New Zealand's Online Casino Shake-Up: Key Changes Coming
- Online Casinos
- New Zealand’s Push to Regulate Online Casino Industry: Key Changes and Upcoming Regulations
The offline gambling sector in New Zealand is undergoing significant changes under the new Gambling Act, aiming to improve the overall quality of gambling sites in NZ.
For years, online gambling in New Zealand has mostly been unregulated, meaning that Kiwis who wanted to play pokies or table games online at a licensed and secure site could register at offshore casinos. The government recently announced that it will regulate online casinos, marking a big change under the new National Party-led government.
The new changes will ensure licensed operators follow all the rules that protect players. This decision comes at a time when it’s never been as important to have safer and more controlled gambling options.
High on the list of priorities for the new regulations is to reduce gambling-related harm with solid, responsible tools at NZ Casinos. Let’s take a look at what is planned below.
Key Changes in NZ Online Casino Regulations
Van Helden shared some details about the government’s plans. Her department will be responsible for regulating NZ’s online casino operators. The New Zealand government will regulate online casinos through a licensing system, with only a few licenses given by auction.
Some of the major points of the plan include:
- There are strict requirements imposed on gambling advertisements, but sponsorships by online casinos remain banned.
- The NZ government said casino products must be separated from other gambling products, and sports betting and lotteries must not be offered alongside casinos.
- New Zealanders can help shape the final regulations by providing feedback to the Select Committee.
- The main goal of the new regulations is to ensure licensed operators prioritise player safety and reduce gambling-related harm by providing a transparent, fair gaming experience.
1. Licensing of Online Casinos: Introduction of limited licenses for operators.
The New Zealand National Party plans to issue a select amount of licences through an auction. The licenses will be valid for three years, but this is contingent on the casino’s continuous compliance with the regulatory rules and standards.
The minimum age for playing online gambling is 18, and the license only covers online casino games and excludes sports betting and lottery offerings.
During election campaigns last year, the National Party said it could raise $179m per year from online operators. It claimed the previous Labour Party government was not collecting tax from the unregulated offshore sector.
The Labour Party responded by saying it had collected a 15% GST tax (Goods and Services) on services and intangibles supplied remotely by offshore suppliers since October 2016.
There are 15 licences available, allocated by auction in a two-stage process. Operators begin with the entry assessment stage and then move on to the bidding stage, where they must meet specific criteria before being allowed to compete in the auction.
The hoops to jump include integrity, harm minimization standards, financial solvency, compliance history in New Zealand, key person checks, and transparency of ownership.
Each license issued is only valid for 3 years and is non-transferable.
2. Age Verification System: Requirement for age checks to prevent underage gambling.
The minimum age required for online gambling is 18, and to ensure this, online gambling operators must have an acceptable age verification system according to new regulations in NZ. The harm minimization standards will be set by regulation.
3. Advertising Restrictions: Ban on gambling ads targeted at children.
For the first time, licensed operators in NZ will be allowed to advertise, but they will have to meet very strict rules. The ban on gambling adverts targeted at children will remain in effect, and online casino sites will not be allowed to sponsor sports teams.
Minister van Velden anticipates that the new regulatory system will be operational by early 2026, with the public having the opportunity to contribute opinions during the Select Committee process.
Fines and Penalties
The licensing framework is for online casino games such as online pokies and table games but is not available for sports betting or lottery products. Operators found in violation of the Gambling Act will face strict penalties, with fines up to $25 Million for serious breaches.
There will be application fees in place to cover the direct cost to the Regulator, but these fees will be in proportion to their NZ-earned revenue. In addition to the already 15% GST and 12% online casino duty, licensed sites must pay a problem gambling levy, which has been estimated to be 1.3%.
Timeline for Implementation
While public consultations began in mid-2024, the rollout of these regulations follows a structured timeline. At its start, stakeholders like consumers, operators, and advocacy groups could provide feedback. Still, by 2025, the select committee will finalize the framework to continue with full implementation, predicted to be in 2026.
During the transitional period, existing operators targeting the NZ market must prepare for compliance, while new licenses will be issued to new entrants to align their business models.
Why These Changes Matter
| Importance of protecting New Zealanders from unregulated gambling. | Balancing safety and the growing online gambling trend. |
|---|---|
| Protecting New Zealanders from unregulated gambling is essential to ensure transparency and fair play. It’s also essential to safeguard players against addiction and compulsive gambling issues. The new licensing system will hold operators accountable for ethical practices while retaining gambling revenue within the country to support local development. | These measures aim to boost consumer confidence and ensure the safety of money and data. While balancing industry growth with public welfare and addressing the risks of unregulated platforms and offshore revenue loss, NZ sets a precedent for responsible and transparent gambling practices that benefit players and the economy. |
Conclusion
These proposed changes to the Gambling Act are set to provide greater confidence to players in NZ and more opportunities for operators to market and promote themselves.
The NZ online gambling spend is said to be between $500m and $900m annually, and it seems inevitable that it will grow. A set licensing system in NZ allows players to access more pokies at minimum deposit casinos and thrilling live games across poker, blackjack, and roulette games, along with live game shows like Crazy Time and Monopoly Live.
