New Zealand Set To Regulate Online Casinos By 2026
Last Updated on September 17, 2024
New Zealand’s Minister of Internal Affairs, Brooke van Velden, announced earlier this year that the government has adopted a new approach to regulating online gambling via a system that will be implemented by 2026.
The aim of this system is to minimise harm to gamblers, ensure tax collection from operators and players, as well as ensure protection for all consumers. According to Van Velden, online casino operators will have to be licensed according to specific criteria: “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.”
Currently, the only online gambling allowed in the country is playing via Lotto NZ or betting on horse races with the New Zealand Racing Board. There are no operators allowed to offer online casino games, whether that’s slots, poker or roulette. That means that players looking to play Crash games like Aviator or Need for X will have to wait until 2026 for the new system to be established, or access offshore casino platforms and those accepting crypto, which operate outside of traditional gambling laws in the country.
According to a press release by the New Zealand Government, there will be a limit on the amount of licenses available to operators. These licenses will be auctioned for and will apply for three years, as long as specific conditions are met. Van Velden stated, “Licensing is how we regulate most forms of gambling domestically. This is not intended to increase the amount of gambling New Zealanders do but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax.”
The minimum age for gamblers will be set at 18 years, and licensed operators will only be allowed to offer traditional casino games online, and not any sports betting or lottery. Under the new regulations, operators will also be allowed to advertise their offerings, however, marketing materials will be regulated. Sponsorships from online casino operators will still not be allowed.
The public will be invited to engage with the entire process leading up to the establishment of the regulations. Members of the public will be able to provide feedback before the system is in place in 2026.
Industry leaders, like SkyCity Entertainment Group, have already backed the proposed regulations. Surprisingly to some, those in the gaming industry have praised the government’s initiative to protect consumers and place an emphasis on fair taxation and restricted advertising.
Jason Walbridge, CEO of SkyCity, said of the proposed system: “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.”
The new system will be a turning point in New Zealand’s gaming industry, where a lot of funds are currently spent at offshore online casinos. It will allow funds to remain in the country, benefiting the community, while taxes will be used for public development projects.
