New Zealand iGaming Bill: Online Casino Gambling Regulation Update
- New Zealand’s iGaming bill is progressing, targeting a 2027 launch for regulated online casinos.
- The bill mandates a 4% GGR community return to offset potential revenue declines in traditional gaming venues.
- The New Zealand government aims to curb gambling harm and capture offshore gambling revenue through licensing and strict regulations.
Shockingly, New Zealanders are estimated to spend between $700 and $800 million annually on offshore online gambling platforms. To address this outflow of capital and protect its citizens, New Zealand is moving closer to regulating online gambling. The proposed online casino gambling bill aims to establish a licensed igaming market by 2027, channeling revenue back into the country and implementing robust harm reduction measures.
The New Zealand iGaming Bill: A Path to Regulation
The Online Casino Gambling Bill continues its journey through the New Zealand parliament. It seeks to establish a regulated online gaming industry. Recent government documents indicate that the community-funding provision, slated for January 1, 2027, aligns with the revised timeline for the regulated igaming market. This bill passes first reading in parliament, marking a key step forward.
Community Funding at the Heart of the Igaming Bill
A central tenet of the new zealand igaming bill is the 4% GGR community return. This requirement arose from public concerns that online gambling might diminish spending in venues with gaming machines. These machines currently support sports clubs and community initiatives. More than 5,000 submissions were received during consultation. Nearly 4,000 raised concerns about the potential decline of community funding from pokies. These concerns have shaped the bill’s focus on community returns.
Licensing and Taxation: A New Framework for Online Gambling
The proposed online casino gambling bill envisions up to 15 operators under new zealand law receiving licenses to offer online casino services. Licensees will be required to pay GST, a 12% offshore gambling duty, and a 1.24% levy on profits. This levy will fund gambling harm prevention and treatment programs. The bill also mandates strict advertising controls. This includes a ban on targeting minors and mandatory age-verification tools.
Harm Reduction: A Key Policy Objective
Officials emphasize harm reduction as a primary policy objective. The government maintains that a regulated market would provide clearer safeguards. This would be better than offshore sites currently accessed by New Zealanders. Concerns documented during the consultation include the normalization of online gambling and increased exposure to advertising. The bill’s proposed levy, tax obligations, and advertising rules form part of the plan for gambling harm reduction.
Industry and Community Reactions
Community organizations have shown mixed responses to the igaming bill. Many support a defined online revenue stream for local groups. However, more than 50 sports organizations remain concerned about the potential effect on their existing funding from pokies. The government plans a two-year review after the online casino sector becomes operational. This assessment would examine the effect on traditional gaming revenues and determine whether community returns meet expectations.
Impact on Gambling Operators and the Online Gaming Industry
For gambling operators, the new zealand igaming bill presents both opportunities and challenges. While the regulated online casino market offers access to a substantial revenue stream, operators must navigate stringent regulations and contribute to community funding. The ability of igaming operators to operate in the online gambling market while adhering to these requirements will be crucial for success. This new system is designed to shift new zealand to offshore gambling sources.
Legislative Scrutiny and the Road Ahead
The igaming bill is set for further parliamentary scrutiny before it can progress to its final reading. This select committee stage provides an opportunity for stakeholders to voice their concerns and shape the final legislation. The final version will set the stage for the online gambling regulation in New Zealand.
New Zealand Igaming Bill: Projected Economic Impact
Cabinet papers estimate that the 4% GGR requirement could generate between NZ$10 million (US$5.8 million) and NZ$20 million (US$11.6 million) during the first year of operation. The Lottery Grants Board is under consideration to manage distribution of these funds. Lemauga Lydia Sosene, a member of the new zealand parliament, previously stated that public submissions directly informed the change. “I have listened… we are delivering what communities want,” she said. This is “this is new money” she said.
Comparison of Gambling Revenue in New Zealand (Projected)
The table below compares the projected revenue with and without the igaming bill. These are estimated, but give an idea of impact.
Deep Dive: Market Analysis
The igaming bill passes first reading in parliament, the market sentiment is cautiously optimistic. While the 2027 launch date provides a clear timeline, operators are wary of the regulatory hurdles and tax obligations. The success of the regulated online gambling market will depend on striking a balance between generating revenue and minimizing gambling harm. Monitoring the progress of offshore gambling revenue is very important to measure how effective the implementation is.
Frequently Asked Questions
What is the online gambling bill in New Zealand?
The online gambling bill in New Zealand aims to regulate online casino gambling, introduce licensing for operators, ensure community funding, and implement measures for harm reduction.
Is Jackpot City, NZ?
Jackpot City is an online casino, not a physical city in New Zealand. While it may offer services to New Zealand players, it is typically licensed and based offshore.
Which country has the loosest gambling laws?
The jurisdiction with the ‘loosest’ gambling laws can vary depending on the specific types of gambling considered. Some countries or regions known for relatively liberal gambling laws include the UK, Malta, and certain Caribbean nations.
Is Bet365 no longer in New Zealand?
As of October 2025, it is unlawful for anyone apart from TAB New Zealand to offer online race and sports betting to persons located in New Zealand, and unlawful for New Zealanders to place race and sports bets with anyone apart from TAB New Zealand.
Conclusion
The future of igaming in New Zealand hinges on the successful implementation of the online gambling bill. As the bill progresses through the New Zealand parliament, stakeholders will be closely watching the final regulations and their impact on the gambling industry. The plan for gambling harm reduction and community funding, along with the ability to effectively compete with unregulated market, will determine the long-term success of the regulated online casino market.
