New Zealand passes Online Casino Gambling Bill

• New Zealand’s Online Casino Gambling Bill cleared its third and final parliamentary reading on 23 April, establishing the country’s first regulated online casino framework.
• Up to 15 licences will be awarded through a competitive process, with applications due by 1 December 2026 and licensed platforms expected to go live in early 2027.
• The legislation introduces a 16% offshore gambling duty with 4% ring-fenced for community organisations, alongside fines of up to NZ$5m for non-compliance.

New Zealand’s Parliament passed the Online Casino Gambling Bill on its third and final reading on 23 April, bringing the country’s first regulated online casino framework one step from becoming law. The bill proceeds to Royal Assent and is expected to take effect on 1 May 2026.

Path to regulation

The legislation was tabled by Internal Affairs Minister Brooke van Velden at the request of the Cabinet of Prime Minister Christopher Luxon in July 2025. It passed its first reading by 83 votes to 39 before advancing to the Governance and Administration Committee, where more than 5,000 public submissions were received.

Nearly 4,000 of those raised concerns about the potential loss of community funding currently generated by gaming machines.

In response, the government raised the offshore gambling duty from 12% to 16%, with the additional 4% ring-fenced as a direct community return. Cabinet papers estimate that allocation could generate between NZ$10m and NZ$20m in the market’s first year of operation.

The Department of Internal Affairs will manage a three-stage licensing process. As outlined when New Zealand confirmed the July start for applications, the licensing window opens in July 2026, with a firm deadline of 1 December 2026. Licensed platforms are expected to go live in the first quarter of 2027. From 1 June 2027, only operators holding a domestic licence will be permitted to serve New Zealand players.

Enforcement and obligations

The bill authorises up to 15 licences through a competitive selection process. Licensed operators must implement mandatory problem gambler identification and exclusion tools, comply with harm prevention and consumer protection requirements, and pay tax locally — closing a loophole that had allowed offshore platforms to generate revenue from New Zealand players without contributing to the domestic tax base.

The Department of Internal Affairs gains new enforcement capabilities, including take-down notices, formal warnings, enforceable undertakings and financial penalties. Serious or persistent breaches carry fines of up to NZ$5m. The law’s extraterritorial scope means obligations apply to any operator targeting New Zealand residents, regardless of where it is incorporated.

“The Department of Internal Affairs will regulate the sector using strengthened enforcement tools, including take-down notices, formal warnings, enforceable undertakings, and penalties of up to $5 million for serious or persistent breaches. These tools will ensure that New Zealand law applies to all online casino gambling available in New Zealand, regardless of where operators are located, closing off avenues for avoidance and strengthening the regulator’s ability to monitor and enforce compliance by international operators.”

Brooke van Velden, Minister of Internal Affairs, added:

“Submissions on this Bill made it clear that New Zealanders also want the benefits from the online casino gambling to flow back to local sports clubs, community groups, and grassroots organisations. This Bill delivers on that expectation.”

Operator positioning

Industry interest in the market is well-established ahead of the licensing window opening. Entain, which operates TAB as New Zealand’s exclusive online sports and racing betting provider, has confirmed it intends to bid for three of the 15 available licences, targeting up to 50% market share.

Chief Executive Stella David noted during the company’s FY25 earnings call that its TAB footprint gives it a unique cross-selling advantage across sports, racing and casino verticals, positioning it as the only operator capable of bundling all three products under one roof.

SkyCity Entertainment Group, which currently operates New Zealand’s most widely used online casino platform through a Malta Gaming Authority licence, has also indicated plans to apply.

The company is among the operators facing group action proceedings at Auckland’s High Court alongside Super Group and Bet365, relating to activity conducted under offshore structures prior to regulation. Separately, SkyCity has denied liability in a US-backed class action targeting its Malta-licensed online casino operation.

Supporting regulations covering advertising, harm minimisation, consumer protection and cost recovery arrangements are expected to be published by mid-2026, ahead of the licensing process commencing in July.

What comes next

With Royal Assent anticipated within days, focus shifts to implementation. The Lottery Grants Board is under consideration to manage distribution of community returns. A formal government review of market outcomes is planned two years after launch, examining whether community funding meets expectations and whether the 15-licence cap produces the intended competitive balance.

For operators, the December 2026 application deadline leaves little room for delay. Those that do not apply for a licence by that date face legal requirements to cease serving New Zealand customers, with non-compliant operators exposed to penalties of up to NZ$5m for persistent breaches.