In a significant step for the online gambling sector, eleven operators have earned the right to apply for online casino licenses in New Zealand, according to an announcement from the Department of Internal Affairs on Tuesday.
The competitive auction process concluded with a high bid of NZ$15 million (US$8.42 million) for each license, involving thirty-two participants across ten bidding rounds for a total of fifteen licenses available.
The successful bidders, who were awarded "rights to apply," included notable firms such as Baytree Interactive Limited, which secured three rights, and Playvia Gaming (NZ) Limited, a subsidiary of Entain, obtaining two rights. Other winners include Christchurch Online NZ Limited, One Casino Limited, Rock Swift Group Limited (two rights), Rush Entertainment Limited, Skill On Net Limited, SkyCity NZ Online NO1 Limited, SkyCity NZ Online NO2 Limited, Stake, and TAB New Zealand, part of an Entain joint venture.
The auction utilized a transparent ascending clock format. Licence prices rose incrementally, compelling bidders to indicate their continued interest until the number of bidders was equal to the available licenses. However, winning the right to apply does not guarantee that an operator will receive a formal license; all bidders must undergo a detailed application and regulatory review before gaining approval.
Stake New Zealand Limited, a local arm of the international sportsbook and online casino operator Stake, conveyed excitement over its achievement in the auction. A representative described this win as a crucial aspect of its strategy to expand internationally, which has already seen the company enter markets in Alberta (Canada), Argentina, and Mexico. "It’s a strong fit for Stake and another important step in growing our presence globally," the spokesperson stated, expressing eagerness to proceed with future steps to bring the Stake experience to New Zealand customers.
Entain, another successful bidder which aimed for three licenses, will instead have the opportunity to pursue two. CEO Stella David outlined Entain's strategic advantages in the region, particularly through its exclusive sports betting brand, TAB, which uniquely positions it to offer cross-selling between sports and iGaming.
Despite earlier concerns regarding ascribing a license to TAB due to its monopoly in betting, Entain is among the eleven successful applicants allowed to submit formal applications.
This auction marks the second phase in a comprehensive three-part liberalization process for iGaming in New Zealand. The initial expression of interest phase commenced in March, requiring operators to showcase compliance capabilities, including access to a minimum of NZ$7.5 million in capital and a non-refundable application fee of NZ$19,000. Operators that do not apply for a license by December must halt operations by December 1. The final phase, set to conclude with license approvals based on auction payments and thorough application assessments, is projected to take place in early 2027.
