The New Zealand government has introduced a new regulatory framework for online casinos, aiming to reduce harm while improving consumer protection and tax collection.
This new system will require online casino operators to obtain licenses and meet strict criteria before offering services to New Zealanders.
Minister of Internal Affairs, Brooke van Velden, stated, “Licensing is how we regulate most forms of gambling domestically. This is not intended to increase the amount of gambling New Zealanders do, but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax.”
This move will make it illegal for unlicensed entities to operate within New Zealand, marking a significant change in the country’s approach to online gambling.
Online Casino Licensing Process:
The New Zealand government, led by the National Party, plans to auction a limited number of licenses, valid for three years, contingent on continuous compliance with regulatory standards.
The minimum age for online gambling will be set at 18. The licenses will cover only online casino gaming, excluding sports betting and lottery offerings.
Licensed operators will be allowed to advertise under strict restrictions, though sports sponsorships by online casinos will remain prohibited.
Minister van Velden expects the new system to be operational by early 2026, with the public able to contribute opinions during the Select Committee process.
“Once established, the Department of Internal Affairs will oversee regulation, ensuring that our framework aligns with both community expectations and operational integrity,” she added.
During election campaigns last year, the National Party claimed it could raise NZ$179m per year from online operators and argued that the previous Labour Party government was not collecting tax from the unregulated offshore sector. The Labour Party responded by noting that it had collected a 15% goods and services tax (GST) on services and intangibles supplied remotely by offshore suppliers since October 2016.
Industry Response:
SkyCity Entertainment Group, New Zealand’s largest tourism, leisure, and entertainment company, welcomed the new regulatory approach.
“We remain supportive of the regulation of online casino gaming in New Zealand, with an emphasis on strong host responsibility and delivering community benefits,” said SkyCity in a press release.
SkyCity CEO Jason Walbridge commented on the government’s announcement on LinkedIn, stating, “Great to see Minister van Velden announce further details on the regulation of online casino gambling in New Zealand. SkyCity has long supported regulating online play to minimise harm and protect Kiwis. Limiting advertising and the number of operators in New Zealand is a good way of doing this. Currently, there is a lot of money going offshore that should be staying in New Zealand as tax and community benefits. We hope this will be a key part of any future framework.”
SkyCity operates five casino properties in New Zealand and Australia, as well as an offshore SkyCity online gaming site from Malta.
In June 2024, the Federal Court of Australia ordered SkyCity to pay an A$67m penalty for AML/CTF failings in its Adelaide casino. The operator was also ordered by New Zealand’s Department of Internal Affairs to pay a civil penalty of NZ$4.2m for historical non-compliance with the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009.