Unlicensed Online Casinos Face $5 Million Fines in New Gambling Regulations

_{New Zealand fines unlicensed online casinos with $5M. (Image: Australian Associated Press / Alamy)}

New Zealand is set to dramatically change the landscape for online casinos following proposed regulations that impose hefty fines of up to $5 million for those running unlicensed websites.  

A limited number of licenses would be issued under the government’s new framework. Only 15 would be issued while establishing a public register of approved online gaming brands. 

Implications for the Casino Industry

There will be huge implications for the casino industry with this overhaul, particularly for operators currently functioning in the unregulated online market. 

Those found in violation of these regulations will receive take-down notices and could be reported to international gambling regulators, jeopardizing their licenses in other jurisdictions as well.

Aim of Regulatory Program Not Meant to Escalate Gambling

Licensed operators will require the implementation of harm prevention strategies and effective age verification systems under the new rules, ensuring that vulnerable populations are protected. Additionally, operators will be prohibited from advertising to children.

Online casinos in New Zealand have been largely unregulated, leaving consumers vulnerable. The message is clear from the Internal Affairs Minister Brooke van Velden.

The aim of the regulatory program is not to escalate online gambling but to offer a safer environment for New Zealanders who wish to engage in casino games. 

The introduction of a structured regulatory system is intended to guide players toward a select group of licensed operators, potentially consolidating the market and ensuring consumer protection. 

Players Expected to Move Away From Unregulated Markets

The implications for the industry are profound. Licensed operators will likely experience a surge in customer traffic as players move away from unregulated, offshore sites. However, those unable to secure a license may find themselves facing significant financial penalties and operational challenges, which could lead to a shake-up in the competitive landscape.   

Regulatory System Implemented by Early 2026

Legislation is expected to progress next year, with the new regulatory system slated for implementation by early 2026. This timeline presents an urgent call to action for casino operators to reassess their business strategies and ensure compliance with the forthcoming regulations to remain competitive in the evolving market.