New Zealand Government Intents to Reduce Number of Online Casino Licences

New Zealand has a very active community of players and a constantly growing online gambling market, which is projected to reach $1.25 billion in 2024. There are dozens of reputable online casinos in NZ to enjoy gambling, but at the same time, New Zealand has one of the most restrictive gambling laws in the world. 

The statistics say that 75% of the adult population are regular gamblers. Many of them visit offshore gambling sites, which are legal for New Zealanders. When it comes to online casinos, the number of issued licenses isn’t that big, and unfortunately, the government is planning to reduce it even more. 

How many operators will stay in the gambling market of New Zealand? Let’s discover now!

The Current Gambling Law of New Zealand

The most recent piece of gambling legislation in New Zealand dates back over twenty years to the 2003 Gambling Act. This Act was established to regulate terrestrial casinos, sports betting platforms, and lotteries. However, since the online casino industry was still emerging at that time, it was largely overlooked by this legislation.

The legislation, however, prohibited remote interactive gambling with companies located in New Zealand through telephone, computer, and other communication devices. Nevertheless, it failed to address operators situated outside the country. Consequently, numerous New Zealanders engage in gambling at overseas casinos with little risk of repercussions if they are caught red-handed.

Due to the ambiguous legal status surrounding gambling, New Zealand casino players received access to a significant market, which is catered to by international providers. These reputable online brands including Kiwis Treasure Casino platform tailored for NZ players prioritise safety, fair play, and compliance with international standards, offering a secure and enjoyable gambling experience.

Fortunately, numerous online casinos are reviewed by different experts and sites, offering reassurance to New Zealanders who are eager for legislative changes but seek additional information prior to engaging in online gambling.

The Upcoming Changes

Players may come across many discussions that have emerged regarding the implementation of new gambling regulations that reflect the existing circumstances. In May 2024, a proposal was made to clarify the situation. Should this proposal progress without hindrance and ultimately be enacted into law, it would permit online casinos based outside the country to seek licenses for legal operation within its borders. 

Additionally, this would require the creation of an organization comparable to the UK’s Gambling Commission. The proposed entity would function as an autonomous organization responsible for issuing licenses to applicants and overseeing the industry as a whole. 

It is expected that this commission would possess the authority to revoke licenses from operators who do not adhere to established guidelines. In the United Kingdom, the Gambling Commission was established following the enactment of the Gambling Act of 2005, which serves as a partial foundation for the proposal in New Zealand. 

There is ample justification to believe that it will operate with similar effectiveness as it does in Britain, which boasts one of the most well-regulated gambling sectors globally.

What Benefits and Drawbacks to Expect?

The Ministry of Internal Affairs is responsible for putting forward proposals of this kind. Luckily for players, they have a number of benefits described below. It is clear that the primary outcome will be the establishment of clear regulations for individuals wishing to engage in online casino activities. 

The regulatory authority will ensure that any online casino seeking a license must adhere to the highest operational standards, thereby instilling confidence among users. Additionally, this development is likely to stimulate interest from casino operators based in New Zealand, potentially leading to increased employment opportunities within the nation.

One more benefit for the whole country is additional revenue that can be generated in the future. They will have to pay the fee to apply for a license. The next step is tax generation from online casinos that offer services to players. If you compare the revenue received from online gambling in New Zealand with Australia, you can see that the latter raises around AU $5.5 billion every year.

New Zealand’s population is approximately one-fifth that of its neighbouring country; however, this still represents a significant number. A proposed tax rate of 12% is under consideration, intended to generate NZ$179 million annually in revenue. 

Nevertheless, the country’s Inland Revenue Department expresses some scepticism regarding this projection, estimating the potential revenue to be around NZ$35 million per year.

What else can gamblers expect from the upcoming changes? According to the new rules, the age verification system will be implemented for all gamblers, and any ads that target children are prohibited, too. They will take effect in 2026 and apply penalties for non-compliance of up to NZ$5 million.

According to Brooke van Velden, Internal Affairs Minister, the goal of the new legislation is to enable players from New Zealand who enjoy playing casino games to opt for a safer experience than it was previously. Naturally, it doesn’t aim to increase the amount of gambling in the country.

He understands that thousands of players from this country have to play on overseas gambling sites. However, the introduction of new regulations will draw customers to those 15 operators who are licensed by the government.

Van Velden has also focused on the plans to develop further advertising rules and ways to protect consumers and minimize harm from the existing Gambling Act. He also added that he was looking forward to suggesting this bill to parliament in the upcoming year, and he is currently hearing what the public says about it. 

The first things announced to the public were the implementation of the minimum gambler age of 18 years and the specification that only online casino games can be offered to players, not lottery and not sports betting.

Final Words

Though the new legislation is only at the stage of public hearing, it has many chances to be supported by the parliament in the future. Naturally, it will eliminate the number of places where New Zealand players can enjoy gambling. At the same time, it is a good chance to attract more players to licensed operators and make their casino experience more secure.