New Zealand’s Online Casino Reform: Licensing Rules & Offshore Impact

The Online Casino Gambling Bill (the “Bill”) marks a major shift in how New Zealand regulates online casino gambling. Until now, Kiwis have used offshore sites with minimal local oversight. That is about to change. The Bill introduces licences, tighter rules and new protections. But it also raises questions about how offshore providers will react.

At Casinoble, we closely monitor regulatory developments to help readers navigate the evolving gambling landscape. In this article, we examine the key changes, the statistics behind the shift, the offshore fallout, and what this means for consumers, operators and the industry.

The current landscape: Offshore dominance & regulatory grey zone

Under the current legal framework (mostly the Gambling Act 2003), remote interactive casino gambling is not legal in New Zealand if hosted locally. Yet New Zealanders can access offshore casino websites.

Estimates on how much New Zealanders spend offshore vary. One figure suggests about NZ$300 million to NZ$700 million annually are spent with offshore providers. Another source suggests turnover could approach NZ$3 billion when broader online gambling is included.

These funds largely escape New Zealand’s regulatory reach, meaning weaker consumer protections, limited tax revenue and reduced ability to channel gambling harm-minimisation.

What the Bill proposes: Key features

On 30 June 2025, the Bill was introduced to Parliament. Here are the main features:

Up to 15 licences will be issued to online casino operators in the first phase.
Each licence covers a specific brand/website/platform. Operators may hold up to three licences.
Initial term is 3 years, with right to renew for up to 5 years.
The licence regime uses a three-stage process: expressions of interest, competitive auction, full application.
Licensed operators must enforce age verification (18+), harm minimisation, credit gambling bans, record-keeping and auditing.
The Department of Internal Affairs (DIA) will have enforcement powers including take-down notices and penalties (up to NZ$5 million).
Unlicensed operations and advertising will be expressly prohibited.
Offshore operators will be subject to jurisdiction if they target New Zealand consumers.

Timeline & rollout

The Bill is currently in the Select Committee stage. Licensing is expected to commence in 2026, likely in the first quarter. Until then, offshore casino access remains unregulated in practice.

Offshore fallout: Impact on the industry

Offshore providers set to dominate

Local operators are concerned that large offshore firms will win most of the licences. The Deputy Internal Affairs Minister has acknowledged that “offshore providers” may dominate the market.

Loss of community and sports funding

There is concern that community and racing/sports organisations may lose gambling-related income if offshore giants dominate the new online space.

Taxation and duty reforms

A 12% “offshore gambling duty” introduced in July 2024 targets offshore firms serving Kiwi customers. Along with GST, this gives some operators a tax burden of roughly 25% on gross betting revenue.

The Bill aims to redirect revenue on-shore through licensing and regulated economic activity.

Consumer risk & harm minimisation

Studies show offshore gamblers are twice as likely to be moderate-risk gamblers and three times as likely to be problem gamblers compared to those using regulated operators. The Bill aims to fix this gap.

Economic and policy implications

1- Revenue capture and GDP effect

Business NZ highlights that offshore gambling reduces national GDP. Capturing even part of this via local licences could boost tax revenue and economic activity.

2- Regulatory complexity and enforcement challenges

Enforcing compliance among offshore operators will be difficult. Technologies like VPNs, crypto-payments and mirrored domains complicate enforcement.

3- Balancing access and harm

The Bill seeks to move existing gambling into a regulated, safer environment—not to encourage more gambling.

What consumers need to know

Check licensing: Choose platforms licensed by the NZ government when available.
Avoid unlicensed sites: These will soon be explicitly banned.
Stay safe: Use platforms that offer self-exclusion, age verification and local support.
Know the timeline: Licensing begins in 2026; current access remains offshore until then.
Watch advertising: Ads from unlicensed operators will be unlawful.

Key statistics

NZ$300M to NZ$700M: Estimated annual spend on offshore online casinos by New Zealanders.
Up to NZ$3B: Total online gambling turnover (all forms).
15 licences: Initial licence cap.
NZ$5M: Max penalty for non-compliant operators.
3x more likely: Risk of problem gambling via offshore sites.

Outstanding questions & risks

Will domestic operators have fair access?
Can offshore enforcement truly work?
Is the 15-licence cap sufficient for innovation and competition?
Will harm-minimisation mechanisms keep pace with technology?

Conclusion

The Online Casino Gambling Bill is a landmark in the evolution of online gambling regulation in New Zealand. For the first time, the country is setting clear, enforceable rules for online casino operators.

At Casinoble, we welcome reforms that protect consumers, ensure fairness, and create sustainable growth. However, much will depend on enforcement, transparency, and how well the licensing process integrates both domestic and offshore interests.

As the regime rolls out in 2026, we advise players to stay informed and favour licensed, compliant platforms. New Zealand’s approach could become a model for responsible regulation globally — if implemented with clarity, fairness, and foresight.

Lukas

Head of content

Lukas is one of the leading authors at Casinoble. He entered the casino world through his passion for online poker. Lukas is also a dedicated sports betting fan. At Casinoble, Lukas usually writes about Live Dealer Games, Sportsbetting and Betting Strategies.

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