New Zealand to Begin Regulating Commercial Online Casinos by 2026

The coalition government of New Zealand Prime Minister Christopher Luxon has announced it intends to pass legislation so as to introduce a ‘high level’ regulatory system for commercial online casinos by 2026.

New Zealand is home to approximately 5.4 million people and has up to now only regulated online gambling and sports betting via sites operated by the state-controlled Lotto NZ and New Zealand Racing Board. 

The provisions of the Gambling Act 2003 also currently forbid these domestic entities from offering casino-style games such as poker or roulette over the Internet while failing to make foreign operators who target local punters culpable.

Optimistic Objective

In a Tuesday release, New Zealand’s Internal Affairs Minister, Brooke van Velden, explained the government wants to begin regulating commercial online casinos so as to minimize harm, bring in additional tax revenues and provide consumers with a new range of protections. 

The 31-year-old Auckland native also revealed officials are currently working on an associated licensing framework that could be ready to premiere as soon as late next year.

“There will be a licencing 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,” van Velden said. 

“It will be illegal for unlicensed operators to offer services to New Zealanders." 

Fresh Focus

Luxon and his center-right National Party won over 43% of the popular vote at October’s general election and subsequently formed a government in partnership with the ACT and New Zealand First political counterparts. The new administration has since vowed to energize the nation’s housing and rental markets, increase infrastructure investment, reform the justice system and cut taxes.

In the run-up to this contest, 54-year-old Luxon had criticized governing Labour Party opponent Chris Hipkins for failing to collect much-needed tax revenues from offshore online casino operators. 

The former Unilever and Air New Zealand executive furthermore promised to begin licensing such enterprises in hopes of being able to reap aggregated annual levies of up to $105 million. 

Authorized Application

In her release, van Velden stated the incoming iGaming regulatory regime for New Zealand intends to make ‘a limited number of licenses available’ via an auction, with each being valid for three years and subject to a range of as yet unspecified 'regulatory requirements’. The ACT minister additionally asserted the legislation is to avoid dealing with sports wagering and online lotteries while setting the minimum gambling age at 18.

“Licensing is how we regulate most forms of gambling domestically,” van Velden said. 

“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.”

Policed Promotion

While promising to provide further details of the incoming regulatory regime ‘later this year’, van Velden proclaimed the new system would permit commercial online casino operators to advertise their wares under ‘strict limits’. Nevertheless, she emphasised this would not include sponsorships of sports teams or special events, which is to remain illegal.

“I expect the new regulatory system to be in place from early-2026 and the public will have the opportunity to provide feedback during the select committee process,” van Velden said. 

“Once established, the Department of Internal Affairs will be the regulator.”