New Zealand To Regulate Online Casino Gambling From 2026

July 31, 2024
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New Zealand will create a regulated online casino market by early 2026 with a “limited number” of licences up for auction, according to the minister of internal affairs, pending parliamentary review of the plan.
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New Zealand will create a regulated online casino market by early 2026 with a “limited number” of licences up for auction, pending parliamentary review of the plan.

Having targeted foreign online gambling operators for tax collection, New Zealand’s conservative government will further expand its tax base by legalising local online casino operations, internal affairs minister Brooke van Velden said in a statement on Tuesday (July 30).

“There will be a licensing system for online casinos, where operators will need to comply with a set of criteria before they will be able to offer services to New Zealanders,” van Velden said. 

“It will be illegal for unlicensed operators to offer services to New Zealanders.

“This is not intended to increase the amount of gambling New Zealanders do, but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax,” she said.

The statement did not outline tax plans for future local licensees.

However, it said the licensing system will offer a “limited number of licences allocated by auction, with licences lasting three years”. Online sports betting and online lotteries will not be covered by the licences.

“Licensed gambling operators will be allowed to advertise, which is currently prohibited, but with strict limits. Sponsorship by online casinos will remain illegal,” the statement said.

Van Velden said she expects the regulatory framework to be in place by early 2026, with her department adding regulation of the sector to its existing gambling responsibilities.

However, a parliamentary Select Committee process will accept public submissions on the initiative in the meantime, she said, adding that further details on the framework will be released later in the year.

Local casino operator SkyCity Entertainment Group, which has targeted the domestic market since 2019 via its Malta-licensed SkyCity Online Casino, welcomed the announcement.

The company “remains supportive of the regulation of online casino gaming in New Zealand with an emphasis on strong host responsibility and delivering community benefits in New Zealand,” SkyCity said in a statement on Tuesday.

SkyCity CEO Jason Walbridge, who was appointed to the post early this month, said on his LinkedIn page that it was “great to see” the government’s announcement.

“SkyCity has long supported regulating online play to minimise harm and protect Kiwis. Limiting advertising and the number of operators in New Zealand is a good way of doing this,” he said.

“Currently there is a lot of money going offshore that should be staying in New Zealand as tax and community benefits. We hope this will be a key part of any future framework.”

It was not immediately clear if the new regulatory regime would require SkyCity to register its local-facing operation in New Zealand instead of Malta, or what tax ramifications would follow.

New Zealand introduced a 12 percent offshore gambling duty on gambling profits effective July 1, based on a March 2024 amendment paper.

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