New Zealand’s Bill to regulate online gambling has passed its final reading, moving up to Royal Assent.
Approved in 2003, the current Gambling Act has been a subject of numerous debates driven by a loophole that created a grey area which allowed local players to gamble online with offshore operators.
The new framework is setting up the grounds for a market launch that will include a total of 15 online gambling licences, operating in a competitive environment akin to what is seen across other major licensed gambling jurisdictions globally.
Internal Affairs Minister Brooke van Velden commented: “The Bill…supports the coalition agreement by closing the gambling tax loophole and requiring licensed online casino operators to pay tax, just like any other business operating in New Zealand.”
Provisions mandate the implementation of player safety mechanisms, tax brackets for licensees, and legal repercussions for regulatory breaches, such as financial penalties of up to NZ $5m (£2.1m) for serious or persistent offences.
“Under the new framework, up to 15 licences will be available through a competitive process. Licensed operators will be required to exclude problem gamblers, and meet strict harm prevention and consumer protection requirements,” van Velden continued.
“These tools will ensure that New Zealand law applies to all online casino gambling available in New Zealand, regardless of where operators are located, closing off avenues for avoidance and strengthening the regulator’s ability to monitor and enforce compliance by international operators.”
Additionally, months of campaigning from Labor MPs has ensured that the bill includes mandatory provisions to fund community projects throughout New Zealand with a share of the revenues generated by licensed online gambling providers.
“Submissions on this Bill made it clear that New Zealanders also want the benefits from the online casino gambling to flow back to local sports clubs, community groups, and grassroots organisations. This Bill delivers on that expectation,” the Minister added.
Royal Assent is expected to be given on 1 May. The planned timeline will open the window for licence applications on 1 December, with the 15 successful applicants expected to go live on 1 July 2027.
Currently, Entain holds an exclusive licence to operate sports betting through TAB NZ’s domestic presence. The gambling international has previously stated that it will aim to obtain three of the 15 available licences.
SkyCity Entertainment Group, New Zealand’s biggest land-based casino operator, may be a little less enthused, however. The company had previously written to van Velden expressing concerns about the prospect of a multi-licence online casino market.
