Overview
New Zealand Online Gaming Overview
Unregulated
New Zealand is a popular grey market. It is lawful for offshore-based online providers to provide online gambling services to New Zealanders provided the gambling operation is run and managed entirely outside of New Zealand.
It is, however, illegal to advertise overseas-based gambling providers. The advertising restriction makes it difficult for new entrants to gain market share.
A 12% offshore gambling duty applies to online gambling provided by offshore operators to New Zealand residents. A 15% goods and service tax is also payable. For race and sports betting, a 10% point of consumption charge may also be payable.
The New Zealand Government is currently undertaking work to develop an online gambling system for New Zealand. An online licensing system is expected to be in place by 2026.
Market Size
In the 12-month period June 2022 to July 2023 the reported New Zealand spend on gambling activities totalled $2.76 billion. This is broken down as follows:
- TAB New Zealand (race and sports betting, including online betting via TAB.co.nz): $376m
- New Zealand Lotteries Commission (lottery and instant win scratch products, including online sales via mylotto.co.nz): $710m
- Non-casino gaming machines (land-based only): $1.07 billion
- Casinos (revenue from the six land-based casinos – excludes online): $604m
Online gambling outside the two statutory permitted TAB New Zealand and New Zealand Lotteries Commission offerings is popular. There is, however, no formal data collected for this additional online spend.
In the 2024 Government Budget, announced on 30 May 2024, the Government has budgeted to receive $50m from the new 12% online casino duty for the 10-month period 1 July 2024 to 30 April 2025. This equates to a projected annual spend of $500m.
Competitive Landscape
The New Zealand regulator, the Department of Internal Affairs, estimates that there are currently 3,000 online providers accepting deposits from New Zealand customers. While several of the large incumbent providers appear to be doing very well, the current prohibition on advertising and promoting online gambling makes it difficult to gain market share.
Localisation
It is unlawful to advertise offshore-based online gambling within New Zealand, which makes gaining market share difficult. Because online gambling must be conducted offshore, all payments must be transacted from offshore.
Top Key Attractions and challenges
Attractions
- A clear lawful pathway to offer online gambling products
- Online gambling is popular in New Zealand and growing
- Room for future market growth due to the introduction of an online gambling licensing system (this is expected to be in place by 2026)
Challenges
- Current inability to market and advertise
- Current inability to transact and conduct business from within New Zealand
- A new licensing system may include a limit on the number of online licences and new restrictions on unlicensed providers
Products
Licensing & Regulation
New Zealand Online Gaming Licensing & Regulation
Licence Triggers
Offshore-based online gambling that is run and managed entirely from offshore currently does not require a licence.
Land-based casino gambling requires a licence. All the available licences have been taken.
Land-based non-casino gaming machine gambling requires a licence. Licences are only provided to non-profit entities.
Lotteries and poker events conducted within New Zealand require a licence. Licences...
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Enforcement
New Zealand Online Gaming Enforcement
Regulating Bodies
The Department Internal Affairs (“DIA) regulates all forms of gambling in New Zealand, including online gambling.
Supervision By Regulator
The DIA is a well-resourced, large, and active regulator. DIA has wide powers to investigate, including wide evidence gathering powers and search powers.
Enforcement Against Licensed Operators
The DIA has just reached agreement with SkyCity whereby...
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Marketing
New Zealand Online Gaming Marketing
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Fees
New Zealand Online Gaming Fees
Application Fees
No licence is currently required to provide online gambling products from offshore and accordingly no fee is payable.
Ongoing Fees
No licence is currently required to provide online gambling products from offshore and accordingly no fee is payable.
Any Required Minimum Guarantee
No licence is currently required to provide online gambling products from offshore and...
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Products
Taxes
New Zealand Online Gaming Taxes
Licence Taxes
No licence is currently required to provide online gambling products from offshore and accordingly no licence tax payable.
Sales Taxes
Offshore Gambling Duty – 12%
A 12% offshore gambling duty applies to online gambling provided by offshore operators to New Zealand residents.
The duty applies to offshore gambling profits. Profits are calculated after subtracting any...
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Future Outlook
New Zealand Online Gaming Future Outlook
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Legal Expert
True Legal Limited
Director, Jarrod True is a gambling law specialist. He is the author of the New Zealand Gambling Law Guide.
True Legal provides advice nationally to over three quarters of New Zealand’s gaming machine trusts. In 2022, these trusts made 21,469 community grants, totalling $328 million, to 13,791 recipients.
Jarrod provides regular advice regarding New Zealand’s online gambling laws, including advice to offshore-based developers of gambling-related apps.
Jarrod also provides advice regarding the format and operation of sales promotion schemes (sales promotion schemes are regulated by the Gambling Act).
Jarrod is able to advise on all matters regarding New Zealand’s gambling law compliance and is happy to assist with all dealings with the Department of Internal Affairs (the New Zealand gambling regulator) and local councils.
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