New Zealand has taken a big step towards launching a multi-licence online casino market while simultaneously tightening the guard on online betting in the country.

Some key stakeholders in the online casino market might not be entirely receptive to the proposed changes, however – chiefly one which will see 15 licences for online casino gambling operators put to tender, which some are concerned will lead to market disruption and player protection issues.

The process will follow an auction format, with companies invited to bid for licences. As a wealthy developed economy, an NZ online casino market could attract a lot of international interest from established iCasino providers.

Launching an online casino market has been on the New Zealand government’s agenda for some time, with the cabinet’s ideal timeframe seeing an open market launched by 2026. The Department of Internal Affairs (DIA), headed up by Minister Brooke van Velden, is leading the reform plans, having launched the bill to parliament.

Nought to 15 – New Zealand’s online casino trajectory

As well as setting the number of licensees at 15, the government has also provided some details on the scope of the incoming regulatory framework and its requirements. Applicants will have to share information with the New Zealand Gambling Commission (NZGC), including business plans for the country.

Additionally, some advertising will be permitted, though the government states that this will come ‘with restrictions’. Fines of NZ$5m ($3.05m) have been set for companies which breach the law, including unlicensed operators.

Regarding advertising, although it has not yet been made clear, the government may be keen to address the role influencers play in gaming marketing, with the DIA having previously issued takedown notices to influencers promoting unlicensed offshore brands.

“The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritise harm minimisation, consumer protection, and tax collection,” said van Velden.

The DIA’s statement upon launching the bill added that more detailed regulations around advertising and consumer protection are being developed. Further clarity around the specific requirements operators must meet will likely be gained as the bill heads through the NZ parliamentary process.

“The Bill will proceed to select committee later this year and New Zealanders will have the ability to have their say through the select committee process,” said van Velden.

The bill’s launch came simultaneously with a legislative move to close off New Zealand’s online betting market, in contrast to the planned opening up of an online casino sector.

Amendments to the Racing Industry Act 2020 which have made the only legal provider of online sports betting in New Zealand the operator of the TAB NZ, Entain, recently received Royal Ascent.

This is a big boost for Entain, which counts Oceania as a significant region. The firm is active in Australia via its Ladbrokes and Neds brands, while also maintaining a 25-year contract as operator of TAB NZ.

Having secured a podium spot in New Zealand, Entain has not come across as particularly concerned with the planned opening up of the country’s online casino market, according to comments previously shared with SBC News.

SkyCity Entertainment Group, which operates New Zealand’s biggest land-based casinos but has been struggling commercially lately, might be a bit more concerned, however. The firm had previously written to van Valden, according to local media, calling for the number of licencees to be lowered from 15.

SBC News has reached out to SkyCity Entertainment Group for comment on the Online Casino Gambling Bill.