The New Zealand government will regulate online casino for the first time, with a licensing framework under development and due to be in place by 2026.
The government has agreed a high-level approach to online casino regulation. This, it said, is designed to minimise harm, support tax collection and provide consumer protections to New Zealand players.
According to the minister of internal affairs, Brooke van Velden, this means it will be illegal for unlicensed operators to target players in the country.
New Zealand online casino licences issued via auction
While the government’s plans are currently being developed Van Velden shared some details of the regulatory framework. Her department will be responsible for regulating New Zealand online casino operators.
A limited number of licences will be available through an auction, subject to the bidders meeting regulatory requirements. Players must be 18 or older.
While “strictly limited” advertising for licensees will be permitted, casino must be fenced off from other gambling products. Sports betting and lottery must not be offered alongside icasino, the New Zealand government said.
“This is not intended to increase the amount of gambling New Zealanders do but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax,” Van Velden said.
There will be an opportunity for the public to provide feedback on the regulatory plans during the select committee process.
The government intends to launch the new regulatory framework for online casino in New Zealand by 2026.
How has the market responded?
Casino operator SkyCity Entertainment Group has already voiced its support.
“We remain 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,” SkyCity said.
In a LinkedIn post shortly after the news broke, the operator’s CEO Jason Walbridge in particular welcomed the plans to restrict licence numbers and advertising .
“SkyCity has long supported regulating online play to minimise harm and protect Kiwis,” he said. “Limiting advertising and the number of operators in New Zealand is a good way of doing this.
“Currently there is a lot of money going offshore that should be staying in New Zealand as tax and community benefits. We hope this will be a key part of any future framework.”
Changing face of gambling in New Zealand
Should New Zealand proceed with plan to regulate online casino, it will be the first major change to gambling under the new government. The National Party claimed victory in last year’s election, ending Labour’s stint in government.
Ahead of the election, the two parties clashed over the subject of offshore gambling revenue. National said it could raise NZ$179m per year from offshore operators. National also criticised how goods and services tax (GST) was not being collected from the entire black market. It said it would force online casino operators to register and report their earnings.
However, Labour disputed these figures, saying GST generates around $40m per year. New Zealand has collected GST at a rate of 15% on services and intangibles supplied remotely by an offshore supplier since October 2016.
Other recent developments before the change in government include major reforms within horse racing. In August 2020, TAB New Zealand took charge of the country’s horse racing industry.
TAB NZ replaced the Racing Industry Transition Agency, the successor body to the New Zealand Racing Board (NZRB) that was established to manage the transition to a new governance model. However last year rising costs and capital constraints forced it to seek an external partner to deliver wagering and broadcast services, with Entain stepping in.