New Zealand to regulate online casinos in 2026

• Industry News
• 30. 07. 2024.
• Dusan Savic

The New Zealand government has started the procedure to regulate its iGaming sector for the first time. The framework is currently being developed and planned to be in place by 2026. It is designed to support tax collection, reduce harm, and protect consumers as much as possible.

According to Brooke van Velden, the minister of internal affairs, iGaming will be illegal for unlicensed operators. Strictly limited advertising will be allowed, and the goal is not to increase the number of New Zealanders who gamble. Operators need to meet a number of requirements, and the public will be able to provide feedback on the matter.

Everything under control

A certain number of licences will be available via an auction, subject to the participants meeting all the requirements. No one under 18 will be allowed to play. In addition, an online casino has to be fenced off from gambling products not connected with it. Lottery and sports betting are not to be offered alongside iGaming.

The intention is not to increase the number of New Zealanders who gamble but to ensure the operators fulfil the requirements for harm minimisation, taxation and customer protection. The public will have a chance to give its opinion on the regulatory plans. Moreover, the government plans to launch the framework by 2026.

The market has already voiced its support, with SkyCity being one of the first operators to do so. The focus is on responsibility and providing community benefits in NZ. The new regulatory system will be introduced within a year and a half, bringing the changes the operators have expected for a long time.

Changing the industry

The plans to restrict advertising and licence numbers are particularly welcomed. SkyCity has always favoured regulation, looking to protect New Zealanders and minimise harm.

Limiting the number of operators and excessive advertising is an excellent way to start.

A lot of money that should stay in New Zealand through tax and community benefits goes offshore. SkyCity hopes to be a crucial part of it and participate in the future framework. If everything goes according to plan, the first significant gambling changes will come into force under the new government.

The two rival parties clashed over the offshore gambling revenue. The National Party said it could collect $179m a year from offshore companies. It criticised not collecting the goods and services tax (GST) from everyone on the black market. The Labour Party, however, disputed these numbers, noting that GST gathers around 40m per year.

Since October 2016, GST has been collected at a 15% rate on intangibles and services remotely supplied. Other developments include major changes in horse racing. In August 2020, TAB New Zealand overtook the horse racing industry, now with Entain as an external partner.