New Zealand’s iGaming bill passed its first vote in parliament in July, but legal experts believe the legislation lacks details which could delay the 2026 market launch.
Legal experts have questioned whether New Zealand’s iGaming bill (Online Casino Gambling Bill) has been slightly rushed and lacks the detail required to launch the regulated market on time.
On 15 July the bill made it through the first reading in Parliament, and was approved by 83 votes to 39. It will now advance to the Governance and Administration Committee and a consultation has been initiated to draw feedback from the industry.
Once the legislation is passed, up to 15 operators will be granted licences in New Zealand’s regulated iGaming market, which is expected to go live by July 2026.
According to legal experts, this is a particularly tight timeline, considering the time needed for a successful consultation period. The note that various important regulatory details have also been left out of the bill.
Jamie Nettleton, partner at law firm Addisons, tells iGB: “Having looked at the bill, there are a lot of gaps still to be filled. In my view, it’s lacking in detail with respect to the legislation. There are a lot of broad brush statements, in terms of how the licensing should work.”
Samuel Gauci, a senior foreign lawyer at Addisons, agrees, adding the consultation time will be particularly short if June 2026 remains the targeted launch date.
“The problem is they’ve given themselves such a short timeframe from the announcement to bringing it into play, that they’re not going to have the consultation time they need. Consultations are ongoing, but will they have enough time to draft regulations?”
Is the New Zealand iGaming bill timeline feasible?
An issue for operators at this stage is whether they can budget effectively to enter the auction on time. The vetting and auction process is set to begin in February 2026.
With the lack of information regarding the a lot of the specifics required within the regulation, it will be difficult for operators to decide whether it is worth putting themselves through the process.
“This really is crystal ball stuff,” Nettleton says. “The government is looking for 15 operators and that’s essentially what they would like to get. How will they get to 15? What price do you put on the option process? It’s got to be economically viable. You won’t keep your competitors out with 15 licences available, so you have to factor in that they will be there.”
Defined terms in the bill
Brooke van Velden, New Zealand’s Minister of Internal Affairs, introduced the bill in April. Under the terms of the bill, operators would have to pay a goods and services tax and an offshore gambling duty of 12%. They would also be required to contribute 1.24% of profits to a mandatory levy, which would fund services to prevent gambling harm.
Gambling advertising will be allowed with limitations, including a ban on advertising during times that children may view ads. Suitable age verification tools will be required.
Undefined terms
Further advertising restrictions are likely to include a ban on paid endorsements by influencers, celebrities and athletes, as well as a requirement for a portion of each gambling ad to be dedicated to harm minimisation messaging. It is believed though that inducements and bonuses will likely be permitted.
The problem with those particular measures is they are not set in stone, and as and when the bill passes into law, many of these regulations will need to be determined by the regulator.
“Operators need more information. The bill is not satisfying them at this time. When they have that information, they can decide if they want to join the auction process or not.”
Operators can obtain one of the 15 licences available by entering into the auction process Gauci outlined.
Several operators have already expressed an interest in claiming a licence, including SkyCity, 888, Bet365, Super Group (owner of Betway) and TAB NZ, the monopoly operator of sports betting in New Zealand. Van Velden has previously stressed though that TAB NZ will not be able to apply for an online casino licence, according to RNZ.
A confusing approach from the coalition
In the 2023 General Election, the Labour Party lost its majority, leading to a change in government. A coalition was formed between the National Party, a right-leaning party which has the largest number of seats, the ACT Party and New Zealand First.
Potential changes to gambling legislation have come to the fore since. On top of the current progress the Online Casino Gambling Bill is making, TAB NZ, run in partnership with operator Entain, was recently granted its monopoly on the country’s online sports betting market. Offshore operators, who had previously been allowed to operate in New Zealand, were banned, with Betfair recently removing its services from the market.
Jarrod True, director at local law firm True Legal, believes the shift to a centre-right government has give iGaming a boost in the country after putting it back on the country’s agenda.
True tells iGB: “The incoming administration inherited a struggling economy in the wake of COVID-19 and viewed the regulation and taxation of online gambling as a pragmatic means of generating new revenue without increasing the tax burden on voters. Had a left-leaning government been elected, it is unlikely that legislation enabling an expansion of gambling would have been pursued.”
Is there mixed messaging in New Zealand?
The government’s willingness to open up the online casino market, while also placing more restrictions on the online sports betting market, could be perceived as mixed messaging.
“When New Zealand was first talked about as a potential destination for licensing, people were approaching us on the basis they would be able to operate all verticals, other than lotteries [lotteries are operated exclusively by Lotto New Zealand]. The approach to casino and sports betting seems completely inconsistent,” Nettleton adds.
True delves into this by saying: “TAB NZ has been granted a monopoly over race and sports betting due to its role in distributing profits to the racing industry. The racing sector is highly valued in New Zealand, both for its economic contribution and the substantial number of people it employs. Political support has also played a role, particularly from Winston Peters, leader of New Zealand First, who is a longstanding advocate for the racing industry.”
What’s next for New Zealand’s iGaming bill?
Should it pass through the Governance and Administration Committee, the bill will move to a second reading in Parliament, before being sent to the Committee of the Whole House. Van Velden previously motioned this would happen by 17 November.
While the bill is expected to be signed into law, there could still be issues from opponents in a number of sectors.
Prior to the first vote on the bill, various politicians spoke out against it, including Labour Party politician Lemauga Lydia Sosene, who argued there is not currently a strong enough plan for gambling harm reduction.
Additionally, the land-based sector in New Zealand could have issues with the regulations when they are confirmed. The non-casino gaming machine sector in particular is operated by non-profit entities who return their profits to the community through grants. The online casino regulation is not set to subject operators to the same restrictions as the land-based sector, such as maximum bets and prizes on gaming machines.
“Implementing the new legislation and regulations is unlikely to be without challenges,” True says. “The government is expected to face opposition from problem gambling treatment organisations, who are already advocating for a complete ban on gambling advertising. These groups perceive the proposed regulatory framework as too lenient and insufficient in addressing the risks associated with gambling-related harm.
“While gambling-related issues typically generate significant public feedback and concern, the current administration remains committed to launching the system.”
Black market protections needed in New Zealand
Nettleton ultimately believes the government regulating iGaming is the right thing to do, however he says more restrictions will be needed to curb the black market.
“Let’s be very clear; the government are doing the right thing by creating a regulated market. It’s better than what they had beforehand with optional access and no control. That ticks one box, but if they make it too hard to enter, there is still a real risk of a black market. That’s the balance you need. More restrictions means more attraction to the black market. The operators will participate, so long as it’s reasonable for them to do so,” he concludes.
