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New Zealand Presses On with iGaming Legislation

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In a landmark move to enhance oversight of the nation’s burgeoning online gambling sector, New Zealand’s Minister of Internal Affairs, Brooke van Velden, has introduced the Online Casino Gambling Bill in Parliament. The legislation is the government’s first targeted effort to regulate iGaming, a sector that has long operated in a legal grey area.

Black Market Operators Remain a Pressing Threat

The new bill envisions a maximum of 15 licenses available for online casino operators, made available through a competitive auction process. To be eligible, applicants must submit comprehensive business plans specific to the New Zealand market and meet a range of compliance conditions. While licensed operators will be permitted to advertise, they must abide by stringent content and placement limits.

The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritize harm minimization, consumer protection, and tax collection.

Brooke van Velden, New Zealand Minister of Internal Affairs

According to the proposed legislation, unlicensed operators could face hefty penalties, with fines reaching as high as NZD 5 million ($3.04 million) for operators who breach the law. New Zealand players have been using offshore gambling sites for many years. However, many such offerings lack fundamental consumer protections and are not subject to New Zealand taxes, nor are they required to contribute to any harm reduction programs.

Official government statistics show that over 80% of all online casino gaming takes place on potentially dangerous black market platforms. Creating a regulated alternative should channel consumers toward safer offerings, secure a lucrative source of revenue for the government, and help finance gambling harm prevention and treatment.

Consumer Well-Being Is a Priority

While the implementation timeline for the new legislation remains subject to change, officials indicate that they hope to have the licensing regime operational by the end of 2025. However, the bill must first pass through a select committee later this year, allowing New Zealanders to offer feedback and suggestions on topics such as advertising codes and harm minimization requirements.

New Zealand’s newest gambling bill aligns with the government’s ongoing efforts to mitigate the adverse effects of gambling. Earlier this month, Mental Health Minister Matt Doocey launched an NZD 81 million ($49 million) initiative under the refreshed Strategy to Prevent and Minimise Gambling Harm. The package prioritizes frontline assistance, with funding for up to 18 clinical internships to build capacity across treatment services.

If signed into law, the Online Casino Gambling Bill will drastically reshape New Zealand’s iGaming landscape, aligning its gambling regulation with other leading jurisdictions. Such a bold move is an ambitious step for a nation known for its cautious approach to gambling reform. However, evolving industry dynamics mean inaction is no longer feasible.

Categories: Industry