New Zealand’s Online Casino Gambling Bill has successfully passed its third and final reading in parliament this week, as the sector prepares for a 2027 launch.
The legislation, championed by Minister of Internal Affairs Brooke van Velden, has sought to enhance consumer protections and introduce licensing and taxation for operators. The bill now proceeds to Royal Assent and is expected to be passed into law in May.
What New Zealand’s iGaming bill delivers
The bill authorises the issuance of up to 15 licences to qualified online casino operators through a competitive application process. The Department of Internal Affairs (DIA) is tasked with managing the licensing regime according to a revised timetable published in March 2026.
Entain indicated in March it was eyeing three of the 15 available licences. CEO Stella David said during the company’s FY25 earnings call that, with its exclusive betting brand TAB in New Zealand, Entain is the only online operator that could cross-sell between sports and iGaming.
This timetable anticipates the licensing process to commence in July, with an application deadline set for 1 December 2026. Licensed operators will face stringent compliance requirements.
“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,” van Velden said in a government update on Thursday.
The legislation also strengthens regulatory enforcement powers by the DIA. According to van Velden, the tools will include:
- Take-down notices
- Formal warnings
- Enforceable undertakings
- Penalties of up to NZ$5 million for serious or repeated breaches
The government had previously said it intended to allocate a proportion of gross gaming revenue (GGR) from licensed online casinos to support local sports clubs, community groups and grassroots organisations.
Cabinet papers from November showed that the government was considering setting aside 4% of operator GGR to fund these community returns. Funding could bring in between NZ$10 million and NZ$20 million in the first year, assuming the new regime starts on 1 January 2027, but stakeholders have hinted at further delays.
It was already pushed back from an initial 2026 launch date.
Offshore operators on notice
A notable feature of the legislation is its extraterritorial reach. The enhanced enforcement capabilities of the online casino gambling bill will ensure that New Zealand gambling laws apply to all online casino services accessible within the country. Physical locations of the operators do not matter.
This legislation aims to eliminate loopholes currently exploited by some offshore providers. Operators who fail to submit licence applications by the 1 December 2026 deadline will face legal obligations to stop providing their services in the country. They are also subject to the same NZ$5 million penalty cap for non-compliance.
A race against the clock, industry flags
The bill passed its first reading in parliament by 83 votes to 39 and advanced to the Governance and Administration committee in July 2025.
Throughout the legislative process, industry stakeholders and legal experts expressed concerns regarding the accelerated timeline and lack of regulatory detail. Legal advisers cautioned that the compressed schedule might limit thorough consultation on forthcoming regulations.
