New Zealand’s Push Towards Regulated Online Gaming Moves Forward

New Zealand has taken a huge step forward towards regulating its online casino sector after introducing a new piece of legislation that will drive the industry into a new era.

The country has introduced the Online Casino Gambling Bill that will finally bring law and order to a digital sector that has operated in a legal grey area for years.

Internal Affairs Minister Broke van Velden tabled the bill. It will help the country create a fully licensed and regulated iGaming sector by 2026.

The New Zealand government has put up to 15 online casino licenses up for grabs. Interested parties will be able to get their hands on one at an auction.

The government believes that placing a cap on the number of licenses available will help to establish a comprehensive regulatory framework to protect consumers. They also want to be able to keep an eye on who comes into the market, as well as generate revenue through licensing fees.

The New Zealand government is looking to tighten its grip on every corner of the gambling sector. The new online casino bill comes after the government handed TAB NZ a monopoly over online sports betting.

That was the beginning of what is a coordinated national strategy to reclaim gambling revenue from offshore platforms and establish New Zealand as a responsibly regulated iGaming market.

Plugging the Leaks in a Grey Market

New Zealanders have had unfiltered access to offshore online casino platforms for many years. They have siphoned millions of dollars in gambling revenue without returning a cent in tax.

Research shows that only 10 percent of New Zealand’s online gambling revenue has been generated by online casinos operating within the country.

Given that they currently operate without any regulatory oversight from the Kiwi government, the Online Casino Bill could not have come at a better time.

It will go a long way in fixing a dysfunctional gambling market. Not only will new operators coming into the market need licenses, they will also need to be renewed every three years.

Proper vetting also goes into selecting which operators enter the market, with the government keen to make sure only those fully prepared to prioritise consumer protection can get licenses.

The process will ensure that the best online casino in New Zealand and its competitors are compliant with the regulations laid down under the new framework.

The Department of Internal Affairs will oversee licensing, enforcement and compliance. The regulatory scheme will include significant penalties for those who attempt to operate without a licence.

Unlicensed operators that continue to target New Zealanders will be fined up to NZ$5 million. Their sites will be taken down and blacklisted publicly.

Gaming Big Guns Eager to Take Advantage

The bill has been structured around a three-step licensing process. It starts with operators expressing an interest and moves on to a highly competitive bidding phase before a formal application is made.

This system is designed to ensure that only the most qualified and responsible operators can enter the market. Companies such as SkyCity, TAB NZ, bet365 and 888 have already expressed interest.

SkyCity bases its online operations overseas. Despite showing interest, they will not be allowed to get a license unless they bring their digital gaming services back to New Zealand.

Once operators are approved, they will be allowed to advertise their brand in the country. However, there will be regulations to tame aggressive marketing.

Van Velden has already confirmed that stringent guidelines are in the works.

Taking Cues from Foreign Markets

New Zealand is new to the regulated iGaming market, so the government will need pointers from some of the more experienced international players in the game.

The United States is a perfect example, considering numerous US states have legalised online gambling in recent years. They have found a balance between making gambling more accessible to consumers and implementing strong regulations for their protection.

There is much more that New Zealand’s regulators will be keen to learn from America’s approach to online gambling. Taking cues from the US will help to set up rock-solid regulations that put consumers first.

Despite the effort, not everyone is convinced that the reforms will serve all New Zealanders equally, including Maori advocacy groups. They claim that the government has passed the new bill without getting the input of the Maori people.

Chair Rahui Papa claims that the new bill will benefit overseas operators and expose vulnerable locals to even greater risk.

He has called for the government to either abandon the auction process or drastically reduce the number of available licenses and guarantee that no harm will come to the people.

The Maori people have the backing of some big names in the gambling industry. SkyCity and TAB NZ are among those advocating for a cap of just five to seven licenses allocated to domestic operators.