New Zealand to Launch Online Casino Licensing by 2026

New Zealand to Launch Online Casino Licensing Regime by 2026

New Zealand is revolutionizing its approach to online gambling with a new licensing regime set to launch by 2026!

This regulatory framework aims to enhance consumer protection, minimize harm, and ensure proper tax collection.

Learn how the new system will protect New Zealanders and bring significant changes to the online gambling landscape.

Stay updated on these developments and understand their implications for operators and players alike.

In a groundbreaking move, the New Zealand government has announced the introduction of a new regulatory framework for online casinos, set to be fully operational by 2026. This initiative aims to enhance consumer protection, minimize harm, and ensure effective tax collection from online gambling activities.

New Regulatory Framework for Online Casinos

The new licensing system will require online casino operators to meet stringent criteria before offering their services to New Zealanders. Minister of Internal Affairs Brooke van Velden emphasized that the goal is not to increase gambling but to ensure operators adhere to high standards of consumer protection and harm minimization while contributing to the nation’s tax revenue.

“Licensing is how we regulate most forms of gambling domestically,” van Velden stated. “This is not intended to increase the amount of gambling New Zealanders do, but to ensure operators meet requirements for consumer protection and harm minimization, as well as paying tax.”

Auction-Based Licensing

The government, led by the National Party, plans to issue a limited number of licences through an auction process. These licences will be valid for three years, contingent on continuous compliance with regulatory standards. The minimum age for participating in online gambling will be set at 18, and the licensing will strictly cover online casino gaming, excluding sports betting and lottery offerings.

Licensed operators will be allowed to engage in advertising, currently banned in the country, though strict restrictions will remain in place. However, sports sponsorships by online casinos will continue to be prohibited.

Oversight and Public Involvement

Minister van Velden anticipates that the new regulatory system will be in place by early 2026. The public will have the opportunity to contribute opinions during the Select Committee process. “Once established, the Department of Internal Affairs will oversee regulation, ensuring that our framework aligns with both community expectations and operational integrity,” she added.

Economic Impact and Industry Support

During election campaigns last year, the National Party projected that the new licensing regime could raise NZ$179 million per year from online operators. They criticized the previous Labour Party government for not collecting tax from the unregulated offshore sector. In response, the Labour party highlighted that since October 2016, they had collected a 15% goods and services tax (GST) on services and intangibles supplied remotely by offshore suppliers.

Industry Reaction

The new regulatory approach has been welcomed by industry stakeholders, including SkyCity Entertainment Group, New Zealand’s largest tourism, leisure, and entertainment company. SkyCity expressed support for the regulation of online casino gaming, emphasizing the importance of strong host responsibility and community benefits.

SkyCity CEO Jason Walbridge commented on LinkedIn, “Great to see Minister van Velden announce further details on the regulation of online casino gambling in New Zealand. SkyCity has long supported regulating online play to minimize harm and protect Kiwis. Limiting advertising and the number of operators in New Zealand is a good way of doing this.”

SkyCity owns and operates five casino properties in New Zealand and Australia and runs an offshore SkyCity online gaming site operated from Malta.

Regulatory and Compliance Developments

In June 2024, the Federal Court of Australia ordered SkyCity to pay a A$67 million penalty for AML/CTF failings in its Adelaide casino. Additionally, New Zealand’s Department of Internal Affairs ordered SkyCity to pay a civil penalty of NZ$4.2 million for historical non-compliance with the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Conclusion

New Zealand’s introduction of an online casino licensing regime marks a significant shift towards a regulated and responsible gambling environment. By setting high standards for consumer protection and harm minimization, the government aims to create a safe and fair online gambling market. As the new framework takes shape, industry stakeholders and consumers alike will benefit from a more secure and transparent gaming landscape. Stay tuned for further updates on this transformative initiative.