As iGaming continues to gain acceptance in more locations worldwide, New Zealand also takes the plunge. The NZ government has just announced exciting news: it will legalize online gambling in the country in the coming years. This marks a milestone for online gaming, but it also aims to curb the activities of offshore gaming platforms in the region.

New Zealand is on the cusp of a significant transformation in its gambling industry, as the government prepares to legalize online casino gambling. This move primarily aims to end the influence of offshore gaming websites targeting players in the country.

The announcement comes from Hon. Brooke van Velden, the Minister of Internal Affairs of New Zealand, who confirmed that a regulatory framework regarding the issuance of online gaming licenses will be established by the early part of 2026. The introduction of online casinos is part of a broader effort to ensure a safe and regulated online gambling environment for New Zealanders.

Regulatory framework and licensing requirements

The new regulatory framework will see a limited number of online gaming licenses offered to operators who meet the most stringent criteria. These criteria include paying taxes on gross gaming revenue, passing suitability checks, providing robust consumer protections, and lastly, promoting responsible gambling practices. The government's approach is to regulate, rather than increase, gambling activities in the country.

"Licensing is how we regulate most forms of gambling domestically. This is not intended to increase the amount of gambling New Zealanders do but to ensure operators meet requirements for consumer protection and harm minimization, as well as paying tax," explained Minister van Velden.

The ultimate objective is to offer New Zealanders a secure online gambling environment, a stark contrast to the unsafe conditions provided by offshore websites. The new regulations will ensure that the online gambling industry operates within the bounds of the law, offering protections that are currently lacking.

Tourism and economic impact

New Zealand, home to fewer than 5.5 million people, is a popular tourist destination, with millions of visitors contributing significantly to the economy. The introduction of a regulated online gambling market is expected to bolster this economic impact further.

Currently, SkyCity Entertainment Group is the holder of the country's only land-based casino license. The firm operates casino resorts in Queenstown, Auckland, and Hamilton, generating substantial revenue annually. Last year, the casinos operated by SkyCity produced a gross revenue of about $387.2 million NZ, which is roughly $229.5 million US, with an additional nearly US$111 million from non-gaming activities.

SkyCity has long been in favor of the legalization of online casino gambling in New Zealand, as it cites the detrimental impact of offshore gaming websites on its business. Following van Velden's announcement, SkyCity expressed its support for the new regulatory measures.

SkyCity's response and future plans

"The SkyCity Entertainment Group remains supportive of the regulation of online casino gaming in New Zealand with an emphasis on strong host responsibility and delivering community benefits in New Zealand," the company stated.

Given its established presence in the market, SkyCity is well-positioned to secure one of the iGaming licenses. The licenses, set to be auctioned off, will be valid for three years, provided operators maintain regulatory compliance.

Safeguards for consumers and advertising restrictions

One of the key aspects of the new regulations is the emphasis on consumer safeguards. Unlike in the US where casino gambling and online sports betting are heavily advertised, New Zealand will adopt a more restrictive approach. Licensed online gambling operators will be allowed to advertise, but with strict limits. Also, they will be forbidden from engaging in sponsorship deals with various TV networks, sports teams, and stadiums.

In addition, access to online gambling will be restricted to individuals who are 18 and older. Licensed operators will be allowed to offer online table games and slot machines, but not sports betting or lottery products.

Minister van Velden's announcement marks a significant step towards creating a regulated and secure online gambling environment in New Zealand. The move is expected to curb the influence of offshore gambling websites and provide New Zealanders with a safer and more responsible way to engage in online gaming. As the government moves forward with its plans, the focus will remain on ensuring that the new online gambling market operates within a framework that prioritizes consumer protection and responsible gambling practices.