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It may have been a long time coming, but now New Zealand is set to regulate its online casino market.
Things are kicking off with the government confirming that it’s set to issue 15 licences for operators in 2026.
The news was announced by the Internal Affairs Minister, Brooke Van Velden, on 13th November. The announcement marks a major shift in New Zealand’s overall approach to gambling.
We still have to wait until April 2026, but at this time, online casinos will operate in a more structured manner. This will allow regulators to focus on player protection and minimising harm while allowing for tax collection, potentially boosting the country’s revenues.
The news suggests New Zealand is willing to commit to a modern approach to gambling, on a par with the UK and certain U.S. states.
New Zealand’s Move Towards Regulation
It was July 2024 when New Zealand’s government first muted its desire to regulate online casinos. It revealed the plan to bring in a framework that would cater for the needs of players while balancing the benefits for the economy. The plan now is for legislation to be presented by April 2025, with a bill being passed by the end of that year.
The expected timelines are:
End of 2025: Bill passed and brought into law.
February 2026: The auction process for licences will open.
April 2026: Licensed operators will be able to launch.
While 15 licences may seem a little modest, this number was settled on based on recommendations from cabinet papers. These papers highlighted the need for a system that is streamlined with minimal regulatory costs.
Major Operators Showing Interest
The announcement in New Zealand has already gained the attention of major players in the field. With the legislation drawing near, now is the time for these operators to put their plans together in readiness for the auction process. Some of the big names looking to enter the market are:
888 Holdings
Bet365
Betway
SkyCity
Christchurch Casino
These operators are part of a wider pool made up of 36 entities. These include some of the biggest names in the industry such as Flutter Entertainment and Entain.
Where TAB NZ Fits In
The future of TAB NZ, the country’s betting monopoly, is currently in question.
It’s already regulated for betting through its partnership with Entain, but the government is still deciding whether to allow it to apply for an online casino licence. The decision ultimately rests with Winston Peters, the Minister for Racing.
Those in the know suggest that cabinet filings show that land-based casinos like SkyCity and Christchurch Casino will be given the opportunity to apply for online licences. However, TAB NZ’s inclusion is less than certain. TAB NZ will push for inclusion as its established infrastructure has the potential to position it as a market leader if a licence is issued.
The Aim to Prioritise Player Safety
While it appears that New Zealand is simply looking to expand its gambling industry, Minister Van Velden has stressed that this is not the case. The message is that the government is looking to ensure that any New Zealander who chooses to gamble online can do so in an environment that is regulated and safe.
This means that operators will be required to adhere to the likes of:
- Age verification systems: All operators will need to have systems in place that prevent underage gambling.
- Advertising restrictions: Advertising that targets or appeals to minors will be prohibited.
- Harm mitigation measures: Any operator that fails to adhere to harm reduction rules could face penalties up to NZ$5 million.
Van Velden's words emphasise what the government is looking to achieve: “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 do today”.
Social and Economic Impacts
By limiting the number of licences to just 15, New Zealand is looking to balance market efficiency with regulatory oversight. With only a small number of operators to focus on, the government is aiming for a high channelling rate that also reduces administrative burden.
This strategy appears to align with data from the Inland Revenue. This highlights that the country's top operators already contribute the majority of GST revenue from online gambling.
The social impact is expected to be significant. Currently, around 80% of New Zealanders gamble online via offshore platforms.
The new regulations will greatly improve consumer protection. Licensed operators will need to adhere to stringent rules, making them a much safer alternative to the current offshore setup.
Global Interest in a Small but Lucrative Market
New Zealand may not offer the biggest marketplace for casino operators, but they are already realising that the opportunity could be extremely lucrative. Global players such as 888, Betway, and Bet365 have a foothold in international markets and are keen to be the frontrunners as the New Zealand market emerges.
The limited number of licences means that competition among bidders is set to be fierce. SkyCity and Christchurch Casino may benefit from their existing local ties, which mean that they already understand the regulatory framework.
Platforms like Hub88 will potentially play a significant role here.
As a games aggregator, it links operators with game providers, allowing the operators to scale quickly. This will be important as New Zealanders will be looking for sites with diverse offerings that can match or exceed what they’ve been used to with offshore casinos.
Potential Challenges Moving Forward
The upcoming regulatory changes are undoubtedly a major positive. However, this doesn’t mean they are free from challenges. The relatively small size of the New Zealand market may deter some operators from coming forward. That being said, the high channelling rate that the government expects goes some way to mitigating these concerns.
For these changes to be regarded as a success, a balance needs to be achieved between operator profits and consumer protection. If this balance can be achieved, New Zealand could well become a model for other countries to follow.