New Zealand has taken a significant step towards regulating its online gambling sector by introducing the Online Casino Gambling Bill to parliament. The bill, presented by Minister of Internal Affairs Brooke van Velden, aims to establish a comprehensive framework for online casino gambling, which currently operates without regulation.
Van Velden highlighted that the bill’s core focus is on harm minimisation, consumer protection, and tax collection. The absence of government oversight has allowed New Zealanders to access offshore online casino platforms, creating a grey market devoid of consumer safeguards and tax contributions for harm prevention.
The proposed legislation plans to auction up to 15 licenses for online casino operators, enabling the government to control market entry and generate revenue through licensing fees. Applicants must submit detailed operational and business plans to ensure only responsible operators receive licenses.
Once approved, licensed operators will be permitted to advertise within New Zealand, subject to forthcoming restrictions. The regulatory framework includes penalties of up to NZ$5m for unlicensed operators targeting New Zealand residents.
Regulations on harm minimisation standards and advertising restrictions are currently in development and will accompany the bill’s progress through parliament. The bill is set to advance to the select committee stage later this year.
Grand View Research predicts that New Zealand’s online casino market could generate US$584.5m in revenue by 2030, indicating significant growth potential in the sector.
Concurrently, amendments to the Racing Industry Act 2020 have received Royal Assent, signaling a shift in New Zealand’s approach to online betting. The revised act prohibits offshore operators from offering wagering services to New Zealand residents without a license, strengthening TAB New Zealand’s exclusivity rights in the online space.
This legislative crackdown on offshore betting aligns with the government’s objective of retaining gambling revenues within New Zealand, supporting the financial sustainability of the racing and sports betting sectors. The amendments are expected to impact the partnership between TAB NZ and Entain Australia, enhancing harm reduction tools and onshore betting experiences for New Zealand players.
Entain is poised to pay an additional NZ$100m to TAB NZ following the full implementation of the legislative net, marking a pivotal moment in the commercialisation of New Zealand’s betting infrastructure. This development underscores the government’s commitment to align public policy with financial incentives and strengthen the country’s betting industry.
These regulatory moves reflect a broader trend towards the increased oversight and regulation of the gambling industry globally, as governments seek to balance consumer protection with revenue generation and harm prevention.
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