The New Zealand Online Casino Market – An Update for Online Casino Providers

New Zealand gambling law specialist and Advennt contributor, Jarrod True, provides an update on New Zealand’s upcoming online casino gambling reform.  

What is the expected timeframe for the new licensing framework?

The New Zealand Government is in the final stages of implementing a licensing system for online casino gambling. The legislation, titled The Online Casino Gambling Act, is expected to pass very shortly. Drafting instructions for the regulations have already been issued by the Minister.

The expected timeframe is as follows:

• Bill enacted – January/February 2026.

• Commencement of the new legislation – 1 May 2026 – New stronger advertising prohibitions commence.  The new prohibitions include significantly increased penalties for breaches.

• Expressions of interest for a licence open – July 2026.

• Licence auction – September 2026.

• Licence application processing begins – October 2026.

• New online casino gambling licences issued – from 1 December 2026. 

• Grey market ends – only providers who have applied for a licence may conduct online casino gambling – 1 December 2026.

What Does This Mean for Online Casino Providers?

Currently, it is lawful for offshore providers to offer online casino products to New Zealanders. This grey market will end on 1 December 2026. From that date, only licensed platforms will be permitted to operate. Unlicensed providers must exit the market before this deadline or face severe penalties.

From 1 May 2026, the Regulator will have stronger powers to enforce advertising restrictions. These powers will apply extraterritorially, meaning they will affect providers regardless of whether they are based in New Zealand or overseas. The Regulator will also have authority to issue take down notices for unlawful advertising.  The current maximum penalty of $10,000 for breaching the advertising prohibition will increase dramatically. From 1 May 2026, individuals may face fines of up to $300,000, while companies may face fines of up to $5 million.

When should providers begin planning if they are interested in the New Zealand market?

Providers considering entry into the New Zealand market should begin planning now and start the due diligence process.  Expressions of interest for a licence will open in July 2026, and the 15 available licences will be allocated through an auction process in September 2026.

What is New Zealand’s online casino market size and potential?

Online casino gambling represents a significant opportunity in New Zealand. In the 12 months to 30 June 2025, declared revenue for the purpose of paying the 12% online gambling duty was $520.8 million. However, because not all offshore providers declare revenue or pay tax in New Zealand, actual spend is likely higher. Industry sources estimate revenue in the range of $700 million to $800 million.

What taxes, fees, and levies are payable?

The following taxes, fees and levies are payable:

• A 12% online casino duty is payable.  This will increase to 16% from 1 January 2027.

• A 15% goods and services tax (GST) is payable.

• A 1.24% problem gambling levy is payable from 1 December 2026.

• An expression of interest fee of up to $19,000.00 is payable (the exact amount will be set by the Minister of Internal Affairs). 

• A general licensing levy of up to 5% of the platform’s New Zealand-based Gross Gambling Revenue will be payable (the exact percentage will be set by the Minister of Internal Affairs). 

What are the key advertising rules?

Licensed providers will be able to advertise lawfully in New Zealand for the first time, but strict conditions will apply:

• Advertisements must not target individuals under the age of 25.

• The use of social media influencers is prohibited.

• Affiliate marketing is prohibited.

• Advertising of jackpot prizes is prohibited.

• Direct marketing may only be sent to account holders.

• Advertisements must not include imagery or sounds suggestive of coins being inserted or dispensed from gaming machines.

• Bonuses and inducements can only be offered via direct marketing or on the provider’s platform.  The value of a bonus or inducement cannot exceed $100 or 200 percent of the original deposit or bet, whichever is lesser.

What are the key harm minimisation requirements?

Licensed providers will be subject to comprehensive harm minimisation obligations, including:

• The minimum age for online gambling will be 18 years, with mandatory age verification.

• Providers must exclude individuals who self-exclude and those identified as problem gamblers.

• Providers must offer tools for players to set limits on time, deposits, and spending.

• Providers must allow players to set the frequency of breaks and receive personalised pop-up alerts showing key session information.

• Game design and user interfaces must prevent extended, continuous, and impulsive play.

• The use of autoplay is prohibited.

What are the key consumer protection requirements?

Providers must adhere to strict consumer protection standards, including:

• Credit card deposits and buy now pay later facilities will be prohibited.

• A player may only hold one account per platform.

• Players must be able to close accounts and withdraw remaining funds without undue delay.

• Game designs and user interfaces must be clear and not misleading.

• Bonus conditions must be expressed in plain language.

Will the provider need to be based in New Zealand?

Licensed providers will not be required to maintain a physical presence in New Zealand. However, they must have a New Zealand address for service, and the absence of a local presence may be considered when assessing an applicant’s suitability for a licence.

Has the New Zealand model been based on any other jurisdiction?

New Zealand has not copied any single overseas model but has drawn guidance from established systems in the United Kingdom and Ontario. Both jurisdictions licence online gambling, restrict advertising, and impose harm minimisation and consumer protection requirements. New Zealand’s framework reflects these principles while addressing local circumstances.

Why different rules for online casino and sports betting?

Online race and sports betting is subject to a separate regime. It is unlawful for anyone other than TAB New Zealand to offer these products to persons located in New Zealand. This monopoly reflects TAB’s role in distributing profits to the racing industry, which is highly valued for its economic contribution and employment. Political support, particularly from Winston Peters, leader of a coalition partner and long-time advocate for racing, has reinforced this position.

Has the Government got the balance right?

While some improvements suggested during the Select Committee process were dismissed to expedite passage of the Bill before the 7 November 2026 election, the overall framework is considered robust. It improves the status quo, increases tax revenue, enhances harm minimisation, and strengthens consumer protections while remaining workable for the industry.

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