New Zealand government introduces 15-license model for online casinos

The New Zealand government has introduced legislation to establish a regulated online casino market by 2026 while limiting online sports betting to a single legal operator.

The Online Casino Gambling Bill, introduced by Minister Brooke van Velden and led by the Department of Internal Affairs (DIA), proposes 15 licenses for online casino operators through a competitive auction process. Interested companies must submit bids along with business plans tailored to New Zealand operations.

As a developed economy, New Zealand is expected to attract plenty of interest from international iGaming operators. Licensed entities will be required to comply with rules focused on consumer protection, tax collection, and harm minimization.

Operators must share relevant business information with the New Zealand Gambling Commission. Advertising will be allowed but subject to restrictions. Companies operating without a license or violating regulations may face penalties of up to NZ$5 million (approximately US$3 million).

“The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritize harm minimization, consumer protection, and tax collection,” said van Velden.

The DIA noted that further details on advertising and consumer protections are still being developed. The bill is expected to advance to the select committee stage later this year, allowing for public consultation.

The online casino bill arrives alongside legislative changes to the Racing Industry Act 2020, which confirmed TAB NZ, operated by Entain, as the country’s only legal online sports betting provider. The amendments received Royal Assent this week.

Entain, active in Australia through its Ladbrokes and Neds brands, holds a 25-year contract to operate TAB NZ. The company has not publicly raised objections to the casino licensing framework.

Not all industry stakeholders are aligned with the 15-license plan. SkyCity Entertainment Group, which operates the country’s largest land-based casinos, has reportedly urged the government to reduce the number of licenses, citing concerns over market saturation and consumer protection.

The bill’s progress through Parliament will determine the final regulatory framework, including licensee obligations and enforcement mechanisms. Stakeholders across the industry are closely monitoring the proposed changes and their potential impact on market dynamics and compliance requirements.