Advancing regulation and consumer protection
Jarrod True of New Zealand’s True Legal runs through all of the details that operators and industry participants must be aware of as the country edges closer to launching a regulated online casino market.
New Zealand has entered a new era in online gambling regulation, with the Online Casino Gambling Act 2026 coming into force on 1 May 2026. This long-anticipated reform represents a fundamental change in how online casino gambling is offered, regulated and consumed in the country. Moving away from a largely unregulated offshore market, New Zealand is establishing a structured licensing regime designed to enhance consumer protection, ensure tax compliance and promote responsible gambling.
A TRANSITION FROM GRAY MARKET TO REGULATED FRAMEWORK
For many years, New Zealand’s online casino market has been dominated by offshore operators, many of whom operated outside the reach of domestic regulation. The new legislation changes this.
As of 1 May 2026, new offshore entrants are prohibited from offering online casino services to New Zealand customers. Existing offshore providers may continue operating under transitional arrangements until 1 December 2026, however from 1 December onwards, only licensed operators will be permitted to serve the New Zealand market.
Crucially, the Act applies on an extraterritorial basis, meaning operators targeting New Zealand customers are subject to the law regardless of their physical location. This significantly strengthens the regulator’s ability to enforce compliance globally.
COMPETITIVE LICENSING PROCESS
The new regime will be tightly controlled, with just 15 online casino licenses available. These will be allocated through a structured three-stage process conducted via the Government Electronic Tenders Service (GETS) as follows: Expressions of Interest (EOI), an invitation-only auction, then full license application.
The timeline is ambitious:
The auction will be conducted as an ascending clock auction, where prices progressively increase until supply meets demand. This mechanism is designed to allocate licenses efficiently while maximizing value for the Crown.
LICENSE TERM
Each license is issued per platform or brand, with operators limited to holding a maximum of three licenses. Licenses will run for three years, with a single renewal of up to five years.
SCOPE OF PERMITTED GAMBLING ACTIVITIES
Licensed operators will be restricted to offering online casino games, including slot machines, table games such as blackjack, poker and baccarat, and virtual sports and racing (computer-simulated events).
Notably, synthetic lotteries are prohibited, reflecting a policy decision to limit products that may closely resemble regulated lottery activity.
TAXATION, FEES AND COMMUNITY CONTRIBUTION
The new framework introduces a comprehensive fiscal regime, ensuring that operators contribute meaningfully to the New Zealand economy and community:
The additional 4% duty increase from 2027 will be ringfenced for community purposes and distributed via the Lottery Grants Board.
SUITABILITY AND MARKET ENTRY CONSIDERATIONS
While a physical presence in New Zealand is not mandatory, applicants must provide a local address for service. However, the absence of local operations may influence the regulator’s assessment of suitability.
Applicants will also be evaluated on their voluntary community contributions, signaling a broader expectation for operators to demonstrate social responsibility beyond minimum compliance.
STRICT ADVERTISING ENVIRONMENT
For the first time, licensed operators will be permitted to advertise legally in New Zealand, but within a highly regulated framework. Key restrictions include no targeting of individuals under 25, prohibition on influencer and affiliate marketing, a ban on jackpot advertising, strict limits on bonus offers capped at NZ$100 (US$58) or 200% of deposit, direct marketing only to registered users, and restrictions on audiovisual content that mimics gaming machine sounds or imagery.
These measures reflect a deliberate effort to balance commercial freedom with public health considerations.
ROBUST HARM MINIMIZATION AND CONSUMER PROTECTION
At the heart of the legislation are enhanced consumer protection and harm minimization measures, including mandatory age verification (minimum age 18), self-exclusion and problem gambler exclusion requirements, player-controlled limits on deposit, spend and session duration, real-time alerts and enforced play breaks, prohibition of autoplay features, and transparent game design preventing misleading practices.
Additionally, operators must prohibit credit card and buy-now-pay-later deposits, ensure simple account closure and prompt withdrawals, and present bonus terms in clear, plain language.
Together, these steps significantly strengthen player safeguards compared to the previous offshore-dominated market.
ENHANCED ENFORCEMENT POWERS
The regulator will wield extensive enforcement tools, including license suspension or cancellation, formal warnings and enforceable undertakings, take-down notices for unlawful advertising and financial penalties of up to NZ$5 million (US$2.9 million).
Notably, penalties may apply both to companies and individual directors or managers, reinforcing accountability at all levels.
MARKET IMPACT: PROVIDERS AND PLAYERS
For operators, the message is clear: new entrants are locked out unless licensed, and existing providers must act quickly to secure a license or exit by December 2026.
For players, the landscape will change significantly, with access limited to 15 licensed platforms. However, players will benefit from greater protections, improved transparency and formal dispute resolution pathways. While choice may narrow, trust and reliability are expected to improve markedly.
MARKET POTENTIAL
New Zealand’s online casino market is already substantial. Declared revenue for the year ending 30 June 2025 was NZ$520.8 million (US$304 million), though actual market size is estimated to be between NZ$700 million and NZ$800 million (US$408 million and US$466 million) due to underreporting by offshore operators.
This positions New Zealand as a high-value, tightly regulated market, likely to attract strong competition for the limited licenses available.
PREPARING FOR ENTRY
Operators considering entry should begin preparations immediately. Key steps include:
Early preparation is critical. When applications open in early July, applicants will only have 20 working days to submit their application.
