New Zealand Proposes Bill to Regulate Online Casino Gambling

New Zealand has officially moved toward regulating its online casino industry with the introduction of the Online Casino Gambling Bill in Parliament. The bill, presented by Internal Affairs Minister Brooke van Velden, lays the foundation for online gambling regulations in New Zealand, aiming to establish a formal licensing system and strict oversight of digital gambling platforms.

A Cap on Licenses and Competitive Bidding

The bill proposes that only 15 licences will be made available for New Zealand online casino operators. These will be awarded through a three-stage process involving expressions of interest, competitive bidding, and formal applications. Each license will be valid for three years, with the option to renew for up to five additional years on a one-time basis.

To qualify, applicants must submit detailed business plans tailored to the New Zealand market and demonstrate their ability to meet high standards for responsible gambling and compliance.

Controlled Advertising and Clear Restrictions

Under the proposed law, licensed operators will be allowed to advertise, but only under strict regulatory conditions. The goal is to shift players away from unlicensed offshore sites and toward approved, regulated platforms.

On the other hand, unlicensed operators will face significant penalties, with fines reaching up to NZ$5 million (approx. $3 million USD). Offering gambling services to New Zealanders without a license will become a punishable offense.

Strict Oversight and Harm Minimisation Measures

The Department of Internal Affairs will serve as the regulator, handling everything from licensing and compliance to enforcement. Operators must meet robust requirements, including:

• Age verification and self-exclusion tools
• Clear audio and visual indicators for registration and help
• Formal complaint processes
• Ongoing reporting and data collection for AML compliance

Platforms will also be required to operate at least 270 days per year and submit quarterly activity reports to the regulator.

New Offenses and Enforcement Tools

The bill introduces a range of civil and criminal penalties for non-compliance. Individuals could face fines of up to NZ$300,000, while corporations may be fined up to NZ$5 million.

One notable clause makes it a criminal offense to facilitate online gambling for minors, carrying fines up to NZ$10,000. Licensed operators will also be prohibited from offering credit to users or imitating national lottery products, such as Powerball or Lotto.

Implementation Timeline and Transition Period

Once passed, the law will take effect the day after Royal Assent. However, clauses relating to offenses involving minors won’t come into force until July 1, 2026. Operators already offering services to New Zealanders will be permitted to apply for a license and continue operating during a transition period, but without advertising. All unlicensed operators must cease activities by December 31, 2026.

Part of a Wider Gambling Reform Strategy

The Online Casino Gambling Bill complements recent updates to the Racing Industry Act, which limits online sports and racing betting to TAB NZ, a state-backed entity. These changes are designed to centralize control, boost tax revenues, and enhance protections across all forms of online gambling.

While sports betting will remain under a monopoly, the online casino sector is being opened to multiple licensed operators, creating a more competitive but tightly regulated environment.

What Comes Next

The bill is now headed to the select committee stage, where New Zealanders will have the opportunity to submit feedback. The outcome could reshape the future of online casino play in the country, steering it away from the grey market and toward a safer, more transparent system.