New Zealand is moving forward with efforts to regulate its online gambling sector by introducing the Online Casino Gambling Bill to Parliament. The bill, presented by Minister of Internal Affairs Brooke van Velden, outlines a comprehensive licensing regime in which 15 operators will be awarded licenses.
Currently, New Zealand residents have access to offshore NZ casino sites, which operate outside the scope of domestic regulation. Minister van Velden stated, “The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, prioritizing harm minimization, consumer protection, and tax collection.”
Licensing Process and Key Restrictions
The proposed gambling bill establishes a structured three-step licensing procedure, starting with an invitation for expressions of interest, followed by a competitive process, and concluding with formal applications.
The Secretary for Internal Affairs will oversee the process and may grant up to 15 online casino licenses. Each license will initially be valid for three years, with the option for a one-time renewal that extends it up to five additional years.
Applicants must submit extensive documentation, including tailored business plans, and demonstrate robust harm minimization protocols. Successful licensees will be permitted to advertise their services within New Zealand, although advertising will be subject to yet-to-be-finalized regulations.
Operators who fail to comply or offer services without a license may face significant penalties. Unlicensed providers can be fined up to NZ$5 million. Individuals or corporations breaching various compliance rules may face civil penalties of up to NZ$300,000 and NZ$5 million, respectively. Additionally, a separate offense targeting those who facilitate gambling for minors introduces a criminal fine of up to NZ$10,000.
Offshore Casinos
As mentioned above, current NZ residents have had access to offshore casinos since the late 1990s; however, if the new bill passes, those sites will likely be harder to access. The current standard is for countries to send cease-and-desist letters to offshore casinos that accept their players.
Other countries, such as the US and the UK, have seen some success by limiting what sites their players can access. However, it is essential to note that playing at offshore NZ gambling sites is not illegal, and players cannot face any legal trouble under the current framework.
The new gambling bill will seek to minimize access to offshore platforms but will not criminalize the act of gambling online. Offshore operators could face strict fines and penalties for accepting players in the future, but will likely continue offering their services as they operate legally outside of the country.