Foreign companies are expected to take a leading role in New Zealand’s online gambling market as the government prepares to auction online casino licenses for the first time.
According to documents accessed by The New Zealand Herald, operators in New Zealand are concerned that these offshore firms will capture significant market share and divert funds away from community grants typically funded by gambling profits.
The new regulatory framework, set to commence in February 2026, will impose strict penalties, including fines of up to NZ$5 million ($2.8 million) for unlicensed operators.
Internal Affairs Minister Brooke van Velden indicated that she anticipates that most of the 15 licenses will be awarded to large offshore companies.
While she acknowledged the potential for local operators to compete, she emphasized the need for a fair marketplace. Domestic gambling entities, including SkyCity and TAB, have expressed strong opposition to the extensive licensing, arguing that it threatens their viability and undermines community funding.
Notably, the new regime will not require successful bidders to contribute to community grants, raising concerns that gambling profits will primarily benefit offshore shareholders rather than local initiatives. Critics, including TAB’s CEO, have warned that such an open market could harm established funding streams for sports and community organizations.
While the Cabinet has acknowledged that community funding may be jeopardized, van Velden maintained that the focus should be on creating a safe and regulated online gambling environment rather than relying on grants from operators.
This new approach marks a significant shift in New Zealand’s gambling landscape, which has been slow to regulate online activities compared to other developed nations.
