Regulation Anticipation Boosts Online Casino Activity in New Zealand

Under the existing Gambling Act of 2003 and the Racing Industry Act of 2020, Kiwis are allowed to gamble at offshore online casinos, but locally operated sites are still prohibited.

Earlier this year, the proposed Online Casino Gambling Bill passed its third and final reading. The Bill will now proceed to Royal Assent, where, if it is approved, it will be written into law.

Next Steps and Boosted Interest

With an extended community input process, showcasing the benefits of online gambling revenues like funding local sports clubs and grassroots organisations, and the potential for 15 new licensed operators, interest in online casinos and sports betting has skyrocketed.

The Licensing Process:

New Zealand’s move towards a regulated online casino market will follow a structured multi-stage licensing process stretching across 2026 and into 2027.

The Online Casino Gambling Act is expected to officially commence on 1 May 2026, alongside the start of an advertising prohibition aimed at unlicensed operators. By mid-2026, the government is expected to publish the final regulations, allowing formal sector engagement to begin ahead of the licensing rollout.

The three-stage licensing process is then expected to kick off in July 2026 with the opening of expressions of interest, followed by a licence auction in September and the official application process beginning in October.

The rub comes on 1 December 2026, when the unlicensed operators are banned. Casino and betting sites granted temporary exemptions will then have until 1 June 2027 to get their submission in, marking the final step towards a fully regulated online casino market.

Online Gambling Already on the Rise:

The local online gambling market has seen steady growth since 2020, but the sharp spike from 2025 into 2026 reflects something bigger than normal market expansion.

As the country moves closer to a fully regulated online casino framework, public awareness around online gaming has surged, especially amongst players who had been fence-sitting.

The expected approval of the Online Casino Gambling Bill has also added a layer of legitimacy and encouraged more players to take online slots and other games of chance for a spin.

This momentum can be seen in estimates suggesting online gambling spend will climb to $758 million, while active customers are expected to hit 360,000 in 2026. This highlights how community engagement and education can be major growth drivers for markets looking to regulate gambling online.

New Zealand Pulls the Brakes on Prediction Betting

A burgeoning niche within the online gambling market is prediction betting. With its simple Yes/No premise, it has been called the betting equivalent of playing dice games or video slots. Simple to learn, with quick rounds, and high engagement. 

While this new gambling niche is gaining ground around the world, the New Zealand government has made it clear that it does not fall into the scope of the Online Casino Gambling Bill, essentially outlawing the growing market.

Despite protests from Polymarket and Kalshi that their products are less like gambling and more like financial trading, the Department of Internal Affairs (DIA) has maintained its position prohibiting them from advertising to the local betting community.

With its focus on the local casino regulation process, the DIA has not made any indication when or even if it will be looking into

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