that the primary intent of this regulation is not to increase gambling activities but to ensure that operators meet the necessary requirements for consumer protection and harm minimization, in addition to fulfilling their tax obligations. This initiative is expected to make it illegal for unlicensed entities to operate within New Zealand, thereby clamping down on the unregulated offshore sector that has been a concern for policymakers.

The government plans to issue a limited number of licenses through an auction process, with each license valid for a period of three years, contingent on continuous compliance with the regulatory standards. The minimum age for participating in online gambling will be set at 18 years, and the licensing will exclusively cover online casino gaming, excluding sports betting and lottery offerings.

Licensed operators will be granted permission to engage in advertising, which is currently banned in the country. However, strict restrictions will remain in place, particularly concerning sports sponsorships by online casinos, which will continue to be prohibited.

The new regulatory system is anticipated to be operational by early 2026, with the public having the opportunity to contribute opinions during the Select Committee process. The selection process will likely begin sometime in 2025.

Once established, the Department of Internal Affairs will oversee the regulation, ensuring that the framework aligns with both community expectations and operational integrity. During the election campaigns last year, the National Party projected that it could raise NZ$179 million (US$105.4 million) per year from online operators. This projection was in contrast to the previous Labour Party government’s claim of collecting a 15% goods and services tax (GST) on services and intangibles supplied remotely by offshore suppliers since October 2016.

SkyCity Entertainment Group, New Zealand’s largest tourism, leisure, and entertainment company, has welcomed the announcement. The company remains supportive of regulating online casino gaming in New Zealand and has underscored the importance of strong host responsibility and delivering community benefits as part of this regulatory approach.