New Zealand Government Targets $500M Revenue with New Casino Regulations

Anticipated Revenue from Online Gambling

New Zealand’s gambling industry currently generates nearly NZ$1 billion annually, with the government projecting that the regulated online casino market will contribute an additional NZ$500 million per year after its expected launch in 2026.

These figures reflect a significant investment in the future of the iGaming sector, although industry insiders believe that the government’s estimates may be conservative. Existing gambling entities, such as TAB NZ and Lotto NZ, argue that the actual market size could be closer to NZ$900 million, based on current grey market activity.

Legislative Steps Toward Regulation

The New Zealand government has prioritized the regulation of online casinos, aiming to implement a regulatory framework by early 2026. This move underscores the importance placed on bringing online gambling under formal oversight, especially considering that the rollout coincides with a general election year.

While the cabinet has already approved a draft of the legislation, it must still undergo a thorough parliamentary process, including public consultation scheduled for 2025. This process will likely shape the final regulatory environment, influenced by feedback from both local and international stakeholders.

Controversy Surrounds Restricted Casino Licensing

A key element of the proposed regulation is the limited number of online casino licenses that the government plans to issue, a decision that has sparked considerable debate. The specifics of the licensing process, including the costs and the exact number of licenses, remain unclear. However, there is speculation that major land-based operators, such as SkyCity Entertainment Group, may have lobbied for this limited approach to secure a more substantial market share for themselves.

This strategy contrasts with initial considerations to adopt a more inclusive licensing model aimed at minimizing gambling-related harm. The final stance on licensing is expected to evolve as the legislative process progresses and more voices are heard during the consultation period.

Advertising and Sponsorship Restrictions

Among the few policies already confirmed is a strict limitation on advertising for online casinos and a ban on gambling sponsorships. These measures indicate a cautious approach by the government, prioritizing consumer protection over market expansion.

The ban on sponsorships, in particular, has raised eyebrows within the industry, as it was seen as an unexpected move by the Cabinet. This decision may reflect broader concerns about the social impacts of gambling, as well as a desire to distance the industry from direct public promotion.