Entain, SkyCity and Stake advance in New Zealand

• Auction clears at NZ$15m per license after 32 bidders and 10 rounds.
• Super Group maxes out at three rights, with Entain controlling three via Playvia and TAB NZ.
• Offshore operators without a lodged application must exit by December 1, 2026

New Zealand’s Department of Internal Affairs (DIA) has allocated 15 rights to apply for online casino licenses across 11 entities, after its ascending clock auction cleared at NZ$15m (US$8.4m) per license on October 12.

Super Group, Entain, SkyCity and Stake are among those moving to the application stage, with the regulated market expected to be fully operational in 2027.

Ending the grey market

Under the Gambling Act 2003, remote interactive gambling run from within New Zealand has been off limits. The only carve-outs went to the state-backed Lotto NZ and TAB NZ. Nothing in the law, however, stopped offshore operators from taking New Zealand players.

That left a sizeable grey market operating without a domestic regulator, according to legal analysis published on Lexology. Offshore brands paid GST and a 12% offshore gambling duty, but sat outside any local licensing regime.

Supply was already highly concentrated. Inland Revenue data cited in industry reports showed 36 offshore operators paying GST, with the top 15 accounting for more than 90% of the total.

Online sports betting falls outside the new framework. TAB NZ has held exclusive rights to online racing and sports betting since June 2025, and that monopoly stays in place.

The regulatory framework

The Online Casino Gambling Act 2026 came into force on May 1 with extraterritorial reach, capturing any operator that serves players in New Zealand. It caps supply at 15 single-brand licenses and blocks any party from holding significant influence over more than three.

The enforcement toolkit is substantial. Civil penalties reach NZ$5m for companies and NZ$300,000 for individuals. Licensees can advertise, but the regulations prohibit sponsorships, personal endorsements and affiliate arrangements, closing off affiliate-led acquisition entirely.

The tax stack is layered. Online gambling duty rises from 12% to 16% on January 1, 2027, and the government plans to hold 4% for community causes. A 3.5% quarterly levy on online gambling profits applies on top, alongside the existing problem gambling levy.

Inside the auction

The expression of interest window opened in July and closed on August 14, with a NZ$19,000 fee per submission. Applicants also had to show access to at least NZ$7.5m in capital, according to licensing advisers.

Around 50 operators expressed interest, but only those with accepted submissions progressed to the auction.

The DIA ran an ascending clock auction from September 29 to October 12. Participants were offered a uniform price at each step and chose to stay in or exit. According to the DIA’s update, 32 bidders competed over 10 rounds before the price settled at NZ$15m.

Super Group maxes out

Betway and Spin owner Super Group took the largest allocation. Its Baytree Interactive vehicle secured three rights, the cap for any single party.

Entain won two rights through its Playvia Gaming (NZ) subsidiary. TAB New Zealand, which Entain operates under a 25-year sports betting partnership, secured a third. Entain’s BlackRush Casino and FoxySpins brands are already live in the market.

The result delivers the three-brand strategy Entain set out earlier this year. Leveraging TAB’s sportsbook database will not be straightforward, however. Casino ads cannot reference sports betting, and casino loyalty schemes cannot reward it.

The omnichannel incumbent

SkyCity Entertainment Group, which runs New Zealand’s largest land-based casino in Auckland, secured two rights through separate entities.

The company confirmed the fee is NZ$15m per license, excluding GST. In 2025, the group had lobbied for a market of just five licenses, RNZ reported.

Jason Walbridge, CEO at SkyCity Entertainment Group, said:

“We are excited to have been successful in the auction to apply for two licences and to be taking the next step towards entering the online casino gambling market in New Zealand.

“We know New Zealanders trust the SkyCity brand, and we will combine that trust with our deep knowledge of the New Zealand market to build a successful online business here.”

SkyCity and Super Group both face group action suits in Auckland’s High Court. In June, Internal Affairs Minister Brooke van Velden confirmed that pending litigation does not disqualify applicants.

Stake’s regulated push

Stake, founded by Ed Craven and Bijan Tehrani, secured a single right through Stake New Zealand. The crypto-first operator has stepped up regulated market entries this year, launching in Argentina and Mexico, with its Alberta launch scheduled for October 12.

A Stake spokesperson said:

“We’re really excited about the opportunity in New Zealand as the market moves towards regulation. It’s a strong fit for Stake and another important step in growing our presence globally.”

The result offers a counterweight to Brazil, where an appeals court suspended Stake’s injunction days earlier.

The challenger tier

Skill On Net, the Malta-based operator behind PlayOJO, won one right. So did One Casino, part of LCKY Group. LCKY rebranded from Glitnor Group in January, and its portfolio includes Vera&John.

Rock Swift Group took two rights. According to industry reports, it previously held a Kahnawake Gaming Commission license and has no ties to a major international group.

Industry reports describe Christchurch Online NZ as a Malta-registered business unrelated to Christchurch Casino. Public details on Rush Entertainment, the final single-right winner, remain limited. The DIA is withholding brand names until licenses are granted.

Sizing the opportunity

Offshore gambling liable for duty generated NZ$520.8m in GGR in the 12 months to June 2025, according to the government’s 2025 regulatory analysis.

Underreporting suggests the addressable market is larger. Jarrod True, a New Zealand gambling lawyer at True Legal, puts the online casino segment at NZ$700m to NZ$800m.

DIA-commissioned research estimated NZ$1.36bn in overseas online gambling card deposits over the 12 months to September 2025. Hybrid casino-sportsbook brands took 77%. The DIA notes the data tracks deposits rather than wagers or revenue, and extrapolates from one bank’s card transactions.

The community earmark is projected to raise NZ$10m to NZ$20m a year. Funds will be distributed through the Lottery Grants Board.

From rights to licenses

Auction success does not guarantee a license. Under the Act, winners must pay the auction price upfront before applying, and the DIA must refund it if a license is refused.

Applications require a business plan with financial projections, plus strategies covering advertising, consumer protection, harm minimization and compliance. Licenses run for three years, with a single renewal of up to five years.

From December 1, 2026, providers that have not applied must stop offering online casino gambling to New Zealand customers. Existing operators with a lodged application can keep trading without advertising until a decision is made. Under the Act’s transitional provisions, that exemption expires on June 1, 2027 at the latest.

The unit economics

If all 15 rights convert, the state will collect up to NZ$225m in license fees, excluding GST, before any duty or levies are paid.

Against a casino market estimated at up to NZ$800m a year, with a 16% duty and a 3.5% levy from launch, payback depends on how quickly licensees can channel offshore play onto regulated platforms.

That puts the focus on enforcement. Offshore brands without an application have just under seven weeks to exit. The DIA’s appetite for take-down notices and penalties will determine how much of that play actually moves onshore.