The unregulated online gaming era in New Zealand is set to come to an end, with a deadline for 2026 looming overhead. Specifically, a new online casino gambling bill has been introduced by the New Zealand government, which will see the launch of a competitive auction for 15 licences. This race will be overseen by the DIA (Department of Internal Affairs), and the expected commencement date is set for 2026. Naturally, this bill was proposed for a number of reasons, with the primary motives focusing on minimising harm (a safety-first approach) and capturing the large iGaming tax revenue streams.
Currently, while iGaming is banned in NZ, it is completely legal for locals to access and game at offshore casino sites. As a result, the country has seen a significant amount of money flow to these offshore platforms, with the numbers ranging between NZ$700 million and NZ$900 million annually. One contributing factor in this mass spending is the high-quality offerings these platforms offer residents. At any reputable offshore NZ online casino, it is common to get access to fast, flexible payment methods (POLi, Westpac), RNG and live dealer table games, and large bonuses.
This is in addition to game fairness, data privacy, and clear international licensing from regulatory bodies like Anjouan and Curaçao. However, the introduction of these new extra-territorial laws will completely change how these platforms normally function. Instead, operators will be forced out of their legal grey area and have to choose whether they want to partake in the NZ licensing program or completely remove themselves from the market. In total, the licensing process will have three stages, which include the operator's expression of interest, an auction, and then the submission of a full application for them to operate under the new law officially.
Of course, this transition has a timeline, with any international operators expected to comply with the new framework by July 1, 2026. If the necessary steps are not completed within the specified time frame, then the specified operator will face total prohibition on serving NZ citizens. Already, large industry players (Bet365, 888) have their eyes on these developments, biding their time to claim one of those 15 licenses. In fact, the limited number of licenses forms part of the government's strategy to manage regulatory complexity. This is a smart move, as it prevents this new market space from immediately becoming oversaturated and hard to oversee.
Additionally, a "one per platform" rule applies to this licensing process. Specifically, each brand or website can only hold one license, whereas a single operator (so those who own the brand/website) can hold up to a maximum of three licenses. This means that, should the operators applying be big enough, all 15 licenses could be issued to a small number of companies. It is also vital to factor in the licensing terms, as each license is valid for three years. To ensure the government can evaluate operator suitability on a regular basis, a once-off five-year renewal option will be available for each license issued.
When discussing the new licensing framework, it is important to acknowledge the taxation rates alongside any other economic discrepancies. As with most casino licenses, these are no different in that they will incur specific tax deductions. For one, a 12% duty will be deducted from each online casino's gross betting revenue, and this is besides an additional 15% GST (Goods and Services Tax) fee. While this will be the standard for 2026, this online casino duty will increase by 4% in 2027 to account for any community returns. This leaves the 2027 expected duty at 16%.
Naturally, the government has begun forecasting revenue expectations, and there is a large gap between the National Party's and the IRD's (Inland Revenue Department) predictions. To break this down, the latter has a more conservative stance, expecting around NZ$35 million annually, whereas the NP is projecting a generous NZ$176 million. Beyond forecasts, this new licensing process will also come with new, stricter advertising limits that prevent any ads between 6:00 am and 9:30 pm while completely banning any social media influence or sponsorships. This is besides the consumer protection tools (deposit limits, time tracking), these platforms need to be put in place to encourage responsible play.
These protection measures will also include a 1.24% gambling levy for support services. Ultimately, this is a monumental move for New Zealand, with the country opting for formalised oversight as opposed to grey market operations. The bill is set to come into effect in early 2026, with the first license issued by December 2026.
