The country’s government announced it would regulate online casinos for the first time in July. It agreed a high-level approach to online casino regulation. This, it said, is designed to minimise harm, support tax collection and provide consumer protections to New Zealand players.
It plans to pass legislation for a licensing system in 2025. A bill will be introduced in April 2025 then enacted before the end of the year. The vetting and auction process will start on 2 February 2026 and licensed providers will be able to commence trading in April 2026.
In an update on the country’s gambling regulation, Van Velden said each brand would require one licence to operate and these 15 licences will be awarded by auction.
According to cabinet papers filed on 9 September, a number of already present operators have expressed interest in applying for an online licence. These include SkyCity, TAB NZ, Grand Casino Dunedin, Christchurch Casino, Class 4 societies, 888, Bet365, SpinBet, Spin City, and Super Group (including Betway).
There are 36 online operators registered and paying Goods and Services Tax (GST) to the New Zealand government. This includes global operators Flutter, Super Group, Bet365 and Entain as well as local land-based incumbent SkyCity.
Revenue and tax data from Inland Revenue shows that the leading 15 operators accounted for over 90% of online gambling GST in the last three years.
“This suggests that a high channeling rate and maximising revenue can be achieved without a large number of operators. Limiting the number of licensed operators will reduce regulatory costs of the regime,” the cabinet papers noted.
TAB NZ will need government approval to offer online casino
Notably the filing suggested Tab NZ, New Zealand’s online betting monopoly that’s operated in partnership with Entain, should “remain outside the online casino regulatory regime” as it is already regulated for betting.
However, Minister for Racing Winston Peters will ultimately determine whether TAB can apply for an online casino licence.
When considering the established land-based sector in New Zealand, the filing suggests casinos should be able to apply for online casino licences. SkyCity and Christchurch already operate online gaming businesses via the current offshore model, but Dunedin’s Grand Casino does not.
Operators to face million-dollar fines for breaching player harm rules
On player protection measures, Van Velden this week said operators could face fines of up to NZ$5 million for breaching player protection rules. These will include restrictions on gambling advertising and a total ban on ads appealing to minors.
Similarly, operators will require an age verification system for players to enter their products.
“My goal is not to increase the amount of gambling that is happening online, but to enable New Zealanders who wish to play casino games online to do so more safely than they can today,” Van Velden said.
“Currently, New Zealanders can and do gamble on thousands of offshore gambling websites. By introducing a regulatory system my intention is to channel customers towards up to 15 licensed operators.”
“Further regulations will be developed on the detailed rules around advertising, as well as harm minimisation and consumer protection requirements. This is the same approach used in the existing Gambling Act and will give us more flexibility to adjust the regulations where necessary.”
Original article: https://igamingbusiness.com/legal-compliance/regulation/new-zealand-online-casino/
