New Zealand Moves to Regulate Online Gambling, Opens Door to Advertising

Advertising as a Key Market Driver

Under current laws, offshore gambling operators are prohibited from advertising in New Zealand. However, a Department of Internal Affairs (DIA) briefing to the minister acknowledged that a functioning regulated market requires visibility for licensed operators. Van Velden defended the decision, stating that businesses must be able to promote themselves to succeed.

“If you’re an online gambling outfit and you can’t even advertise your product in a legal market, you’re probably going to sit there wondering why you’re even here,” she said.

New Zealand plans to auction off 15 online casino licences, and officials argue that lifting the advertising ban will help distinguish licensed operators from unregulated ones. However, the decision has sparked concerns about potential gambling harm, particularly among vulnerable populations.

Concerns Over Increased Gambling Harm

Advocacy groups have warned that permitting gambling ads will contribute to the normalization of betting. Andree Froude from the Problem Gambling Foundation argued that advertising could lead to more inducements, which she believes should be prohibited.

Similarly, Pub Charity Ltd’s managing director, Martin Cheer, cautioned that New Zealanders should prepare for an overwhelming surge in gambling ads once the market opens. He pointed to international examples, such as the UK and Australia, where inquiries have linked gambling advertising to an increase in problem gambling.

Van Velden acknowledged these concerns but reassured that regulations would tightly control how gambling is marketed, particularly online.

Foreign Operators Expected to Dominate

While the regulatory shift is meant to bring online gambling under government oversight, most of the licences are expected to be awarded to multinational gambling companies. DIA officials suggest that these firms have the resources and expertise to compete in the digital gaming space.

Local operators, including SkyCity and TAB, have criticized the licensing framework, arguing that it could threaten their business models and reduce community funding. Currently, profits from land-based casinos and gaming machines support local charities, sports organizations, and public projects. However, the new system does not require licensed online operators to contribute to these initiatives, raising concerns about funds being redirected to offshore shareholders.

SkyCity CEO Jason Walbridge has expressed frustration over the competitive disadvantages faced by local companies. His firm operates an online casino from Malta but has adhered to existing advertising restrictions. He fears that allowing foreign operators to enter the market freely could further erode SkyCity’s market share.

A Booming Yet Unregulated Market

Despite the current restrictions, online gambling is already a significant industry in New Zealand. A DIA briefing estimated that the sector generates at least NZ$304 million in revenue annually, with turnover potentially reaching NZ$3 billion. These figures suggest that many New Zealanders are already engaged in online gambling, even in the absence of formal regulations.

The government argues that a structured regulatory framework will provide better oversight, including measures to prevent fraud and money laundering. Fines of up to NZ$5 million will be imposed on unlicensed operators who continue targeting New Zealand players.

Balancing Regulation and Public Concern

With the new framework set to take effect in February 2026, the government faces ongoing scrutiny over its approach. Advocacy groups worry that expanding access to online gambling through advertising will increase gambling harm. The jump from an initially planned five licences to 15 has heightened these concerns.

However, van Velden has defended the government’s position, arguing that regulation will bring transparency to an industry that is already operating outside formal oversight. She stressed that authorities will monitor gambling participation over time and adjust harm reduction measures as necessary.