Future of Licensed Online Casinos in New Zealand

Kiwis have had a long history of gambling. Despite this, the New Zealand government has been slow to adopt the multi-licensing online gambling legislation that has become so popular in other countries.

Rather, they chose to follow the same route Australia took: decriminalise locals playing at online casinos. According to the Department of Internal Affairs, it is “illegal for online gambling to be provided domestically”, and all the revenue they generate offers “little to no return to New Zealand communities”.

Moving With the Times

Realising that online gambling is not going away, the country is losing revenue to unlicensed offshore operations, and that other countries are successfully managing the business of gambling and player protections, the government decided to move forward with licensed gambling.

Based on the results of its Public Consultations, Brooke Van Velden, the Minister of Internal Affairs, announced that they would be awarding fifteen online casino licenses in 2026. The licensing regime is currently under review, but it is said to be aligned heavily with that of the United Kingdom and key states in the US.

None of the 15 newly licensed online casinos will be allowed to operate in New Zealand before April 2026.

Do Not Disparage Small Beginnings

When questioned about the low number of licenses, Van Velden explained that since licensing is such a drastic shift in the country's view of gambling and has a social, legal, and financial impact on the country and its citizens, they were starting slow.

By managing a small number of operators well, they aim to iron out any issues with taxation, advertising limits, and layer protection and learn how to manage bad actors legally.

This is far better done with fifteen operators than fifty and ensures no harm is done that cannot be reversed as they learn the ropes of being licensed online gambling jurisdiction.

Player Safety Above All Else

Given how long the country has gone without the gambling revenue generated by the 80% of players who frequent unlicensed gaming sites, they have made it clear that operators who do not play ball will be expelled from the program.

To ensure player safety, licensed casinos must ensure that:

They have a rigorous age verification process in place
No ads appeal to minors or encourage abnormally risky behaviour
They abide by safer gambling protocols

Van Velden clarified his stance on this, saying:

Quote

“My goal is not to increase the amount of gambling that is happening online, but to enable New Zealanders who wish to play casino games online to do so more safely than they can do today.”

To ensure that all would-be players in the newly regulated space understand the consequences, the government confirmed fines and penalties of up to $5 million for non-compliance.