New Zealand launches process to regulate online casino
The New Zealand government is set to introduce comprehensive regulation for online casinos for the first time, with a robust licensing framework expected to be finalized by 2026.
This initiative reflects the government’s commitment to minimizing gambling-related harm, enhancing tax collection, and safeguarding consumer protections for New Zealand players.
According to Brooke van Velden, the Minister of Internal Affairs, unlicensed operators will be prohibited from targeting players within New Zealand.
Licensing Framework for Online Casinos: Auction-Based Model
As the regulatory framework develops, Minister van Velden provided insights into its structure. The Department of Internal Affairs will oversee the licensing and regulation of online casino operators in New Zealand.
Licenses will be available through a competitive auction process, contingent upon bidders meeting strict regulatory criteria. Additionally, operators will be required to ensure players are 18 years or older.
Under the new regulations, while limited advertising for licensed operators may be permitted, online casinos must remain distinctly separate from other gambling products. The government has stated that sports betting and lottery services cannot be offered alongside online casino gaming.
“Our objective is not to increase gambling participation among New Zealanders, but to ensure that operators adhere to consumer protection and harm minimization standards, while also fulfilling tax obligations,” Van Velden emphasized.
The public will have the opportunity to provide feedback on these regulatory plans during the select committee review process.
With the aim to implement the new regulatory framework for online casinos by 2026, this initiative marks a significant shift in New Zealand’s gambling landscape.
Market Reactions: Industry Stakeholders Weigh In
SkyCity Entertainment Group, a prominent casino operator, has publicly expressed its support for the prospective regulation of online gaming in New Zealand.
“We fully endorse the regulation of online casino gaming, emphasizing the importance of responsible gaming and community benefits,” stated SkyCity.
In a LinkedIn update shortly after the announcement, CEO Jason Walbridge specifically praised the planned restrictions on the number of licenses and advertising.
“SkyCity has long advocated for regulated online gaming to mitigate risks and protect New Zealanders,” Walbridge noted. “Limiting advertising and the number of licensed operators is a sturdy strategy toward achieving this goal.”
He further highlighted the significant funds currently flowing offshore, which could otherwise contribute to New Zealand’s tax revenue and community development. “We hope that maintaining these initiatives will be a cornerstone of any forthcoming regulatory framework,” he added.
Transforming the Gambling Landscape in New Zealand
If New Zealand follows through with its plans to regulate online casinos, it will represent the most substantial shift in the gambling sector under the current government. The National Party’s recent electoral success has shifted the landscape, ending Labour’s governance.
The National Party has argued that regulating offshore gambling could yield NZ$179 million annually, addressing concerns about the uncollected goods and services tax (GST) from unregulated operators. They maintain that measures must be implemented to ensure online casino operators register and accurately report their earnings.
Conversely, Labour disputes this claim, asserting that GST on goods supplied remotely generates approximately NZ$40 million each year. Since October 2016, New Zealand has collected GST at a 15% rate for services provided by offshore operators.
Recent developments also highlight significant reforms in traditional gambling sectors, notably horse racing. In August 2020, TAB New Zealand assumed control of the country’s horse racing industry after the dissolution of the Racing Industry Transition Agency. However, in response to rising operational costs, TAB NZ sought an external partnership with Entain to deliver wagering and broadcasting services.
This evolving regulatory framework reflects not only an adaptation to modern gambling trends but also a commitment to ensuring a safer, more beneficial gambling environment for all New Zealanders.
