New Zealanders spend approximately $700m annually on online casino gambling. This is currently with offshore based providers who are outside the reach of New Zealand’s regulator. The current position is unsatisfactory as it is common for players not to be paid when they win large prizes, there are no formal harm minimisation controls, and limited tax revenue is received. The Government has taken steps to change this, by regulating and licensing online gambling.
Jarrod True is the Author of Gambling Law, a comprehensive resource published by Thomson Reuters on the various forms of gambling in New Zealand. Thomson Reuters New Zealand caught up with Jarrod to get an update on New Zealand’s online gambling reform.
What will the online casino licensing system look like and what is the expected timing?
Legislation for a licensing system for online casinos (the Online Casino Gambling Bill) was introduced to the New Zealand Parliament on 30 June 2025. Targeted consultation is currently underway on the advertising, harm minimisation, and consumer protection regulations.
Licences will be allocated through a three-stage process: expressions of interest; an auction by persons invited by the Regulator; and a full licence application by the successful bidders. The new online casino licences are expected to be issued between August and December 2026.
There will be 15 licences available, allocated by auction. One licence will be required per platform/brand/website. The licence limit will apply to platforms, rather than operators. An operator can hold no more than three of the 15 total licences.
The licences will be for a three-year period with one right of renewal of up to five years.
Operators will only be able to offer online casino games. This will include slot machines, table games, such as blackjack, poker, or baccarat, and virtual sports and racing betting (betting on a computer-simulated event).
What tools will the New Zealand Regulator have to enforce the new online casino rules?
The new legislation will be extra-territorial (it will apply regardless of whether the provider is based in or outside New Zealand).
The Regulator will have a range of enforcement tools, including formal warnings, enforceable undertakings, take-down notices, and pecuniary penalties (up to $5m). A monetary penalty can be imposed simultaneously on both the provider and the provider’s directors and/or management staff.
What are your overall thoughts on this legislation and licensing framework?
Overall, the proposed charges are a highly positive development. Online gambling is already widespread in New Zealand. Regulating the market will enhance consumer protections, introduce more effective harm minimisation strategies, and generate additional tax revenue for the Government. The success of the initiative will ultimately hinge on the quality of the legislative framework. The regulated offering must remain sufficiently attractive to deter players from engaging with unregulated offshore providers, while simultaneously ensuring robust safeguards are in place.
What is the thinking behind allowing just 15 licensees in the market?
The decision to cap the number of licences at fifteen reflects a strategic balance. It ensures adequate competition and consumer choice, while remaining manageable for the Regulator to actively monitor and enforce compliance. Additionally, limiting the number of licences increases the potential revenue from the initial auction process, providing a financial incentive for the Government.
How likely is it the market could expand to allow more licensees over time?
It is unlikely that the Government will expand the number of licences in the near term. The licences to be auctioned will effectively span eight years—comprising an initial three-year term with a five-year right of renewal. Introducing additional licensees during this period would undermine the value of the original licences and be unfair to those who participated in the initial auction. Any reconsideration of licence numbers—whether an increase or decrease—is most likely to occur in 2034.
Would you be able to shed any light on why online casino and online race and sports betting have different rules?
From 28 June 2025, it is unlawful for anyone apart from TAB New Zealand to offer online race and sports betting to persons located in New Zealand and unlawful for New Zealanders to place race and sports bets with anyone apart from TAB New Zealand. The prohibition includes race and sports betting events that take place both within and outside New Zealand.
TAB New Zealand has been granted a monopoly over race and sports betting due to its role in distributing profits to the racing industry. The racing sector is highly valued in New Zealand, both for its economic contribution and the substantial number of people it employs. Political support has also played a role—particularly from Winston Peters, leader of one of the Government’s coalition partners, who is a longstanding advocate for the racing industry.
Will the implementation of the Online Casino Gambling Bill be smooth sailing for the Government?
The Online Casino Gambling Bill passed its first reading with support from all three Government coalition partners and the Green Party. Only the Labour Party and the Māori Party initially opposed the Bill. The Bill will now be referred to Select Committee.
During the Select Committee process, the Government is expected to face opposition from problem gambling treatment organisations, who are already advocating for a complete ban on gambling advertising. These groups perceive the proposed regulatory framework as too lenient and insufficient in addressing the risks associated with gambling-related harm.
Additionally, existing land-based gambling providers—particularly the non-casino gaming machine sector—may resist the changes. This sector is operated by non-profit entities that return all their profits to the community through grants. In 2024 alone, 26,696 grants totalling over NZ$366 million were distributed. The sector is subject to strict regulations, including a maximum bet of NZ$2.50, a jackpot cap of NZ$1,000, minimal advertising, and active player monitoring. In contrast, the proposed online casino system offers fewer restrictions and a more appealing product, potentially diverting gambling activity and profits away from community-focused operators and towards commercial offshore entities.
Despite anticipated opposition, the Government has made it clear that the online licensing system is a priority and will be implemented. While gambling-related issues typically generate significant public feedback and concern, the current administration remains committed to launching the system, with licensed providers expected to be operational from August 2026.
Thank you to Jarrod True who is widely recognised as New Zealand’s leading expert in gambling law. He regularly advises on New Zealand’s online gambling legislation and regulatory framework. He is well-positioned to assist operators seeking to assess the viability of entering the New Zealand market and to support those wishing to pursue an online gambling licence.
As a legal professional, if you are in need of a one-stop resource on gambling law in New Zealand, look no further than Gambling Law in the Administrative & Public Law Practice Area on Westlaw New Zealand or as a book/ebook Gambling Law published by Thomson Reuters.
