New Zealand gambling law specialist, Jarrod True, provides an update on New Zealand’s online gambling reform.
Online Race and Sports Betting
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. The prohibition came into force on 28 June 2025.
Online Casino Gambling
The Licensing System and Timing
The New Zealand Government is in the final stages of implementing a licensing system for online casino gambling. The legislation, titled The Online Casino Gambling Act, is expected to pass very shortly. Drafting instructions for the regulations have already been issued by the Minister.
Fifteen 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 expected timeframe is as follows:
- Bill enacted – early 2026.
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- Commencement of the new legislation – 1 May 2026 – New stronger advertising prohibitions commence. The new prohibitions include significantly increased penalties for breaches.
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- Expressions of interest for a licence open – July 2026.
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- Licence auction – September 2026.
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- Licence application processing begins – October 2026.
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- New online casino gambling licences issued – from 1 December 2026.
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- Grey market ends - only providers who have applied for a licence may conduct online casino gambling – 1 December 2026.
If a provider has applied for a licence before 1 December 2026, the prohibition on conducting online casino gambling does not apply until either the licence application is determined or 1 June 2027, whichever occurs first. The prohibition on advertising online gambling would, however, apply.
From 1 December 2026, only providers who have either applied for or obtained a licence may offer online casino gambling to persons located in New Zealand. This provision will be extra-territorial (it will apply regardless of whether the provider is based in or outside New Zealand).
Number of Licences and Licence Term
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 providers. A provider 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.
Games
Providers 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.)
Synthetic lotteries are not permitted (a synthetic lottery is where players bet on the outcome of lottery draw with a third party).
Taxes, Fees, Levies, and Community Return
The following taxes, fees, and levies are payable:
- A 12% online casino duty is payable. This will increase to 16% from 1 January 2027.
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- A 15% goods and services tax (GST) is payable.
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- A 1.24% problem gambling levy is payable from 1 December 2026.
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- An expression of interest fee of up to $19,000.00 is payable (the exact amount will be set by the Minister of Internal Affairs).
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- A general licensing levy of up to 5% of the platform's New Zealand-based Gross Gambling Revenue will be payable (the exact percentage will be set by the Minister of Internal Affairs).
As set out above, 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.
New Zealand Presence - Suitability
It will not be necessary for licensed providers to have a physical presence in New Zealand. Providers must provide a New Zealand address for service. The lack of a New Zealand presence may, however, be taken into account when assessing the applicant’s suitability to hold a licence.
Voluntary Community Contribution - Suitability
The expression of interest must include details of any voluntary contribution the applicant intends to make for community purposes in New Zealand. Whether the applicant makes voluntary contributions for community purposes will be considered when assessing the applicant’s suitability to hold a licence.
Key Advertising Rules
Licensed providers will be able to advertise lawfully in New Zealand for the first time, but strict conditions will apply:
- Advertisements must not target individuals under the age of 25.
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- The use of social media influencers is prohibited.
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- Affiliate marketing is prohibited.
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- Advertising of jackpot prizes is prohibited.
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- Direct marketing may only be sent to account holders.
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- Advertisements must not include imagery or sounds suggestive of coins being inserted or dispensed from gaming machines.
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- Bonuses and inducements can only be offered via direct marketing or on the provider’s platform. The value of a bonus or inducement cannot exceed $100 or 200 percent of the original deposit or bet, whichever is lesser.
Key Harm Minimisation Requirements
Licensed providers will be subject to comprehensive harm minimisation obligations, including:
- The minimum age for online gambling will be 18 years, with mandatory age verification.
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- Providers must exclude individuals who self-exclude and those identified as problem gamblers.
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- Providers must offer tools for players to set limits on time, deposits, and spending.
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- Providers must allow players to set the frequency of breaks and receive personalised pop-up alerts showing key session information.
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- Game design and user interfaces must prevent extended, continuous, and impulsive play.
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- The use of autoplay is prohibited.
Key Consumer Protection Requirements
Providers must adhere to strict consumer protection standards, including:
- Credit card deposits and buy now pay later facilities will be prohibited.
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- A player may only hold one account per platform.
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- Players must be able to close accounts and withdraw remaining funds without undue delay.
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- Game designs and user interfaces must be clear and not misleading.
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- Bonus conditions must be expressed in plain language.
Enforcement
The Regulator will have the ability to suspend or cancel a licence. 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 Does This Mean for Online Casino Providers?
Currently, it is lawful for offshore providers to offer online casino products to New Zealanders. This grey market will end on 1 December 2026. From that date, only licensed platforms will be permitted to operate. Unlicensed providers must exit the market before this deadline or face severe penalties.
From 1 May 2026, the Regulator will have stronger powers to enforce advertising restrictions. These powers will apply extraterritorially, meaning they will affect providers regardless of whether they are based in New Zealand or overseas. The Regulator will also have authority to issue take down notices for unlawful advertising. The current maximum penalty of $10,000 for breaching the advertising prohibition will increase dramatically. From 1 May 2026, individuals may face fines of up to $300,000, while companies may face fines of up to $5 million.
What Does this Mean for Online Casino Players?
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.
However, players will benefit from a raft of new consumer protections and harm minimisation provisions.
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.
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.
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.
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.
What is New Zealand’s Online Casino Market Size and Potential?
In the 12 months to 30 June 2025, declared revenue for the purpose of paying the 12% online gambling duty was $520.8 million. However, because not all offshore providers declare revenue or pay tax in New Zealand, actual spend is likely higher. Industry sources estimate revenue in the range of $700 million to $800 million.
When Should Providers Begin Planning if They are Interested in the New Zealand Market?
Providers considering entry into the New Zealand market should begin planning now and start the due diligence process. Expressions of interest for a licence will open in July 2026, and the 15 available licences will be allocated through an auction process in September 2026.
Jarrod regularly advises on New Zealand’s online gambling legislation and regulatory framework. He is well-positioned to assist providers seeking to assess the viability of entering the New Zealand market and to support those wishing to pursue an online gambling licence.
Jarrod True
True Legal Limited
www.truelegal.co.nz
www.gamblinglaw.co.nz
Jarrod.True@truelegal.co.nz
+64 27 452 7763
27 January 2026