New Zealand iGaming Bill Passes First Reading in Parliament

On July 11, 2025, New Zealand’s iGaming bill made significant progress as MPs voted 83 to 39 in favor of the proposal, which will regulate online casino gambling. The bill, introduced by Minister of Internal Affairs Brooke van Velden, aims to establish a framework allowing up to 15 licensed operators in the country.

With licenses valid for three years, the bill also proposes regulations to safeguard consumer interests and protect vulnerable populations. Licensed operators are expected to launch by July 2026. This move marks a crucial step in shaping the future of online gambling in New Zealand, with an emphasis on consumer protection and responsible gambling.

Concerns and Support for the Bill

The bill’s progress comes amid mixed reactions in Parliament. Labour Party’s Lemauga Lydia Sosene expressed concerns that it opens the door to international operators without adequately addressing gambling harm reduction and consumer protection. Sosene emphasized that there needs to be a comprehensive plan in place to protect the public, particularly vulnerable communities, from the potential harms of gambling. She warned that the bill’s current provisions were too vague and lacked a strong strategy for mitigating gambling-related issues.

On the other hand, Jamie Arbuckle, MP from the New Zealand First Party, which is part of the ruling coalition, supported the bill, emphasizing its potential to curb the growing unregulated online gambling market in the country. Arbuckle highlighted that, without regulation, the unregulated gambling market could continue to thrive, leaving consumers exposed to unscrupulous operators. He argued that the bill would create a secure and regulated environment for online gambling and bring much-needed consumer protections to the sector.

Regulations and Licensing Details

The proposed bill in New Zealand includes several important provisions, such as a 12% offshore gambling duty, a 1.24% levy on profits to fund gambling harm services, and a goods and services tax (GST) requirement for operators. These regulations will ensure that the industry operates transparently and generates revenue for public welfare while also funding crucial initiatives to reduce gambling harm. The licensing process will be competitive, with licenses available via an auction. The bill stipulates that licensees must adhere to strict standards for advertising, which includes prohibiting gambling promotions targeting children. Additionally, operators will be required to have robust age verification systems in place to prevent underage gambling.

While TAB NZ, New Zealand’s existing sports betting monopoly, is excluded from applying for an online casino license, other operators such as SkyCity, 888, and Bet365 have expressed interest in entering the market. However, van Velden has clarified that TAB NZ will not be able to apply for a casino license, as it already holds the exclusive rights to online sports betting in the country. This exclusion highlights the government’s intention to maintain a competitive but regulated gambling market while ensuring the protection of existing monopolies.

The next step in the process involves the Governance and Administration Committee’s review of the bill, followed by a second reading in Parliament. After that, a third reading will take place before the bill is passed into law. Van Velden has indicated that the government aims to complete the legislative process by November 2025, with licensed operators expected to start offering online casino services by mid-2026.

Technological Advancements Shaping Online Gambling in New Zealand

The passage of this bill is particularly relevant given the technological advancements that have transformed the online gambling landscape in New Zealand. As online casinos in New Zealand become increasingly sophisticated, technology plays a crucial role in enhancing user engagement. The latest gaming platforms offer highly immersive experiences, incorporating advanced features such as live dealer games, interactive bonus rounds, and enhanced security measures. These technological innovations help create a seamless and secure gaming experience that meets the expectations of modern players.

Expanding TAB NZ Monopoly to Online Betting

In addition to the online casino bill, New Zealand has proposed expanding TAB NZ’s monopoly to cover online betting, a move that would consolidate the country’s sports and racing betting sector. This extension aims to protect local revenue from offshore betting operators, offering new oversight and consumer protection measures. The government is focused on maintaining financial sustainability within the racing industry while ensuring safe and regulated gambling options for players. By broadening the scope of TAB NZ’s monopoly, the government seeks to reduce the risk posed by illegal and unregulated betting services.

Source:

“New Zealand iGaming Bill Passes First Reading in Parliament”, igamingbusiness.com, July 15, 2025