New Zealand inches closer and closer to a safer and more regulated online casino industry

Currently valued at $1.83 billion according to Statista approximations, the New Zealand casino industry has really been advancing. And if things go well for the industry, revenue from the country’s broader gambling industry could grow by a CAGR of 3.21% within the next few years.

Of course, several factors have contributed to this growth. Consider the popularity of free spins no deposit in New Zealand, for instance. These perks allow players to engage in casino games without an initial financial commitment, thus improving gameplay. However, as the industry continues to grow, the need for a clear regulatory framework has never been as apparent. Thankfully, the country has been working on something, and we will uncover it in this article.

Efforts towards a secure gambling ecosystem

For a good time, lawmakers in New Zealand have been championing a proper regulatory framework for the gambling industry to address the challenge of the widespread unregulated offshore gambling websites. As such, the government, through Internal Affairs Minister Brooke van Velden, has confirmed plans to regulate the industry in a bid to create a safer and more compliant casino industry.

While New Zealanders can currently participate on thousands of offshore gambling platforms, van Velden has confirmed plans to issue limited licenses to only 15 operators. This will ensure only authorised platforms cater to New Zealand players.

The regulations are also expected to impose tighter rules on iGaming advertising, especially if the ads have misleading information or target minors. Mark you: this aspect of misleading claims in advertising has become a critical concern across many divides. In fact, according to a recent study by the Economic Times, more than eight in ten ad violations were due to misleading information.

And now that New Zealand’s government seems aware of this trend, it aims to cap it through these regulations. Plus, the rules will also require operators to adopt responsible gambling practices. Failure to comply will expose them to penalties of as much as NZ$5 million.

A challenging yet achievable schedule

The plans of this proposed legislation were first highlighted in July 2024, with expectations of having it fully operational by 2026. Well, as much as a lot of things need to change, the timeline appears realistic.

It is believed that the licensing auction will begin in February 2026. And if everything goes as planned, authorised operators could start penetrating the market about two months after the licensing auction begins.

The idea is not really about increasing online gambling but building a more secure gambling ecosystem. According to van Velden, as long as New Zealanders will be able to gamble more safely than they do today, she will have achieved her goals. And since the government is already prioritising consumer protection and economic benefits, this idea will more likely be supported by many.

Why does New Zealand’s casino sector need clear regulations?

Do you know that, according to some experts, about seven in ten online operators recently reported encountering cyber attacks? As if that’s not enough, about $600,000 from 68,000 accounts was lost through credential stuffing attacks in November 2022 alone. Now that technology has advanced and cyber criminals have become more innovative, you can imagine what things are like in 2025.

Plus, in New Zealand alone, individuals lost about $6.8 million to cyber attacks in the last three months of 2024, translating to a 91% rise in a year. It is no wonder that there has been a growing interest in cybersecurity across different sectors. And mark you: the number of New Zealand gamblers could also increase, making the industry a prime target for cyber attackers.

One of the disadvantages of these offshore gambling platforms is that some do not even enforce harm prevention measures. However, having limited operators who have been carefully scrutinised to ensure they are security-compliant can help reduce the chances of players experiencing attacks.

More reasons

Statistics show that four in five New Zealanders have ever played casino games. This means that the casino industry can potentially yield huge amounts of revenue for the country if well coordinated. But imagine losing a good share of this to offshore platforms just because there is no clear framework governing online casino gambling.

Thankfully, the government intends to introduce a mandatory levy on licensed casino companies’ profits. The levy will help to fund problem gambling support services and education programs. 

Can you imagine that, according to PlayToday.co, 49% of pokie gamblers in New Zealand are likely to suffer harm due to gambling? This is why the aspect of problem gambling cannot be ignored in the country.

With funds collected from the mandatory levy, the government will promote responsible gambling among the general public, as well as fund the problem gambling support services.

What is our final word?

It’s actually true that the casino industry has gone from a niche industry to a global phenomenon. Especially now that online platforms have become popular, players can access entertainment anywhere. However, as this growth continues, issues like players’ safety set in, mainly because malicious persons are becoming increasingly interested in the sector.

Realising this, governments, including New Zealand, have been working hard to implement mechanisms encouraging safe and responsible gambling. And, of course, if everything goes as planned, not only will the players benefit but also the government. For instance,  it will be able to improve revenue collection from the industry.