New Zealand has initiated a formal move toward regulating its online gambling sector by introducing the Online Casino Gambling Bill to Parliament on 30 June. This bill, brought forward by Minister of Internal Affairs Brooke van Velden, outlines a comprehensive licensing regime aimed at establishing order in a previously unregulated market.

Currently, New Zealanders can freely access offshore casino platforms, which operate outside the reach of domestic regulation. This legal gap has allowed a grey market to flourish, lacking both consumer safeguards and returns to public funds through taxation. As Minister van Velden noted, “The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritise harm minimisation, consumer protection, and tax collection.”

The bill forms part of the Coalition Government’s Quarter Two Action Plan and will soon proceed to the select committee stage, giving the public a chance to provide feedback on the proposal.

Licensing Process and Key Restrictions

The bill establishes a structured three-step licensing procedure, starting with an invitation for expressions of interest, followed by a competitive process, and finally, formal applications. The Secretary for Internal Affairs, acting as the regulatory authority, will oversee this process and may grant up to 15 online casino licenses. Each license will initially be valid for three years, with a one-time renewal option for up to five more years.

To qualify, applicants must submit extensive documentation, including tailored business plans, and demonstrate robust harm minimization protocols. Successful licensees will be permitted to advertise their services within New Zealand, although advertising will be limited by yet-to-be-finalized regulations.

Operators that fail to comply—or offer services without a license—may face significant penalties. According to the legislation, unlicensed providers can be fined up to NZ$5 million. Individuals or corporations breaching various compliance rules may face civil penalties of up to NZ$300,000 and NZ$5 million, respectively. A separate offense targeting those who facilitate gambling for minors introduces a criminal fine of up to NZ$10,000.

A transition period will allow currently operating platforms to continue until the end of 2026, provided they apply for licensing by July 1, 2026. All unlicensed operations will be fully prohibited as of December 31, 2026.

Oversight, Enforcement, and Broader Gambling Law Reform

The Department of Internal Affairs will maintain full regulatory authority, including licensing, oversight, enforcement, and the publication of a public operator registry. It will also hold powers to issue take-down notices, formal warnings, and binding undertakings. Operators must meet consumer protection obligations such as strict age verification, exclusion of problem gamblers, a complaints system, and visible registration icons and audio cues on their sites.

Importantly, the bill prevents licensees from offering products that closely resemble existing national lottery games like Lotto, Powerball, and Strike, preserving the integrity and funding of those established services.

This casino-focused bill complements recent changes to the Racing Industry Act 2020, which came into effect on June 28. Those amendments reinforce the exclusive rights of TAB New Zealand (TAB NZ) to offer online racing and sports betting. The revisions effectively block unlicensed offshore entities from targeting Kiwi consumers, further tightening the country’s gambling controls.

These broader reforms are aimed at retaining gambling revenue within New Zealand and ensuring that funds contribute to local racing and harm prevention programs. Entain Australia, which has a 25-year strategic partnership with TAB NZ, welcomed the legislative shift and will contribute an additional NZ$100 million upon the implementation of the so-called “legislative net.”