Unregulated online casinos in New Zealand will soon need to decide whether compliance with new laws are worth the marketshare or risk being blocked.
Online gamblers may soon see fewer New Zealand online casino options within a little over a year. The country is set to introduce a new licensing regime for online casinos, aiming to regulate the previously grey market of online gambling. This initiative will enforce consumer protection, harm minimization, and ensure tax revenue stays within the country, with the changes becoming effective by early 2026.
Projected Timeline
The timeline for these changes points to an implementation in early 2026. This period will be used to finalize regulations, engage in public consultation, and establish the administrative backbone for enforcement. This allows for plenty of time for debate on the matter, especially considering the concern from local operators.
Key Regulations and Rules
The licensing system will limit the number of available licenses awarded through an auction process. These licenses will last for three years, with renewal dependent on compliance with stringent regulations. Only casino games will fall under this licensing, excluding sports betting and lottery products.
Consumer protection is at the forefront of these changes. Operators must implement systems for problem gamblers, including self-exclusion options, setting bet limits, and providing access to gambling support services. Age verification will be mandatory, ensuring only adults can participate in online gambling.
Advertising will no longer be outright banned but will come with tight restrictions to avoid targeting minors or encouraging excessive gambling. Considering how other countries have pretty much made it illegal to gamble online in its entirety, these changes certainly could be worse.
A 12% gambling duty on profits, alongside GST, will form the taxation structure for licensed operators, aiming to retain gambling revenue within New Zealand. The Department of Internal Affairs will oversee this regime, with the authority to impose hefty fines for non-compliance.
Impact on Offshore New Zealand Online Casino Sites
The new legal framework will drastically affect offshore casino operators. Once in effect, it will be against the law for unlicensed offshore sites to accept New Zealand players. This might lead to the adoption of geo-blocking technologies by these casinos to prevent access from New Zealand, ensuring compliance with the new laws.
- Offshore casinos will face a choice: either apply for a New Zealand license, which requires meeting stringent consumer protection and taxation rules, or withdraw from the market.
- This regulatory shift could lead to a loss of market share for those who do not adapt, as players are steered towards licensed operators. Competition will likely intensify among licensed operators, both local and international, vying for New Zealand’s gambling market.
The new regime signals a significant shift in how New Zealand online casinos will operate in this popular tourist destination. Aiming for a safer, more regulated environment that benefits both the state and its citizens as well. Offshore operators must decide whether to enter this regulated market or concede their presence in New Zealand.
New Zealand’s Current and Projected Online Casino Revenue
New Zealand’s online casino gambling market has been on an upward trajectory, with significant revenue generation and promising forecasts for future growth. Currently, as of late 2024, the online casino sector in New Zealand generates over NZD 400 million annually. This figure reflects the industry’s robust health, driven by increasing acceptance of digital gambling platforms among Kiwis, the rise in mobile gaming, and the introduction of engaging game formats like live dealer options.
Looking forward, the market is expected to continue its expansion. According to forecasts, the New Zealand Online Casinos market is projected to grow by 6.09% from 2024 to 2029, resulting in a market volume of US $0.86 billion by 2029. This growth is anticipated due to ongoing technological advancements, regulatory changes that could potentially legitimize and regulate more online gambling activities, and the increasing popularity of online gambling among younger demographics.
The broader online gambling market, which includes online casinos, betting, and lotteries, is also expected to grow by 5.58% over the same period, projecting a market volume of US$1.64 billion by 2029. These forecasts suggest that New Zealand’s gambling sector is set to become an even more significant part of the national economy, with enhanced regulatory oversight potentially boosting consumer trust and market participation.
