(AsiaGameHub) – New Zealand has successfully passed its Online Casino Gambling Bill through its third and final parliamentary reading, bringing the nation closer to establishing a regulated online casino market with the potential for up to 15 operator licences.
The legislation, championed by Internal Affairs Minister Brooke van Velden, is now set to receive Royal Assent, which is anticipated on 1 May. This new law addresses a long-standing deficiency in the Gambling Act 2003, which previously permitted offshore operators to offer services to New Zealand residents without the obligation of obtaining licences or paying taxes.
Minister van Velden stated:
The Bill… aligns with the coalition agreement by closing the gambling tax loophole and mandating that licensed online casino operators contribute taxes, mirroring the obligations of other businesses operating within New Zealand.
Under the new regulatory framework, the Department of Internal Affairs will manage a competitive process to grant up to 15 licences. This process will involve stages such as expressions of interest, a selection phase that could include auctions or tenders, and final applications. Prospective operators will be required to meet stringent criteria concerning ownership transparency, regulatory compliance, and player protection. The initial validity period for these licences will be three years.
Minister van Velden further elaborated: “Within the new framework, up to 15 licences will be made available through a competitive selection process. Licensed operators will be obligated to exclude individuals identified as problem gamblers and adhere to strict requirements for harm prevention and consumer protection.”
The timeline for the licensing process is projected to commence in July 2026, with applications due by 1 December of the same year. Successful operators are expected to launch their services by 1 July 2027. Any operators that do not submit an application by the stipulated deadline will be required to cease operations in the market.
A significant aspect of this legislation is its extraterritorial application, meaning it will extend to all online casino services offered to New Zealand users, irrespective of the operator’s geographical location.
Minister van Velden commented:
These measures will ensure that New Zealand law governs all online casino gambling accessible within the country, regardless of operator location, thereby eliminating opportunities for evasion and enhancing the regulator’s capacity to oversee and enforce compliance among international operators.
The bill also introduces enhanced enforcement mechanisms, including the power to issue take-down notices, impose fines of up to NZ$5 million for significant violations, and prohibit credit-based gambling. Operators must implement age verification to ensure users are at least 18 years old, establish player protection measures, and maintain formal complaint resolution systems.
Furthermore, the legislation includes provisions for allocating a portion of the generated gambling revenue to support community initiatives, such as sports clubs and grassroots organisations.
Prominent operators, including Entain and SkyCity Entertainment Group, are reportedly making preparations for the forthcoming licensing competition as the nation progresses towards establishing its inaugural fully regulated online casino market.
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