New Zealand's Department of Internal Affairs recently announced a detailed timetable for the approval of online casino licenses. The proposed "Online Casino Gambling Act" is expected to pass its second and third readings in May and become law, with the license application process starting in July. This move aims to curb the annual leakage of over 750 million New Zealand dollars to offshore online casinos. In plain terms, it's about recollecting the money flowing overseas each year and filtering out reliable operators through compliance thresholds. Want to know the latest regulatory trends in the Asia-Pacific gaming market? PASA's official website continuously tracks policy developments in various countries.
First, the timetable is set: a three-step process starting in July, with applications closing in December
According to the Department of Internal Affairs' plan, the license approval will be conducted in three phases. The first phase is the expression of interest, which opens immediately after the act takes effect and lasts about one to two months. The second phase is the license auction, held within a month after the expression of interest ends, expected to take two months, where eligible operators will bid for a limited number of licenses. The third phase involves a detailed application review, where the winners must submit a complete application and undergo compliance assessments including consumer protection, financial stability, and operational integrity, expected to take four to six months.
The Department of Internal Affairs has set a strict application deadline: December 1, 2026. From that date, operators who have not applied for a license must cease online casino operations in New Zealand, with violators facing fines of up to 5 million New Zealand dollars and market exclusion penalties.
Second, license scarcity: intense competition for 15 licenses, community funds secured
The total number of licenses is capped at 15, and their scarcity will drive market consolidation. Operators need to carefully assess compliance costs and a 12% gaming tax. The bill was initially opposed by major sports organizations, concerned that over 150 million New Zealand dollars of community funding per year would be cut off. The government later adjusted this, requiring licensed operators to contribute 4% of GGR to community funds, expected to bring in 10 to 20 million New Zealand dollars in returns in the first year.
Third, market background: young demographics are the main force in offshore gambling
The 2023/24 New Zealand gambling survey shows that offshore gambling is mainly concentrated among young males, certain ethnic groups, and areas with higher levels of social poverty. This pattern directly influenced the design of the bill's harm prevention measures, including age verification requirements and advertising restrictions targeting children.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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