Key Aspects of the Proposed Regulation

‍

The new regulatory structure outlines specific rules to guide online casino operators, focusing on consumer protection, harm minimization, and tax compliance. Here’s a look at some proposed changes:

‍

• - Licensing System: By 2026, a licensing system will be introduced, with licenses issued through an auction process.
• - License Validity: Licenses will be valid for a three-year period.
• - Restricted Gambling Types: Only online casinos are included; sports betting and lotteries are excluded.
• - Advertising and Sponsorship: While advertising will be allowed under strict regulations, sponsorships by online casinos will remain prohibited.
• - Age Restrictions: The minimum age for online gambling will be set at 18.

‍

Ministerial Vision and Industry Regulation

‍

Minister of Internal Affairs, Brooke van Velden, leads the initiative, highlighting the importance of moving away from offshore operators that provide no consumer protection. Van Velden emphasized that licensed operators will need to adhere to strict guidelines, including consumer safety measures, tax contributions, and harm minimization strategies.

‍

“We aim to implement a licensing system to ensure all operators meet high standards. This is not about increasing gambling but about protecting consumers and creating accountability within the industry.”

‍

The Department of Internal Affairs will be responsible for managing the regulatory process and overseeing compliance among licensed operators.

‍

Current Market Landscape

‍

Under the Gambling Act 2003, New Zealand prohibits locally-based online casinos, but international platforms can still operate since they are not bound by New Zealand’s local laws. This regulatory gap has led to increased risks, including problem gambling.

‍

New Tax Policies for Offshore Operators

‍

In July 2024, New Zealand introduced an offshore gambling duty, requiring international operators who serve New Zealand customers to pay a 12% tax on profits. This is in addition to the Goods and Services Tax (GST) already applicable to foreign-based companies, aiming to bring offshore casinos into the country's tax framework.

‍

Benefits of the New Regulations

‍

The move towards a regulated online casino market brings several anticipated advantages:

‍

• - Enhanced Consumer Protections: With local licensing, New Zealanders will have access to safer platforms.
• - Revenue Generation: Licensing and taxation of online casinos will contribute to the nation’s budget.
• - Problem Gambling Management: Stricter regulations and support structures aim to minimize the social costs associated with problem gambling.

‍

New Zealand’s approach is in line with international standards seen in countries like the UK and Sweden, where online gambling regulations have helped balance market demands with public safety.

‍

Conclusion

‍

New Zealand’s planned regulations for online casinos are poised to bring transparency, safety, and structure to the country’s growing online gambling industry. The 2026 rollout marks a shift towards a safer and more sustainable gaming environment for New Zealanders.