In a historic pivot for the Oceanic gaming market, New Zealand’s bill to regulate the online casino sector has successfully passed its final reading. The legislation is now headed for Royal Assent, expected on May 1, which will officially dismantle the 2003 Gambling Act and replace a long-standing “grey market” with a robust, competitive licensing regime.
A Competitive 15-Licence Model
The new framework is designed to close existing tax loopholes that previously allowed offshore operators to reach Kiwi players without local contribution.
The government will issue a total of 15 online gambling licences through a rigorous competitive process. Licensed operators will face strict mandates, including mandatory problem gambling exclusion systems and significant financial penalties of up to NZ$5 million (£2.1 million) for regulatory breaches.
Internal Affairs Minister Brooke van Velden emphasized the bill’s focus on fairness and safety:
“The Bill…supports the coalition agreement by closing the gambling tax loophole and requiring licensed online casino operators to pay tax, just like any other business operating in New Zealand. Under the new framework, up to 15 licences will be available through a competitive process. Licensed operators will be required to exclude problem gamblers, and meet strict harm prevention and consumer protection requirements. These tools will ensure that New Zealand law applies to all online casino gambling available in New Zealand, regardless of where operators are located, closing off avenues for avoidance and strengthening the regulator’s ability to monitor and enforce compliance by international operators.”
Community Funding and Market Dynamics
Following intensive campaigning from Labor MPs, the bill includes a unique provision that directs a portion of gaming revenue toward local community projects and grassroots sports. The application by the window Royal Assent is slated to open on December 1, 2026, with the first 15 operators expected to go live by July 1, 2027.
While international giants like Entain have already signaled interest in securing multiple licences, local land-based titan SkyCity Entertainment Group remains cautious about the arrival of multi-licence digital competition.
