New Zealand has taken a major step toward regulating its online gambling market with the introduction of the Online Casino Gambling Bill to Parliament on June 30th.
The legislation proposes a formal licensing regime under which up to 15 licenses for online casino operators will be auctioned, marking the country’s first effort to oversee an industry that has so far remained unregulated.
The Bill, introduced by Minister of Internal Affairs Brooke van Velden, is designed to prioritize harm minimization, consumer protection, and tax collection. If passed, it will establish a three-stage licensing process and grant enforcement powers to the Secretary for Internal Affairs, who will act as the sector’s regulator.
“The Bill will proceed to select committee later this year and New Zealanders will have the ability to have their say through the select committee process,” Minister van Velden said in a statement.
Three-stage licensing system
The Bill proposes a structured approach to online casino regulation through a three-stage system, which comprises expressions of interest, a competitive process, and applications for licenses.
According to the bill, the Secretary may grant up to 15 licenses, each valid for an initial term of three years, with a one-time renewal option of up to five years. Only operators selected through a competitive bidding process and who meet strict suitability and compliance standards will be eligible.
Under the proposed law, licensed operators will be allowed to advertise—albeit with regulatory restrictions—in a move aimed at steering users away from unlicensed, offshore platforms. Conversely, unlicensed operations will be prohibited, with violators subject to fines of up to NZ$5 million ($3.01 million).
Applicants must provide comprehensive documentation, including business plans tailored to the New Zealand market, and demonstrate strong safeguards against gambling harm. Licensees will also be prohibited from offering credit for gambling or allowing users under eighteen years old on their platforms.
Regulatory oversight and consumer protection
The Department of Internal Affairs will oversee licensing, compliance, and enforcement. The regulator will maintain a public register of licensed operators and will have the authority to issue formal warnings, create enforceable undertakings, and distribute take-down notices, among other enforcement tools.
The Bill mandates that all operators implement a comprehensive suite of harm minimization and consumer protection measures. These include age verification processes, self-exclusion mechanisms, visible registration icons and audio cues on platforms, and an obligation to identify and exclude problem gamblers.
Operators are also required to establish a formal complaints process and submit quarterly reports to the Secretary. Platforms are required to operate at least 270 days per year and collect user data for compliance and anti-money laundering (AML) purposes.
Enforcement and penalties
Non-compliance will be met with a range of penalties under the proposed legislation. Individuals and corporations breaching the law may face civil penalties of up to NZ$300,000 ($180,600) and NZ$5 million ($3.01 million), respectively. Criminal liability is also introduced for individuals participating in online gambling on behalf of minors, with offenses punishable by fines of up to NZ$10,000 ($6,020).
The legislation includes specific restrictions to protect existing gaming operations. Operators engaging in online casino gambling activities similar to New Zealand’s protected lotteries—such as Lotto, Powerball, and Strike—are expressly barred from obtaining licenses. This ensures the new market does not conflict with existing national gaming initiatives.
Implementation timeline
The Bill will come into force the day after it receives Royal Assent. However, clauses relating to offenses involving minors will not take effect until July 1st, 2026.
A transitional period will allow existing online casino operators to continue operating—without advertising—provided they apply for a license before July 1st, 2026. All unlicensed operations will be prohibited after December 31st, 2026.
Broader gambling law reforms
The Online Casino Gambling Bill follows recent changes to New Zealand’s Racing Industry Act 2020. Effective June 28th, only New Zealand’s state-backed TAB NZ is authorized to operate and advertise online sports and racing betting in the country, following amendments to the Racing Industry Act 2020.
This “legislative net” prevents unlicensed offshore operators from offering services to New Zealanders, ensuring funds remain onshore to support the local racing and sports industry and strengthen harm minimization.
These reforms reflect the government’s broader strategy to consolidate regulatory oversight of all forms of online gambling. While the updated racing legislation restricts market access to the single domestic operator, the online casino-focused bill introduces a more open, competitive framework under strict regulation.
Global sports betting and gaming group Entain plc, which has a twenty-five-year partnership with TAB NZ, welcomed the decision and will make an additional NZ$100 million ($60.6 million) payment to TAB NZ with the implementation of this new legislation.
