How the Gambling Industry in New Zealand Differs from Australia: Key Insights
Last Updated on June 17, 2025
Gambling is a significant cultural and economic activity in both New Zealand and Australia, yet the two nations have distinct approaches to regulation, access, and player behavior. This article explores the key differences between their gambling industries, covering jurisdiction, legality, accessibility, and more, to provide New Zealanders with a clear understanding of how their system compares to their neighbor across the Tasman Sea.
Regulatory Frameworks and Jurisdiction
New Zealand
In New Zealand, gambling is tightly regulated under the Gambling Act 2003, administered by the Department of Internal Affairs (DIA). The Act aims to control gambling, ensure community benefits, and minimize harm. It classifies gambling into four classes, with Class 4 covering high-risk activities like electronic gaming machines (pokies) outside casinos. The DIA licenses operators, and territorial authorities approve venues for pokies and TAB sites. The New Zealand Lotteries Commission and TAB New Zealand oversee lotteries and racing/sports betting, respectively, with profits partly returned to communities. Online gambling is restricted; remote interactive gambling (e.g., online casinos) is prohibited unless conducted by the Lotteries Commission or TAB NZ. However, New Zealanders can legally access offshore online casinos, as these fall outside local jurisdiction.
Australia
Australia’s gambling regulation is more fragmented, with no single national authority. Each state and territory governs its own gambling activities, supplemented by the federal Interactive Gambling Act 2001 (IGA), which regulates online gambling. States like New South Wales and Victoria have their own regulators, such as the NSW Independent Liquor & Gaming Authority and the Victorian Gambling and Casino Control Commission. Land-based casinos, pokies in pubs/clubs, and sports betting are licensed at the state level. The IGA prohibits online casino games and poker but allows online sports betting and lotteries. Unlike New Zealand, Australian-licensed operators can offer online betting to residents across states, following the 2008 High Court ruling in Betfair v. Western Australia.
| Aspect | New Zealand | Australia |
|---|---|---|
| Primary Legislation | Gambling Act 2003 | Interactive Gambling Act 2001 + State/Territory Laws |
| Regulator | Department of Internal Affairs | State/Territory Regulators + Federal Oversight |
| Online Gambling | Prohibited locally, offshore allowed | Online casino/poker banned, sports betting allowed |
| Community Benefit | Mandatory profit return to community | Varies by state, less emphasis |
Legality and Restrictions
New Zealand
The Gambling Act 2003 permits land-based gambling, including six casinos, 17,799 pokies (82% in pubs/clubs, 18% in casinos), and TAB venues. Online gambling is heavily restricted; only the Lotteries Commission (via MyLotto) and TAB NZ can offer online services. Offshore online casinos, while not regulated, are accessible to Kiwis without legal repercussions for players, though advertising such services in New Zealand is illegal, carrying fines up to NZ$10,000. The recent offshore gambling duty, effective July 2024, imposes a 12% tax on offshore operators’ revenue from New Zealanders, alongside 13% GST, totaling 25%.
Australia
Gambling is legal across Australia, with 14 licensed casinos and over 7,298 pubs/clubs hosting pokies. Online gambling is partially legal; the IGA allows licensed operators to offer sports betting and lotteries online but bans online casino games and poker. Australians can access offshore sites, though operators face penalties for targeting locals. Unlike New Zealand, gambling winnings are not taxed, as gambling is not considered a profession. States like South Australia have introduced point of consumption taxes (e.g., 15% in SA) on betting operators’ revenue, varying by jurisdiction.
Access to Gambling
New Zealand
New Zealand has six casinos, primarily in urban centers like Auckland and Christchurch. Online casinos are also popular, offering pokies, table games, and secure payment methods. A large test conducted on casinos that accept Paysafecard in New Zealand had interesting results: 24% of the analysed sites provided a fast and smooth withdrawal process. Coupled with instant deposits and the ease in which you can use Paysafecard for low value transfers, these sites are catching the attention of gamblers. However, a high rating is not made just by offering an effortless payment experience.
Other factors like games, bonus values, and instant costumer service replies all factor in. Around 58 casinos reach a high score on all these major features. Pokies are widespread, with 22,000 non-casino machines in 2003, roughly one per 180 people. Online access is limited to MyLotto and TAB NZ, but offshore sites, licensed by bodies like the Malta Gaming Authority, are popular due to their NZD currency options and local payment methods like POLi.
Australia
Australia’s 14 casinos, such as The Star Sydney and Crown Melbourne, are state-specific, with Queensland and the Northern Territory hosting multiple. Pokies dominate, with over 200,000 machines nationwide, mostly in pubs/clubs (except Western Australia, where they’re casino-only). Online sports betting is widely accessible through licensed operators, and lotteries are popular. Offshore online casinos are used, but regulatory scrutiny is stricter than in New Zealand.
Player Behavior and Expenditure
New Zealand
In 2018, New Zealand’s gambling expenditure reached NZ$2.4 billion, with pokies being the most popular, especially non-casino machines, which accounted for the highest spending. About 80% of Kiwis gamble, with 76,000 at moderate to high risk of harm. Pokies are addictive due to “near wins” and “free spins,” with 60% of problem gamblers relapsing yearly. Online gambling is growing, with a 9.2% user penetration rate, projected to hit 11.3% by 2027, and an average revenue per user of NZ$2,450. Māori, Pacific, and low-income communities face disproportionate harm.
Australia
Australians spent AU$24.9 billion on gambling in 2023, with lotteries (AU$20.17 billion) and online betting (AU$9.09 billion) leading. Pokies remain prevalent, with 64% of adults participating in lotteries and 17% in online gambling. Problem gambling affects about 1% of the population, with higher rates among younger males. Online gambling participation grew 8% from 2020 to 2022, driven by sports betting. Unlike New Zealand, Australia’s gambling culture is deeply tied to sports, with horse racing historically significant since 1810.
| Metric | New Zealand (2018) | Australia (2023) |
|---|---|---|
| Total Expenditure | NZ$2.4 billion | AU$24.9 billion |
| Pokies Share | Highest (pubs/clubs) | Significant (pubs/clubs) |
| Online Penetration | 9.2% | 17% |
| Problem Gambling | 76,000 at risk | ~1% of population |
Harm Minimization Efforts
New Zealand
New Zealand prioritizes harm minimization through the Gambling Act and Harm Prevention and Minimization Regulations 2004, strengthened in 2023. Measures include mandatory Player Information Displays on pokies, licensing requirements for Class 4 operators, and host responsibility programs in casinos. The Gambling Helpline (0800 654 655) offers 24/7 support. Policies like “sinking-lid” limit new pokie venues in vulnerable areas, though expenditure trends show limited impact.
Australia
Australia’s harm minimization varies by state. Victoria’s mandatory pre-commitment system for pokies allows players to set limits, while New South Wales assesses socioeconomic impacts for new machines. The National Consumer Protection Framework regulates online betting, enforcing self-exclusion and advertising restrictions. Support services like Gambling Help Online are available, but the decentralized approach leads to inconsistent protections.
Taxation and Economic Impact
New Zealand
Gambling operators in New Zealand face a problem gambling levy to fund services, calculated based on player losses and service usage. The offshore gambling duty adds a 25% tax (12% duty + 13% GST) on offshore operators. Gambling losses were NZ$1.87 billion in 2002/03, about 1% of GDP. Class 4 societies must return 40% of net proceeds to communities, supporting local initiatives.
Australia
Australia’s gambling industry generates significant revenue, with lotteries alone contributing AU$20.17 billion in 2023. Point of consumption taxes (e.g., 15% in South Australia) target betting operators, but winnings are tax-free for players. The industry supports thousands of jobs, particularly in hospitality, but faces criticism for social costs. Economic benefits are weighed against problem gambling concerns, with states balancing revenue and regulation.
