An Industry in Flux – New Zealand’s Changing Online Casino Landscape

Last Updated on February 4, 2025
The online casino business has blossomed into a vast global industry worth billions of dollars worldwide. Millions of players sign up every day to enjoy classic games such as poker, blackjack, and roulette, as well as a dizzying array of slot machines. New Zealand is a booming market, but the country’s industry is in flux — the nature of online casinos means that new laws and regulations are often required. And new legislation is indeed on the table, as New Zealand has taken steps towards fully regulating online casinos by 2026. This legislation seeks to protect New Zealanders from disreputable operators and reap the dividends brought about by taxation. Let’s take a closer look.
Current Situation in New Zealand
The most recent piece of gambling legislation in the country is the somewhat outdated 2003 Gambling Act, which, in one of its provisions outlawed ‘interactive’ gambling, be it by computer, telephone, or any other communication device. Obviously, things have changed since then, but New Zealand still has formidable laws regarding gambling, and it isn’t as easy for punters as it is for many in other countries who have embraced online casinos. In fact, it has created something of a legal grey area, where players must access offshore websites to enjoy poker, blackjack, roulette, and slots.
What’s Happening Now?
New legislation is currently in the offing and should be in place by 2026. This will ensure that any casino operating in New Zealand is fully licensed, and has met the stringent requirements. Minister of Internal Affairs Brooke van Velden commented: “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.”
Apart from household names in New Zealand like SkyCity, popular brands around the world like Dunder will be vying to keep their feet firmly in the online casino scene once the laws are passed by bidding for a license. SkyCity CEO Jason Walbridge wrote in October that the new regime should “reward businesses that have been obeying the law, contributing to New Zealand [by paying tax] and minimising harm”. Nonetheless, both brands have voiced their support for the measures, and SkyCity has been consistently lobbying the government for an update to the current legislation over the past few years.
Why Regulate?
As the current laws were brought into effect when online casinos were in their infancy, they don’t cater to the current situation. From a niche diversion, the online casino industry has flourished into a serious market sector, and the number of players has steadily increased year on year. This boom has also been driven by the adoption of mobile technology as the primary way players engage with online casinos. Regulation has to adapt to meet the widening demands of customers and operators alike and serve to minimise harm, protect consumer privacy and security, and collect valuable taxes from operators.
Those tax dollars are appealing to any government, and gambling provides them in abundance. The National Party has projected figures of a possible $170 million NZD revenue by 2027, although the Labour Party has disputed these projections and debate still rages. Everyone agrees, however, on a tightening of rules for the safety of players. Online casinos are enjoyable and valuable, but the amount of sensitive data and financial information floating about makes them vulnerable to fraud and a frequent target of hackers. The rigorous measures proposed (including $5 million fines for operators without licenses) mean that player safety is prioritised, and those prone to problem gambling receive the necessary information and protection.
The online casino industry in New Zealand is undergoing major changes which will come into effect over the next two years. It’ll be interesting to see how the cards fall, who will be granted a license, and how it’ll affect the industry as a whole. Once these are in place, Kiwi punters can look forward to enjoying their favourite casino games with their security and protection prioritised.