New Zealand Initiates Regulation Process for Online Casinos

New Zealand is known as one of the biggest gambling hubs globally: this entertainment is flourishing in the country, with approximately 80% of its population engaged in the activity. And while land-based casinos are legal and regulated in the country, iGaming has long remained a grey zone. 

Domestic platforms are strictly forbidden, while overseas gambling websites have no obstacles in entering the state market and providing their services to Kiwis. The situation has changed with the introduction of new legislation aiming to control the digital casino sector. Whether the changes will be positive and how the market reacts to the upcoming amendments?

Current Online Casino Landscape in New Zealand

The online gambling industry has long lacked regulations, which was beneficial for offshore companies. In-country online casinos are now strictly prohibited, and non-compliance with the law can result in severe penalties. 

However, no restrictions were released for overseas platforms, so passionate adrenaline hunters have the chance to explore the best online casinos with numerous features and benefits. It’s absolutely legal for Kiwis to gamble on offshore websites; moreover, winnings are not taxable. 

As a result, minimum deposit casinos featured at NZ CasinoDeps have become increasingly popular, allowing players to enjoy their favorite games with minimal financial commitment while accessing a wide range of gaming options. Such flexibility significantly affects users’ desire to try this risky activity, so it’s not surprising that most residents reported engagement in betting and online casinos. 

At the same time, preventing gambling-related harm and minimizing the number of people suffering from disorders caused by uncontrolled habits is the main priority for regulatory bodies. 

The rapidly evolving iGaming landscape in the country calls for changes that have been recently introduced by the NZ government.

Amendments Offered by the NZ Government

The New Zealand Minister of Internal Affairs has recently suggested a new mechanism to regulate and control the country’s digital casino sector. The new legislation aims to make the industry more transparent, increase income from gambling taxes, and increase consumer protection. What are the main changes offered by the Minister?

In-Country Casino Licensing

The government is currently working on creating a local regulator that will specifically concentrate on monitoring the online casino sector. In 2024, this role is taken by the Department of Internal Affairs. The newly launched authority will issue licenses for digital gaming operators, and the number of available certifications will be limited. 

Gambling companies must meet multiple standards to ensure their reliability and trust, so only legal and responsible online casinos will be able to provide their services to Kiwis. The new policy will reduce the number of iGaming sites in the country and make the market easier to control.

Tax Amendments for Online Casinos

The newly introduced Offshore Gambling Duty significantly affects taxes for international operators entering the NZ market. Even though the government is not planning to restrict their activities in the country, the previously uncontrolled sector will become more regulated. 

The upcoming changes imply that overseas iGaming companies will have to pay 12% of their annual revenue to the state budget. However, this only works for online casinos that earn $60,000+ a year. 

As a result of this change, the number of foreign operators providing services to NZ residents is predicted to decrease. Therefore, only reliable online casinos compliant with the government requirements will remain, significantly affecting the overall gambling landscape in the state.

Changes in Gambling Advertisement

The changes in casino promotional means await the country soon. It’s stated that gambling ads will remain allowed, but only legal and licensed sites can do it. Companies will face strict limitations, which especially concern the ban on targeting underage users. 

Sponsorships of sports teams and other celebrities, as well as collaborations with stadiums and TV channels, will still be prohibited in New Zealand.

Market Players’ Reaction to Changes

The new gambling regulation will come into force by 2026, so many more amendments can be implemented till then. Therefore, it’s still unclear how industry players will react to this initiative. SkyCity Group, the major NZ casino company, has fully supported the upcoming changes, stating that the digital sector should have been regulated long ago. 

Currently, the market is oversaturated with offshore companies that enjoy freedom and flexibility when providing their services to Kiwis. The new legislation will allow domestic casinos to operate in New Zealand and create a more competitive environment. 

This will result in increased budget income from the iGaming sector, positively affecting the state’s well-being. Support services working in NZ and beyond also advocate for strengthening online gambling regulations in the country. 

For instance, Mapu Maia, a harm prevention agency, highlights the dangers of underage engagement in this activity and supports advanced legislation with stricter limits for youngsters.

The rapid development and accessibility of online casinos significantly affected the demand for this risky entertainment in New Zealand, which creates multiple challenges. 

The government’s decision to control the industry and provide tighter requirements for all iGaming operators in the country aims to improve the overall landscape and increase the population’s well-being. 

The industry is projected to become more regulated by 2026; currently, the law is under discussion. It’s anticipated that more control over the sector will boost the industry and enhance consumer protection, which will be beneficial for all parties.