In the wake of its success, governments around the world have taken different approaches to legalising and regulating it, although in many regions the lack of legislation has created grey areas.
New Zealand, although currently home to some of the world’s toughest gambling laws, has taken steps down the path to regulating online casinos, laying out plans to implement new regulations from the start of 2026, in an effort to protect its citizens from unlicensed operators, as well as reaping major taxation dividends. Just across the pond, Australia will be watching on, keen to see how their neighbour’s fortunes fare, and wondering whether to implement similar changes in their legislation surrounding online casino gambling.
The Current Situation in NZ and Australia
As mentioned, New Zealand has some of the most rigorous gambling laws in the Western world, but this doesn’t seem to discourage New Zealanders who are keen on a flutter — it’s estimated that 75% of adults enjoy gambling regularly, either in casinos, via sports betting or simply on the weekly lottery. However, the only way New Zealanders can play in online casinos is by accessing offshore operators, as the 2003 Gambling Act — the most recent piece of gambling legislation — banned ‘interactive’ gambling via telephone, computer, and other communication devices.
Australia, almost unbelievably, spends the most on gambling, per capita, in the entire world. But, like its neighbour, current legislation doesn’t adequately cover online gambling, and while online casinos are unregulated and forbidden, players can access offshore casinos, albeit at their own risk.
What’s happening?
As current legislation was made when the online casino business was in its relative infancy, it doesn’t take into account radical changes in the nature of the industry and its popularity. The situation, therefore, requires clarity, and in May this year, a proposal was brought forward to address it. The framework will require operators to meet stringent criteria to offer online casino services to New Zealanders, pay tax, and protect consumers.
The country’s Minister of Internal Affairs, Brooke van Velden, said: “Licensing is how we regulate most forms of gambling domestically. This is not intended to increase the amount of gambling New Zealanders do, but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax.”
The legislation is solely for online casinos, without any provisos for online sports betting or lotteries. The legislation also means that offshore online casinos could apply for licenses to operate legally within the country, although the limited number of licenses on offer is making this a little controversial.
Limited licenses
Only fifteen licenses will be issued via auction, prompting concerns among major casino players in New Zealand such as Skycity Casino and Christchurch Casino, who feel that wealthy off-shore entities may be able to take business away from local operators and land-based casinos that have contributed taxes to the economy, and have been lobbying for a change in the law. Given that off-shore casinos already have a foothold in the New Zealand market they will be keen to defend their market share.
SkyCity CEO Jason Walbridge wrote in October that the new regime should “Reward businesses that have been obeying the law, contributing to New Zealand [by paying tax] and minimising harm”.
“New Zealand companies have the greatest interest in protecting New Zealanders, we’re here, we’ve got skin in the game here, and no one is going to work harder than us or other casinos in New Zealand to ensure we’re meeting the regulations.” It should be noted that both SkyCity and Christchurch Casino have been lobbying the government for years to make changes to their gambling laws, and are highly supportive of the legislation as a whole.
Why Regulate?
The benefits of regulation for both Australia and New Zealand are obvious. The first, and perhaps most appealing factor for any government is the amount of tax dollars that could be generated by granting official licenses. The online casino industry is thriving, driven by increased accessibility and the explosion of mobile gaming, and reaches millions of people it didn’t before. The New Zealand National Party projects $170 million (NZD) in revenue by 2027. Given Australia’s gambling habits, this could be significantly more if regulation was brought in across the Tasman Sea.
The other major reason that governments find stringent legislation appealing is consumer safety. Relying on unlicensed offshore operators comes with a major risk of fraud, with financial and other sensitive data flying around. Casinos also must make provisions to promote responsible gambling, and help players identify problematic behaviour.
It is almost certain that Australia will be keeping an eye on New Zealand as the country gears up to regulate online casino gaming. With the industry more popular than ever, it seems inevitable that some form of legislation is needed Down Under, not only to protect its citizens, but to also reap the financial rewards.