Brooke van Velden, Minister of Internal Affairs, announced that the New Zealand government has adopted a comprehensive approach to regulating online casinos. The new system, set to launch in early 2026, focuses on minimizing harm, ensuring robust tax collection, and providing substantial consumer protections. “There will be a licensing system for online casinos, where operators will need to comply with a set of criteria before they will be able to offer services to New Zealanders. It will be illegal for unlicensed operators to offer services to New Zealanders,” stated Ms. van Velden.

Details of the licensing system and consumer safeguards:

According to the official press release, the proposed licensing system will be selective, offering a limited number of licenses through a competitive auction, valid for three years and contingent on fulfilling ongoing regulatory requirements. The new regulations will set the minimum gambling age at 18 and restrict licensed operators to offering only online casino games, excluding sports betting and lottery products. Moreover, while advertising by licensed operators will be newly permitted, it will be tightly regulated, and sponsorships by online casinos will continue to be prohibited.

Van Velden emphasized the importance of public engagement in shaping these regulations, noting, “I expect the new regulatory system to be in place from early 2026 and the public will have the opportunity to provide feedback during the Select Committee process.” The move has already received backing from industry players, including SkyCity Entertainment Group, which praised the government’s emphasis on responsibility and community benefits. As iGaming Business reports, SkyCity’s CEO, Jason Walbridge, expressed support on LinkedIn for the restrictive measures on advertising and the number of licenses, highlighting the potential for increased domestic revenue retention. “Currently, there is a lot of money going offshore that should be staying in New Zealand as tax and community benefits. We hope this will be a key part of any future framework,” he said.

Impact of new legislation on the national gambling landscape:

This regulatory overhaul marks a significant transformation in New Zealand’s gambling sector, aligning with changes in government leadership and previous legislative clashes over offshore gambling revenue and GST collection. The new framework promises to curb the flow of gambling funds offshore, ensuring that more revenue stays within the country to support public services and community initiatives. This comes as part of broader efforts to revitalize other gambling sectors, such as horse racing, which has also seen substantial reforms and partnerships aimed at sustainability and growth.

As New Zealand prepares to roll out its new regulatory regime for online casinos, the government, industry stakeholders, and the public are closely watching to ensure that these changes bring about the intended benefits of a safer, more responsible gambling environment that contributes positively to the economy.