New Zealand Proposes Hefty Fines for Unlicensed Online Casinos in Regulatory Crackdown

In a move to tighten control over the growing online casino industry, New Zealand has introduced a proposal that could lead to significant penalties for unlicensed online casino operators. The new regulations, expected to be implemented by early 2026, aim to establish a safer gambling environment by issuing limited licences and imposing strict penalties on unlicensed operators.

Under the proposed rules, online casino operators that set up unlicensed websites could face fines of up to NZD 5 million (AUD 4.54 million). The government’s new framework would cap the available licences to just 15, and a public registry would track all approved operators. Violators could face take-down notices and be reported to regulators in other jurisdictions, potentially jeopardising their licences and operations outside New Zealand.

Aiming for a Safer Gambling Environment

Currently, online casino gambling in New Zealand is unregulated, leaving consumers vulnerable when using offshore sites. Internal Affairs Minister Brooke van Velden emphasised that the purpose of this regulatory framework is not to increase gambling activities but to ensure a safer environment for those who choose to participate in online gambling. By restricting the market to a limited number of licensed operators, the government hopes to guide consumers towards safer, regulated platforms.

Key Requirements for Licensed Operators

Operators who secure one of the 15 licences must implement several protective measures to ensure user safety. These include harm prevention strategies, stringent age verification protocols, and restrictions on advertising to children. By enforcing these requirements, the government aims to minimise the risks associated with online gambling, particularly for younger or more vulnerable individuals.

The licences will also be limited to online casino games, excluding sports betting and lottery products. This focus reflects the government’s intention to contain the reach of online gambling while providing a safer alternative to the thousands of offshore sites currently accessible to New Zealand residents.

Growing Popularity of Online Gambling Fuels the Need for Regulation

The popularity of online gambling in New Zealand has risen in recent years, driven by the convenience of smartphones and digital platforms. According to recent data, revenue from online casinos in New Zealand is projected to grow at an annual rate of 6% from 2024 to 2029. 

This increase has heightened concerns over the potential risks of unregulated gambling, particularly with younger audiences who may have easier access to these platforms.

The proposed rules are part of a larger government initiative to update New Zealand’s gambling laws to address the challenges posed by online gambling. Although the country has existing legislation for physical gambling venues, little oversight has been provided for digital platforms, leaving gaps in consumer protections.

Government Takes Aim at Harmful Advertising and Data Privacy

Another major focus of the new regulations will be controlling the advertising of gambling products, especially to children and vulnerable users. Licensed operators will face strict guidelines on ad placements to ensure that promotional content does not target minors. 

This step is in line with the government’s broader goal of promoting responsible gambling and preventing excessive or compulsive gambling behaviour among users.

Operators will also need to disclose data privacy measures to enforce transparency. By requiring operators to adopt strong privacy protections and responsible advertising practices, the government hopes to prevent the kinds of predatory marketing practices that are often linked to gambling addiction and financial harm.

Roadmap to Implementation

The government aims to introduce the legislation next year and have the full regulatory system in place by early 2026. Once the framework is enacted, a public register will be available to track approved operators, providing consumers with a resource to verify whether a casino is legally authorised to operate in New Zealand.

As the new framework takes shape, New Zealand joins Australia and a growing list of countries implementing strict controls on online gambling. By prioritising safety and limiting the number of licences, officials hope to create a controlled environment where New Zealanders can access online casino games responsibly, without the risks associated with unregulated, offshore sites.