As of now, gambling activities in New Zealand generate nearly NZ$1 billion annually. However, the government’s projection for the regulated online casino sector is more conservative, expecting it to be worth around $500 million when it officially launches in 2026.
Government Initiatives and Regulation Plans
The New Zealand government has outlined a plan to regulate online casinos by 2026, a significant year as it coincides with a general election. This move involves issuing a limited number of licenses through an auction process. Jarrod True, a prominent local gambling attorney from True Legal, shared insights with iGB, highlighting that the government anticipates a taxable revenue from regulated online gambling to be about NZ$500 million (US$300.8 million).
Market Analysis and Industry Response
Despite government estimates, industry insiders believe the current expenditure in the grey market could be as high as $900 million. True noted the surge in online gambling popularity during the COVID-19 pandemic, a trend that continues robustly. Currently, Tab NZ, in partnership with Entain, stands as the sole online betting operator.
Legislative Process and Stakeholder Involvement
The regulation of online casinos is marked as a priority by the government, evident from the planned early legislative actions in 2026. The process will involve drafting legislation, followed by a public consultation in 2025, seeking insights particularly from international stakeholders to refine the regulatory framework.
Challenges in Licensing and Market Competition
The exact number of online licenses and their associated costs are yet to be determined, with details on the regulatory approach still sparse. Internal Affairs Minister Brooke van Velden mentioned that advertising for these platforms would be “strictly limited,” and casino products would not be combined with sports betting or lottery services. True speculated that land-based giants like SkyCity Entertainment Group might have influenced the decision to limit online licenses to secure a larger market share.
Controversial Policies and Public Reaction
One of the more unexpected moves by the government was the imposition of a ban on gambling sponsorships, a decision that True described as “very left-field.” This reflects individual cabinet members’ influence on the legislation. The limited license policy, which could potentially be revised or discarded during the legislative process due to public and stakeholder pushback, remains a contentious issue.
