New Zealand has cleared the way for the legalization of online casino gambling after a bill passed its third reading in parliament this week. It is the final phase of deliberation of the bill by lawmakers, which is now set for Royal Ascent.
It is expected to become law by May and will include a raft of comprehensive changes to the law in regards to gambling in the country.
15 licences and strengthened regulatory enforcement powers
The legislation allows for up to 15 licences to be issued to qualified online casino operators through a competitive process, overseen by New Zealand’s Department of Internal Affairs under a revised timetable released in March 2026.
The licensing process is expected to begin in July, with applications due by December 1, 2026. Successful applicants will be subject to strict compliance and regulatory requirements once approved.
Gambling company Entain, which oversees big betting brands like bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet,has signaled interest in securing three licences. CEO Stella David said the company could leverage its exclusive TAB brand in New Zealand to cross-sell between sports betting and online casino offerings.
The legislation has been pushed by Minister of Internal Affairs Brooke van Velden, who said: “The bill supports the coalition agreement by closing the gambling tax loophole and requiring licensed online casino operators to pay tax, just like any other business operating in New Zealand.
In recent times, gambling in New Zealand has evolved in a strict regulatory environment. The Gambling Act 2003 established the modern framework, restricting the expansion of land-based casinos while strengthening harm-minimization measures and oversight of lotteries and gaming machines. At the same time, state-backed operators such as the New Zealand Lotteries Commission and TAB retained dominant roles in regulated betting markets.
However, the advent of offshore online gambling platforms continues to create challenges for regulators, as these operators have historically been able to offer services to New Zealanders without local licensing or taxation. This regulatory gap has fueled concerns about consumer protection, lost tax revenue and limited enforcement powers.
Offshore casinos to be reined in by tighter oversight under new bill
Officials are hoping the new bill will eliminate the illegal casino problem for good.
It will significantly expand enforcement powers, ensuring that national regulations apply to all operators offering services to users within the country, regardless of where they are based.
Lawmakers say the measure is designed to close longstanding loopholes that have allowed offshore platforms to operate outside New Zealand’s regulatory framework while still serving local customers.
Under the legislation, operators that do not apply for a licence by the cut-off date of December 1, 2026 deadline will be required to cease offering services to New Zealand users or face enforcement action.
Non-compliant operators could be subject to penalties of up to NZ$5 million, aligning them with the same maximum sanctions imposed on licensed providers that breach regulatory requirements.
Van Velden added: “These tools will ensure that New Zealand law applies to all online casino gambling available in New Zealand, regardless of where operators are located, closing off avenues for avoidance and strengthening the regulator’s ability to monitor and enforce compliance by international operators.”
Bad news for land-based operator SkyCity
SkyCity Entertainment Group had pushed back against the legislation, arguing the number should be capped at five and restricted to domestic companies. The position, according to reports, was disclosed in official documents released under the Official Information Act.
SkyCity, which operates casinos in New Zealand and Australia and plans to apply for a licence, said limiting eligibility to locally incorporated firms would help ensure gambling profits remain subject to New Zealand tax.
State-backed betting operator TAB New Zealand echoed similar concerns, having suggested a cap of five to seven licences and warning that an open market could allow multinational companies to dominate, potentially undermining funding for racing and sport while shifting profits offshore.
It remains to be seen what both think of the bill advancing to Royal Ascent, but the passage marks a new age for regulated online casino play in the country.
