New Casino Regulations for Operators in New Zealand

Brooke Van Velden, the minister of internal affairs, has announced that New Zealand will establish a new regulatory framework in 2026 to regulate the online gambling industry properly. In her own words, “There will be a licensing system for online casinos, where operators will need to comply with a set of criteria before they will be able to offer services to New Zealanders. It will be illegal for unlicensed operators to offer services to New Zealanders.”

She also added, “This is not intended to increase the amount of gambling New Zealanders do, but to ensure operators meet requirements for consumer protection and harm minimization, as well as paying tax.” This is an important milestone in the regulation of online gambling in the country. What had previously been a wild west of operators will be structured under the new licensing requirements. Within these forthcoming regulations, the New Zealand government can now crack down on illegal gambling operations. 

The plan is to auction a limited number of licenses to willing buyers. These licenses will last for three years and validity or renewal will only apply if the company obeys the new regulations strictly. The minister stated, “Once established, the Department of Internal Affairs will oversee regulation, ensuring that our framework aligns with both community expectations and operational integrity,”

The minimum age for gambling under these new regulations will be set at 18 as underage betting is still under prohibition. In addition, operators will only be able to offer online casino games as sports betting and lottery products remain restricted. Lottery products will remain under the jurisdiction of the New Zealand Racing Board. As for sports betting, New Zealand has taken a firm stance in keeping it restricted from its gaming population.

Gambling operators who were previously banned from placing public adverts will now be allowed to although under strict regulations. On the other hand, sports sponsorships by gambling operators remain prohibited. All ads must be vetted by the Department of Internal Affairs. Minister Brooke Van Velden maintained that the goal of these new regulations is not to increase gambling activities by the populace but to bring order to an otherwise “dark” industry.

The Minister also encouraged the public to come forward with contributions to the new legislation. The Select Committee process will allow for public deliberations and considerations on how these laws may affect the sizable gambling population present in the country. With the implementation schedule at least two years away, Minister Brooke Van Velden is confident of a fair regulation that covers the needs of gamers and operators.

First Reactions from Operators

The largest tourism, entertainment, and leisure provider in New Zealand, SkyCity Entertainment Group, is one of the first to openly show support for the new bill. In a LinkedIn post, the CEO of SkyCity group wrote:

“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 minimize 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.”

This post was made following a press release from the company which clarified its stance on the forthcoming regulations:

“We remain supportive of the regulation of online casino gaming in New Zealand, with an emphasis on strong host responsibility and delivering community benefits,”

With backing from top service providers in the industry, the government and the minister will certainly have no problems establishing this regulatory framework by the set deadline of 2026.

Tax Implications

These new regulations are seen as a revenue play by some within the country. The New Zealand government led by the National Party claimed it could raise NZ$179m from the unregulated gambling operators operating within its borders. It pointed fingers at the Labour Party for being unable to create a framework within which to capture what it felt was easy tax money.

As the regulations unfold, it is currently unclear the exact amount operators will be required to pay as tax. This amount or percentage will become clear as the implementation deadline gets closer. Operators are encouraged to liaise with the Department of Internal Affairs so that they are compliance-ready by the time auctions for the licenses begin.