Online Gambling in New Zealand – Understanding Low-Value Betting and the Market Structure
Last Updated on July 3, 2025
What are we to make of the interesting situation that goes around the iGaming industry in the New Zealand context? Is there data to suggest how Kiwis use their time and money with this kind of activity? How do we define the complete set of activities that go into this category?
This article is an analytical piece that will look into the situation that we’ve just introduced with our rhetorical questions. Given that the market of online gambling has an intrinsic connection with the current tides of expansion and change, there are numerous ways in which to tackle this subject.
Moreover, since New Zealand has a particularly interesting context in its market because of its very relaxed regulations, the situation is harder to fathom from a tracking standpoint. However, we will do our best to address the reality of this market and understand some of its defining characteristics through several data points.
How do we define online gambling in a general sense?
Generally speaking, online gambling is a corollary term that we see under different denominations. The industry calls itself iGaming, giving a faster, cleaner terminology in order to expedite communication.
Online gambling is the creation and provision of gambling activities that happen specifically in a digital sense. We are talking about pokies, card games, lottery, bingo, sports betting, and any other type of activity that requires placing a bet in the interest of winning money out of that bet.
The standout aspect of online gambling is that it provides a very convenient, fast, and still relatively traceable environment for accessing games of luck. It reduces or eliminates the so-called ‘petrol fee’ (going to the casino) and offers a slew of gambling activities.
In the context of Aotearoa, the Gambling Act of 2003 made it so that there is only a small fraction of proper regulatory tendencies. There can be no online casinos operating in the country outside of TAB, but offshore brands can accept NZ users without any worries.
However, the tides are changing. An RNZ article on the emergence of licences in 2026 shows that the 15 new certifications will be awarded to bidders from across the world, compelling offshore casinos to enter the New Zealand market in a formal, government-vetted manner.
Explaining the concept of ‘low value’
Low-value gambling is yet another concept that is starting to make waves within the confines of the current market. However, we need to remember that this is a trend that is easy to identify on a global level rather than just speak on it from a New Zealander standpoint. Simply put, the idea of playing for fun is almost automatic and has low value because it shows a certain level of reticence when it comes to high-level spending.
In fact, large expenditures can cause a lot of problems for people from various communities. Stories like Scoop’s interview with an Auckland woman showcase the sliding scale of issues caused by big gambling spending (in conjunction with compulsive behaviour issues).
Low-value bets are entertainment-level only. Since both the free spins no deposit NZ model, coupled with the idea of self-imposed lower bets, create a more sustainable premise for digital gambling, low-value gambling has can be a more positive approach.
We can define this trend as the type of wagering that doesn’t impede on budgetary restraints that are in the spirit of responsible gambling. We are talking about staking for a maximum of $NZD 1 per bet, perhaps an even lower sum. In this case, we would be looking at smaller cumulative sums that do not create the same risk of loss, not to mention the sliding scale of possible addiction.
Charting gambling expenses for Kiwis
According to the Department of Internal Affairs’ statistical chart on gambling expenditure, we are looking at citizens’ losses in terms of money that gambling operators gain as profit. It’s a relatively imperfect idea since it doesn’t account for the volume from offshore digital casinos.
What does the chart tell us in terms of money generated by the industry?
Firstly, the case of 2019/20 gives us a look into a total profit of approximately $NZD 2.2 billion, with a surge in the following year (the year in which the COVID-19 pandemic was in full swing) to $ NZD 2.6 billion. What followed was a decrease for 2021/22, which turned out to be an abnormality when compared to the real trend.
In 2022/23 and 23/24, we saw the 2.7 billion mark surpassed in both cases. Compared to 21/22, we are talking about half a billion in funds that have gone to the coffers of gambling operators across Aotearoa, with almost 2.8 billion registered at the end of last year.
How do we define it going forward? The most normal idea would be to think about it from the perspective of its effects on the population. The sum is very large, but the real numbers are untraceable due to the lack of data from offshore-related gambling.
In our opinion, the sheer numbers that we’re seeing tell us that the updated regulations cannot come fast enough. Given that the traditional gambling sense compels New Zealanders to spend quite a lot of money on this activity, knowing the real figures can tell us how big the market is, but also give us better numbers in terms of seeing how much Kiwis are willing to spend.
