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Online Gambling in New Zealand


Update on New Zealand Online Casino Gambling Licences

 

New Zealand gambling law specialist, Jarrod True, provides an update on the Government’s plans to introduce an online licensing system for casino games by early 2026.

 

The New Zealand Government has confirmed that a licensing system for online casinos will be passed into law before the end of 2025.  The vetting and auction process will start in February 2026.  Licenced providers will be able to commence trading in April 2026.

 

The licensing framework is expected to be as follows:

 

  • There will be 15 licences available, allocated by auction.  There are currently around 40-50 operators who are reporting earnings and paying tax to the New Zealand Government.

 

  • One licence will be required per platform/brand/website.  The licence limit will apply to platforms, rather than operators.

 

  • Licences will be allocated through a two-stage process: entry assessment, and then bidding.  Operators will be required to meet entry criteria before they are permitted to take part in the auction.  Licence entry criteria are likely to include integrity, harm minimisation standards, financial solvency, key person checks and transparency of ownership, as well as compliance history in New Zealand and other jurisdictions. 

 

  • The licences will be for a three-year period with one right of renewal.  Licences will be non-transferable.

 

  • Operators will only be able to offer online casino games (online casino table games and online pokies/gaming machines), not sports betting or lottery products.

 

  • Fines of up to $5m will be able to be imposed if an operator breaks the law.

 

  • There will be application fees to cover the direct cost to the Regulator of assessment and licensing.  The fees will be in proportion to their New Zealand-earned revenue.  This is in addition to the 15% GST and 12% online casino duty.

 

  • Licensed providers will be required to pay a problem gambling levy, estimated to be 1.3%.

 

  • It will not be necessary for licensed providers to have a physical presence in New Zealand.

 

  • It will become illegal for unlicensed operators to offer services to New Zealanders.  The following mechanisms will be used to encourage compliance:

 

  • Public education to encourage New Zealanders to avoid black-market operators.
  • Education for non-licensed operators about the consequences of non-compliance.
  • Infringement notices.
  • Penalties and prosecution where possible.
  • Memorandums of understanding with regulators in other jurisdictions to support international enforcement.  The Regulator expects many operators will comply with the New Zealand regulations to avoid losing their licences in larger, more profitable jurisdictions.
  • Engaging with third parties (such as banks and social media providers) to assist with preventing black-market activity.

 

  • The minimum age for online gambling will be 18.  Online gambling operators will have to have an acceptable age verification system.

 

  • Harm minimisation standards will be set by regulation.

 

  • Licensed gambling operators will be allowed to advertise, but with strict limits.  Advertising that appeals to children will be prohibited.  Operators will be required to provide the Regulator with their advertising strategy for approval before they are able to advertise.

 

  • Sponsorship by online casinos will be illegal.

 

  • Operators must establish an effective function for managing consumer complaints.

 

  • Operators must advise the Regulator if they wish to change owners, managers, or games.

 

  • There will be no requirement for online operators to make funding returns to the community.

 

  • There will be a review of the effectiveness and operations of the new regulatory regime within the first three years.

 

New Zealand’s current online gambling spend is estimated to be between $500m and $900m annually.  The intention of the new licensing system is not to see growth in online gambling, but this appears inevitable given that online gambling is already very popular in New Zealand. A licensing system will provide greater confidence for players, and more opportunities for providers to market and promote themselves.

 

Jarrod is able to provide advice on the current advertising restrictions, and advice on the steps online gambling providers can take now to assist with being favourably considered for an online licence in the future.

 

Jarrod True

True Legal Limited
www.truelegal.co.nz

 

Jarrod.True@truelegal.co.nz
+64 27 452 7763

 

18 November 2024

 

Jarrod is New Zealand’s leading expert on gambling law. His firm, True Legal (truelegal.co.nz) acts for a large number of New Zealand’s gambling operators.  Jarrod is the author of the New Zealand Gambling Law Guide (www.gamblinglaw.co.nz), and the author of Gambling Law (a Thomson Reuters publication).

 

Jarrod provides regular advice on New Zealand’s online gambling laws, including advice to offshore-based developers of gambling-related apps.  Jarrod contributes to the Advennt digital platform and has written the New Zealand online gambling section, which summarises the New Zealand online gambling market, including the attractions and challenges.