New Zealand is taking a step towards achieving regulatory clarity after its government announced it would put forward a bill to regulate online gaming.
The Online Casino Gambling Bill, which will put 15 online casino licenses up for tender, was introduced in the country’s parliament earlier this week.
Minister of Internal Affairs Brooke van Velden told parliament: “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.”
Ms van Velden previously said that the bill was not designed to get more New Zealanders gambling.
It remains to be seen what impact, if any, the proposed legislation will have on Aussie casinos, which often attract New Zealand gamblers with instant withdrawals and high return-to-player (RTP) percentages.
The move comes over concerns that offshore online casinos are targeting New Zealand customers, thus costing the government potential tax revenues.
Already, a range of big online betting firms are taking an interest in bidding for a license, including 888, Bet365, TAB, and SkyCity, which has four bricks-and-mortar casino licenses.
There will then be a competitive bidding process and formal applications, with successful companies able to operate New Zealand-based online casinos in early 2026.
The newly approved sites would have to pay a chunk of their profits in taxes and will have to submit detailed paperwork, including harm reduction protocols and business plans.
They will be able to offer customers games such as blackjack, poker, roulette and baccarat and will also have online slot machines although it does seem like they will not be able to offer sports betting.
The online casinos will not, however, be able to offer games that are too similar to existing New Zealand lottery games such as Lotto, Powerball, and Strike in an attempt to keep those games separate.
Companies that do not comply with the regulations, or offer unlicensed online casinos, could face fines of up to $5 million (NZD).
There is, however, some room for manoeuvre, because all online casino platforms currently operating will be able to stay in business until December 31 next year, provided they apply for a license by July 1, 2026.
Once the casinos get their licenses, they can hold onto them for three years, with a one-off opportunity to extend the license for a further five years.
The bill will now go to the select committee stage, where members of the public can voice their opinions.
The recent legislation comes not long after a series of changes to the country’s 2020 racing industry act, which strengthened TAB NZ’s control on online sports betting in the Pacific Ocean nation and came into place in late June.
At the moment, the vast majority of gambling and sports betting in New Zealand is run by the state.
There are currently six brick-and-mortar casinos with a license in New Zealand, although one, SkyCity Wharf Casino, Queenstown, has been closed since 2020.
