Updated Regulations to Transform New Zealand’s Gambling Sector

New Zealand is preparing to move forward with its historic overhaul of its online gambling industry as the government presses on with plans to open up online casino licenses for the first time. This decision marks a turning point in the country’s stance on internet gambling as it aims to move away from the current landscape where unregulated offshore entities dominate the iGaming space.

Foreign Operators Will Reshape the Market

According to a recent report by local news outlet RNZ, Internal Affairs Minister Brooke van Velden has confirmed that the government will initially offer 15 licenses in an open bidding process, opening the door for foreign and local companies to legally provide online casino services. These reforms have been long overdue, as lacking regulations have led to a spike in problem gambling.

The new regulatory framework, set to take effect in February 2026, will require licensed operators to pay GST, a 12% gambling tax, and a problem gambling levy but no community grants, leading to discontent among existing local operators. Van Velden acknowledged that large international operators would likely win most of the initial licenses but added the government would create opportunities for other companies to enter the market.

We don’t have a huge online gambling market, so I would expect it’s mainly offshore providers.

Brooke van Velden, Internal Affairs Minister 

While New Zealanders can currently freely gamble on unregulated online platforms, the new reforms will make it illegal for offshore operators to offer their services without a license. The updated regulations include harsh penalties for unlicensed operators, including fines of up to $5 million for targeting New Zealand consumers without official approval.

The New Measures Remain Highly Contentious

Despite the government’s best efforts to create a fair and regulated gambling market, leading local operators like SkyCity and the TAB have voiced their concerns. SkyCity contends that no more than five online licenses should be introduced, prioritizing companies with an established local presence. The company warned that an influx of foreign operators could siphon revenues from the local economy.

The TAB, which supports New Zealand’s racing and sports industries, was also concerned about the implications of an open market for its operations. CEO Nick Roberts argued that issuing 10 or more licenses could harm established domestic operators as foreign operators would gain a competitive edge due to their superior resources.

An open online casino market threatens the viability of all domestic gambling operators for the benefit of offshore multinational organizations.

The TAB statement

Despite resistance from local operators, van Velden contends that favoring local companies would violate free trade agreements. The Minister also dismissed calls for mandatory community grants from online companies, noting that public services must not depend upon gambling revenue. As the February 2026 launch date approaches, various stakeholders will continue to push for the right balance between economic opportunity, consumer protection, and social responsibility.