New Zealand gambling law specialist, Jarrod True, outlines the Government’s plans to introduce an online licencing system for casino games by early 2026.
The New Zealand Government has recently provided more detail regarding its plan to introduce an online gambling licensing system. On 30 July 2024, the Government confirmed that a licensing system for online casino games will be in place from early 2026.
The licences will only enable operators to offer online casino games, not sports betting, or lottery products.
There will be a limited number of licences available, which will be allocated by auction. The exact number of licences is not yet known. The initial intention was, however, to bring as many providers as possible within the licensed framework to improve harm minimisation and increase the Government’s tax revenue.
The licences will be for a three-year period. The regulator, the Department of Internal Affairs, will have the ability to suspend or cancel the licence if regulatory requirements, including harm minimisation requirements, are not met.
The tax obligations are expected to remain the same as the current obligations. A 12% offshore gambling duty applies to online gambling provided by offshore operators to New Zealand residents. A 15% goods and service tax is also payable. However, an additional problem gambling levy of approximately 1% may also be introduced. Currently, all of New Zealand’s other gambling providers pay a problem gambling levy, which is used to fund problem gambling treatment services and problem gambling research.
The harm minimisation obligations are expected to be comprehensive, and similar to the stringent requirements currently faced by land-based operators. The minimum age for online gambling will be 18.
Licensed gambling operators will be allowed to advertise, but with strict limits. It is expected that gambling advertisements will not be permitted to target persons under 18 years of age. This is likely to include a prohibition on advertisements that appeal to children or young people and a prohibition on advertisements being played at a time when the expected audience includes a significant proportion of persons under 18 years of age. Sponsorship by online casinos will, however, be illegal.
It is currently lawful for offshore-based online providers to provide online gambling services to New Zealanders, provided the gambling operation is run and managed entirely outside of New Zealand. Once a licensing system is in place, it will become illegal for unlicensed operators to offer services to New Zealanders.
New Zealand’s current online gambling spend is estimated to be between $500m-$900m annually. The intention of the new licensing system is not to see growth in online gambling, but this appears inevitable given that online gambling is already very popular in New Zealand and a licensing system will provide greater confidence for players, and more opportunities for providers to market and promote themselves.
Jarrod is able to provide advice on the current advertising restrictions, and advice on the steps online gambling providers can take now to assist with being favourably considered for an online licence in the future.
ABOUT THE AUTHOR
Jarrod True
Jarrod is New Zealand’s leading expert on gambling law. His firm, True Legal (truelegal.co.nz) acts for a large number of New Zealand’s gambling operators. Jarrod is the author of the New Zealand Gambling Law Guide (www.gamblinglaw.co.nz), and the author of Gambling Law (a Thomson Reuters publication).
Jarrod provides regular advice on New Zealand’s online gambling laws, including advice to offshore-based developers of gambling-related apps. Jarrod contributes to the Advennt digital platform and has written the New Zealand online gambling section, which summarizes the New Zealand online gambling market, including the attractions and challenges.
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