New Zealand’s proposed iGaming market is facing a critical challenge. Although the country’s iGaming bill passed its first reading in parliament this July, experts are raising concerns about its readiness to meet the 2026 launch target. Legal professionals suggest that the bill, which seeks to regulate online casinos and betting, lacks sufficient detail, potentially leading to delays.
The 2015 Gambling Bill and Current Legislative Issues
Introduced by Brooke van Velden, New Zealand’s Minister of Internal Affairs, the iGaming bill seeks to open up to 15 online casino licenses by July 2026. However, many details about its implementation remain vague. With just a short consultation period and unclear regulations, legal experts believe that meeting the proposed timeline will be difficult.
This uncertainty is compounded by the 2015 Gambling Amendment Bill, which has already encountered challenges in implementation. Despite past discussions, critics argue that the new bill does not resolve long-standing issues around gambling advertising and harm reduction. The bill proposes a goods and services tax, an offshore gambling duty of 12%, and a 1.24% mandatory levy for gambling harm prevention. However, these terms remain underdeveloped, leaving operators unclear about the regulations they will face.
Tight Timeline and Unresolved Questions
As legal experts like Jamie Nettleton from Addisons Law Firm point out, while the bill has passed its first vote, there are “a lot of gaps still to be filled.” The timeline for consultation, ending in 2026, may not give enough room for detailed regulation and the development of necessary infrastructure. The bill requires a clear regulatory framework to ensure that operators and consumers from New Zealand alike can navigate the new legal landscape without confusion.
“If they can rip off a brand like ours to give themselves an air of legitimacy, why would they not?” – Keeling.
Additionally, the auction process for operators interested in launching in New Zealand is set to begin in early 2026, but due to the lack of specifics, many operators are unsure whether entering the market will be economically viable. Many have also expressed concern about the imprecise pricing of the auction and how it could affect their decision to apply.
Impact on Operators and Consumer Protection
The bill also includes provisions for advertising restrictions and consumer protection. Gambling advertising will be limited to certain times of day to prevent targeting vulnerable groups, such as minors. There will also be bans on paid endorsements from celebrities and athletes. Yet, these restrictions remain fluid and will be further defined by regulators.
Despite the bill’s attempt to regulate the market, there are concerns that it may not be enough to address issues like gambling addiction and problem gambling. In a significant shift, operators may face additional restrictions on advertising, and gambling promotions may include mandatory harm minimization messaging.
Political Dynamics and iGaming’s Future
The bill is being introduced under the new coalition government, which came into power after the 2023 General Election. The Labour Party’s loss of its majority has led to a shift in policy. Some industry experts suggest that the new center-right government is more likely to push forward with iGaming regulation as a pragmatic response to the country’s economic challenges, using gambling regulation as a means to generate new revenue.
However, the coalition’s mixed approach to iGaming, particularly the different handling of online casinos and sports betting, has raised eyebrows. While the government aims to regulate the iGaming sector, it has granted a monopoly to TAB NZ, which operates the country’s sports betting market. Critics see this as inconsistent and potentially problematic for a comprehensive gambling regulation framework.
What’s Next for New Zealand’s iGaming Bill?
The iGaming bill must still pass through further stages in parliament. If it clears these hurdles, the legislation will set the foundation for New Zealand’s online casino market, but challenges remain. There are concerns over whether the timeline will allow for sufficient consultation and the development of comprehensive regulations. Additionally, some are questioning whether the government’s commitment to harm reduction will be strong enough to protect vulnerable populations effectively.
Should the bill pass, it could open the doors for a competitive online casino market, though it’s clear that there will be many more discussions to navigate before the regulations are fully defined.
Source:
“Could New Zealand’s iGaming market struggle to launch on schedule?“, igamingbusiness.com, July 23, 2025
