New Zealand is set to introduce a comprehensive regulatory framework for online casinos by early 2026. The new system, aimed at curbing risks and ensuring a safer gambling environment, will impose strict rules on operators and limit licenses to just 15 providers.

Internal Affairs Minister Brooke van Velden announced the upcoming regulations, which are designed to channel gamblers away from unregulated offshore websites and into safer, licensed platforms. The new rules will include measures such as age verification, advertising restrictions, and hefty fines for non-compliance, signaling a firm approach to online gambling in the country.

Regulatory Framework and Key Measures

The government’s proposal for online casino regulation is built around strong safeguards aimed at consumer protection. One of the major highlights of the new system is the imposition of fines of up to NZ$5 million for operators who fail to adhere to the rules. Additionally, age verification processes will be mandatory, ensuring that only those aged 18 or older can access online casino platforms.

“We are aware that New Zealanders are already gambling on a wide range of offshore websites, and our goal is to ensure that players are directed to reputable, licensed providers,” van Velden said. “The new system will help us create a safer online gambling environment and reduce harm.”

Another critical aspect of the regulations is the ban on advertisements aimed at children. The government is taking a strong stance on protecting younger audiences from being exposed to gambling content, ensuring that advertisements for online casinos are only directed at appropriate age groups.

The regulatory framework will also feature a public registry listing all licensed operators, making it easier for consumers to identify trusted providers. The government intends to introduce the necessary legislation in 2025, followed by an auction process to grant licenses to the 15 selected operators in early 2026.

A Limited Number of Licenses for Efficiency

A key element of the proposed regulation is the restriction of online casino licenses to just 15 operators. This limited number is intended to balance regulatory costs and maximize revenue, ensuring that only the most established players can access the market. This strategy is informed by Inland Revenue data, which shows that the top 15 online operators generate over 90% of the Goods and Services Tax (GST) from online gambling.

By keeping the number of operators low, the government aims to foster a more efficient, tightly controlled online casino market. This approach also allows authorities to focus on managing a smaller, more manageable pool of licensed providers, ensuring stricter oversight and reducing the potential for illegal activities.

The list of 15 operators will be compiled through an auction process, with legislation expected to be finalized in 2025. It’s likely that established operators like SkyCity and Christchurch Casino, both of which already run land-based gambling services, will apply for online casino licenses as they expand their offerings to the digital space.

Harm Prevention and Consumer Protection

The new regulatory framework prioritizes harm minimization, a central tenet of New Zealand’s existing Gambling Act. As part of the regulatory changes, online casino operators will be required to implement harm prevention measures, including responsible gambling tools and resources for players. This could involve features such as self-exclusion options and limits on betting amounts, ensuring that players are better equipped to manage their gambling activities.

The government is also keen on maintaining flexibility in the rules. Van Velden highlighted that as the online gambling landscape evolves, so too will the regulatory framework. “We are committed to ensuring that the rules adapt over time to meet the needs of the market and continue to protect consumers,” she said.

Exclusion of TAB NZ from Online Casino Licensing

One of the more notable aspects of the proposed regulations is the exclusion of TAB NZ, the country’s betting monopoly, from the online casino framework. While TAB NZ is expected to maintain its dominant position in sports betting, it is not slated to offer online casino games under the new system unless Racing Minister Winston Peters intervenes. This move is designed to maintain the integrity of the market and avoid overwhelming the system with too many licenses.

Current reports suggest that several established gambling entities, including major land-based casinos, are likely to apply for online licenses. This shift reflects the growing demand for regulated online gambling options as more New Zealanders seek safe and legal platforms to enjoy their casino games.

Moving Towards a Safer Online Gambling Environment

As New Zealand prepares for this regulatory shift, the focus remains squarely on safety. “The primary goal of these regulations is not to increase the amount of gambling that is happening online but to ensure that New Zealanders who wish to play casino games can do so in a safer environment,” said van Velden.

By providing a regulated market for online casinos, New Zealand aims to reduce the risks posed by unlicensed offshore gambling websites, which currently pose significant challenges in terms of consumer protection and regulatory oversight.

As the government works toward finalizing the framework, the move is seen as a positive step for responsible gambling in the country, providing a safer, more controlled environment for players while maximizing tax revenue from the industry.