Timeline and Next Steps for Online Casino Legislation in New Zealand

Submitted by B.E.Delmer on

Written by :

B.E.Delmer

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A New Zealand city skyline

New Zealand has officially entered its phase of counting down the days to a regulated online casino market. The government confirmed that on 1 December 2026, the country will start issuing online casino licenses. From then on, it will be regulations all the way.

On 2 December 2025, the long-awaited cabinet paper and supporting documents for the Online Casino Gambling Bill were released by the Minister of Internal Affairs, Hon Brook van Velden. According to industry experts, the bill has been cooking in parliament since June 2025. Now, with the latest publications, all industry stakeholders have more clarity on what is happening and the regulatory timelines. 

As the regulated market is nearing, players who are looking ahead could start exploring some of the recommended casino sites. For instance, you can start looking at casinos with a No Deposit Bonus on Registration NZ that are in line with the upcoming standards. When the regulations start, you want to have already been acquainted with the regulated casinos. 

Regulations finalization by mid-2026

With the licensing date coming in fast, the Department of Internal Affairs (DIA) revealed that the detailed regulations for license holders were expected to be done by mid-2026. And someone would be wondering why such a long time before the licenses come into effect!

According to the Programme Director, Online Gambling Implementation, Trina Lowry, the plan is to give ample time for the industry players to go through the finalized regulations before running the licensing process.

The regulations that have already been submitted to Cabinet for approval include:

  • Provisions covering harm prevention and minimization
  • Consumer protection and record keeping
  • Advertising and marketing rules
  • Applicable fees, levies and charges for cost recovery

In her email, Lowry further stated that another update concerning the final regulatory decisions was expected before December. However, there are no reports yet confirming whether this happened or not.

The current regulations and what is changing

Someone might be wondering, why is New Zealand regulating the market now, even after having a thriving million-dollar industry? You see, the New Zealand casino market has always operated in a legal gray area. Actually, the 2003 Gambling Act makes it illegal to run an online casino. The only form of gambling that has been allowed by New Zealand’s law is through the New Zealand Lotto. 

For sports betting activities, the only company that has been given authority to offer services is TAB New Zealand. This prohibition runs for all races and sports betting activities, both inside and outside the country.

However, offshore casinos have always been operating gambling platforms anyway. This is because the current structure does not prohibit Kiwis from playing on sites that are based overseas. The only thing prohibited is making gambling advertisements and promotions to the people of New Zealand. Defaulting on this can lead to a fine of up to $10,000. 

With the new regulations coming in, any operator who wants to offer its services in the country has to obtain a New Zealand license. The new regulations will offer licenses to a few operators for a total of 15 licenses. Each license is for a single platform or website, and each company is given a maximum of three licenses. 

The license will last for three years, after which an operator can opt to extend it by five years. And just so you know, the licensing is only for casino-based online games like slots and table games like poker. There is also the liberty to offer bets for virtual sports, but for actual sports involving betting, that is reserved for TAB New Zealand. 

What the new regulations will do is present a rare opportunity for businesses to legally offer services in the new regulated market. Also, players will get to enjoy better protection in the New Zealand fashion. 

Community funding changes

The latest release by the government confirmed that there were modifications to community funding returns. For example, the offshore gambling duty was raised from 12% to 16%. This additional 4% is to be used to ringfence community projects. 

According to government estimates, this change could generate between NZ$10 million and NZ$20 million within the first year of the regulated market. This is approximately $5.73 million to $11.46 million, depending on total GGR.

Pushback is inevitable

Even as the government is moving on to regulate the online casino market, there has been increasing criticism from the sporting sector. More than 50 sports organizations have warned that this regulation may also reduce the financial support for local clubs. 

You see, a lot of this pushback is because of the reliance of regional sport on pokie machine grants. So far, these grants have been contributing approximately NZ$170 million every year to community programs. This includes everything from sports gear to maintenance of facilities. 

Critics warn that permitting licensed online casinos without matching community-funding requirements could weaken the traditional framework that ensures gambling proceeds are reinvested for public benefit. For example, the Chair of Cycling New Zealand, Martin Snedden, states that the bill could tamper with arrangements that have been there for a long time. These arrangements have been ensuring that organizations receive the necessary funding.

However, Brooke van Velden stated that the bill was there for the good of the people. As players are moved away from unregulated offshore sites, they are brought into a system where their safety is top priority. So far, the government has committed NZ$81 million to deal with gambling harm and maintain that all licensed operators will be contributing through taxes and regulatory fees. 

On 17 August 2025, the public submissions on the bill closed, and the hearing by the select committee was scheduled to begin on 8 September 2025. 

How the timelines look

The approval for the first reading of the bill was in July 2025. After everything, the New Zealand government has formalized a clear timeline for launching licensed online casinos. 

The key stages include the finalization of the regulatory framework, which is expected to be done by mid-2026. These operational rules will underpin the licensing process and ensure a smoother launch. Once the regulatory framework is settled, the licensing authority, under the DIA, will begin accepting expressions of interest and start the auction process. Earlier speculations had pointed to 2 February 2026, but the dates have been pushed to mid-2026.

Throughout 2026, operators that have successfully bid for licenses will need to complete a full licence application. They will also need to demonstrate compliance with strict requirements, including harm-prevention measures and robust age verification systems.

On 1 December 2026, issuance of licenses will officially begin, and licensed operators may then begin offering regulated online casino services. And after that, the country will get to see how well the regulated market will be working. Whether it is the best option for the country, or is a mistake, as some critics put it, only time can tell. 
 

- B.E. Delmer, Gambling911.com 

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