The bill, tabled by Minister of Internal Affairs Brooke van Velden today (30 June), aims to create a comprehensive framework for online casino gambling, which remains unregulated under current legislation.
Van Velden emphasised that the bill will place harm minimisation, consumer protection, and tax collection at the core of its regulatory approach.
Until now, New Zealanders have been able to access offshore online casino platforms without any government oversight.
This has resulted in a grey market that lacks consumer safeguards and offers no return to the public in terms of tax revenue or funding for harm prevention.
Under the proposed legislation, up to 15 licences for online casino operators will be auctioned, allowing the government to control market entry while generating revenue through licensing fees.
Applicants will be required to present detailed operational and business plans to the national regulator, ensuring that only well-prepared and responsible operators are eligible for licensing.
Once approved, these operators will be allowed to advertise within New Zealand, although such advertising will be subject to restrictions still under development.
The regulatory scheme will include significant penalties for those who attempt to operate without a licence. Unlicensed operators targeting New Zealanders could face fines of up to NZ$5m.
Regulations outlining harm minimisation standards and advertising restrictions are currently being drafted and are expected to accompany the bill’s advancement through parliament.
The bill is scheduled to progress to the select committee stage later this year.
Grand View Research has previously predicted that New Zealand’s online casino market could reach US$584.5m in revenue by 2030.
New Zealand shores up sports betting market
In parallel with the introduction of this bill, the government has confirmed that amendments to the Racing Industry Act 2020 have received Royal Assent, setting the stage for a shift in the country’s approach to online betting.
Effective as of 28 June, the revised act establishes a “legislative net” to prohibit offshore operators from providing wagering services to New Zealand residents without a licence.
This development expands the statutory exclusivity of TAB New Zealand (TAB NZ), which previously only covered land-based racing and sports betting, to the online space.
The extension of TAB NZ’s rights and the legislative crackdown on offshore betting are directly tied to the government’s aim of keeping gambling revenues within New Zealand’s borders.
This move is expected to bolster the long-term financial sustainability of New Zealand’s racing and sports betting sectors, which have been under increasing financial strain in recent years.
The impact of these reforms will be significantly felt in the relationship between TAB NZ and Entain Australia.
The two entities signed a 25-year strategic partnership agreement in June 2023, with Entain agreeing to deliver an enhanced onshore betting experience and advanced harm reduction tools for New Zealand players.
As part of the agreement, Entain is set to pay an additional NZ$100m to TAB NZ upon the full implementation of the legislative net.
This payment marks a pivotal moment in the commercialisation of the country’s betting infrastructure and serves as a pragmatic demonstration of the government’s resolve to align public policy with financial incentives.
Dingnews.com 01/07/2025