New Zealand’s Minister of Internal Affairs, Brooke van Velden, has unveiled a significant overhaul in the regulation of online casinos. This new regulatory framework aims to address key issues including gambling harm minimization, effective tax collection, and robust consumer protection. el
Minister’s Announcement and Objectives
Brooke van Velden has emphasized that the government’s new approach to online casino regulation is not intended to increase gambling activities among New Zealanders. Instead, the focus is on ensuring that operators comply with stringent requirements to protect consumers and minimize harm, while also facilitating proper tax collection. The new regulations are designed to create a balanced framework that supports both responsible gambling and regulatory efficiency.
Limited Licensing
The new regulatory framework will introduce a capped number of licenses for online casino operators. These licenses will be distributed through an auction process, which aims to regulate the market by controlling the number of operators allowed to provide online casino services. Each license will be valid for a duration of three years, subject to the operator’s adherence to regulatory standards.
Operational Restrictions
Under the new rules, licensed operators will be permitted to offer only online casino games. This restriction means that online sports betting and lottery products will not be available under these licenses. The limitations are designed to focus the regulatory oversight on casino-style games while excluding other forms of online gambling.
Advertising Limits
Although online casino operators will have the ability to advertise their services, the new regulations impose strict limitations on how and where this advertising can occur. These constraints are intended to prevent excessive promotion of gambling activities, which could potentially lead to increased gambling-related harm.
Sponsorship Prohibition
Sponsorship by online casinos will continue to be prohibited under the new framework. This restriction aims to further limit the visibility and promotion of online casinos, ensuring that their influence remains controlled and within regulatory boundaries.
Minimum Age Requirement
The new regulations will establish a minimum age of 18 for online gambling, aligning with the age requirements for other gambling activities in New Zealand. This measure is designed to ensure that only individuals who are legally of age can participate in online casino games.
Enhanced Consumer Protections
The regulatory framework places a strong emphasis on consumer protection. Operators will be required to meet high standards to safeguard players and prevent gambling-related harm. These protections are part of a broader strategy to ensure a fair and transparent gambling environment.
Rollout Schedule
The new regulatory system is expected to be implemented by early 2026. During the development of the framework, the public will have the opportunity to provide feedback through the Select Committee process. This public consultation is crucial for refining the regulations and addressing any concerns from stakeholders.
Role of the Department of Internal Affairs
Once the new system is operational, the Department of Internal Affairs (DIA) will assume the role of regulator for online casinos. Known for its strict enforcement in the gambling sector, the DIA will oversee compliance and ensure that operators adhere to the new regulations.
Previous Cases and Enforcement
The DIA has a strong track record of enforcing gambling regulations, as evidenced by its handling of the recent SkyCity case. This case demonstrated the DIA’s commitment to addressing non-compliance and ensuring that gambling operations meet regulatory standards. The department’s history of rigorous enforcement will be instrumental in the successful implementation of the new online casino regulations.
The forthcoming changes in New Zealand’s online casino regulation represent a significant shift towards a more controlled and responsible gambling environment. By focusing on harm minimization, consumer protection, and efficient tax collection, the new framework aims to balance regulatory oversight with market opportunities. As the implementation date approaches, ongoing public engagement and effective regulatory enforcement will be crucial in achieving the desired outcomes.