In a landmark move toward reforming New Zealand’s gambling laws, the Online Casino Gambling Bill has passed its first reading in Parliament, with 83 votes in favour and 39 against. The bill now proceeds to the select committee stage, opening the door for public submissions on the proposed regulatory framework.
The legislation, led by Minister of Internal Affairs Brooke van Velden, aims to transform New Zealand’s currently unregulated online casino environment into a licensed and accountable system, one designed to prioritise harm minimisation, player protection, and fiscal responsibility.
Why the Bill Matters
For over two decades, online casino operators based offshore have been able to offer their services to New Zealanders with little restriction. While technically legal for players, these platforms have operated without local oversight, raising long-standing concerns around player safety, lack of regulation, and the loss of tax revenue.
“Currently, New Zealanders can legally access thousands of offshore gambling websites,” said van Velden. “But the market is unregulated, so there are no player safety standards or oversight of harm minimisation.”
The new bill represents a paradigm shift—from passive tolerance to active regulation—by introducing strict conditions for operators and establishing a dedicated compliance and enforcement system under the Department of Internal Affairs (DIA).
What the Bill Proposes
The key components of the bill include:
- Up to 15 online casino licences, awarded via auction and valid for three years
- Mandatory harm prevention strategies and proof of a clean compliance record
- Robust age verification tools to block access for users under 18
- A contribution of 1.24% of profits to the Problem Gambling Levy
- A new 12% offshore gambling duty, in addition to GST
- Strict advertising regulations, including bans on marketing to minors
- Enforcement by the DIA, with violations facing fines of up to NZ$5 million
All applicants, whether based in New Zealand or overseas, will be held to identical licensing standards. There will be no preferential treatment for local companies.
In our opinion
While the licensing framework is a welcome step toward regulation, we believe the proposed cap of 15 licences may be too restrictive for the New Zealand market. With strong player demand and a mature offshore ecosystem already in place, limiting access to just 15 operators risks creating an oligopoly, where a small group dominates the landscape. We’d welcome a broader conversation during the select committee phase about whether this number truly supports competition and choice.
Political and Public Reaction
The bill received strong backing from the governing coalition and a notable endorsement from the Green Party, whose internal affairs spokesperson Benjamin Doyle framed it as a first step toward harm reduction:
“It’s definitely not far enough, but we believe that going to select committee to hear from experts, community, people with lived experience of online gambling harm, and advocacy groups may inform changes that will actually enact harm reduction.”
Meanwhile, the Labour Party and Te Pāti Māori voted against the bill. Labour MP Lemauga Lydia Sosene criticised the bill for offering vague promises of harm reduction without sufficient safeguards in place.
Advocacy & Industry Concerns
While many see the bill as a long-overdue reform, concerns remain. The Problem Gambling Foundation has warned the legislation could unintentionally expand gambling activity without stronger player protections. They are calling for:
- Pre-commitment tools for time and spending
- A ban on credit card deposits
- More robust enforcement mechanisms
These concerns are likely to be raised during the select committee phase, where the public and advocacy groups can propose amendments.
Public Submissions: Have Your Say
With the bill moving to the Governance and Administration Committee, the public will soon be invited to submit feedback. Van Velden has encouraged all interested New Zealanders to participate:
“The Bill will now proceed to select committee, and I would encourage interested New Zealanders to have their say when public submissions open.”
Industry Interest and Next Steps
Operators such as SkyCity, Bet365, 888, Super Group (Betway), and others have shown interest in applying for a licence. However, TAB NZ, which already holds a monopoly on online sports betting, will not be eligible for a casino licence.
Trina Lowry, director of the online gambling implementation programme, has called on potential operators to register their interest now, noting that feedback will help shape a clear, efficient, and transparent licensing system.
The auction process is expected to begin in February 2026, with licensed operators going live by mid-year.
Looking Back: A Policy Reversal 20 Years in the Making
New Zealand’s shift toward regulation follows two decades of holding the line against domestic online casinos. The Gambling Act 2003 banned locally operated online casino platforms, even as offshore sites remained accessible. Attempts to launch regulated domestic platforms were quickly shut down.
By 2024, government officials acknowledged the outdated nature of the existing framework and initiated a policy reversa, culminating in the current bill.
Final Thoughts
This bill marks the most significant change to NZ gambling policy since 2003. If passed, it will introduce a licensed, regulated market for online casinos, one that balances player freedom with meaningful protections.
Legal Kiwi Casinos will continue to follow the bill’s progress and publish guidance on how to make a submission as soon as the public consultation phase opens.