New Zealand to License 15 Online Casino Operators: A New Era in Regulated Gambling
New Zealand is set to roll out 15 online casino licenses as part of its initiative to regulate the previously unregulated online gambling scene.
The legislation, known as the Online Casino Gambling Bill, was introduced in Parliament by Minister of Internal Affairs Brooke van Velden on Monday. This initiative follows a Cabinet resolution aimed at creating a safer and more monitored online gambling environment.
Under the new law, licensed operators will have the ability to advertise their services, although there will be specific restrictions in place. Those who operate without a license risk facing hefty fines—up to NZ$5 million (approximately $3 million)—for noncompliance.
Entities seeking one of these coveted three-year licenses must provide comprehensive business proposals to regulators, detailing their strategies tailored specifically for the New Zealand market. Notable companies such as SkyCity, TAB NZ, 888, and Bet365 have expressed their intention to enter the Kiwi iGaming landscape once it becomes operational.
Van Velden also highlighted that the government is in the process of developing stringent rules around advertising and responsible gambling practices. Operators will be required to comply with strict regulations designed to protect consumers and minimize gambling-related harm.
"The passage of the Online Casino Gambling Bill signifies a transformative step for online gambling in New Zealand, focusing on harm reduction, consumer safety, and enhanced tax revenue," van Velden stated. The bill will undergo a select committee review later this year, allowing New Zealanders an opportunity to weigh in on this significant legislation.
A Clear Pathway: The Licensing Process
As the government finalizes the regulatory framework, the bill outlines a straightforward three-phase licensing process. This begins with an invitation for expressions of interest followed by a competitive selection stage and culminating in formal applications.
The Department of Internal Affairs will assume full oversight, managing licensing, compliance enforcement, and maintaining a public registry of licensed operators. This body will also have the authority to issue removal notices and impose penalties as needed.
To safeguard players, operators must implement measures to mitigate risks associated with online gambling. This includes ensuring self-exclusion for known problem gamblers and prohibiting credit offerings for gambling purposes.
Additionally, the bill bans any gambling products that closely resemble existing National Lottery games, aiming to preserve the integrity of traditional gaming formats.
The introduction of the Online Casino Gambling Bill coincides with a recent law confirming TAB NZ as the exclusive legal provider for online sports and racing betting, which many believe will invigorate the national betting industry.
In a show of confidence in the sector, TAB has partnered with Entain, committing to invest NZ$100 million into the racing industry as the new regulations take effect.
The ruling National Party has been a proponent of gambling reforms since its electoral win in 2023. During the campaign, the party highlighted the potential of increasing revenue from offshore gambling operations, estimating it could yield NZ$179 million annually.
A recent report from H2 Gambling Capital indicated that only 10% of New Zealand’s online gaming revenue is generated within the country, underscoring the need for increased local offerings and regulation.