New Zealand Aims to Regulate Online Casinos by 2026

Over recent years, there has been a dramatic shift in New Zealand's gambling landscape. Led by Internal Affairs Minister Brooke van Velden, the government is poised to introduce auctioned licenses for online casinos, marking a crucial shift. The strategy includes a robust regulatory framework with an objective to mitigate harm and expand tax revenue, elevating New Zealand’s gambling industry to new heights.

Regulatory Framework and Policy Changes

New Zealand’s stance on online casinos has historically been restrictive, prohibiting locally-based online gambling to combat unregulated betting. Despite this, SkyCity Entertainment, New Zealand's sole official casino entity, operates an online gaming platform from Malta. Advocating for a regulated domestic market, SkyCity aims to level the playing field with international competitors.

Reflecting these aspirations, the government’s proposed regulations envisage a tightly controlled online gambling sector by offering limited licenses for three-year durations. Prospective operators must adhere to rigorous standards to qualify, including stringent checks on consumer protection and harm reduction. Moreover, the new policy includes age restrictions — only individuals 18 or older can gamble online — and restricts offerings exclusively to casino games, banning sports betting, lotteries, and sponsorships to maintain focus on regulated casino activities. SkyCity Entertainment has expressed support for these changes, emphasizing the importance of a regulated environment that offers equitable opportunities and fosters responsible gambling.

Future Outlook and Community Engagement

The licensing regime updates, projected to take effect by 2026, were voiced by Van Velden as part of the broader gambling tax reform initiatives promised in the pre-election period. Although specifics regarding the new offshore gambling tax remain undisclosed, the government shows a firm stance on ensuring offshore entities contribute equitably.

This initiative follows a critique from the National Party, which succeeded in recent elections, regarding prior mismanagement of offshore gambling funds, estimating potential revenue gains of NZ$179 million annually. Furthermore, public engagement is being encouraged during the review process via select committee discussions, providing a platform for community input. Concerns over problem gambling, especially involving minors, have also prompted the necessity for stringent regulatory measures, underscoring the importance of safeguarding vulnerable segments of the population while enhancing the national economy through structured online gambling.

Source:

''Regulating online casinos approach'', beehive.govt.nz, July 30, 2024.

By GamesAndCasino