• New Zealand's Online Casino Gambling Bill has passed its third and final reading in Parliament, with Royal Assent expected on 1 May, paving the way for a regulated online casino market offering up to 15 licences through a competitive process
• The licensing timeline set out in March 2026 expects the process to open in July 2026, with applications due by 1 December 2026 and successful operators expected to go live on 1 July 2027
• The legislation carries extraterritorial reach, meaning offshore operators serving New Zealand consumers will be subject to the same rules and enforcement powers as locally based operators, with financial penalties of up to NZ$5 million for serious or repeated breaches
• A community funding mechanism has been included in the final bill, with approximately 4% of operator GGR expected to be directed toward local sports clubs, community groups and grassroots organisations, potentially generating between NZ$10 million and NZ$20 million in the first year
• Entain, which holds an exclusive licence to operate sports betting through TAB NZ, has publicly stated it aims to secure three of the 15 available licences, while SkyCity Entertainment Group has previously raised concerns about the multi-licence model

New Zealand's Long-Running Offshore Loophole Is Finally Being Closed

New Zealand has taken the decisive legislative step toward creating its first fully regulated online casino market, with Parliament passing the Online Casino Gambling Bill at its third and final reading. The legislation, led by Internal Affairs Minister Brooke van Velden, now proceeds to Royal Assent expected on 1 May before the formal licensing process begins later this year.

The bill addresses a regulatory gap that has existed since the Gambling Act 2003, which created a situation where New Zealand consumers could freely access offshore online casino platforms while those operators faced no obligation to hold local licences or contribute tax revenue to the New Zealand economy. That anomaly has drawn sustained criticism over more than two decades, and the new framework is designed to close it comprehensively.

Van Velden framed the legislation in direct terms, describing it as closing the gambling tax loophole and requiring licensed online casino operators to pay tax like any other business operating in the country. The revenue argument has been central to the political case for reform, alongside the consumer protection rationale of bringing previously unregulated offshore activity under domestic oversight.

The market structure created by the bill is deliberately limited and competitive. Up to 15 licences will be available through a three-stage process covering expressions of interest, a competitive phase such as an auction or tender, and final licence applications. Operators seeking a licence must satisfy suitability requirements, disclose ownership structures, provide detailed business and compliance plans and demonstrate the capacity to meet strict consumer protection and harm prevention standards. Initial licences will run for three years.

The revised timetable published in March 2026 sets out clear milestones. The licensing process opens in July 2026, applications must be submitted by 1 December 2026, and the 15 successful operators are expected to launch on 1 July 2027. Operators that fail to apply by the December deadline will be required to cease providing services to New Zealand consumers, a provision that gives offshore operators currently serving the market a clear choice between compliance and exclusion.

One of the bill's most significant features is its extraterritorial enforcement reach. The legislation explicitly applies to all online casino gambling made available to people in New Zealand regardless of where the operator is based. That scope means offshore providers cannot simply continue operating from outside the jurisdiction and treat New Zealand customers as beyond regulatory reach. The Department of Internal Affairs has been equipped with a range of enforcement tools including take-down notices, formal warnings, enforceable undertakings and financial penalties of up to NZ$5 million for serious or repeated breaches.

Consumer protection obligations are embedded throughout the framework. Operators must verify that all gamblers are at least 18 years old, exclude problem gamblers, maintain public complaints processes and complaint registers, and are prohibited from offering gambling on credit.

The community funding provision represents a significant addition to the final bill following months of campaigning from Labour MPs. Cabinet papers from November indicated the government was considering directing approximately 4% of operator GGR to community purposes, with the potential to generate between NZ$10 million and NZ$20 million annually once the regime is operational. Van Velden acknowledged the public submissions that drove this outcome, noting that New Zealanders wanted the benefits of licensed online casino gambling to flow back to local sports clubs, community groups and grassroots organisations.

The operator landscape ahead of the licence race is already taking shape. Entain, which holds an exclusive licence to operate sports betting through TAB NZ, has stated its intention to secure three of the 15 available licences. The company's CEO Stella David highlighted during the FY25 earnings call that TAB's position makes Entain the only online operator currently able to cross-sell between sports betting and iGaming in New Zealand, a structural advantage it will look to extend into the online casino market. SkyCity Entertainment Group, the country's dominant land-based casino operator, has expressed concerns about the multi-licence model, reflecting the competitive pressure the new framework will place on established incumbents.

The 15 Licence Cap Will Define the Market's Competitive Character

The decision to limit the initial regulated market to 15 licences is one of the most consequential structural choices in the bill, and it will shape the competitive dynamics of New Zealand's online casino sector for years. A capped licence model concentrates regulatory attention, makes enforcement more manageable and tends to produce a market where operators invest more heavily in product quality and compliance because the value of each licence is higher. It also inevitably means that some operators currently serving New Zealand consumers from offshore will either not qualify or not be selected, potentially driving a portion of that demand back toward unlicensed alternatives. The regulator's ability to manage that transition through effective enforcement of the extraterritorial provisions will be critical to whether the 15-licence model achieves its consumer protection objectives or simply restructures the grey market rather than eliminating it.

The Extraterritorial Reach Is Bold but Will Face Real Enforcement Challenges

Legislating that New Zealand law applies to all operators serving New Zealand consumers regardless of where those operators are based is an increasingly common approach in regulated gambling markets and one that reflects a global regulatory trend toward asserting jurisdiction over the demand side of the market rather than just the supply side. The challenge is always enforcement. Take-down notices and financial penalties are effective tools against operators that have assets or business interests within reach of New Zealand's legal system. Against operators based in jurisdictions with no mutual enforcement arrangements and no New Zealand regulatory exposure, their practical impact is limited. The bill's success in eliminating the offshore grey market will depend heavily on the Department of Internal Affairs' enforcement capacity and on whether New Zealand develops the kind of sustained blocking and payment disruption infrastructure that more mature regulated markets have deployed against unlicensed operators.

Entain's Cross-Sell Advantage Creates a Structural Head Start

The combination of TAB NZ's existing sports betting customer base with three potential online casino licences gives Entain a market entry position that no other operator in the licence race can replicate from day one. Cross-selling between sports betting and casino is one of the most commercially valuable capabilities in the online gambling industry, and Entain's exclusive sports betting position means it will arrive at the online casino launch with an established, identified and already-engaged customer base to market to. Competing operators will need to acquire customers from scratch in a market where Entain already has meaningful brand recognition and a direct channel to sports bettors. That structural advantage does not guarantee success, but it materially lowers Entain's customer acquisition costs relative to every other licence holder and gives it a head start that will be difficult to overcome quickly.