New Zealand Proposes Online Casino Regulation with 15 Auctioned Licenses

The New Zealand government has taken action to regulate online gambling, submitting the Online Casino Gambling Bill to Parliament. Proposed by Internal Affairs Minister Brooke van Velden on June 30, the legislation establishes a licensing framework to transform the unregulated grey market. Currently, citizens can access offshore platforms without consumer protections or tax contributions.

"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," Minister van Velden emphasized. The bill is part of the Coalition Government's Quarter Two Action Plan and will advance to a select committee for public consultation.

Licensing Process

New Zealand's proposed regulatory framework details a phased licensing approach, starting with initial expressions of interest, then competitive evaluation, and formal application review. The Secretary for Internal Affairs will oversee this system, awarding up to 15 licenses with three-year terms. Operators can seek a single renewal extending validity for five additional years.

Applicants must present comprehensive documentation to qualify. This includes customized business strategies and stringent harm-reduction measures. While licensed parties gain advertising rights within the country, gambling promotions will be limited by restrictions that have to be determined.

Non-compliant operators will face severe sanctions. NZ$5 million fines have been proposed for unlicensed providers, while breaches of compliance rules will carry penalties of NZ$300,000 for individuals and NZ$5 million for corporations. A NZ$10,000 penalty will also apply for those enabling underage gambling. All unlicensed gambling activities will become illegal after December 31, 2026.

A Robust Framework

The Department of Internal Affairs will have regulatory powers over the casino industry, from licensing and oversight to enforcement and publication of a public operator directory. It retains authority to issue takedown orders, formal warnings, and compliance directives.

Licensed platforms will be required to implement mandatory safeguards like age verification, exclusion options for at-risk players, compliant dispute resolution systems, and visible registration prompts with audio alerts on websites.

The bill proposes a clear differentiation of licensees from the national lottery. The platforms will be prohibited from running products like Lotto, Powerball, or Strike, to preserve the lottery's operational integrity and funding streams.

Alignment with Other Gambling Reforms

The push for casino regulation in New Zealand aligns with amended Racing Industry Act provisions enacted on June 28. The bill cements TAB New Zealand's monopoly over online racing and sports wagering.

These synchronized reforms bar offshore operators from soliciting local customers and strengthen national oversight. Minister van Velden clarified that the regulations aim not to expand gambling participation in New Zealand but to enforce consumer protection and tax accountability.