New Zealand Announces iGaming Legalization to Thwart Offshore Websites

Posted on: July 30, 2024, 02:26h. 

Last updated on: July 30, 2024, 02:58h.

Devin O'Connor @CasinoorgDevinO Read More

Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The New Zealand government is moving toward legalizing online casino gambling as part of an effort to rid offshore gaming websites’ ability to target players in the Pacific Ocean island country.

The iGaming news comes from New Zealand’s Minister of Internal Affairs, Hon. Brooke van Velden, who confirmed this week that a regulatory framework to issue online gaming licenses will be incorporated by early 2026. Only a limited number of licenses will be available, and operators must pass suitability checks, pay taxes on their gross gaming revenue proceeds, provide consumer protections, and ensure responsible play.

The ultimate goal of the expansion of gambling to the internet is to provide New Zealanders who wish to gamble from the comforts of their homes a safe online gambling environment — something offshore websites do not provide, van Velden said.

Licensing is how we regulate most forms of gambling domestically. This is not intended to increase the amount of gambling New Zealanders do but to ensure operators meet requirements for consumer protection and harm minimization, as well as paying tax,” the minister explained.

New Zealand is home to less than 5.5 million people but each year welcomes millions of tourists who play a significant role in propping up the country’s economy.  

Gaming Licensee Supports iGaming

SkyCity Entertainment Group holds New Zealand’s lone land-based casino license. The company owns and operates gaming resorts in Auckland, Hamilton, and Queenstown. TAB New Zealand maintains a monopoly on sports and parimutuel wagering.

All forms of gambling in New Zealand are controlled by van Velden’s Internal Affairs Department.

SkyCity’s casinos in New Zealand last year generated retail gross gaming revenue of approximately NZ$387.2 million (US$229.5 million). Its properties added nearly US$111 million in nongaming revenue. Auckland has almost 1,900 slots and 150 tables, while Hamilton offers 339 slots and 23 tables, and Queenstown has 86 slots and 12 tables.

Following van Velden’s announcement that the central government is developing a legal environment to allow online casinos, SkyCity issued a statement in support.

The SkyCity Entertainment Group remains supportive of the regulation of online casino gaming in New Zealand with an emphasis on strong host responsibility and delivering community benefits in New Zealand,” a company release read.

SkyCity presumably has strong odds of landing one of the forthcoming iGaming concessions.

In her statement titled, “Regulation Online Casinos Approach,” van Velden said the licenses would be auctioned off. The permits would be valid for three years, assuming the operator maintains regulatory compliance.

Consumer Safeguards

Unlike in the United States where online sports betting and casino gambling have flooded television breaks with advertisements, van Velden says New Zealand will take a different approach. The minister explained that licensed online gambling operators would be permitted to advertise “with strict limits” but would be prohibited from entering into sponsorship deals with sports teams, television networks, stadiums, etc.

Only people aged 18 and older would be allowed access to gamble online. Licensed operators would gain privileges to run online slot machines and table games, but not sports betting or lottery products.