The online gambling landscape in New Zealand is on the cusp of a significant transformation as the government prepares to auction online casino licenses for the very first time. This groundbreaking move is causing a stir among local operators, who fear that large offshore companies will swoop in and claim a lion’s share of the market, potentially diverting profits away from community grants that rely on gambling proceeds.
According to documents obtained by RNZ, the Internal Affairs minister, Brooke van Velden, anticipates that the online casino licenses will predominantly go to foreign entities, given the relatively modest size of New Zealand’s online gambling market. While this may be unsettling news for local operators, van Velden emphasizes that the licenses are not permanent, hinting at the potential for new players to enter the arena and shake up the status quo in the future.
The online casino licenses, slated to be awarded for a three-year period as part of the upcoming regulatory framework taking effect in February 2026, mark a significant milestone in the country’s efforts to regulate online gambling. While Kiwis are currently allowed to gamble on international sites, operating an online casino within New Zealand is illegal. The new law aims to prohibit unlicensed operators from offering online casino services to New Zealanders, with hefty fines of up to $5 million as a deterrent.
Sky City casino and the TAB have expressed concerns about the government’s decision to open up the market to 15 operators, advocating for stricter limitations on the issuance of licenses. Sky City, in particular, has called for licenses to be granted exclusively to domestic entities, arguing that this approach would ensure that online casino profits are subject to New Zealand income tax. However, van Velden asserts that her focus is on fostering a fair and regulated market, rather than catering to the interests of individual casinos.
In a bid to safeguard the domestic gambling industry, the TAB has proposed granting 5-7 licenses to New Zealand-based entities, cautioning against the risks posed by multinational operators dominating the market. The concerns raised by industry stakeholders underscore the complex interplay between commercial interests, regulatory priorities, and the broader societal impacts of online gambling.
Martin Cheer, the managing director of Pub Charity Ltd, has raised poignant concerns about the potential ramifications of the new online casino market on community funding. Drawing a sharp contrast between the obligations of pokie operators and online casino license holders, Cheer highlights the stark difference in how profits are distributed, underscoring the broader economic implications of this regulatory shift.
While the government aims to generate additional revenue through a 12 percent gaming duty imposed on online casino operators, van Velden emphasizes that her primary goal is to ensure the safety of online gambling participants. By striking a delicate balance between facilitating legal gambling activities and protecting vulnerable individuals from the harms associated with excessive gambling, the government seeks to navigate the complex terrain of online gambling regulation with a keen eye on public welfare.
As the digital gambling landscape in New Zealand undergoes a significant evolution, the stakes are high for both industry stakeholders and the broader community. The impending rollout of online casino licenses represents a pivotal moment in the country’s regulatory history, setting the stage for a new era of online gambling that promises to reshape the industry landscape and redefine the contours of responsible gambling practices.