New Zealand Advances iGaming Legislation to Regulate Online Gambling
Introduction of New Gambling Legislation in New Zealand
New Zealand is taking a significant step towards regulating its rapidly expanding online gambling sector. The government has introduced fresh legislation aimed at bringing oversight and accountability to the industry, which has been largely unregulated for years. This new law also includes measures to address gambling addiction, ensuring support is available for those at risk.
Online Gambling Remains Predominant
The bill was brought forward by Brooke van Velden, the Minister of Internal Affairs, and recently passed its first reading in Parliament. This marks an important milestone for the legislation, demonstrating governmental commitment to reduce the influence of unregulated offshore gambling platforms and to establish stronger standards for digital wagering within New Zealand.
Currently, New Zealand players have access to thousands of offshore gambling websites. Unfortunately, these platforms do not provide consumer protections, do not pay taxes locally, and do not contribute to addressing problem gambling. With over 80% of online casino gaming involving these unregulated sites, urgent reforms are necessary to protect players and the community.
Key Features of the Proposed Legislation
The legislation proposes limiting internet gambling licenses to a maximum of 15, which will be awarded through a competitive auction process. License applicants must comply with rigorous requirements, including measures for harm reduction, data security, and verifying the age of users. They should also demonstrate a strong history of regulatory compliance.
Licensed operators under this framework will be obligated to contribute 1.24% of their profits to the Problem Gambling Levy, funding programs focused on treatment and prevention.
Enforcement and Consumer Protection Measures
The responsibility for enforcement will rest with the Department of Internal Affairs, which will oversee adherence to the new rules and issue sanctions for breaches. Companies violating these regulations could face penalties of up to NZD 5 million (approximately $2.98 million USD).
The bill also introduces strict controls on gambling advertising to protect children and vulnerable groups from exposure. Licensed operators will be subject to stringent guidelines governing how and where they can promote their services.
Funding Harm Prevention Through Gambling Taxes
Tax revenues generated from licensed gambling operators will provide New Zealand with a new source of income to fund public services and enhance support systems aimed at reducing gambling-related harm.
Next Steps and Public Involvement
The legislation is now moving to a select committee for further review, where public feedback will be considered before amendments are made. Minister van Velden has encouraged input from stakeholders to ensure the final law fairly balances commercial interests with consumer protection. If enacted, this would represent New Zealand’s first comprehensive regulation for online casinos, aligning the country with other global leaders in responsible gambling governance.