New Zealand regulator: Development of online casino framework all about channeling existing black market players towards licensed operators
New Zealand’s move to regulate online casinos is not about introducing online gambling to New Zealanders but channeling a market that already exists towards safe, licensed sites, said the head of the nation’s gambling regulator on Monday.
Paul James, Secretary of Internal Affairs and Chief Executive of the Department of Internal Affairs, Te Tari Taiwhenua, stated during a keynote address at the Regulating the Game conference in Sydney that his country’s Online Casino Gambling Bill and associated regulations were specifically designed to encourage domestic players to gravitate towards online gambling sites that fall under the government’s purview.
The bill, he added, aims to provide a more attractive alternative to the current “grey market” model in place under New Zealand’s Gambling Act 2003, which prohibits the provision of online gambling from within New Zealand but by offshore operators.
“The reality is online casino gambling is part of New Zealanders’ life already today, but without protections,” James said. “The [bill] will close the regulatory gap. It will make it legal.
“We’re not introducing online casino gambling, but we are making it above board. No longer grey but clear, full of integrity and transparency.”
James stressed that key aspects of the Online Casino Gambling Bill have not been introduced by accident, including plans to issue up to 15 licenses. This, he explained, is on the back of data showing that over 95% of New Zealanders currently gambling online do so on around 15 offshore sites.
“This cap [of 15 licenses] will balance consumer choice,” he said. “People will be able to choose across those 15 providers and it is aiming to channel New Zealanders to accessing and utilizing casino and online casino gambling with one of those 15, or multiple of those 15 operators. This helps us, we think, with regulation, maintaining harm standards and controlling growth.”
Likewise, advertising rules will quite deliberately provide an avenue for licensed operators to market their products, with restrictions, while enhancing the penalties that can be imposed on offshore operators. Fines aside, the bill provides takedown powers against illegal sites and punitive penalties of up to NZ$5 million (US$2.9 million) – considerably higher than the NZ$10,000 (US$5,870) fine available to regulators presently.
“What we’re trying to do is nudge or channel people away from unregulated, unlicensed, to regulated and licensed,” James explained.
“You can gamble with these providers, knowing that you’ve got consumer protections, safety standards and confidence that’s fair and transparent in terms of the behavior of those providers. We’ll also make sure that the advertising is responsible, not targeted at minors and consistent with our harm minimization objectives.”
According to James, the core of the online casino debate is centered around the fact that, according to latest estimates, New Zealanders gambled around NZ$1.3 billion in online casinos in 2025, up 10% over the previous year and highlighting a continually growing market.
“We think it’s very important to state very clearly up front that we’re not introducing online casino gambling. It’s already here in New Zealand,” he continued. “Every day, New Zealanders use hundreds of offshore sites, hundreds of sites without New Zealand’s consumer protections, without harm minimization standards.
“We’re really trying to strike a balance here between measures that effectively detect and prevent and minimize harm, while also ensuring the settings are not so restrictive that the gambling operators can operate effectively, and that New Zealanders feel confident in making those choices in participating with our non-extended gamblers.
“Getting the balance wrong will mean that people will opt into the black money and New Zealanders will gamble without any support or protection.
“So, we really do want the licensed providers to be successful and New Zealanders to choose to use them.”
The Online Casino Gambling Bill recently passed its second reading and is expected to progress to the Committee of the whole House and then a third reading in the coming weeks – paving the way for formal approval.
Under the current timeline, legislation will commence on 1 May 2026, with expressions of interest to be accepted by July, followed by a license auction in September and an application process from October.
From 1 December 2026, only licensed operators will be permitted to offer online gambling services to New Zealanders, although those already offering services and who have submitted an application may continue doing so until either their application is determined or 1 June 2027, whichever comes first.
