New Regulations for Online Gambling to Start in February 2026

New Zealand’s Department of Internal Affairs has announced a comprehensive timeline for implementing the country’s first-ever regulatory framework for online casinos, with licensed operations set to commence in February 2026.

Key Takeaways

Online casino licensing system will officially launch in February 2026
15 licenses will be available through a competitive auction process
Licenses will be valid for an initial three-year period
Licensed operators will pay GST, gambling duty, and problem gambling levies

Introduction

In a landmark development for New Zealand’s gambling industry, the Department of Internal Affairs has released a detailed timeline for the implementation of new online gambling regulations. This regulatory framework represents New Zealand’s first formal approach to controlling online casino gambling, which has operated in a gray area for years with offshore operators freely targeting New Zealand players without local oversight.

The announcement marks a significant shift in how online gambling will be managed in New Zealand, with February 2026 set as the launch date for the new licensing system. Under this framework, 15 operators will be granted licenses through a competitive auction process, creating a structured, regulated market designed to enhance player protections while generating tax revenue.

The Regulatory Timeline Explained

The path toward regulated online gambling in New Zealand follows a carefully structured timeline with several key milestones:

Phase 1: Legislative Development (Current-April 2025)

The government is currently finalizing the legislative framework necessary to establish online gambling regulations. The official bill is expected to be introduced to Parliament by April 2025.

Phase 2: Legislative Enactment (April-December 2025)

Following introduction, the bill will undergo parliamentary scrutiny, committee review, and public consultation before expected enactment by the end of 2025. This legislation will establish the comprehensive regulatory framework necessary for licensing and overseeing online casino operations.

Phase 3: License Auction Process (February 2, 2026)

The vetting and auction process for the 15 licenses will commence on February 2, 2026. This process will assess potential operators against regulatory requirements before licenses are awarded through a competitive auction system.

Phase 4: Licensed Operations Begin (April 2026)

Licensed providers will commence operations in April 2026, marking the official start of New Zealand’s regulated online casino market. From this point, it will become illegal for unlicensed operators to target New Zealand players, with substantial penalties of up to NZ$5 million for non-compliance.

Structure of the New Regulatory Framework

The regulatory framework for online casinos in New Zealand has been designed to balance several competing priorities: consumer protection, harm minimization, tax collection, and market viability.

Licensing Structure

Number of Licenses: 15 licenses will be available
License Duration: Initial three-year period, with potential for reassessment
Eligibility: Open to both domestic and international operators
Allocation Method: Competitive auction process

Financial Obligations for Operators

Licensed online casino operators will be subject to several financial obligations:

GST (Goods and Services Tax): Standard New Zealand GST will apply to services provided to New Zealand customers.
Gambling Duty: A 12% duty will be applied to gambling profits.
Problem Gambling Levy: Operators must contribute to New Zealand’s problem gambling services.

Unlike existing gambling operations in New Zealand (including Lotto, TAB, physical casinos, and pokies), online casino operators will not be required to contribute to community grants. The government has justified this decision on practical grounds, noting that requiring such contributions could make the New Zealand market unattractive to operators and potentially drive players back to unregulated sites.

Product Restrictions and Requirements

The regulations will include specific restrictions on how gambling products can be offered:

Product Segregation: Casino games must be “fenced off” from other gambling products.
Integration Limitations: Sports betting and lottery products cannot be offered alongside online casino games.
Responsible Gambling Tools: Operators must implement comprehensive responsible gambling measures, including deposit limits, self-exclusion options, and reality checks.

Goals and Rationale Behind the Regulatory Approach

Internal Affairs Minister Brooke van Velden has emphasized that the primary aim of the regulatory framework is not to increase gambling activity but rather to channel existing players toward regulated platforms with appropriate consumer protections.

“This isn’t about encouraging more people to gamble online,” van Velden stated. “It’s about acknowledging that New Zealanders are already gambling on offshore websites and ensuring that, if they choose to do so, they have access to platforms that adhere to our standards for consumer protection and responsible gambling.”

The government’s approach reflects a pragmatic recognition of current market realities. Cabinet papers noted that the leading 15 operators already account for over 90% of online gambling GST in New Zealand over the past three years, indicating substantial existing activity in the unregulated space.

Revenue Projections and Economic Impact

While the National Party had initially projected significant revenue from the new gambling duty, Internal Affairs Minister van Velden has provided more conservative estimates, suggesting only about $13 million extra per year initially. She has emphasized that revenue generation is secondary to the primary goal of increasing safety in online gambling.

The economic impact extends beyond direct tax revenue. The regulatory framework will create:

New compliance and administrative roles within gambling operators
Enhanced opportunities for domestic financial services providers
Growth in supporting industries such as affiliate marketing and advertising
Potential employment in customer service and technical support for operators establishing a local presence

Challenges and Criticisms

The regulatory approach has not been without criticism. Several stakeholders have raised concerns about specific aspects of the framework:

Community Funding Concerns

Martin Cheer of Pub Charity Ltd has criticized the decision not to require community contributions from online operators: “Effectively, in Class 4, 100 percent all the profits have to be given away. Well, in this instance, none of it has to be given away.”

Local Operator Concerns

Established New Zealand gambling providers like SkyCity and TAB have expressed concerns that the approach favors international operators. They have advocated for fewer licenses limited to domestic companies to ensure profits are taxed in New Zealand and to protect community funding streams.

Problem Gambling Risks

Some public health advocates have questioned whether sufficient safeguards will be in place to prevent increases in problem gambling when online casino games become more accessible through regulated channels.

Impact on Players and Consumer Protections

For New Zealand players, the new regulatory framework promises enhanced protections and a safer gambling environment. Key benefits include:

Age Verification: Strict requirements to prevent underage gambling
Self-Exclusion Systems: Ability to exclude from all licensed platforms
Deposit Limits: Tools to control spending and prevent excessive gambling
Dispute Resolution: Clear processes for addressing complaints
Data Protection: Enhanced security for personal and financial information
Fair Games: Requirements for regular testing and certification of games

Conclusion: The Road Ahead

As New Zealand approaches the February 2026 implementation date for online casino regulations, all stakeholders are preparing for this significant market transformation. For operators, the race to secure one of the 15 coveted licenses has already begun. For players, the promise of a safer, more transparent gambling environment lies ahead.

The government faces the challenge of balancing regulatory stringency with market attractiveness—ensuring that regulated sites can effectively compete with unregulated alternatives while maintaining robust consumer protections. The three-year initial license period provides an opportunity to assess the effectiveness of the regulatory approach and make adjustments as needed.

New Zealand’s entry into regulated online casino gambling represents not just a shift in gambling policy but a broader acknowledgment of digital transformation in entertainment and leisure activities. As February 2026 approaches, this regulatory framework will shape not only how New Zealanders gamble online but also how the country balances consumer freedom with protection in the digital age.

Last Updated: March 13, 2025