The New Zealand Government is in the final stages of implementing an online casino gambling licensing system. The legislation is expected to be passed very shortly. The Minister has issued drafting instructions for the new regulations. <\/p>\n\n\n\n
Thomson Reuters New Zealand caught up with Jarrod to get an update on the details of the new system and what it means for online gambling providers and players.\u00a0Read Jarrod’s early article Introduction to the New Zealand\u2019s Online Casino Gambling Bill (6 August 2025)<\/a> for previous insights.\u00a0<\/p>\n\n\n\n Jarrod True is the author of Gambling Law<\/em><\/a>, a comprehensive resource published by Thomson Reuters on the various forms of gambling in New Zealand.\u00a0<\/p>\n\n\n\n Once passed in the House, the new legislation, The Online Casino Gambling Act, will come into force in stages, with the key provisions being applicable from 1 May 2026 and 1 December 2026. <\/p>\n\n\n\n From 1 December 2026, the only lawful way for persons based in New Zealand to play online casino games will be via one of the 15 licensed platforms. Accordingly, there will be fewer options available. Players may find that their preferred online provider is no longer able to provide services to them. <\/p>\n\n\n\n However, players will benefit from a raft of new consumer protections and harm minimisation provisions. <\/p>\n\n\n\n It is not uncommon for the current offshore providers to delay payments or to refuse to pay winnings altogether. The licensing system will include a formal consumer complaints process and the ability to complain directly to the New Zealand Regulator. <\/p>\n\n\n\n It is common for players to misunderstand the extremely restrictive provisions that apply to the use of bonus or inducement credit, such as the requirement to gamble winnings multiple times before being eligible to withdraw funds. The new rules will require any conditions attached to bonuses or inducements to be in clear, plain language. <\/p>\n\n\n\n Deposits are currently freely made via credit card. The ability to make deposits via credit card will be prohibited, meaning most players will have to use a debit card. <\/p>\n\n\n\n New Zealanders can also expect to see a lot more advertising and marketing of online casinos, due to the 15 licensed online providers being able to advertise lawfully in New Zealand for the first time. <\/p>\n\n\n\n Currently, it is lawful for a provider that is based entirely offshore to offer online casino products to New Zealanders. This grey market will come to an end on 1 December 2026. Unlicensed providers will need to exit the market before 1 December 2026. <\/p>\n\n\n\n The existing providers will also need to take greater care not to breach the prohibition on advertising online casino gambling. From 1 May 2026, the Regulator will have stronger powers to enforce the advertising prohibition. The restrictions will be extraterritorial (they will apply regardless of whether the provider is based in or outside New Zealand). The Regulator will have the power to issue take down notices. The current maximum penalty of $10,000 will increase to $300,000 for an individual and $5 million for a body corporate or partnership. <\/p>\n\n\n\n The existing providers may also wish to consider whether it is viable for them to apply for a New Zealand licence and commence due diligence. Expressions of interest for a licence open July 2026, with the 15 licences being allocated by an auction process in September 2026. <\/p>\n\n\n\n In the 12 months to 30 June 2025, $520.8 million of online casino revenue was declared for the purpose of paying the 12% online gambling duty. However, given that not all offshore providers are declaring their revenue and paying tax in New Zealand, the spend is likely to be higher. Local industry sources consider the revenue to be in the $700\u2013$800 million range. <\/p>\n\n\n\n The 2023\/24 New Zealand Gambling Survey found that approximately 156,000 people in New Zealand participated in overseas online gambling activities. <\/p>\n\n\n\n New Zealand has not copied or duplicated a model from another jurisdiction due to New Zealand\u2019s unique circumstances. However, significant guidance has been taken from the existing UK and Ontario systems. Both the UK and Ontario licensed online gambling, restrict advertising and have harm minimisation and consumer protection regulations in place. <\/p>\n\n\n\n The 12% online casino duty will increase to 16% from 1 January 2027. The additional 4% will be ringfenced and used for community returns. The 4% will be distributed by the Lottery Grants Board. <\/p>\n\n\n\n It will not be necessary for licensed providers to have a physical presence in New Zealand. Providers must have a New Zealand address for service. The lack of a New Zealand presence may, however, be taken into account when assessing the applicant\u2019s ability to hold a licence. <\/p>\n\n\n\n Providers must not target advertisements at those under the age of 25. The use of social media influencers is prohibited. Affiliate marketing is prohibited. Advertising of jackpot prizes is prohibited. Direct marketing may only be sent to account holders. Advertisements must not include images or sounds suggestive of coins being inserted or dispensed from a gaming machine. <\/p>\n\n\n\n Bonuses and inducements can only be offered via direct marketing or on the provider\u2019s platform. The value of a bonus or inducement cannot exceed $100 or 200% of the value of the original deposit or bet, whichever is lesser. <\/p>\n\n\n\n The minimum age for online gambling will be 18 years. Age verification will be required. <\/p>\n\n\n\n The provider must take all reasonable steps to ensure the risk of harm from online casino gambling is minimised and the harm minimisation regulations are followed. The provider must exclude from gambling persons who self-exclude and persons who are identified as problem gamblers. The exclusion process must be easy to identify and complete. <\/p>\n\n\n\n Providers must offer players options to set limits on their gambling, including on time, deposits and spending across different time periods and stake levels. <\/p>\n\n\n\n Providers must offer players the ability to set the frequency of breaks in their play, together with the frequency of personalised pop-up alerts (which must show key information about their current gambling session). <\/p>\n\n\n\n Game designs and user interface features must be designed to prevent extended, continuous and impulsive play. The use of autoplay is prohibited. <\/p>\n\n\n\n Providers are not permitted to accept credit contracts to pay for online gambling, including the use of credit cards and buy now pay later facilities. <\/p>\n\n\n\n A player may only hold one account per platform, and a player must be able to close an account and withdraw remaining funds without undue delay. <\/p>\n\n\n\n Game designs and user interface features must be clear and not mislead the player. <\/p>\n\n\n\n It is now 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. <\/p>\n\n\n\n TAB New Zealand has been granted a monopoly over race and sports betting because of 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\u2019s coalition partners, who is a longstanding advocate for the racing industry. <\/p>\n\n\n\n A number of improvements to the Bill were suggested during the Select Committee process and were dismissed due to the desire to pass the Bill quickly, presumably well before the election on 7\u202fNovember 2026. While some aspects have the hallmarks of being rushed, overall, the Government and the Department of Internal Affairs have done an excellent job in developing a system that improves the status quo, increases tax revenue, improves harm minimisation, and creates greater consumer protections, while still being workable for the industry and attractive to players. I would give them an 8 out of 10. <\/p>\n\n\n\n Thank you to Jarrod True who is widely recognised as New Zealand\u2019s leading expert in gambling law. He regularly advises on New Zealand\u2019s 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.<\/strong><\/p>\n\n\n\n As a legal professional, if you are in need of a one-stop resource on gambling law in New Zealand, look no further than\u00a0Gambling Law<\/em> in the Administrative & Public Law Practice Area on Westlaw New Zealand<\/a>\u00a0or as a book\/ebook \u00a0Gambling Law<\/em>\u00a0published by Thomson Reuters<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The New Zealand Government is in the final stages of implementing an online casino gambling licensing system. The legislation is expected to be passed very shortly. The Minister has issued drafting instructions…<\/p>\n","protected":false},"author":2,"featured_media":2526,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[513,514,515,603,1],"tags":[729,179,219,246,883,258,266],"insight_job_role":[445,447,468,471,604,487,554,499],"insight_practice_area":[446,456,467],"class_list":["entry","author-legaladmin","post-3994","post","type-post","status-publish","format-standard","has-post-thumbnail","category-legal-commentary-and-opinion","category-legal-research","category-legislation-and-case-law-research-and-know-how","category-legislation-and-case-law","category-uncategorised","tag-gambling","tag-gambling-legislation","tag-jarrod-true","tag-legal-books","tag-legal-commentary","tag-legal-research","tag-legislative-reform","insight_job_role-academic","insight_job_role-barrister","insight_job_role-general-counsel","insight_job_role-in-house-lawyer","insight_job_role-lawyer","insight_job_role-partner","insight_job_role-principal","insight_job_role-solicitor","insight_practice_area-administrative-law","insight_practice_area-competition-law","insight_practice_area-gambling-law","hentry"],"acf":[],"yoast_head":"\nWhen will the new rules be in place?<\/strong> <\/h4>\n\n\n\n
What does this mean for online casino players?<\/strong> <\/h4>\n\n\n\n
What does this mean for online casino providers?<\/strong> <\/h4>\n\n\n\n
How big is online casino gambling in New Zealand?<\/strong> <\/h4>\n\n\n\n
Has New Zealand copied a model from another jurisdiction?<\/strong> <\/h4>\n\n\n\n
Will the online casinos make a community return like land-based gambling providers?<\/strong> <\/h4>\n\n\n\n
Will the online casinos be based in New Zealand and employ New Zealanders?<\/strong> <\/h4>\n\n\n\n
What are the key advertising restrictions that licensed providers will be required to adhere to?<\/strong> <\/h4>\n\n\n\n
What are the key harm minimisation requirements that licensed providers will be required to adhere to?<\/strong> <\/h4>\n\n\n\n
What are the key consumer protection requirements that licensed providers will be required to adhere to?<\/strong> <\/h4>\n\n\n\n
Are you able to shed any light on why online casino and online race and sports betting have different rules?<\/strong> <\/h4>\n\n\n\n
Has the Government got the balance right?<\/strong> <\/h4>\n\n\n\n