New Zealand to Limit Online Casinos with $5M Fines, Ad Ban, Age Checks

The New Zealand government is set to overhaul the online casino industry, introducing a regulated system aimed at consumer safety and harm prevention. The upcoming Online Gambling Bill, slated for introduction in Parliament in 2025, will establish a licensing framework that includes strict penalties and consumer protection measures, with the goal of launching the system by early 2026.

Internal Affairs Minister Brooke van Velden described the initiative as a vital step toward addressing the challenges posed by unregulated offshore gambling platforms. “Currently, New Zealanders can and do gamble on thousands of offshore gambling websites. By introducing a regulatory system, my intention is to channel customers towards up to fifteen licensed operators,” she stated.

The bill will impose stringent rules, including a limit of 15 operator licenses, mandatory age verification systems, and restrictions on advertising to children. Operators failing to comply with these regulations face fines of up to NZ$5 million.

Key Features of the Proposed Regulations

The Online Gambling Bill is designed to create a safer gambling environment while minimizing harm. It aims to tackle issues currently faced by New Zealanders using offshore platforms, such as difficulties withdrawing funds and a lack of accountability. Under the new system, operators must comply with the following:

• Age Verification: Platforms must implement reliable age checks to prevent underage gambling.
• Advertising Restrictions: Advertising that appeals to minors will be banned outright.
• Harm Prevention: Licensed operators will need robust harm minimization measures, including tools for responsible gambling.
• Severe Penalties: Operators violating the rules could face fines as high as NZ$5 million.

Van Velden stressed that the bill is not intended to increase gambling activity but to make it safer for those already engaging online. “My goal is not to increase the amount of gambling that is happening online, but to enable New Zealanders who wish to play casino games online to do so more safely than they can today.”

Licensing Process and Timeline

The government has outlined a clear timeline for the implementation of the new regulations. The draft legislation will be presented in Parliament next year, followed by a public consultation period. After the bill is enacted, the licensing process will begin, with licenses awarded through a competitive auction system. Licensed operators are expected to begin operations by April 2026.

The approach builds upon New Zealand’s existing regulations, which prioritizes harm reduction and tax collection. By limiting the number of licenses to 15, the government seeks to maintain a manageable and efficient regulatory system. Inland Revenue data suggests this limited framework will still capture over 90% of potential revenue, as major operators are already active in the market.

Protecting Consumers and Reducing Risks

Consumer protection remains a central focus of the reform. The bill includes measures to address the issues that have arisen from unregulated offshore gambling, such as delayed payouts and a lack of recourse for players. By channeling users to licensed operators, the government hopes to mitigate these risks.

“This new system will prevent and minimize online gambling harm and limit opportunities for crime and dishonesty,” Van Velden said. She also confirmed that additional regulations on advertising and consumer protection will be developed to allow flexibility for future adjustments.

Licensed operators will be required to uphold high standards of compliance, ensuring New Zealanders have access to safer, transparent, and accountable gambling platforms. With a firm deadline for early 2026, the government is committed to ensuring that this new regulatory framework sets a precedent for responsible online gambling.

Source: NZ to Auction 15 Casino Licenses With Strict Tax and Ads Rules, lcb.org, November 15, 2024.