Global online gaming giant Entain has expressed its confidence that New Zealand’s regulated online gaming market will be big enough to support multiple operators but has warned of regulatory blowback should the intense competition this produces results in an overly aggressive gambling advertising blitz.
Speaking at the CiG iDEA Summit at Manila’s Newport World Resorts on Monday – part of the IAG EXPO – Entain Australia and New Zealand’s Director, Industry & External Affairs, Andrew Hannan, said the fact that a substantial grey market already exists shows New Zealand to be attractive enough for international operators.
“We certainly think so because there already is a market there,” Hannan said. “The grey market is very prevalent. We think it could be up to about NZ$920 million in a couple of years’ time because of the size of the market.
“There are a number of large operators that are currently active (in the grey market) and it is in their interest to retain the businesses that they already have. We’ve seen a number of our competitors who have participated in grey markets and then once those markets been legalized they’ve converted those businesses to the legal market. Stake is an example.
“There will be a number of those operators which we anticipate will do that, and credit to the Department of Internal Affairs (DIA) because up to this point, the regulation and responsible gaming measures and advertising guidelines have been pretty clear. The rules of engagement are very clear and I think that just makes it attractive, whether it’s a large established operator like ourselves or others that are already participating in the grey market.”
Under New Zealand’s existing 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 – operated by Entain under a monopoly deal – 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 that offshore operators have been able to exploit.
The move to legalize and regulate online casino gaming – covering RNG slots, traditional table games like baccarat and blackjack, poker and betting on virtual sports or virtual racing – aims to bring that thriving offshore market onshore, with up to 15 licenses to be offered. Entain has previously stated its intention to bid for three, the maximum number allowed by any one operator.
However, Hannan – whose company is also dealing with blowback against the online sports betting industry in Australia around the proliferation of wagering advertising – has warned that any aggressive marketing push by newly licensed firms in New Zealand as they enter into what could become a highly competitive operating environment might prove counterproductive, based on Entain’s own recent experience.
“We did notice that when we came in with our monopoly sports book (in 2025), did our rebrand with the TAB brand and increased our marketing significantly, the general population didn’t like that per se. We had to kind of claw it back, get a bit more targeted,” he said.
“So, although there are very tight advertising restrictions that will come into effect in New Zealand, The risk is 15 brands fighting tooth and nail for a market that’s just become legalized. That could lead to advertising restrictions down the road.
“We need to make sure our sportsbook doesn’t get caught up in any resulting reforms. Our cost per market for our sportsbook naturally will go up, because we’ve gone from having no competitors to 15 casino brands, and CPAs (Cost Per Acquisition) will rise. But we just need to make sure and work constructively with the DIA to make sure that our sportsbook doesn’t get factored in for any future regulation for casino. They are different.”
Hannan noted that one of the reasons Entain was applying for the maximum three licenses was to capture some of the cannibalization of its existing sports betting offering in New Zealand once the regulated online casino space goes live.
A two-week auction for casino licenses is slated to begin at the end of this month following the conclusion of the recent Expressions of Interest period, with winners expected to be announced by December.
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