New Zealand has taken steps to regulate its online gambling industry by introducing the Online Casino Gambling Bill to Parliament on June 30. Proposed by Minister of Internal Affairs Brooke van Velden, the bill aims to implement a structured licensing system in a previously unregulated space.
Currently, Kiwis can access offshore casino platforms beyond domestic control, leading to a growing grey market without consumer safeguards or tax contributions. “The Online Casino Gambling Bill will establish a regulatory framework for online gambling in New Zealand, focusing on minimizing harm, protecting consumers, and collecting taxes,” said Minister van Velden.
The bill is part of the Coalition Government’s Quarter Two Action Plan and will soon move to the select committee phase, allowing public feedback on the proposal.
Licensing Procedures and Restrictions
The bill introduces a three-step licensing process: inviting expressions of interest, a competitive procedure, and formal applications. The Secretary for Internal Affairs will oversee this process and can issue up to 15 online casino licenses. Each license will initially be valid for three years, with a one-time renewal for up to five additional years.
Applicants must present thorough documentation, including business plans and harm minimization strategies. Successful licensees can advertise within New Zealand, subject to future regulations.
Non-compliance or unlicensed operations will result in severe penalties. Unlicensed providers could face fines up to NZ$5 million, while individuals or corporations could incur civil penalties of up to NZ$300,000 and NZ$5 million, respectively. Facilitating underage gambling may result in a criminal fine of up to NZ$10,000.
There will be a transition period allowing existing platforms to operate until the end of 2026, provided they apply for licensing by July 1, 2026. All unlicensed activities will be banned by December 31, 2026.
Regulation, Implementation, and Broader Reform
The Department of Internal Affairs will have full regulatory oversight, including licensing, enforcement, and maintaining a public registry of operators. It will issue take-down notices, warnings, and binding agreements. Operators must fulfill consumer protection obligations like age verification, problem gambler exclusion, a complaint system, and visible registration indicators and alerts on their platforms.
The bill prevents licensees from offering games similar to national lottery offerings like Lotto, Powerball, and Strike, to preserve the integrity and funding of these services.
This bill complements the recent changes to the Racing Industry Act 2020, which took effect on June 28, reinforcing TAB New Zealand’s exclusive rights to provide online racing and sports betting. These amendments prevent unlicensed offshore operators from targeting New Zealand consumers, tightening the country’s gambling regulations.
The reforms aim to retain gambling revenue within New Zealand, supporting local racing and harm prevention efforts. Entain Australia, in a 25-year partnership with TAB NZ, supports the legislative changes and will contribute an additional NZ$100 million following the implementation of the “legislative net.”
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com