A licensing framework is currently being developed and will be implemented by the New Zealand government in 2026.
The Government has adopted a top-level regulatory approach for online casinos. It said that this was to minimize harm, to support tax collection, and to provide protection to New Zealand consumers.
Brooke van Velden is the Minister of Internal Affairs. She said that it would be illegal for operators who are not licensed to take advantage of players within the country.
New Zealand Online Casino Licenses are awarded via Auction
Van Velden provided some information on the framework for regulation while the plans of the government are being developed. Her department is responsible for the regulation of New Zealand’s online casinos.
Bidders must meet regulatory requirements to be eligible for a limited number of licenses. The minimum age for players is 18.
Casino must remain separate from all other gambling products, even though “strictly restricted” advertising is permitted for the licensees. The New Zealand government has said that sports betting and lotteries cannot be combined with icasino.
Van Velden stated that the intention was not to encourage New Zealanders to gamble more, but rather to make sure operators met requirements regarding consumer protection, harm minimisation and paying taxes.
During the process of the Select Committee, the public will have the opportunity to give feedback about the regulatory plans.
By 2026, the government plans to introduce a new framework of regulation for New Zealand’s online casinos.
What has been the response of the market?
SkyCity Entertainment Group, a casino operator in Las Vegas, has expressed its support.
SkyCity stated that they “remain supportive” of New Zealand’s regulation of online gambling, with a focus on host responsibility as well as delivering benefits to the community.
Jason Walbridge, CEO of the operator in a LinkedIn posting shortly after news was released, welcomed plans to limit licence numbers and advertisements.
He said that SkyCity had long been in favor of regulating online gaming to protect Kiwis and minimise the harm. Limiting advertising and operators is one way to achieve this.
We believe that a large amount of New Zealand money is being sent offshore, when it should stay in New Zealand to be used for community and tax benefits. This will hopefully be an important part of the future framework.
New Zealand’s gambling industry is changing.
If New Zealand decides to implement its plan to regulate the online casino industry, this will be the biggest change in gambling for the next government. Last year, the National Party won the election and ended Labour’s tenure in power.
Before the elections, both parties faced off over offshore gambling revenues. National claimed it could collect NZ$179m annually from offshore gambling operators. National also criticized the fact that GST (goods and services tax) is not collected on all black markets. National said that it will force operators of online casinos to register their earnings and declare them.
Labour, however, disputes these figures and claims that GST brings in around $40 million per year. Since October 2016, New Zealand collects GST at 15% for services and tangibles provided remotely by offshore suppliers.
Horse racing reforms have also been a major part of recent events, even before the new government. TAB New Zealand will take over the horse racing industry in August 2020.
TAB NZ has replaced Racing Industry Transition Agency (RITA), the successor to the New Zealand Racing Board, which was created to oversee the transition from the old governance model to the new. Last year, however, rising costs and capital restrictions forced the board to look for an external partner in order to provide wagering and television services. Entain was chosen.
