Casinoplusbonus EN author Jack Bannon takes a look at the newly announced New Zealand online casino gambling regulatory framework. (Images courtesy phanithi on Vecteezy)
New Zealand has officially announced that it has started moving towards a regulated online casino market.
The expected launch date is 2026.
It will be the first time online casinos in NZ will operate under the control of a government entity. It makes sense as millions of dollars flow out of the country to overseas online casinos owned by operators in Malta under the Malta Gaming Authority (MGA) and in Curacao and Cyprus under the Curacao (CeG) licensing.
With the new framework in place, the aim is to collect tax dollars and offer online casino gaming that falls under the jurisdiction of New Zealand gambling and consumer rights laws.
Another area the government wants more control over is problem gambling. With the correct rules in place, a new licensing authority will help to minimise gambling addiction.
The news came via a report published on the beehive.govt.nz website by Hon Brooke Van Velden titled – Regulating online casinos approach. There are also some hints of how the new regulatory framework will look.
Hon Brooke Van Velden quoted: “There will be a limited number of licences available allocated by auction, with licences lasting three years and being conditional on meeting regulatory requirements. The minimum age for online gambling will be 18, and operators can only offer online casino games, not sports betting or lottery products. It will be illegal for unlicensed operators to offer services to New Zealanders,” says Ms van Velden.“.
Three Key Points to Note from Hon Brooke Van Velden’s Announcement
- Number of Licences: A limited number of licences will be allocated by auction.
- Casino Games Only: Operators can only offer online casino games, not sports betting or lottery products.
- A Ban on Overseas Casinos: It will be illegal for unlicensed operators to offer services to New Zealanders.
News of a New Zealand demostic iGaming regulator follows a report I covered here on Casinoplusbonus EN in November 2022, when there were hints of a possible iGaming regulator coming to the country – Is a New Zealand Online Gambling Authority on the Horizon?
What Will a New Framework in the Country Look Like?
In the news report on the beehive. govt.nz website by Hon Brooke Van Velden, she has made it illegal for overseas casinos to offer New Zealand players online gambling services. This could mean the country will face a dilemma similar to that of the UK and Australia. Still, it also spells the end for MGA casinos offering New Zealand players their services unless they gain licensing in the country.
I say this for two reasons:
- The MGA licensing authority always respects the laws of countries that request casinos under its framework and cannot accept players in their country.
- Hon Brooke Van Velden also announced that only a limited number of licensing certificates will be available, and they will be open for bidding.
Aside from this, speculating on other government plans for a new New Zealand iGaming regulatory body is challenging. The situation is similar to the Irish iGaming regulatory framework, which is still not fully operational.
Also, while the new rules are being thrashed out, the new regulations and what-ifs will probably be similar to the many rumours and predictions during the UK’s Gambling Reform White Paper saga. It will almost certainly be a mix of he-said-she-said with some official announcements from the New Zealand government body tasked with creating the new framework.
Any official announcements will likely be for the benefit of attracting large and reputable online casino brands to the country, such as MGM and LeoVegas, 888 and William Hill. These are platforms that will attract plenty of customers. They already have a reputation for their responsible gambling-focused technology and will pay their taxes!
The best we can say is that over the next 18 to 24 months before regulation comes online, we should start to hear various ideas and probably a few arguments between government leaders before the dust settles and the final regs come into force.
Could it Follow a Similar Pattern to Regulated NZ Online Sports Books?
A sports betting framework is in place, but the desire to bring in a domestic framework for online casinos is a recent development. The entity in charge is the New Zealand Racing Board (NZRB).
It is very likely the iGaming regulatory framework will follow a similar set of rules. However, the country will likely allow multiple online casino brands to offer their services to NZ citizens. I say this because currently, Tab is the only online sportsbook under domestic licensing.
One interesting point is that New Zealanders do not have to use the Tab sportsbook, and as such, they can still choose to bet on overseas sportsbooks.
My Opinion
New Zealand is one of the most liberal of the six we cover here on Casinoplusbonus EN.
In comparison, The UK is by far the strictest under the UKGC licensing authority, while Canada is also quite liberal but does have domestic licensing. India has ruined its iGaming market with a 29% tax rule on all deposits, while Ireland still enforces a new domestic framework.
As for South Africa, the country is difficult to read. Strictly speaking, citizens are not supposed to gamble at online casinos, and iGaming is illegal. Yet, the sportsbooks operating under South African gambling laws appear to be getting away with adding live casino and online slot games as an option on their platforms.
If I were to take a guess, I believe that, in the end, New Zealand would initially take a similar approach to Canada’s Ontario iGaming and sports betting market. Players can still choose to play at online gambling platforms under the MGA and Curacao licensing, but for this to happen, it would take a reversal of what Hon Brooke Van Velden said in her initial statement.
Software providers must apply for a New Zealand game supplies license to supply NZ casinos. If they don’t, they can continue to supply games to online casinos with MGA and Curacao licensing but block their games from being accessible to NZ casino players on these platforms.
My analysis is based on the current laws in New Zealand for its sports books, in which players are not obliged to bet on Tab, the only online sports book legally operating under a domestic online gambling licensing framework at this time. I.e., they still have the freedom to bet on sports book overseas.
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