The New Zealand Government, led by Minister of Internal Affairs Brooke van Velden, has taken a decisive step towards regulating online casinos. This new regulation is designed to minimise harm, support tax collection, and provide consumer protections to New Zealanders. This approach is not intended to increase gambling but to ensure operators meet stringent requirements for consumer protection and harm minimisation while contributing to the nation’s tax revenue.

New Zealand’s Government Sets High-Level Approach to Regulating Online Casinos

Key Objectives of the Regulation

The new regulatory framework has several key objectives:

• Minimising Harm: The primary aim is to protect New Zealanders from the potential harms of online gambling.
• Supporting Tax Collection: Ensuring that operators pay their fair share of taxes.
• Providing Consumer Protections: Guaranteeing that consumers are treated fairly and their interests are safeguarded.

Limited Licences and Auction Allocation

To control the number of online casinos operating within New Zealand, the government will limit the number of licences available. These licences will be allocated through an auction process, ensuring a fair and transparent system. Each licence will have a three-year term, contingent on operators meeting all regulatory requirements.

Strict Advertising and Sponsorship Limits

Licensed operators will be allowed to advertise their online casino games, but this will be heavily regulated to prevent excessive exposure. Importantly, sponsorship remains illegal for online casinos, maintaining a clear boundary to limit the influence of gambling advertising.

Age Restrictions and Consumer Safety

The regulation mandates a minimum age of 18 for online gambling. This is part of the broader effort to protect young and vulnerable populations from the risks associated with gambling. By enforcing age restrictions and rigorous consumer protection measures, the government aims to create a safer online gambling environment.

Regulatory Implementation Timeline

The new regulatory system is expected to be in place by early 2026. During the Select Committee process, the public will have the opportunity to provide feedback, ensuring that the regulation reflects the community’s concerns and interests. Once established, the Department of Internal Affairs (DIA) will oversee the regulation and ensure compliance.

DIA’s Commitment to Regulatory Compliance

The DIA has a longstanding reputation for strict regulatory compliance in the gambling sector. This commitment is exemplified by the recent case involving SkyCity, where the DIA’s stringent measures highlighted its dedication to maintaining high standards.

Balancing Regulation and Industry Growth

The new regulation is designed to strike a balance between stringent control and allowing the gambling industry to grow within safe and regulated boundaries. This balance is crucial to ensure that the industry can thrive while protecting consumers and supporting public interests.

Economic Benefits

By supporting tax collection, the regulation will contribute to New Zealand’s economy. The revenue generated from online gambling will be used to fund public services, providing a direct benefit to the community.

Consumer Trust and Safety

With strict regulations in place, consumers can trust that online casinos operating within New Zealand are safe and fair. This trust is essential for the long-term sustainability of the industry.

Conclusion: The High-level Approach

New Zealand’s high-level approach to regulating online casinos represents a significant step towards creating a safer and more regulated gambling environment. By focusing on harm minimisation, supporting tax collection, and providing consumer protections, the government aims to safeguard the interests of New Zealanders. As the regulation comes into effect in 2026, the DIA will ensure that operators comply with all requirements, maintaining the integrity and safety of the online gambling sector.

FAQs About New Zealand’s New Online Casino Regulation

1. What is the main objective of the new online casino regulation in New Zealand?

The primary aim is to protect New Zealanders from the potential harms of online gambling while supporting tax collection and providing consumer protections.

2. Who is leading the regulation effort for online casinos in New Zealand?

The regulation is being led by the Minister of Internal Affairs, Brooke van Velden.

3. When is the new regulatory system expected to be implemented?

The new regulatory system is expected to be in place by early 2026.

4. How will the number of online casino licenses be controlled?

The government will limit the number of online casino licenses available and allocate them through an auction process to ensure a fair and transparent system.

5. What is the term length for each online casino license?

Each license will have a three-year term, contingent on operators meeting all regulatory requirements.

6. Are there any restrictions on advertising and sponsorship for online casinos?

Yes, advertising will be heavily regulated to prevent excessive exposure, and sponsorship remains illegal for online casinos.

7. What is the minimum age requirement for online gambling under the new regulation?

The minimum age for online gambling is set at 18 years.

8. Who will oversee the compliance of the new regulations?

The Department of Internal Affairs (DIA) will oversee the regulation and ensure compliance.

9. How will the new regulation impact New Zealand’s economy?

The regulation will support tax collection, contributing to New Zealand’s economy by funding public services with the revenue generated from online gambling.

10. What measures are in place to ensure consumer safety and trust in online casinos?

Strict regulations and consumer protection measures are in place to ensure that online casinos operating within New Zealand are safe and fair.

11. What opportunity will the public have to provide feedback on the new regulation?

During the Select Committee process, the public will have the opportunity to provide feedback to ensure that the regulation reflects the community’s concerns and interests.

12. How does the regulation aim to balance industry growth with consumer protection?

The regulation is designed to strike a balance between stringent control and allowing the gambling industry to grow within safe and regulated boundaries, ensuring that the industry can thrive while protecting consumers and supporting public interests.

13. What has been the DIA’s track record in regulatory compliance in the gambling sector?

The DIA has a longstanding reputation for strict regulatory compliance in the gambling sector, exemplified by recent stringent measures against SkyCity, highlighting its commitment to maintaining high standards.