New Zealand expects $500m from regulated iGaming market

• Industry News
• 12. 08. 2024.
• Dusan Savic

The New Zealand government says the regulated iGaming market will be worth $500m when it starts in 2026. On the other hand, Tab NZ and Lotto NZ reveal the current grey market is worth $900 million.

The market regulation is a government priority, for 2026 is a general election year. However, the regulation will face a lengthy parliamentary process, and the details are sparse for now. One of the few policies already set by the government is a ban on gambling sponsorships.

Market explosion

The government looks to regulate the iGaming market in New Zealand by providing a limited number of licences via an auction. The True Legal gambling lawyer, Jarrod True, has said the government has prepared a taxable annual revenue of $500m for iGaming regulation.

However, the amount does not reach industry estimations. The country’s current monopolies, like Lotto NZ and Tab NZ, believe the current spending amount is closer to $900m. Online gambling is immensely popular in New Zealand, and COVID-19 caused the market to explode.

When physical venues locked down, online gambling popularity surged. The trend has continued since then, never showing any tendency to end. Today, Tab joined forces with Entain and became the sole online wagering operator in New Zealand. However, True mentioned that the regulated market is a government priority for 2026, which is a general election year.

The legislation is prioritised by saying that New Zealand’s legalised iGaming market will launch by early 2026. Still, it is a challenging process, as it needs to go through the parliament first. The public consultation will run in 2025, and the cabinet has already signed off on a draft.

The limited licence policy

The New Zealand government will turn to international stakeholders for advice regarding insight into regulatory frameworks. It is still unknown how many licences will be allowed or how much it will all cost. Details on regulation are still scarce. The Minister of Internal Affairs, Brooke van Velden, has already said advertising will be strictly limited.

Online gaming products will not be offered together with lottery or sports betting. True thinks land-based operators like SkyCity Entertainment Group lobbied for limited iGaming licences to gain a bigger market share. SkyCity and SkyLine Entertainment have already got their Malta-licensed casinos.

The regulator had first considered no limit on online licences to diminish gambling-related harm. True finds it short-sighted, although the auction will bring the government some money. The limited licence policy might be abandoned later during the legislative process, for stakeholders will probably protest during the consultation period.

The New Zealand government has already set a few policies, including a gambling sponsorship ban. True says some cabinet members have a bee in their bonnet about it, hoping to make it their mark on legislation.