New Zealand’s Online Casino Bill Clears First Hurdle in Parliament

New Zealand is poised for a significant transformation in its approach to online gambling. The nation has taken a monumental step towards establishing a regulated online casino market, with the highly anticipated Online Casino Gambling Bill clearing its first hurdle in Parliament today (June 15). This pivotal legislative advancement means that New Zealanders could potentially access legally sanctioned and overseen online casinos as early as July 2026, marking a new era of control and consumer protection in the digital gambling space.

The journey for this crucial piece of legislation began in April of this year when it was formally introduced by Minister of Internal Affairs Brooke van Velden. Following several months of rigorous debate and careful consideration among lawmakers, the bill achieved a significant milestone by passing its first reading with an impressive vote of 83 in favor to just 39 against. This decisive approval propels the bill forward to the Governance and Administration Committee, where it will undergo more detailed examination and potential amendments.

Minister van Velden underscored the core motivations behind introducing this bill, primarily focusing on protecting New Zealanders who currently participate in online gambling via offshore platforms. These unregulated environments, she explained, often lack the fundamental player safety standards and robust oversight for harm minimization that a regulated market would provide. “Currently, New Zealanders can legally access thousands of offshore gambling websites. But the market is unregulated, so there are no player safety standards or oversight of harm minimization,” she stated, highlighting the urgent need for change.

Her vision for this legislation extends beyond mere player protection. Minister van Velden articulated a dual benefit: not only will the bill make online gambling safer, but it will also ensure that companies offering these services contribute financially to the country. This contribution comes in the form of tax revenue, which is crucial for public services, and dedicated funding for specialized services that treat gambling-related harm in New Zealand. “My intention with this Bill is to ensure that online gambling is safer for New Zealanders who wish to gamble online to do so. In addition, that companies providing this service contribute to tax revenue and funding the services that treat gambling harm in New Zealand,” she affirmed, emphasizing a holistic approach to responsible gambling.

What Does the Bill Say? A Framework for Safety and Revenue

The Online Casino Gambling Bill is meticulously designed to provide a comprehensive regulatory framework that simultaneously prioritizes player safety and generates much-needed tax revenue for the state. A key provision of the bill involves the issuance of up to 15 licenses, which will be awarded through a transparent and competitive auction process. This approach is already attracting significant interest from major operators within the industry, including prominent names like SkyCity and Bet365, indicating a robust and eager market.

Financial obligations for operators seeking to offer online casino services under this new regime are clearly defined. They will be mandated to pay both a goods and services tax (GST) and a specific offshore gambling duty, which has been set at 12%. Furthermore, to directly address the societal impact of gambling, a compulsory levy of 1.24% of their profits will be required. This dedicated fund will directly support essential services aimed at combating and mitigating gambling-related harm across New Zealand.

Beyond fiscal contributions, the legislation also imposes strict requirements for responsible marketing. It explicitly prohibits any advertising content or campaigns that are directed towards children, reinforcing a commitment to protecting minors from gambling exposure. Additionally, the bill mandates the implementation of highly effective age verification tools, a critical measure to ensure that only adults legally permitted to gamble can access these online platforms.

Oversight of this new regulatory landscape will fall under the purview of the Department of Internal Affairs. This government body will be responsible for vigilant monitoring of compliance with all aspects of the new law and will possess the authority to enforce severe penalties for any breaches. Violators could face substantial financial consequences, with fines potentially reaching up to NZ$5 million, underscoring the seriousness with which the government intends to regulate this sector. Minister van Velden emphasized that this bill represents a fundamental shift from the government’s previous passive stance on online gambling to a proactive and actively regulated environment.

As the bill now progresses to the select committee stage, the New Zealand government is actively inviting public input. This crucial phase allows citizens, various advocacy groups, and industry stakeholders to thoroughly review the proposed legislation and submit their valuable feedback, ensuring a democratic and well-informed legislative outcome.

Mixed Reactions from Lawmakers: A Balanced Perspective

The parliamentary session on Tuesday saw a range of perspectives from New Zealand’s lawmakers, highlighting the nuanced and often complex nature of regulating online gambling.

MP Jamie Arbuckle articulated strong support for the bill, emphasizing its potential to directly address the prevalent issue of the unregulated market currently operating within the country. He asserted, “This bill is to stop the unregulated situation that we find ourselves in at the moment. [It] will create a robust framework to regulate online casino gambling and protect consumers and minimize harm.” Arbuckle further stressed the government’s dedication to ensuring that “only trustworthy operators are allowed to operate in the online gambling market,” aiming to cultivate an environment of integrity and security for online players.

In stark contrast, Labour Party politician Lemauga Lydia Sosene voiced significant concerns regarding the proposed legislation. She argued that the bill, in its existing form, appears to lack a sufficiently concrete and actionable plan for effectively reducing gambling-related harm. Sosene also raised alarm about the potential for the bill to expose New Zealanders to a broader array of international operators without adequate protective measures in place. She stated, “It is important that the government is serious about supporting the reduction of online harm and, specifically, consumer protection, because the bill in its current form does not address those particular actions wholeheartedly. They are listed vaguely.” Her critical perspective underscores the ongoing debate surrounding the delicate balance between enabling a new market and robustly protecting the public from its potential downsides.

Following its passage through the Governance and Administration Committee, the bill will proceed through further critical stages of the legislative process. It will first return to Parliament for its second reading, followed by a detailed clause-by-clause review in the Committee of the Whole House.

Minister van Velden has set an ambitious but achievable timeline, expecting these stages to be completed by November 17. After this, the bill will advance to its third and final reading, which, upon successful passage, will lead to it being formally signed into law. The operational rollout is also clearly mapped out: the vetting process for potential operators and the subsequent auction for licenses are slated to begin in February 2026, with the ultimate goal of licensed online casinos going live by July 2026. This comprehensive and detailed roadmap reflects the government’s strategic and deliberate approach to transforming New Zealand’s online gambling landscape.

Source: iGB – New Zealand’s Online Casino Bill Clears First Hurdle in Parliament