New Zealand to offer 15 online casino licences under landmark gambling reform
New Zealand will make available 15 online casino licences under new legislation that aims to regulate the country’s online gambling market.
Minister of Internal Affairs Brooke van Velden introduced the Online Casino Gambling Bill to the House of Representatives on Monday. The move follows the Cabinet’s earlier decision to regulate the currently unregulated online casino sector.
According to the bill, licensed operators will be allowed to advertise, although restrictions will apply. Unlicensed operators could face fines of up to NZ$5 million ($3 million) for breaking the law.
Applicants for one of the 15 three-year licences must submit detailed business plans to the regulator. These include operational strategies for New Zealand. So far, the likes of SkyCity, TAB NZ, 888 and Bet365 have shown an interest in entering the New Zealand iGaming market once it opens for business.
Van Velden confirmed that detailed regulations on advertising and harm prevention are in development. The government will specify the requirements that operators must meet.
“The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritise harm minimisation, consumer protection and tax collection,” said Van Velden.
“The bill will proceed to select committee later this year and New Zealanders will have the ability to have their say through the select committee process.”
Three-step New Zealand gambling licensing procedure
While the finer details of the regulatory system are being developed, the bill sets out key licence conditions.
The bill establishes a structured three-step licensing procedure, starting with an invitation for expressions of interest. This is followed by a competitive process, and finally, formal applications.
The Department of Internal Affairs will maintain full regulatory authority, including licensing, oversight, enforcement and the publication of a public operator registry. It will also hold powers to issue take-down notices, formal warnings and binding undertakings.
Operators must take all reasonable steps to minimise the risk of harm caused by online casino gambling. They must also exclude anyone who identifies as a problem gambler or requests to be banned from the platform.
The bill bans offering credit to gamblers when the operator knows – or should know – it is intended for gambling. It also prevents licensees from offering products that closely resemble existing National Lottery games.
The Online Casino Gambling Bill’s introduction comes just days after a law was passed that confirms TAB NZ as the sole legal provider of online sports and racing betting in the country. It is thought that the new regulations could provide a major boost to the nation’s betting industry.
TAB partner Entain this week committed to injecting NZ$100 million into the racing sector after the amendments came into effect.
The ruling National Party backed gambling reform ahead of its election victory in 2023. During the campaign, New Zealand’s two main parties clashed over the subject of offshore gambling revenue. National said it could raise NZ$179 million per year from offshore operators.
Earlier this year, H2 Gambling Capital estimated just 10% of New Zealand’s online gaming revenue was generated onshore.