New Zealand online casino legislation clears first reading in Parliament

New Zealand’s online casino bill passed its first reading in Parliament with an 83-39 vote, signaling legislative momentum despite dissent from some Labour MPs over consumer safeguards in the proposed regulatory scheme.

The legislation, introduced in April by Minister of Internal Affairs Brooke van Velden, seeks to establish a regulated iGaming market allowing up to 15 licensed operators. Each license would be valid for three years. If passed, licensed operators are expected to begin operations by July 2026.

The bill proposes an auction process to award the 15 available licenses, with the selection process scheduled to start in February 2026. License holders would be subject to a goods and services tax, a 12% offshore gambling duty, and a 1.24% levy on profits dedicated to funding services addressing gambling harm.

The regulatory framework includes restrictions on advertising, including a prohibition on marketing to children, and mandates the use of age verification tools.

Companies that have previously expressed interest in applying include SkyCity, 888, Bet365, Super Group—owner of Betway—and TAB NZ, the country’s exclusive operator for online sports betting.

However, van Velden has stated that TAB NZ will not be eligible for an online casino license. TAB NZ was recently granted the monopoly on online sports betting, barring other operators from entering that segment of the market.

Parliamentary debate and positions

During the reading, Labour Party MP Lemauga Lydia Sosene opposed the bill, expressing concern about the adequacy of its provisions for mitigating gambling harm.

“It is important that the government is serious about supporting the reduction of online harm and, specifically, consumer protection, because the bill in its current form does not address those particular actions wholeheartedly. They are listed vaguely,” Sosene said.

Jamie Arbuckle, MP for the New Zealand First Party and a member of the ruling coalition, supported the measure.

“This bill is to stop the unregulated situation that we find ourselves in at the moment. [It] will create a robust framework to regulate online casino gambling and protect consumers and minimise harm,” Arbuckle said. “We want to make sure that only trustworthy operators are allowed to operate in the online gambling market.”

With the first reading complete, the bill will now undergo scrutiny by the Governance and Administration Committee. Van Velden has proposed that the second reading be scheduled by November 17. The bill would then proceed to the Committee of the Whole House, followed by a third reading.

If the legislative timeline is followed, the bill could be enacted before the end of the year.