As New Zealand begins plans to regulate the online casino market, what does it mean for the country?

Some operators exist in New Zealand to take advantage of unsuspecting players. She has written 100+ casino reviews, tips and guides to help Kiwis make the right choice. Amy also writes and proofreads articles on topics related to online gambling in New Zealand. The tax money goes toward programs that assist people who struggle with gambling. The New Zealand online casino market is currently something of a gray area.

why are online casinos banned in New Zealand

Upcoming Online Gambling Regulation in New Zealand – Current Status, Plans, and Safe Options

During the transitional period, existing operators targeting the NZ market must prepare for compliance, while new licenses will be issued to new entrants to align their business models. The hoops to jump include integrity, harm minimization standards, financial solvency, compliance history in New Zealand, key person checks, and transparency of ownership. The offline gambling sector in New Zealand is undergoing significant changes under the new Gambling Act, aiming to improve the overall quality of gambling sites in NZ. One of the original reasons for creating the Gambling Act of 2003 was to help reduce problem gambling in the country.

Ahead of the election, the two parties clashed over the subject of offshore gambling revenue. National also criticised how goods and services tax (GST) was not being collected from the entire black market. It said it would force online casino operators to register and report their earnings. Under the new proposals, every online casino operator in New Zealand will have to pay taxes to the government. Those who want a piece of the regulated online gambling market in NZ will have to play by the new rules.

Rule-breakers would be issued take-down notices and referred to overseas regulators, http://playfina.info/ putting them at risk of losing their licence in other countries. Such agreements are commonplace in government procurement rules and free trade agreements. An additional important factor is the variety of bonuses a casino offers. At BestNewZealandCasinos, our goal is to provide reliable, factual reviews, valuable insights, and professional advice that you can trust.

Details of the new framework

We strive to maintain the highest standards of honesty and integrity in all our content. The Inland Revenue Department (IRD) is less optimistic and believes the industry will produce $NZ35 million per year. Either way, the country will generate millions of dollars by regulating the sector.

  • "The blatant targeting by these casinos who are using Māori influencers is just appalling."
  • “One of the things that we have raised with the minister is you could have an online regulating gaming environment for New Zealand with no New Zealand entities involved”.
  • For example, SkyCity’s online casino is run through a Malta-based subsidiary, which provides some level of protection because Malta has strong gambling regulations.
  • Despite these concerns, van Velden has rejected restrictions favoring domestic companies, citing conflicts with international trade agreements.

If it continues its passage smoothly and eventually makes it into law, it will mean online casinos based overseas will be allowed to apply for licenses to operate legally in the country. This will also necessitate the establishment of a body similar to the UK’s Gambling Commission. Should New Zealand proceed with plan to regulate online casino, it will be the first major change to gambling under the new government. The National Party claimed victory in last year’s election, ending Labour’s stint in government. Regulating online casinos is a big change, and it will take time to put the new rules in place.

Māori were three times more likely to be moderate-risk or problem gamblers than non-Māori, according to the Ministry of Health. In June 2024, the Federal Court of Australia ordered SkyCity to pay a A$67m penalty for AML/CTF failings in its Adelaide casino. However, Labour disputed these figures, saying GST generates around $40m per year. New Zealand has collected GST at a rate of 15% on services and intangibles supplied www.legislation.gov.au remotely by an offshore supplier since October 2016.

Minister van Velden did not provide details about this yet, but it is expected to come up in the future. We need to update our laws for today’s digital world and future proof them as much as possible. Work is underway to develop a safe, regulated online gambling system for New Zealand that keeps people safe, allows only trusted providers to participate in the market, and contributes to the community. The government might experience a challenge trying to license and tax offshore casinos. Legalization will improve the iGaming experience by introducing safe and reliable operators.

This will change under the new framework, as these gambling sites will become illegal. The internet gaming sector in New Zealand is about to undergo a major transition. In order to replace the present uncontrolled environment that is dominated by offshore operators, the government has announced plans to implement a regulated licensing system. By taking this action, tax income that was previously lost to overseas platforms will be recovered and a safer gambling environment will be created. For the first time, licensed operators in NZ will be allowed to advertise, but they will have to meet very strict rules.

At the moment, New Zealand laws do not prohibit residents from playing at offshore gambling sites. However, New Zealand is not getting any taxes from these sites, and that’s what the National Party aims to enforce and regulate. The offshore tax duty is likely to bring big changes for online casino operators. These changes mean casinos might become quite expensive and offer fewer options, but the funds support safer gambling. Regulated online casinos are coming to New Zealand for the first time, with platforms expected to launch in early 2026.

It goes without saying that the first of these will be that the law becomes clear-cut for anyone who wants to play in an online casino. The regulatory body will also be able to provide real peace of mind that, to gain a license, the online casino in question will need to be run to the very highest standards. It said it would use IP geoblocking to blacklist any uncooperative platforms. While advertising will be possible once operators follow strict guidelines, they won’t be able to get involved in sponsorship. Online casino games also will need to be kept separate from other popular gambling products like sports betting and the lottery. Licensed operators will be allowed to engage in advertising, which is currently banned in the country, though strict restrictions will remain in place.

Leave a Reply

Your email address will not be published. Required fields are marked *