Online gamblers in New Zealand will be given the safety rails they deserve thanks to the upcoming iGaming regulation bill, the NZ gambling authority has said.
Paul James, Chief Executive Officer of the New Zealand Department of Internal Affairs, made a keynote appearance at the Sydney Regulating the Game conference, where he painted the Online Casino Gambling Bill as a much-needed measure to bring chaos to order.
Under the country’s Gambling Act 2003, a paradox exists where the framework prohibits online gambling services provided domestically but allows for such offers from offshore operators, essentially creating a voluntary grey market.
Estimates quoted by the regulator highlighted that New Zealanders gambled around NZ $1.3bn (£573.3m) in 2025, which was up 10% year-on-year and continues to grow.
With that in mind, James made the distinction that the government is not introducing online gambling as a completely new concept – it will instead bring the vertical under the supervision of the government, which will then ensure clear rules around advertising, player safety, and funding the Treasury.
“The reality is online casino gambling is part of New Zealanders’ life already today, but without protections,” he added. “The [bill] will close the regulatory gap. It will make it legal.
“We’re not introducing online casino gambling, but we are making it above board. No longer grey but clear, full of integrity and transparency.”
The plan behind the online market launch is to hand out a total of 15 licences, a strategy which James said is based on data showing that more than 95% of New Zealanders are gambling online on around 15 offshore platforms. This, he added, will strengthen channelisation rates by giving players the desired amount of options.
“This cap [of 15 licenses] will balance consumer choice. People will be able to choose across those 15 providers and it is aiming to channel New Zealanders to accessing and utilising casino and online casino gambling with one of those 15, or multiple of those 15 operators. This helps us, we think, with regulation, maintaining harm standards and controlling growth.
“You can gamble with these providers, knowing that you’ve got consumer protections, safety standards and confidence that’s fair and transparent in terms of the behavior of those providers.”
Entain sitting on a treasure cove
One player that is well-positioned to benefit from the new regime will be Entain, which currently holds an exclusive sports betting licence through TAB NZ and its Betcha brand.
At its latest investor call, the company expressed confidence that it has a significant opportunity to further consolidate its dominance in the market by targeting three of the 15 licences, which will then give it the ability to cross-sell online sports betting and casino.
Rob Wood, Chief Financial Officer at Entain, explained: “We estimate the opportunity is around a £600m marketplace and currently we’re less than £200m. If we have all of sports and a reasonable share of gaming, why can’t that below £200m number go to £300m? There is an opportunity for significant growth over a number of years.”
The countdown begins
While allowed to freely advertise within the New Zealand market, all licence holders will be subjected to clear marketing guidelines. Both licensed and unlicensed operators will also be facing hefty penalties for breaching regulations – the government plans to raise the penalties from NZ $10,000 to NZ $5m.
“We’re really trying to strike a balance here between measures that effectively detect and prevent and minimise harm, while also ensuring the settings are not so restrictive that the gambling operators can operate effectively, and that New Zealanders feel confident in making those choices in participating with our non-extended gamblers.
“Getting the balance wrong will mean that people will opt into the black money and New Zealanders will gamble without any support or protection.
“So, we really do want the licensed providers to be successful and New Zealanders to choose to use them,” James concluded.
The Bill is currently on its way to a third reading, with the legislation expected to be enforced on 1 May 2026, expressions of interest being taken by July, a subsequent licence auction in September and the formal application process to begin in October – with New Zealand having its first licensed online gambling providers from December onwards.
