New Zealand is on the precipice of change as it plans to overhaul its old gambling laws. Following decades in which online casino gambling existed as a largely unregulated space, Parliament is looking to progress a new Online Casino Gambling Bill that is slated to transform how digital gambling is carried out in the country.

The original plan was to implement it in 2026, but recent legislative changes suggest that the new rules may not be fully operational until January 2027. Beyond timing, what matters most is what the bill does and how it intends to reshape markets, protect users, and refocus on regulatory expectations for operators.

The legislative move has been a long time coming

For a long time, New Zealanders could, if they chose, gamble on offshore online casino sites, even though those operators do not hold domestic licenses or follow New Zealand’s regulations. The current laws allow offshore platforms to offer games online that New Zealanders can play.

However, they are not subject to Kiwi regulatory or consumer-protection standards. They are not currently allowed to advertise under the existing Gambling Act 2003.

In the new era, the best online casino in New Zealand will be the one that can operate within the confines of the new regulations, set to launch in January 2027.

The Online Casino Gambling Bill was introduced to Parliament on 30 June 2025, by Internal Affairs Minister Brooke van Velden, as part of the government’s efforts to regulate casino gambling.

The bill passed its first reading in mid-July of 2025 and has now been looked over by the Governance and Administration Committee, which recommended that it progress.

What does the bill actually do?

At its core, the bill is all about standardizing a licensing regime for online casino operators. This is not something that New Zealand had before.

Licensing and market structures

One of the central features of the changes is to establish a licensing framework under which up to 15 online casino gambling licenses will be made available during the first regulatory period. The licenses:

Will be issued following a three-step process that involves expression of interest, competitive auction, and final license application.
Are tied to specific brands, platforms, or domains.
Must be activated within 90 days of issuance and used actively. Inactive licenses can be cancelled or suspended.
Are non-transferable, meaning a brand can’t simply be sold without the regulator’s full reassessment and approval.

With this structured approach, the aim is to clamp down on anti-competitive behavior and ensure operators are genuinely committed to responsible operations instead of trading licenses to keep a stranglehold on the market.

Licensed operators will be allowed to operate and advertise within New Zealand. It is a notable shift from the present arrangement, where advertising offshore casinos is illegal.

Consumer protection and harm minimization

Consumer protection is a significant part of the new legislation, particularly regarding the issue of problem gambling.

In the new regime, operators will be required to:

Verify that their patrons are at least 18 years old before allowing them to participate.
Collect and retain personal and transactional information for up to 7 years to empower enforcement and monitoring.
Operate identity checks and technologies to identify and assist problem gamblers according to the law.
Participate in national harm-minimization initiatives such as a national self-exclusion register, expected to be implemented by late 2027.

Under the bill, it will now be a criminal offense to gamble online on behalf of someone under 18. The fine for doing this could be as high as $10,000. These shifts signal a move towards responsible gaming standards that match what land-based casino regulations offer.

Taxation and community benefit

Another significant change is the introduction of online gambling duty. Operators will be subject to a base tax regime that applies a 16% duty on gross gambling revenue. Of that duty, an amount equivalent to 4% of gross gambling revenue will be ring-fenced for community funding.

The community initiative is a response to concerns that online gambling could impact funding that currently comes from Class 4 gambling (like pokies).

Traditionally, New Zealand’s land-based gambling operators are required to return a portion of their proceeds to the community. The bill seeks to have online operators do the same, in parallel with what is already established.

Advertising and marketing controls

The bill makes provisions for regulators to set up advertising controls. Unlicensed operators will continue to be barred from advertising in New Zealand, and licensed operators will have to follow specific rules to advertise.

These controls will focus on limiting exposure to vulnerable populations, especially children (minors), in line with harm-minimization goals.

An implementation challenge

While the legislation was supposed to take effect on May 1 of this year, several key components, especially in tax and licensing conditions, have pushed its implementation to a later date.

Many provisions will come into effect on 1 January 2027, including the new duty rates and associated community funding mechanisms. Regulations on harm minimization are still being worked on and will likely not be finalized until sometime later this year.

While the bill may receive Royal Assent in 2026, full operational implementation of the regulatory regime is more likely to run into early 2027, depending on the passage of regulations and the regulator’s readiness.