New Zealand Gambling Law Guide

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.

 

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.  The Regulator expects the auction cost to be a “medium cost” for licenced operators, “likely in the millions; however, low in proportion to likely profit.”

 

• One licence will be required per platform/brand/website.  The licence limit will apply to platforms, rather than operators.  An operator can hold no more than three of the 15 total licences (includes any part shareholding).

 

• 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 of up to five years.

 

• Licences must be used within 90 days of being issued.  The Regulator will have the power to suspend or cancel vacant licences and issue replacement licences. This will prevent operators buying licences to stop their competitors from accessing the market.

 

• There will be a public register of licensed brands.

 

• Operators will only be able to offer online casino games, not sports betting or lottery products.  This will include live table games, slot machines, poker where the players play against one another, instant games and daily games like Keno.  Licence holders will be able to offer virtual sports and racing betting.

 

• A formal consumer complaints process will be established.

 

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

 

• The Regulator will have the ability to issue take-down orders to unlicensed operators.

 

• To assist with enforcing New Zealand law for offshore providers, the new legislation will include an explicit extra-territorial provision (the law will apply outside of New Zealand).  The new legislation and regulations will apply to any person providing online casino gambling to people based in New Zealand, regardless of where that person is based.

 

• 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, but operators must provide a New Zealand-based address for service.

 

• It will become illegal for unlicensed operators to offer services to New Zealanders. 

 

• 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.

 

• 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 $300m and $800m 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.

 

The above information is based on what has been published and signalled to date.  More information will become available once the draft legislation and draft regulations are released for public consultation.  The proposed licensing structure could change as a result of the public consultation.  It is therefore recommended that providers who are interested in obtaining a licence consult Jarrod to keep up to date with what is proposed, as part of their due diligence.

 

Jarrod True

True Legal Limited

 
www.truelegal.co.nz

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

23 May 2025

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.