New Zealand has taken a structural turn in its gambling industry after passing the Online Casino Gambling Bill in its third reading on April 22, 2026, led by Internal Affairs Minister Brooke van Velden, creating for the first time a regulated online casino market. The bill will become law as the Online Casino Gambling Act 2025, with general entry into force on May 1, 2026, and key implementation phases between late 2026 and January 2027. As the ink dries on the bill, it is expected to become law on May 1, according to Trina Lowry, Director of the Online Gambling Implementation Programme at the Department of Internal Affairs.
The central shift breaks the existing model under the Gambling Act 2003, which prohibits domestic online casino operations but allowed residents to access offshore operators without local regulation. Going forward, the Department of Internal Affairs (DIA) will administer a system of up to 15 licenses, with the process starting in the second half of 2026 and a final application deadline of December 1, 2026. From that point, any unlicensed operator will face penalties of up to $3 million, alongside enforcement tools such as blocking measures and “take-down notices,” even if operating from abroad.
The new regime will regulate RNG-based online casino games such as blackjack, poker and slots, excluding sports betting and lotteries, which remain under the Racing Industry Act 2020 and the monopoly of TAB NZ. Licensed operators will be required to comply with age verification systems, consumer protection and harm minimization measures, as well as strict advertising restrictions: marketing targeting minors, affiliate marketing and sponsorships are prohibited.
On taxation, the government raises the burden by transforming the current 12% offshore duty into a 16% Online Gambling Duty, in addition to applying GST and problem gambling levies. The objective is to capture a market currently operating largely outside the system. Data from the DIA shows total gambling expenditure at approximately $1.7 billion in 2023/24, while industry estimates suggest offshore online casino spending could reach around $420 million annually.
Companies such as Entain Australia & New Zealand and SkyCity Entertainment Group are already positioning for the licensing process, in a market set to move from unregulated to tightly controlled within less than 12 months. The transition marks a shift toward channeling gambling spend, increasing fiscal revenue and establishing direct state oversight over the digital gaming ecosystem.
