New Zealand Moves Toward Regulated Online Casino Market
New Zealand has taken its first legislative step toward establishing a regulated online casino market. On June 30, Minister of Internal Affairs Brooke van Velden introduced the Online Casino Gambling Bill to Parliament, aiming to create a licensing structure that would oversee and formalize what has so far been an unregulated sector.
The proposed law seeks to auction up to 15 licenses for online casino operations, creating a system that prioritizes public safety, responsible gambling, and proper tax contributions. “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 legislation is set to undergo scrutiny from a select committee later in the year, at which point members of the public will be invited to provide feedback.
Three-Phase Licensing Model and Strict Enforcement
The bill proposes a three-step process for issuing licenses: starting with expressions of interest, followed by competitive bidding, and ending with a final application review. Licenses would be valid for three years and could be renewed once for up to five additional years.
Interested applicants will be required to submit tailored business plans, demonstrate operational capability, and prove they meet New Zealand’s stringent harm reduction criteria. While regulated advertising would be allowed, the bill introduces a total ban on unlicensed operators, with violators facing fines up to NZ$5 million (approximately US$3 million).
Further restrictions include prohibiting credit-based gambling and forbidding access to individuals under 18.
Enhanced Consumer Protections and Regulatory Oversight
The Department of Internal Affairs will oversee the implementation of the new system and will maintain a public register of licensed operators. Enforcement measures will include the use of formal warnings, takedown orders, and enforceable undertakings.
Licensed platforms will be obligated to incorporate multiple responsible gambling features: age verification, self-exclusion mechanisms, visible registration and audio prompts, and systems to identify problematic gambling behavior. Operators must run their services for at least 270 days per year, retain user data for anti-money laundering and regulatory compliance, and submit quarterly activity reports. A structured process for consumer complaints is also mandated.
Failure to comply with the new rules will bring steep penalties. Individuals may be fined up to NZ$300,000 (US$180,600), while corporate offenders could be penalized as much as NZ$5 million. Those involved in facilitating underage gambling face criminal fines up to NZ$10,000 (US$6,020).
To avoid competition with existing national games such as Lotto and Powerball, platforms offering comparable services will not be eligible for a license.
Timeline for Rollout and Related Policy Updates
Once the bill receives Royal Assent, most of its provisions will take effect immediately. However, penalties for underage gambling violations will be deferred until July 1, 2026. Current operators may continue to function without advertising if they apply for a license before this date, but all unlicensed services must be shut down by December 31, 2026.
The proposed bill complements recent amendments to the Racing Industry Act 2020, which limits online sports betting to the government-backed TAB NZ. These coordinated efforts aim to streamline gambling regulation and ensure that proceeds benefit local communities.
Entain plc, which has a long-standing partnership with TAB NZ, has expressed its support for the new framework and is set to provide a financial contribution of NZ$100 million (US$60.6 million) to TAB NZ following the bill’s implementation.
Source:
New Zealand introduces bill to regulate online casino gambling, LCB.org, July 2, 2025.