New Zealand's Gambling Landscape Set for Major Overhaul

The New Zealand government is on the cusp of a major overhaul in the gambling sector. Spearheaded by Internal Affairs Minister Brooke van Velden, the nation is set to introduce a system where online casino licenses are auctioned under stringent regulatory measures. This move aims to reduce harm while increasing tax gains from these operations.

Development of a Controlled Gambling Framework

As things stand, it's against the law for online casinos to operate within New Zealand's borders, leading to unregulated gambling through international platforms. For instance, SkyCity Entertainment, a major player in New Zealand's gambling industry, runs its online casino from Malta. Recent government proposals, however, pave the way for regulated and equitable competition within the country. These proposals include granting a handful of three-year licenses via auction to operators who comply with high standards aimed at consumer protection and reducing gambling-related harm. The intent is not to encourage more gambling but to provide a safe, regulated environment for it. Key regulations include an 18-year age minimum and restricting legal games strictly to casino-type games, excluding sports betting and lotteries.

Comprehensive Regulations to Elevate Public Welfare

"A limited number of licenses will be available through an auction, subject to the bidders meeting regulatory requirements. Players must be 18 or older," states the proposed framework. The new regulatory regime is being embraced by major industry players like SkyCity Entertainment, which although divesting from its online portal's initial operator, remains a strong advocate for a regulated market. According to SkyCity's CEO, Jason Walbridge, the focus is crucial for both protecting players and benefiting the community from gambling revenues. Public feedback has also been invited to refine these regulations further.

Concerning problem gambling, recent reports of minors engaging in online gambling underline the urgency for these strict regulations. The final structure, expected to be implemented by 2026, remains anticipatory among stakeholders, with future details about offshore gambling taxes under discussion.

Source:

''Regulating online casinos approach'', beehive.govt.nz, July 30, 2024.