New Zealand has begun phasing in its online casino regime, with the Act in force from 1 May and new offshore entrants already barred from serving local customers. The first licensing round is due in July, while existing offshore providers can keep operating only under transitional arrangements until 1 December.
A regulatory impact statement says Cabinet agreed in principle in March 2024 to regulate online casino gambling to support tax collection, minimise harm and improve consumer protection. It later backed a licensing model in July 2024, and the bill’s purpose was set out as creating a safer, compliant market while limiting crime and dishonesty.
The licensing process is built around three stages through the Government Electronic Tenders Service: expressions of interest, an invitation-only ascending clock auction and then a full application. Vicki Scott of the Department of Internal Affairs said the government decided to incorporate a competitive element into the process to determine which providers would be invited to apply.
Up to 15 licences are available, and each licence is tied to a platform or brand. Operators may hold no more than three licences, and the Cabinet minute says each licence must be used within 90 days of being issued.
Before a licence is granted, applicants face a two-stage due diligence process. The expression-of-interest stage is meant to test eligibility, including whether an applicant has enough available capital, whether selected key officers such as the chief executive pass criminal background checks, and whether there are reputational risks to New Zealand.
Licences are not transferable. If a licensed brand is merged or acquired, the Secretary of Internal Affairs must assess whether the licence can continue, and the Secretary can issue, renew, amend, suspend or cancel licences.
The regime also limits the product range. Licensed operators may offer online casino games such as slot machines and table games including blackjack, poker and baccarat, along with virtual sports and racing, but synthetic lotteries are prohibited.
Consumer-protection rules are extensive. Harm-minimisation measures include mandatory age verification at 18, self-exclusion tools, player-set limits on deposits, spending and session length, real-time alerts, enforced breaks and a ban on autoplay.
Advertising rules are just as tight. The restrictions include no targeting of people under 25, no influencer or affiliate marketing, and direct marketing only to registered users, while bonus offers are capped at NZ$100 or 200% of deposit.
Operators must also ban credit card and buy-now-pay-later deposits, make account closure simple, process withdrawals promptly and present bonus terms in plain language. The regime additionally requires a registration icon on websites and in advertising.
Enforcement powers include suspension or cancellation, formal warnings, enforceable undertakings, take-down notices and financial penalties of up to NZ$5 million. The law also applies extra-territorially, so anyone providing online casino gambling to people based in New Zealand can fall within its scope regardless of where they are based.
The Cabinet minute sets the maximum civil penalty at $300,000 for an individual and $5 million for a body corporate or partnership, and says the High Court should weigh the nature of the breach, any loss or damage, financial gain or loss avoided, culpability and the wider circumstances. It also fixes a seven-year limitation period for the system.
Scott also said the Department of Internal Affairs has spent the past year building relationships with social media platforms to remove unlawful content and the profiles of people persistently breaching the advertising ban under the Gambling Act 2003. She said effective regulation of online casinos is a global effort that depends on international partnerships, open dialogue and continuous learning.
The money side is set out too. The Online Gambling Duty is 16% of profits, with 4% allocated to community returns, and licensed operators must also pay a Problem Gambling Levy of 1.24% of gross gambling profits excluding GST.
Asgam says there will be an extra 4% duty increase from 2027, ringfenced for community purposes and distributed through the Lottery Grants Board. After 1 December, only licensed operators will be permitted to serve the New Zealand market.
