New Zealand closer to regulated online gambling

• Industry News
• 04. 11. 2024.
• Nikola Lasica

The government of New Zealand is making significant steps towards regulating the online casino industry in the country.

The move itself should establish a legal framework for the growing segment and help improve the current level of consumer protection for Kiwi players.

A safer environment for everyone

According to available information, the proposed regulation should establish a licensing system, and its implementation should be completed by 2026. All operators doing business in Aotearoa will have to acquire licenses, adhere to the set standards, and pay revenue taxes.

Brooke van Velden, Minister of Internal Affairs, is leading the initiative, showing the authorities are committed to protecting New Zealand and its residents from unregulated gambling on the internet.

Unregulated sites represent a risk to gamblers, operating without a license and don’t implement protection policies. The 2003 Gambling Act, which currently covers gambling in New Zealand, is in dire need of an update.

At the same time, this piece of legislation doesn’t include online casinos. As a result, New Zealanders turn to sites based abroad, with many of them lacking any kind of regulatory oversight, exposing them to various threats.

Additional economic benefits

The introduction of a licensing system would provide an additional level of security for players. According to the New Zealand National Gambling Study, by 2015, 75% of adults in NZ took part in some form of gambling. This shows that unregulated gambling was a serious issue.

The goal of the regulation is to make sure operators stick to responsible gambling practices and offer measures like self-exclusion schemes to help players manage their activities.

From an economic perspective, the regulation will bring numerous benefits through taxes. According to projections, New Zealand could reap millions of dollars from taxes and licensing fees every year. These funds could be used for numerous public initiatives.

There will be challenges along the way. The state will have a hard time enforcing compliance from offshore operators. Partnerships with other regulated markets could help navigate these obstacles. Ultimately, the regulator will set clear guidelines for the industry and help set up a more equitable and safer market, with a particular focus on consumer protection and economic benefits.

What about the current market size?

According to available information, the 2024 revenue is projected to reach $2.1 billion, while the volume of the country’s online casino market is $1.1 billion.

Projections claim that user penetration in the market should be around 10.7% for 2024, while it’s expected the number of online gamblers will exceed 697,000 by 2030.

The good news for New Zealand is that the industry’s revenue is estimated to increase by 5.58% annually, meaning the market volume should reach $2.7 billion by 2030.