New Zealand’s iGaming Bill Clears Its First Legislative Hurdle

In a significant move to bring regulation and accountability to its long-neglected gambling sector, the New Zealand Parliament has introduced new legislation to govern the nation’s booming online gambling market. The government also envisions an updated approach to combating addiction, ensuring that vulnerable individuals can receive critical assistance.

Most Gambling Still Happens Online

The bill, introduced by Minister of Internal Affairs Brooke van Velden, passed its initial reading this week, clearing one of its first regulatory hurdles as the government remains committed to curbing offshore gambling sites and introducing enhanced digital wagering standards. This small victory also signals broader legislative support, boding well for the proposed legislation.

New Zealanders have thus far enjoyed free access to thousands of offshore gambling platforms. However, none of these operators offer consumer protections, pay domestic tax, or contribute to national efforts to combat problem gambling. With over 80% of online casino-style gaming going through these unregulated websites, the need for in-depth reforms has never been higher.

The most important part of this Bill is protecting New Zealanders who enjoy gambling online by introducing robust safety measures for licensed operators.

Brooke van Velden, Minister of Internal Affairs

The proposed legislation would cap the number of Internet gambling licenses at 15, granted through a competitive auction. Applicants must meet stringent harm minimization, data protection, and age verification standards while displaying a good compliance history. Licensed operators will also contribute 1.24% of their profits to the country’s Problem Gambling Levy, directly supporting treatment and prevention initiatives.

Gambling Taxes Will Fuel Harm Prevention Measures

Minister van Velden’s bill recognizes that enforcement is critical for effective regulation. The Department of Internal Affairs will take the burden of overseeing the nation’s online gambling sector, monitoring compliance, and issuing penalties. Companies that breach their obligations under the new regime may face fines of up to NZD 5 million ($2.98 million).

A new advertising framework is another core feature of the proposed legislation. Licensed operators will face strict guidelines on where and how they may market their services, with controls designed to shield children and other vulnerable individuals from gambling exposure. Meanwhile, tax revenues should give New Zealand a fresh revenue stream to finance public services and harm reduction.

Companies providing this service will contribute to tax revenue and funding the services that treat gambling harm in New Zealand.

Brooke van Velden, Minister of Internal Affairs

The bill is now heading to select committee, where lawmakers will gather public input before considering amendments. Van Velden encouraged participation from various stakeholders to ensure the final version of the legislation strikes a fair balance between industry interests and consumer well-being. If passed, the bill would be the first comprehensive regulation for online casinos in New Zealand, bringing the country in line with other leading jurisdictions.