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Online gambling in New Zealand is on the rise, and many factors contribute to its growth, including technological advancements and a robust regulatory framework within a thriving and developed economy. While it’s illegal for local companies to offer online casino games, New Zealand’s citizens are free to access offshore casino sites. The Department of Internal Affairs regulates the online gambling market to ensure that offshore casino operators comply with the law to deliver a safe gambling experience for players. While there are many reasons for the overall growth of New Zealand’s online gambling market, the main reason is simply the increase of preference for online casino games. With online casino gaming, people get convenience and easy access to a wide range of entertaining games, which, when coupled with enticing bonuses and regular promotions, make it an engrossing activity. Another key contributor to the market's overall growth in New Zealand has been the trend of mobile gambling. This has made online casino gambling even more accessible, as players can indulge their fondness for poker and roulette from their phones and tablets. Besides gambling on the go, another market trend that has become increasingly popular among New Zealand’s betting public is sports betting. In a country with a strong sports culture, many online casinos have recognised the potential of sports betting and added a sportsbook section. Statistics Indicating the Overall State of the Market Stats often provide the best picture of the overall state of the online gambling market. Here are some interesting numbers to consider: Revenue for 2024 is expected to reach US$1.25 billion. The projected volume of the online casino market in 2024 is projected to reach US$0.64 billion. User penetration in the online gambling market is predicted to be 10.7%. The total number of online gamblers is expected to reach 697,200 by the end of 2029. The Average Revenue Per User is expected to be US$2210 in 2024. The industry’s revenue is projected to rise by 5.58% per year, leading to a projected market volume of US$1.64 billion by the end of 2029. New Zealand to Limit Number of Online Casino Licenses to 15 New Zealand plans to limit the number of licenses for online casino operators to just 15 as part of a regulatory overhaul intended to curb the sector’s rapid growth. The new rules will require licensed operators to implement age verification systems and prohibit advertising targeting children. New regulations will take effect in 2026 and, for non-compliance, result in penalties of up to NZ$5 million (US$3 million). According to Internal Affairs Minister Brooke van Velden, the goal was not to increase the amount of gambling that is taking place online but to enable New Zealanders who wish to play online casino games to do so more safely than at present. Van Velden stated: “Currently, New Zealanders can and do gamble on thousands of offshore gambling websites. By introducing a regulatory system, my intention is to channel customers towards up to 15 licensed operators.” The government first outlined plans for a licensing framework in July. The framework specified that licensed operators could only offer online casino games, not sports betting or lottery products, and must ensure a minimum player age of 18. Progress Expected from New Zealand’s Planned Regulatory Framework In addition to limiting the number of licensed online operators in New Zealand, the country is taking a significant step towards regulating its online gambling industry. The government is introducing a new licensing framework for online casinos to minimise harm, support tax collection and provide consumer protection for local players. Key points of the new framework: Licensing System: A limited number of licenses will be available through an auction, subject to the bidders meeting regulatory requirements. Age Restrictions: Players must be 18 or older to participate in online gambling. Advertising Restrictions: Advertising for licensed online casinos will be limited, focusing on protecting vulnerable groups. Consumer Protection: The framework will include measures to protect consumers, such as responsible gambling tools and fair play requirements Taxation: The government will collect taxes from licensed online casino operators. This new regulatory framework is expected to be in place by 2026, representing a positive change for the New Zealand gambling market, which was previously largely unregulated and operating in a grey area.
The New Zealand government has proposed legislation to expand TAB NZ's monopoly, granting exclusive rights to handle online sports and horse racing betting. The move is designed to increase funding for the local racing industry while safeguarding consumers from offshore betting risks. Legislation Overview The proposed amendment to the Racing Industry Act 2020, introduced by Racing Minister Winston Peters, would establish TAB NZ as the sole provider of all sports and racing betting in New Zealand, including online operations. This legislation aims to modernize TAB NZ's operational model, addressing the challenges posed by offshore operators. Peters emphasized the importance of this move, citing it as critical for the financial sustainability of New Zealand's racing industry. "This legislation will enhance the long-term sustainability of New Zealand's racing industry by making TAB NZ the exclusive provider for betting both on land and online," Peters explained. Consumer Protection and Revenue Growth A core component of the proposal is the protection of consumers from illegal offshore betting sites. Peters argued that such sites undermine the local market and pose risks to Kiwi bettors. By consolidating operations under TAB NZ, the government hopes to retain revenue within New Zealand, ensuring that funds benefit local communities and stakeholders. TAB NZ chief executive Nick Roberts hailed the move, estimating that New Zealanders lose NZ$180 million annually to offshore operators. "Retaining this money will not only maximize funding for communities but also ensure betting occurs in a safe and regulated environment," Roberts said. Key Legislative Amendments In addition to the monopoly expansion, the bill includes several significant amendments: Ministerial Oversight: New powers for the minister to seek information from TAB NZ and regulate market activities. Harm Prevention: Regulation-making powers aimed at consumer protection and minimizing gambling-related harm. Point of Consumption Charge Removal: Elimination of this charge to simplify the financial structure. The legislation has been referred to the Governance and Administration Committee for further evaluation. Strategic Partnership with Entain TAB NZ's 25-year partnership with Entain is set to benefit from these changes. Once the legislation takes effect, TAB NZ will receive a one-off payment of NZ$100 million from Entain. Over the partnership's duration, additional payments and increased revenue shares are expected to inject an estimated NZ$1 billion into New Zealand's racing and sports sectors. Roberts highlighted Entain's contributions since the partnership began, noting the implementation of harm minimization tools and modernized betting options. "This partnership, coupled with the legislative amendments, will materially boost funding outcomes for the racing industry and sporting bodies," Roberts said. Online Casino Market Set for 2026 The proposal coincides with New Zealand's plans to regulate online casinos. The government intends to introduce legislation in 2025, with the licensing process commencing in early 2026. A total of 15 licenses will be available, with prominent operators like SkyCity, Bet365, and 888 already expressing interest. Industry Implications The expanded monopoly and forthcoming online casino regulations signal a transformative period for New Zealand's gambling landscape. By retaining revenue domestically and prioritizing consumer safety, the government aims to bolster the racing industry and create a safer, more sustainable betting environment for Kiwis.
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