New Zealand Moves to End the Online Casino Grey Market in 2026

It is now January 2026, and New Zealand is on the brink of a major shift in the regulation of online gambling. At Casinoble, we’ve been following this evolution closely. After years of an unregulated grey market where offshore casino sites could legally offer services to Kiwi players, the Government is finally taking decisive action. This comes in the form of the Online Casino Gambling Bill, introduced in June 2025 and now progressing through Parliament toward becoming law.

This blog explains what the Bill means, why it matters, how it reshapes New Zealand’s gambling landscape, and what players, operators, and the broader community should expect as reform unfolds in 2026.

Why New Zealand’s Online Casino Market Was a Grey Zone

Under the current legal framework, remote interactive gambling—that is, online casino games hosted in New Zealand—is prohibited by the Gambling Act 2003. Yet, there is a critical loophole: New Zealanders can legally access offshore gambling websites.

This has created a long-standing grey market:

Kiwi players gamble online with offshore sites licensed in places like Malta or Curaçao.
These sites are not regulated by New Zealand authorities, meaning players have limited protection.
The Government collects little to no tax from this offshore activity.
Responsible gambling safeguards are weak or absent for New Zealand players.

Estimates suggest Kiwis spend hundreds of millions of NZD annually on offshore online casinos. As of mid-2025, figures ranged from NZ$300m to NZ$700m+, and the broader online gambling turnover could approach NZ$3 billion when all sectors are included.

This grey market has meant limited consumer protection, almost no local oversight, and revenue leakage—money that could benefit local harm-minimisation services, community groups, or national programmes.

Introduction of the Online Casino Gambling Bill

To address this, the Government unveiled the Online Casino Gambling Bill on 30 June 2025. The Bill proposes the first ever licensing and regulatory regime for online casinos in New Zealand.

Key Purpose of the Bill

Close the regulatory gap for online casino gambling.
Protect consumers and reduce gambling harm.
Bring offshore gambling revenue back into New Zealand.
Establish clear standards for licensed operators, including advertising, age verification, and promotions.

In simple terms: online casinos will be legal in New Zealand—if they are licensed and regulated locally. This represents one of the biggest changes in NZ gambling law in over 20 years.

What the Licensing Framework Looks Like

One of the most important aspects of the Bill is the licensing regime. Here are the main points:

15 Licences in the First Regulatory Period

The Bill proposes that up to 15 online casino licences will be issued in the first phase (from 2026 to 2029).

Key rules include:

Licence term: 3 years initially, with renewal possible for up to 5 more years.
Activation requirement: Licences must be activated within 90 days of issuance or risk being cancelled.
Limits per operator: A single operator can hold no more than three licences, and licences cannot be transferred.
Brand specificity: Each licence is tied to a specific brand, platform, or website.

This approach aims to encourage competition while preventing monopolies and ensuring regulatory manageability.

Scope of Licensed Activities

The regime covers:

Online casino games: slots, table games, live dealer games, and peer-to-peer formats like poker.
Sports betting and racing (only if virtual and based on chance).

Operators must strictly block access to under-18s and employ robust identity and age verification systems.

Three-Stage Application Process

The pathway to becoming a licensed operator is structured and rigorous:

Expression of Interest (EOI)

Prospective operators submit their interest.
They must include details on finances, compliance history, and business plans.
Applications that may harm New Zealand’s reputation are excluded.

Competitive Process

Shortlisted applicants enter a competitive phase.
The Secretary for Internal Affairs reviews eligibility and fees.

Final Licence Application

Operators must detail gambling harm minimisation, advertising strategies, and compliance frameworks.
Suitability criteria must be met before licences are granted.

Importantly, licences will not be granted if doing so exceeds the 15-licence cap or gives one entity significant influence beyond the set limits.

Strict Advertising and Promotion Controls

The Bill doesn’t just regulate casino operations—it also governs how licensed operators promote themselves:

Advertising must protect vulnerable groups and children from harm.
Operators must submit detailed marketing strategies when applying for a licence.
Targeted marketing to minors will be prohibited.

These measures aim to convince critics that the law balances industry growth with public safety.

Fees, Taxes, and Penalties

To make the market sustainable—and fair—the Bill introduces:

Licence Fees

For the first three years, fees are expected to be a fixed percentage of gross gambling revenue, likely around 12%.
Regulators can switch to flat fees depending on market conditions.

Penalties for Non-Compliance

Operators who break rules could face penalties up to NZD 5 million for violations such as:

Operating without a licence.
Allowing underage gambling.
Failing to comply with licence conditions.
Broadcasting unapproved ads or changing licensed platforms without approval.

The aim is to discourage black-market activity and protect players.

Consumer Protection and Harm Minimisation

A core theme of the Bill is player safety:

Age and identity checks will be mandatory.
Licensed operators will need problem gambling strategies.
Self-exclusion systems and safe play tools may be required under future regulations.

This focus aligns New Zealand with other regulated markets that prioritise responsible gambling practices.

Next Steps in 2026

As of January 2026:

The Bill has passed early parliamentary stages and is progressing toward Royal Assent.
Secondary regulations—detailing marketing standards, harm minimisation, and compliance—are being drafted.
If the Bill becomes law in 2026, implementation could begin later in the year, with licensing processes opening soon after.

During this transition, existing offshore operators can continue serving Kiwi players but won’t be able to advertise locally without a licence.

Who Should Care About This Reform?

This reform matters to several groups:

Online Casino Operators

Licences are limited. Early planning is vital to secure one of the 15 spots.

Players

Kiwi gamblers will soon have legal, regulated online casino options with stronger consumer protection.

Industry Stakeholders

Technology providers, payment processors, and marketing partners will likely see new opportunities.

Community and Harm-Prevention Groups

This Bill gives these groups a platform to influence how gambling harm is managed at a national level.

Conclusion

As of January 2026, New Zealand is poised to transition from a loosely regulated online casino environment to a structured, licensed, and safer market. The Online Casino Gambling Bill represents a major regulatory shift. It closes a long-standing grey market, enhances consumer protections, and brings offshore revenue under New Zealand’s regulatory and tax framework.

At Casinoble, we welcome this development as a step toward a more transparent, safe, and fair online gambling environment for all New Zealanders.

While some challenges remain—such as finalising regulations and rolling out the licensing process—the message is clear: New Zealand is ready to regulate online casinos responsibly and effectively.

Stay tuned as this landmark reform unfolds throughout 2026.

Ben Williams

Content Writer

Ben grew up in a small beach town on the Coromandel Peninsula. He spent most of his childhood surfing and playing rugby. After graduating from university in Auckland, he moved to Australia to work for a startup. He returned to New Zealand a few years later and started working in the iGaming industry.

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