Following the recommendation of the Governance and Administration Committee of Parliament to pass the Online Casino Gambling Bill, New Zealand’s efforts to regulate online casino gambling have advanced.
The bill is expected to move on to a second reading, where MPs will discuss and vote on an amended version of the text, according to the committee’s majority report.
The bill aims to replace the largely unregulated online gambling that occurs outside the US with a legal framework based in the US.
If passed, it would create a capped licensing system, make it harder for unlicensed operators to get away with crimes, and make the rules for harm minimisation, advertising, and consumer protection in the online casino space clearer.
Licensing Cap and Community Funding Model
Up to 15 licenses for online casinos would be available in New Zealand under the current draft.
Lawmakers backing the bill have framed this hard cap as a way to control market size rather than allow an unlimited number of operators, meaning only a small group of companies would be authorised to offer online casino games once licensing begins.
After the transition period, any site operating without a license would be subject to much stricter regulations and enforcement actions. The select committee has also focused on how the new market would support community funding.
Thousands of submissions raised concerns that a shift to online gambling could reduce money flowing from land-based gaming machines to local sports clubs and community groups. In response, the committee supported a model that would ring-fence a portion of online casino profits for community use.
A contribution equal to about 4% of gross gaming revenue, which would be distributed through a reputable organisation known as the Lottery Grants Board, was frequently mentioned in reports pertaining to the bill.
Even though the exact dates for putting the law into effect are still being worked out, it could be passed in early 2026. After that, licensing, application reviews, and enforcement will be put into place in stages. The full launch of the market should happen in late 2026 or later.
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