New Zealand to Conduct Online Casino License Bids for 15 New Operators
In a significant move, the New Zealand government is set to establish a regulated online casino market, with a planned launch date of early 2026. The regulatory framework for this new industry is designed to prioritize consumer protection, harm minimization, and tax collection.
## Regulatory Framework
The government's plans call for the creation of a structured licensing system, with up to 15 licenses to be awarded via auction. This system aims to enhance consumer protection and minimize harm from gambling, while allowing licensed operators to advertise under specific restrictions. Unlicensed operators or those who fall foul of the regulator will face hefty fines of NZ$5m (£2.2m).
## Requirements for Potential Operators
To participate in the auction, operators must submit detailed proposals ensuring compliance with strict regulatory measures. This includes implementing acceptable age verification systems to prevent underage gambling, strict harm reduction strategies to protect vulnerable players, and adherence to international licensing standards from bodies like the Malta Gaming Authority or the UK Gambling Commission.
Operators must also maintain transparency in terms and conditions, including bonus requirements and game rules, and undergo regular audits to ensure continued compliance.
## Additional Considerations for Operators
The licensing system is also intended to facilitate tax collection from online gambling activities. New Zealand's plans to launch a regulated online casino market have attracted interest from established online casino operators, including Entain, which currently operates TAB NZ.
However, the plans have not been without controversy. Land-based casino owners, such as SkyCity Entertainment Group, which owns several of New Zealand's largest land-based casinos, had previously requested that fewer online casino licenses be auctioned off.
Despite this, the Online Casino Gambling Bill has been put to parliament and sets out the requirements for the upcoming auction of licenses. The bill prioritizes harm minimization, consumer protection, and tax collection, reflecting the government's commitment to balancing the growth of a regulated online gambling sector with robust protections for consumers and the community.
While neighbouring Australia continues to mull over a ban on gambling advertising, New Zealand will allow ads "with restrictions." The exact nature of these restrictions has not yet been detailed, but it is expected that they will be announced in the coming months.
This new regulatory framework marks a significant step forward for New Zealand's online gambling industry, providing a clear path for potential operators to enter the market and offering consumers a safer, more regulated environment for their online gaming activities.
Operators looking to participate in the structured licensing system for New Zealand's upcoming online casino market are required to submit detailed proposals that include strategies for age verification, harm reduction, and adherence to international licensing standards such as those from the Malta Gaming Authority or the UK Gambling Commission. The regulatory framework, designed to prioritize consumer protection and harm minimization, also allows for licensed operators to advertise under specific restrictions, with the intention of collecting taxes from online gambling activities.
