New Zealand Parliament passes online casino bill at final reading
New Zealand’s Online Casino Gambling Bill has passed its third and final reading in Parliament, moving the country a step closer to launching a regulated online casino market with up to 15 licences for operators.
The legislation, led by Internal Affairs Minister Brooke van Velden, now proceeds to Royal Assent, which is expected on 1 May. The new law will replace a long-debated gap in the current Gambling Act 2003 that allowed New Zealand players to access offshore online gambling platforms while those operators remained outside the country’s licensing and tax system.
The Gambling Act, approved in 2003, has faced repeated criticism because it created a grey area around offshore online casino gambling. While local consumers could gamble with overseas operators, those companies were not required to hold local licences or pay taxes in New Zealand.
The new framework is designed to close that loophole and bring the sector under direct regulation.
Van Velden said: “The Bill…supports the coalition agreement by closing the gambling tax loophole and requiring licensed online casino operators to pay tax, just like any other business operating in New Zealand.”
Up to 15 licences through competitive process
Under the new regime, the Department of Internal Affairs will manage a competitive licensing process for up to 15 online casino licences. The structure is intended to create a controlled but competitive market similar to those operating in other major regulated gambling jurisdictions.
The bill sets out a three-stage licensing process involving expressions of interest, a competitive process such as an auction or tender, and final licence applications. Operators must meet suitability requirements, disclose ownership structures, provide business and compliance plans, and show they can meet strict consumer protection and harm prevention standards. Licences will initially remain in force for three years.
Van Velden said: “Under the new framework, up to 15 licences will be available through a competitive process. Licensed operators will be required to exclude problem gamblers and meet strict harm prevention and consumer protection requirements.”
The revised timetable published in March 2026 expects the licensing process to begin in July 2026. Applications must be submitted by 1 December 2026, and the 15 successful applicants are expected to go live on 1 July 2027.
Operators who fail to submit licence applications by the 1 December deadline will be required to stop providing services in New Zealand.
Stronger enforcement and offshore reach
A major feature of the legislation is its extraterritorial reach. The law applies to all online casino gambling made available to people in New Zealand, regardless of where the operator is based.
This means offshore providers offering services to New Zealand consumers will be subject to the same rules and enforcement action as local operators.
Van Velden said, “These tools will ensure that New Zealand law applies to all online casino gambling available in New Zealand, regardless of where operators are located, closing off avenues for avoidance and strengthening the regulator’s ability to monitor and enforce compliance by international operators.”
The bill also gives the Department of Internal Affairs stronger enforcement powers, including take-down notices, formal warnings, enforceable undertakings, and financial penalties of up to NZ$5 million (£2.1 million) for serious or repeated breaches.
The legislation also bans operators from offering gambling on credit and requires them to ensure all gamblers are at least 18 years old. Operators must also exclude problem gamblers and maintain public complaints processes and complaint registers.
Community funding included
Following months of campaigning from Labour MPs, the bill also includes provisions requiring a share of revenue from licensed online gambling providers to support community projects across New Zealand.
The government had previously said it intended to allocate part of gross gaming revenue from licensed online casinos to local sports clubs, community groups, and grassroots organisations.
Cabinet papers from November showed the government was considering setting aside 4 per cent of operator GGR for these community returns. Funding could generate between NZ$10 million and NZ$20 million in the first year, assuming the regime starts on 1 January 2027.
Van Velden said: “Submissions on this Bill made it clear that New Zealanders also want the benefits from the online casino gambling to flow back to local sports clubs, community groups, and grassroots organisations. This Bill delivers on that expectation.”
Operators prepare for licence race
In July 2025, the bill advanced to the Governance and Administration Committee after passing its first reading in Parliament by a vote of 83 to 39. During the legislative process, legal experts and industry stakeholders highlighted concerns about the tight implementation timeframe and the insufficient detail available on the laws that will support the new licensing regime.
Among operators preparing for the new market is Entain, which currently holds an exclusive licence to operate sports betting through TAB NZ’s domestic presence. The company has previously stated it aims to secure three of the 15 available licences.
During its FY25 earnings call, CEO Stella David said that with TAB in New Zealand, Entain is the only online operator able to cross-sell between sports betting and iGaming.
Meanwhile, SkyCity Entertainment Group, New Zealand’s largest land-based casino operator, has previously written to van Velden expressing concerns about the prospect of a multi-licence online casino market.
With Royal Assent expected in May, the country is now moving towards its first fully regulated online casino market, with formal operator applications set to begin later this year.
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