New Zealand to Begin Online Casino Licensing Process in July

_{A major new step for New Zealand online casinos. (Image: Andia/Alamy)}

New Zealand plans to begin accepting applications for its first regulated online casino licences in July, marking a major step toward bringing the country’s offshore-dominated iGaming market under domestic control.

The Department of Internal Affairs (DIA) outlined the timeline as lawmakers continue reviewing the proposed Online Casino Gambling Bill, which passed its first reading in July 2025. If the legislation clears its second and third readings in parliament as expected, it could become law in May.

The government intends to introduce a structured licensing framework capped at 15 operators. Officials say the move is designed to regulate a market that currently sees hundreds of millions of dollars spent on offshore platforms each year.

More than NZ$750 million is estimated to flow from New Zealand players to overseas online casinos annually, according to government figures. Regulators say the new licensing regime aims to bring those activities under national oversight while strengthening consumer protections.

Three-stage licensing system set to launch

The DIA plans to roll out a three-stage process for operators seeking to enter the market once the bill becomes law.

The first phase will open an expression of interest (EOI) window for operators that want to participate in New Zealand’s regulated online casino sector. The department expects the application period to begin shortly after the legislation receives final approval and remain open for roughly one to two months.

After the EOI stage closes, regulators plan to hold a licence auction within one month. The auction period is expected to last up to two months, allowing eligible companies to bid for the limited number of available licences.

Operators that secure licences in the auction will then move to the final stage: submitting full regulatory applications.

Officials will review those applications to assess whether companies meet key compliance requirements, including consumer protection standards, financial stability, and operational integrity. The evaluation process is expected to take between four and six months.

Licences will initially run for up to three years and may be renewed if operators continue to meet regulatory obligations.

The DIA also set a firm deadline for market participation. It said “providers are required to cease conducting online casino gambling in New Zealand if they have not applied for a licence” by 1 December 2026.

Companies that continue operating without approval could face penalties of up to NZ$5 million and be forced to exit the market.

Limited Licences Could Reshape the Market

Capping the number of licences at 15 is likely to intensify competition among operators seeking access to the regulated market.

The restriction could also encourage consolidation, as companies weigh the costs of compliance and the government’s proposed 12% gaming duty.

Industry debate around the bill has also focused on funding for community organisations. Several sports groups initially opposed the proposal, warning it could reduce more than $150 million in funding that currently flows through gambling-related community grants.

In response, the government introduced a requirement that licensed iGaming operators contribute 4% of gross gaming revenue to community initiatives. Officials estimate that measure could generate between $10 million and $20 million during the market’s first year.

Harm-prevention Measures Target Offshore Play

Regulators say a key goal of the legislation is to address risks linked to unregulated offshore gambling.

Data from the New Zealand Gambling Survey 2023–24 suggests offshore play is most common among younger men and certain ethnic groups. Participation rates are also higher in areas facing social deprivation.

Those findings have informed several harm-prevention provisions in the proposed legislation. The bill includes mandatory age verification systems and restrictions on advertising that targets children.

The DIA’s timeline signals growing momentum behind the regulatory overhaul, after several industry experts previously suggested that the government’s earlier target of launching the market by June 2026 was unrealistic.

If the bill passes parliament as expected in May, the licensing process beginning in July would represent New Zealand’s first formal step toward a regulated online casino market.