New Zealand's iGaming sector stands at the threshold of a pivotal transformation. With regulatory reforms underway and significant market expansion on the
New Zealand’s iGaming sector stands at the threshold of a pivotal transformation. With regulatory reforms underway and significant market expansion on the horizon, the country is emerging as one of the promising new frontiers in the global online gambling space. A recent market report by global iGaming leader Delasport assesses the potential of the incoming regulatory framework, set to go live in early 2026, and outlines the size of the market and player preferences to help potential market entrants prepare for launch.
The anticipated changes in New Zealand don’t just signal compliance shifts; they are expected to lay the groundwork for sustainable growth, innovation, and competitive entry, opening doors for both local and international operators in a market historically dominated by offshore sites due to the absence of a domestic licensing regime for online casinos.
The Delasport report provides a comprehensive overview of the current gambling market in New Zealand, highlighting its potential based on key demographic and digital indicators. With a population of approximately 5.2 million people and high internet penetration exceeding 93% and mobile phone ownership over 90%, the country presents an ideal environment for online gambling growth. The total gambling market (encompassing both retail and online activities) is estimated to generate US$3.11 billion in revenue in 2025. The market is forecasted to expand at a compound annual growth rate (CAGR) of 3.21% between 2025 and 2029, leading to an anticipated market volume of US$3.53 billion by 2029. The average revenue per user (ARPU) is expected to hit US$1,144 in 2025, indicating significant player spending power. User penetration is anticipated to reach 40.8% in 2025, with an estimated 2.3 million users engaged in gambling activities by 2029.
Focusing specifically on the online casino market, the report states it generated US$267.6 million in revenue in 2024 and is projected to reach USD 584.5 million by 2030, growing at a CAGR of 14% between 2025 and 2030. While desktop remained the leading device segment in terms of revenue in 2024, mobile has emerged as the most promising channel and is expected to register the fastest growth throughout the forecast period. Overall, the casino segment is highlighted as the market leader, contributing over US$1.8 billion to the total gambling market revenue.
New Regulatory Framework and Licensing
While traditional gambling in New Zealand has been regulated for decades under the Gambling Act 2003, the country is now on the brink of a major transformation in how it governs online casino gaming. This is set to change with the introduction of a robust regulatory framework scheduled to take effect in early 2026. The new licensing regime will mark a significant milestone for the country’s digital gambling landscape. Under this framework, the New Zealand government plans to issue up to 15 online casino licenses through a competitive auction process, which is expected to begin in February 2026. Successful licensees are anticipated to be permitted to begin operations by April 2026. Each license will be valid for three years, with a possibility for one renewal of up to five additional years. The new regime aims to balance market liberalisation with strong consumer protection measures.
The Department of Internal Affairs (DIA) currently manages gambling licensing, compliance, and enforcement functions under the Gambling Act 2003, and it will continue to oversee the new framework. The Gambling Commission also plays a role, functioning as an independent quasi-judicial body responsible for casino licensing, overseeing appeals related to non-casino gambling decisions, advising ministers, and reviewing regulatory complaints, while exercising broad procedural discretion and authority.
Key Compliance and Taxation Requirements
Licensed operators entering the new New Zealand market will be subject to strict compliance requirements. These include mandatory harm minimisation protocols, robust age and identity verification systems, and compliance with advertising restrictions to prevent targeting vulnerable individuals. Strict age verification and advertising restrictions targeting minors will be enforced, with penalties of up to NZ$5 million (approximately US$3 million) for breaches, intended as a deterrent to regulatory violations.
Regarding taxation, the New Zealand government introduced a 12% gambling tax on Gross Gaming Revenue (GGR) in 2024. This tax is in addition to the standard 15% Goods and Services Tax (GST). Operators will also be required to contribute to a problem gambling levy of around 1%, which will fund initiatives aimed at reducing gambling harm across the country. Gambling winnings in New Zealand are generally tax-free unless they are classified as income from a business activity. Currently, fantasy sports and esports betting are not specifically regulated, but this report suggests they may be addressed in future reforms, following international regulatory trends.
Advertising Restrictions
With the upcoming regulatory changes, gambling advertising in New Zealand is set to undergo significant tightening. Licensed operators will be prohibited from targeting minors and must ensure that all marketing communications are factually accurate and not misleading. Proposed reforms reportedly include a ban on gambling advertisements directed at individuals under the age of 18, restrictions on the timing and placement of ads, particularly online and across social media platforms, and a requirement for all marketing materials to display responsible gambling messages. These changes are noted as aligning with broader international trends seen in jurisdictions such as the UK and Australia, where regulators are working to reduce gambling-related harm while aiming to preserve a controlled environment for licensed operators to advertise responsibly.
Player Preferences and Popular Verticals
The Delasport report also provides insights into player preferences and popular gambling verticals in New Zealand. Approximately 80% of New Zealand residents reportedly engage in some form of gambling, with four out of every five having tried online casino games. Slots, affectionately known as “pokies” by Kiwis, are identified as the overwhelming favourites, with research suggesting roughly 90% of New Zealand gamblers play slot games during each online casino visit. Popular slot themes include local cultural motifs, adventure, fantasy, and sports. Other popular casino games include Blackjack, Roulette, Poker, and Live Dealer Games.
Sports betting is also a significant part of the iGaming market in New Zealand. Rugby is, unsurprisingly, highlighted as the most popular sport, with major national and international events such as the 2027 Rugby World Cup expected to drive significant betting activity. Cricket is experiencing a renaissance, characterized by innovative broadcasting strategies and a balance between traditional and modern formats, and has a notably youthful and engaged audience, with 45.5% of enthusiasts aged 25-34 and 26.8% aged 18-24, according to the report findings. As of last year, football reportedly overtook rugby as the most played team sport in New Zealand, with over 170,000 registered players. The sport’s popularity is expected to grow further, particularly with the men’s national team qualifying for the 2026 FIFA World Cup. Other major sports include Basketball (NBA) and Horse Racing. Esports and other niche sports are also seeing increased viewership, driven by digital platforms and appeal to tech-savvy audiences.
Outlook for Market Entrants
In summary, the Delasport market report suggests that New Zealand’s iGaming market is poised for a transformative boom, driven by the forthcoming regulation, increased consumer protection, and a tech-savvy population ready for immersive online gambling experiences. With a projected revenue of US$3.53 billion by 2029 and a regulated online casino sector set to open in 2026, the future is seen as very promising. Technological innovations like crypto and live dealer games are also reportedly gaining traction among players.
However, the report advises that operators must prepare for a tightly regulated environment where compliance, responsible gambling, and smart advertising strategies will be key to success. Operators who adapt quickly, embrace innovation (including exploring AI, AR/VR, and crypto gaming solutions), and form strategic partnerships are considered best positioned to thrive in this emerging, competitive landscape. The Delasport report positions New Zealand as a rising contender in the global iGaming space, driven by a new regulated market opening in 2026 with significant growth potential, a tech-savvy population, and strong player spending power, but requiring market entrants to navigate a tightly regulated environment with a strong focus on compliance and player protection.
