Inside Asian Gaming takes a closer look at New Zealand’s move to develop a regulated online casino market and why this shapes as a pioneering moment for the Asia-Pacific iGaming industry.
From a global perspective, New Zealand’s move to develop a regulated online casino industry may seem of only minor consequence given the market’s relatively small size and the proliferation of iGaming across Europe and the United States. But in Asia-Pacific, where legalized online gaming is at best sporadic and in many cases near non-existent, it’s quite the big deal.
In July 2024, New Zealand’s Ministry of Internal Affairs announced that it would license online casinos under a landmark policy shift designed to minimize harm, support tax collection and provide consumer protections to its citizens. More specifically, the government revealed it wants to minimize the proliferation of illegal offshore gambling across the country, said to be worth around NZ$700 million (US$400 million) annually.
“My goal is not to increase the amount of gambling that is happening online, but to enable New Zealanders who wish to play casino games online to do so more safely than they can today,” said Minister Brooke van Velden in a later press statement, where she also revealed that up to 15 licenses would be offered under the new Online Casino Gambling Bill. The Ministry had hoped to have a regulatory framework in place by early 2026 although this now looks more likely for the middle of the year, with license bids to be accepted from October.
Still, the regulation of online casinos represents a bold step forward for New Zealand – especially given the absence of any similar initiative across the entire APAC region. Even the country’s nearest neighbor, Australia, allows only for online sports betting or lottery and as recently as 2017 introduced amendments to its Interactive Gambling Act that actually tightened existing restrictions on the sector. As a result, online poker sites such as PokerStars and 888, which had previously operated in a grey area, officially exited the market.
Of those regional jurisdictions that do offer some form of online gaming, only the Philippines offers what might be called a “full-service” suite of regulated online gaming products, albeit under a regulatory framework that has not yet been fully built out. This alone makes New Zealand’s stated position noteworthy.
“It is highly significant,” explains Jarrod True, Director of specialty gambling law practice True Legal, based out of Hamilton. “The New Zealand system will be closely watched, both by regulators and by operators looking for a clear, rules‑based model in APAC.
“New Zealand has the potential to become a regional pioneer, not because of the size of the market, but because of the completeness of the framework. The Bill and the regulations made under the Bill will introduce strict advertising limits, detailed bonus and inducement controls, a licensing cap and an explicit community‑return mechanism.
“If New Zealand can demonstrate that a large grey‑market online spend can be channeled into a licensed regime, reduce black‑market activity, introduce a new community‑funding stream and apply robust harm‑minimization measures, it will create a template that other APAC regulators can adapt.”
While the regulatory framework that will shape the country’s online casino industry has not yet been released, True – one of the few to have seen its early iterations as part of a confidential consultation process – added, “While I am not in a position to share the finer details, it was clear that a considerable amount of work has gone into developing the proposed system. I was impressed with how the regulator has struck a sensible balance between introducing consumer protections while still creating a system that is attractive to industry and entirely workable.
“The New Zealand model is likely to be very successful and therefore potentially replicated in other Asia‑Pacific jurisdictions.”
Under New Zealand’s current Gambling Act 2003, it is illegal for any company based in New Zealand to offer online gaming services to New Zealanders, with the exception of TAB NZ for racing and sports betting and the New Zealand Lotteries. However, it is not a crime for New Zealanders to sign up to and play on offshore sites – creating a loophole for such offshore operators to exploit. Even SkyCity Entertainment Group – which operates the SkyCity Auckland integrated resort, smaller casinos in Queenstown and Hamilton, and SkyCity Adelaide in Australia – runs a New Zealand-facing online platform, SkyCity Online Casino, out of Malta.
SkyCity has already flagged its intention to bid for at least one license under the new framework, with the company’s CEO, Jason Walbridge, telling IAG that he welcomed the move to a regulated market.
New Zealand’s Online Casino Gambling Bill is, he said, “an important and overdue step towards establishing a regulated online gambling environment in New Zealand.
“The reality is that New Zealanders are already spending nearly NZ$700 million on online casino products, largely with offshore operators that sit outside of New Zealand regulation and consumer protections, even if they pay tax.
“The Bill provides an opportunity to bring that activity into a locally regulated framework with strong safeguards around consumer protection, harm minimization, integrity and compliance. From our perspective, that is a positive outcome for players, for regulators and for the broader system. It also creates a level playing field for reputable operators who are willing to meet high regulatory standards.”
As it stands, the Online Casino Gambling Bill is expected to be enacted by no later than April this year, with legislation commencing on 1 May 2026 and regulations to be unveiled by the middle of the year. Expressions of interest will 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. They must not advertise in the interim.
Up to 15 licenses will be issued via an auction process, with one license per platform and no operator or person of “significant influence” allowed to hold any more than three of those licenses.
Licensees will not be required to have a physical presence in New Zealand, although a local address for service is mandatory and having an established presence may be viewed as a positive during suitability assessments. The initial license term will be three years, plus one right of renewal for up to five years.
Notably, the Bill covers online casino games only, including RNG slots, popular table games like baccarat and blackjack, poker and betting on virtual sports or virtual racing. It does not include traditional sports betting or racing, because TAB NZ has already been granted an exclusive license under a reform to the Racing Industry Act that took effect in June 2025.
While specifics around key details like responsible gaming requirements, KYC (Know Your Customer), advertising and game design will be outlined in the regulations, what is known is that operators will from 1 January 2027 be required to pay a 16% online casino duty on GGR, up from 12%, with the additional 4% set aside for community initiatives. A 15% Goods and Services Tax (GST) is also payable, as well as a 1.24% problem‑gambling levy, effective 1 December 2026. A full review of the regulatory system, including the effectiveness of the 4% community levy and its impact on operators, is slated to take place in December 2029.
That review looms as a crucial step moving forward, given concerns over the tight timeline the government has given itself and the lack of clarity so far on key regulations that will affect the bidding process.
“The regulations are key,” offers Jamie Nettleton, Partner at Sydney-based law firm Addisons.
“That’s been the challenge throughout the process: what are the details? Because obviously, if you’re bidding for an auction, you want to know what you’re bidding for. And that obviously quantifies what you do or do not bid, be it $1 million or $15 million, because what is it they are bidding for? What does it really mean? So yes, the regulations are key, and unfortunately there isn’t much visibility on the regulations at this point in time.”
Nevertheless, Nettleton’s colleague and Senior Foreign Lawyer for Addisons, Samuel Gauci – who previously worked with the Malta Gaming Authority and has extensive experience in the online gaming sector – explained that the early signs are positive.
“As you would expect, the Bill is very high level and there is a lot of information which will probably come out through the regulations, but the important thing is the first steps that will be taken to qualify for a license,” Gauci said. “That has at least been set out, so operators have a clear indication of what will be expected of them when applying for a license. It also sets out that harm minimization is at the forefront and there will be regulations relating to that as well. So, I think the Bill sets out the main targets, the main achievements that the government and the regulator want to achieve in that respect.”
In a recent note, advisory group Jarden gave a forecast of industry gross betting revenue – assuming 15 licenses on issue – of NZ$650 million (US$373 million) annually. Net revenue was estimated at NZ$474.5 million (US$272 million) on total online taxes of 27%, although this was calculated before the government confirmed it would include the additional 4% for community initiatives.
Analysts Adrian Allbon and Mark Seddon also forecast 10% market share for SkyCity, suggesting annual revenue of NZ$65 million (US$37.3 million) and EBITDA of NZ$12 million (US$6.9 million).
In comments to IAG, SkyCity CEO Walbridge explained that SkyCity’s initial entry into the online space in 2019 was always planned to give it early-mover advantage if and when the space became fully regulated.
“We understood that many of our customers were already omnichannel after 30 years of online gambling development globally, and we could not ignore that,” he said. “Online was a natural extension of SkyCity’s land-based gaming offering when we entered the online market in 2019. We did this to build capability early, with a view that, when regulation was introduced in New Zealand, SkyCity would be well placed to participate responsibly. We are a trusted brand after almost 30 years of operating in the regulated land-based market; extending that into the regulated online environment is what our customers want and makes strategic sense for our company.”
Assuming it wins a license, SkyCity will retain its presence in Malta, Walbridge added, as part of an initial hybrid model allowing it to leverage specialist expertise and established systems overseas while progressively strengthening local capability, oversight and integration with its New Zealand operations.
“Our focus will be on delivering a more connected experience for our customers, one that links digital and land-based engagement, while maintaining consistent standards of trust, safety and compliance,” he said.
“Nearly every domestically regulated online gambling jurisdiction produces at least one ‘local hero’ which leverages its deep market knowledge to produce the most resonant product to gain market share. We intend to be that operator in New Zealand.”
Walbridge does, however, question the need for 15 licenses, given New Zealand’s relatively small population of less than 5.3 million people (and 4.1 million over the age of 18).
“Our concern is that too many licenses would drive excessive competition and advertising intensity, which may sit uneasily alongside the Bill’s harm-minimization objectives,” he explained. “A smaller number of licenses, issued to high-quality operators, would allow the market to establish itself in a more controlled and responsible way, with scope to review settings over time.”
Other parties to have expressed interest in bidding comprise some of the biggest names in the online poker space: Bet365, 888 and Betway.
Addisons told IAG that their dealings so far have also been with large-scale online operators but warned it is important the Department of Internal Affairs welcomes a diverse mix of candidates.
“They ought to have a mix of the small niche and the large operators,” said Nettleton. “They’ve got to make sure there’s competition, because if they only get the big players, they will only get the same products, with no real distinction between them.”
True says he expects anywhere between 30 and 50 serious bidders at the expression-of-interest stage, noting that major international brands are certain to comprise a substantial portion of those.
“This aligns with the structure of the current market: international brands are strongly present in New Zealand’s online traffic, and the Bill explicitly allows offshore operators to participate without a physical presence, subject to strict suitability tests,” he stated.
Brands such as Casumo, Spin Casino, LeoVegas, Guts and Royal Vegas are seen as obvious candidates, given that online traffic numbers show them to be the most visited by New Zealand players currently.
“It would be surprising if at least some of those brands, or their parent groups, did not participate in the expressions-of-interest process,” True added.
That New Zealand remains open to welcoming these international names is no accident, and Walbridge believes tapping into proven iGaming expertise provides the local industry with distinct advantages.
“There is significant value in learning from jurisdictions with mature frameworks such as the UK, as well as more recent regulatory models in places like Ontario and the Netherlands,” he explained. “These markets provide practical lessons on consumer protection, enforcement, advertising controls and regulatory design.
“New Zealand has the advantage of being able to draw on these experiences and tailor a regime that reflects local expectations and values.”
For Walbridge, who sees iGaming as an additional form of engagement and convenience that can complement his company’s land-based presence, adopting a regulatory framework around the online casino sector is a no-brainer and one that should benefit all stakeholders if implemented correctly.
“Regulation should improve consumer confidence and transparency, which is positive for the long-term health of the market,” he remarked.
“A regulated environment provides New Zealand players a trusted, local alternative to offshore operators. Over time, that should support more sustainable participation and allow licensed operators to contribute meaningfully to New Zealand’s economy, while operating within clear regulatory and social expectations.
“For SkyCity, online represents a way to diversify and strengthen our business over the long-term, better meeting the existing online demand of our customers and driving omnichannel market growth in a transparent sustainable market that benefits all stakeholders.”
“The Online Casino Gambling Bill is a necessary response to a market that already exists at scale but sits largely in a grey zone,” adds True.
“Offshore sites are currently taking approximately NZ$700 million a year from New Zealanders, with limited consumer protections, fragmented harm minimization, and only partial tax compliance. The Bill accepts that reality and seeks to bring New Zealand’s online casino gambling into a regulated, taxable and accountable framework.
The [government’s] core reasons – generating taxation revenue, improving consumer protections and imposing harm‑minimization safeguards – are sound.”
