The government has agreed to high-level regulation of online casinos. The government states that this move aims to minimize harm, support taxation, and provide consumer protection for New Zealand players.
Interior Minister Brooke van Velden stated that this means that unlicensed operators targeting players in the country will be illegal.
New Zealand Online Casino Licenses to be Issued via Auction
While the government's plan is currently under development, van Velden revealed some details of the regulatory framework. Her department will be responsible for regulating New Zealand online casino operators.
A limited number of licenses will be issued through an auction, but bidders must meet regulatory requirements. Players must be over 18 years old.
While advertising for licensees is allowed to be "strictly restricted," casinos must be isolated from other gambling products. The New Zealand government states that sports betting and lotteries must not be offered alongside casinos.
Van Velden said: "This is not about increasing the gambling volume of New Zealanders, but to ensure that operators meet the requirements for consumer protection and harm reduction, as well as taxation."
During the deliberation process by the special committee, the public will have the opportunity to provide feedback on the regulatory plan.
The government intends to introduce a new regulatory framework for New Zealand online casinos before 2026.
How has the market reacted?
Casino operator SkyCity Entertainment Group has already expressed support.
SkyCity stated: "We continue to support the regulation of online casino gambling in New Zealand, emphasizing the strengthening of host responsibilities and bringing community benefits to New Zealand."
Shortly after the news broke, the operator's CEO, Jason Walbridge, particularly welcomed the plans to limit the number of licenses and advertising in a LinkedIn post.
"SkyCity has long supported the regulation of online gambling to minimize harm and protect New Zealanders," he said. "Limiting advertising and the number of operators in New Zealand is a good way to achieve this goal.
"Currently, a large amount of money flows overseas, which should have stayed in New Zealand as taxes and community benefits. We hope this will be a key part of the future framework."
The Changing Face of New Zealand's Gambling Industry
If New Zealand continues to implement plans to regulate online casinos, this will be the first major reform to the gambling industry under the new government. The National Party won last year's election, ending the Labour Party's term in office.
Before the election, the two parties clashed over the issue of overseas gambling revenue. The National Party stated that it could raise NZ$179 million annually from overseas gambling operators.
The National Party also criticized the government for not imposing Goods and Services Tax (GST) on the entire black market. The party stated that it would mandate online casino operators to register and report their income.
However, the Labour Party disputed these figures, claiming that GST generates about US$40 million annually. Since October 2016, New Zealand has been imposing a 15% GST on services and intangible assets provided remotely by overseas suppliers.
Other recent developments before the change of government include significant reforms in the horse racing sector. In August 2020, TAB New Zealand took over the country's horse racing industry.
TAB NZ replaced the transitional body for the horse racing industry, which was the successor to the New Zealand Racing Board (NZRB), established to manage the transition to the new governance model.
