House Rules: New Zealand’s new online casino regime

New Zealand's online casino gambling landscape is about to change dramatically. The Online Casino Gambling Act 2026 (Act) came into force on 1 May 2026, establishing a licensing system for online casino gambling and ushering in a new era of regulated play for Kiwi punters.

Key takeaways

  • New Zealand’s Online Casino Gambling Act came into force on 1 May 2026, establishing a licensing regime for up to 15 online casino gambling platforms to operate in New Zealand.
  • Licensed operators will be subject to strict harm prevention measures, including player-set limits, self-exclusion tools, advertising restrictions, and a ban on credit card payments.
  • The 15 licensed operators will pay the 16 percent online casino gambling duty and the problem gambling levy. Four percent of online casino gambling duty will be ring-fenced for New Zealand community causes, channelling revenue from the regulated market back into the community.
  • Enforcement tools will target unlicensed operators. Consumers who gamble on unlicensed sites will not commit an offence, so a black market may still exist.
  • The licensing regime will be administered by the Department of Internal Affairs (DIA).

What the Act does

The Act will establish a licensing regime, allowing up to 15 online casino gambling platforms to legally operate and advertise in New Zealand (regardless of where the operator is based). 

The purpose of the regime is to hold licensed operators to a high standard, requiring harm prevention and minimisation, limiting advertising, and promoting consumer protection. The regime will also generate revenue that can be put towards harm associated with gambling (including a four percent increase to the previous offshore gambling duty, which is ringfenced for community contributions).

The majority of the Act came into force on 1 May 2026. However:

  • sections relating to online casino gambling on behalf of under 18-year-olds come into force on 1 December 2026
  • the increase to the online casino gambling duty comes into force on 1 January 2027; and
  • the prohibition on conducting online casino gambling comes into force:
    • if no licence application made, on 1 December 2026; or
    • if a licence application is made, on 1 June 2027.

The licensing regime

The licensing process is expected to start in July 2026, following the publication of the online casino gambling regulations, and involves three stages:

  • Expressions of Interest: The Secretary for Internal Affairs will invite Expressions of Interest (EOIs) by public notice. EOIs must be submitted within 20 working days (the statutory minimum, unless extended).
  • Competitive Selection Process: A competitive selection process will then determine who will be eligible to apply for an online casino licence. Successful applicants will receive at least 10 working days’ notice setting out the form of the process, the amounts payable for a licence, and the start and end dates of the process.
  • Licence Application: Following the selection process, approved parties will be invited to apply for a licence and will have 20 working days to pay the fee and submit their application (subject to extension).

Licensed operators will be reporting entities under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Regulate, don't prohibit

The philosophy underpinning the Act is pragmatic. New Zealand's online gambling market has grown significantly, with the 2023/24 New Zealand Gambling Survey finding that approximately 156,000 New Zealanders participated in overseas online gambling activities in the past 12 months. Inland Revenue has estimated the total online casino market at between $300 million and $800 million, with industry sources suggesting it could be considerably larger.

The intention behind the Act is that a licensing model which deals New Zealanders into a regulated environment is more likely to produce meaningful harm reduction outcomes than prohibition alone. Licensed operators will be subject to a suite of harm prevention measures, including requirements for players to set limits on their time, deposits, and spend; self-exclusion tools; mandatory harm-minimization messaging in all advertisements; restrictions on bonuses and inducements; and a prohibition on autoplay. Credit cards and buy now pay later facilities will be banned as payment methods for online gambling.

The Act also has a community benefit angle.  Four percent of the online casino gambling duty is ring-fenced for New Zealand community causes, meaning that revenue from the regulated market will flow back into the communities.

There is early evidence that this kind of regulatory approach may be effective. Recent changes to the online sports and racing gambling space, which gave TAB New Zealand a monopoly on online sports and race betting, appear to have been effective, with major offshore operators folding and no longer offering those services to New Zealand customers.

This approach reflects a deliberate move to bring certain forms of online gambling within a regulated environment. Other forms, such as prediction markets, remain outside that framework, have effectively been prohibited from being offered into New Zealand. For more information regarding the DIA’s stance on prediction markets, see our recent article.

The caveat

No regulatory model is airtight. The Government acknowledges that a black market may remain in New Zealand; some operators will opt to roll the dice and continue to operate unlicensed, and some dedicated gamblers may continue to use those sites. 

Enforcement tools will assist in driving unlicensed operators out, but it would not be illegal under the Act for consumers themselves to gamble with an unlicensed operator. That said, the expectation is that many operators will voluntarily exit the New Zealand market, as non-compliance with New Zealand law is something that other jurisdictions may consider as part of licence applications.

Get in touch

If you would like to discuss the implications of the Act for your business in New Zealand or would like to know more about the licensing process, please reach out to one of our experts who will be happy to assist.

Special thanks to Cody Malaki and James Burnett for their assistance in writing this article.

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