New Zealand Moves to Regulate Online Casinos After Surge in Public Submissions

_{New Zealand faces threat from unregulated offshore casinos. (Image: Sezer Ozger/Alamy)}

New Zealand’s drive to regulate online casinos has gained momentum this week after the Online Casino Gambling Bill passed its first parliamentary reading and the Governance and Administration Committee reported receiving more than 5,000 submissions in the public consultation.  

The bill, introduced by Brooke van Velden, Minister of Internal Affairs, aims to bring online casino gambling, until now mostly conducted via offshore, unregulated websites, under New Zealand law for the first time.  

Public Concern Over Community Funding and Gambling Harm

Among the thousands of submissions, around 3,966 raised worries that shifting gambling activity online, away from traditional “pokie” (slot‑machine) venues, could reduce the funding returned to community organisations.  

Van Velden said those concerns were heard. 

She noted that many submissions “clearly showed New Zealanders want community returns from online gambling activity to ensure communities continue to get the funding they need.” 

She added the government and the committee agreed that online gambling revenue should also return to communities.  

To that end, the committee recommended that the New Zealand Lottery Grants Board, the same body that oversees distribution of lottery and pokies profits, should handle the allocation of community returns from online casino revenue.  

At present, the Lottery Grants Board funds a broad range of community and social‑welfare projects around the country, making this mechanism familiar to many.  

Regulatory Safeguards, Licensing and Consumer Protection

Under the bill’s provisions, online casino operators will need to secure a licence before they can legally operate or advertise in New Zealand. The licensing regime, to be administered by the Department of Internal Affairs (DIA), allows for up to 15 licences, initially valid for three years, with the possibility of renewal.  

Operators must meet various requirements including robust age and identity verification, protections against problem gambling, and compliance with anti‑money‑laundering rules. Licensed entities will also be subject to a public register.  

Unlicensed operators, which currently make up the offshore online gambling market used by many New Zealanders, will be prohibited. Advertising without a licence will also be banned.  

The legislation is intended to curb the unregulated offshore market, where there have been repeated concerns over non-payment of winnings, lack of protections, and minimal recourse for harmed gamblers.  

What This Means for Operators, Players, and Communities

If passed, the bill will mark the first time New Zealand has brought online casino gambling under domestic regulation. For operators, that means they must apply for one of the limited licences under a competitive process.  

For players, the new framework promises stronger consumer protections, safer play environments, and potentially more accountability, in contrast to unregulated offshore platforms. For communities, the commitment to channel a share of online gambling revenue into the Lottery Grants Board’s funding pool could safeguard the future of community grants previously funded by pokies and lotteries.

Still, concerns around gambling harm, addiction, and the social impacts of more accessible online gambling remain. The government has emphasised that harm minimisation and responsible gambling will be central to the regulatory regime.  

Unregulated Offshore Casinos Pose Risk to New Zealanders

The Online Casino Gambling Bill reflects the government’s response to long‑standing concerns that unregulated offshore casinos expose New Zealanders to risk, while failing to channel revenue back into the country. By imposing a licensing regime, safeguarding consumer protections, and ensuring community returns, the legislation aims to strike a balance between allowing online gambling and protecting social welfare. Whether it can do both effectively depends on how strictly the regulations are enforced, and whether licensed operators live up to their obligations.