Offshore Operators Set to Dominate New Zealand’s Online Casino Market

International gambling giants are positioning themselves to secure the majority of New Zealand’s 15 online casino licenses, despite opposition from local operators.

Key Takeaways

• Internal Affairs Minister predicts offshore companies will win most of the 15 licenses
• Major international operators including 888, Bet365, and Betway have expressed interest
• Licenses will be valid for three years starting February 2026
• Local operators SkyCity and TAB face uphill battle against global gambling giants

Introduction

New Zealand’s online gambling landscape is poised for a significant transformation as the country prepares to auction 15 online casino licenses for the first time. In a recent announcement that has stirred both excitement and controversy in the gambling industry, Internal Affairs Minister Brooke van Velden stated that offshore providers are expected to dominate the upcoming licensing process.

“We don’t have a huge online gambling market, so I would expect that it’s mainly offshore providers,” van Velden said, setting expectations for what many industry observers already anticipated—that international gambling giants would leverage their substantial resources and experience to secure a foothold in New Zealand’s newly regulated market.

International Operators Taking the Lead

Several major international gambling companies have already expressed formal interest in obtaining licenses when they become available. According to cabinet papers filed in September 2024, these include:

888 Holdings

One of the world’s leading online gaming entertainment providers, 888 Holdings operates across multiple regulated markets globally. With a comprehensive suite of gambling products including casino, poker, and sports betting platforms, 888 brings significant technical infrastructure and regulatory experience to the table.

Bet365

As one of the largest online gambling companies worldwide, Bet365 has built a strong reputation for its sports betting offerings but also features a robust casino platform. Their expression of interest signals their strategic aim to expand their presence in the Asia-Pacific region.

Super Group (Betway)

The company behind the popular Betway brand has demonstrated strong interest in entering the New Zealand market. With experience operating in multiple regulated jurisdictions, Betway’s potential entry would bring another major international player into the competitive landscape.

The Government’s Stance on Fair Competition

Minister van Velden has made it clear that the government’s approach prioritizes creating a level playing field rather than protecting established domestic businesses. When questioned about concerns from local operators, she emphasized:

“I’m not here to look out for SkyCity. I’m not here to look out for any established particular casino or their brands. I’m here to ensure that we have a fair marketplace and a fair, regulated market.”

This position signals that the upcoming auction process will not include preferential treatment for New Zealand-based operators, despite their lobbying efforts to secure advantages.

Financial Framework for Licensed Operators

The financial obligations for license holders have been structured to balance market attractiveness with government revenue objectives:

• Companies will pay GST on services provided to New Zealand customers
• A 12% gambling duty will be applied to gambling profits
• Operators must contribute to problem gambling levies

Unlike existing gambling operations in New Zealand (including Lotto, TAB, land-based casinos, and pokies), online casino operators will not be required to contribute to community grants. This decision has drawn criticism from existing gambling providers but was deemed necessary to ensure license attractiveness in the international market.

A cabinet paper from November 2024 warned that requiring community contributions would make New Zealand “one of the highest taxed jurisdictions for online gambling, making licenses less valuable and attractive.”

Why Offshore Operators Have the Edge

Several factors contribute to the anticipated dominance of international operators in New Zealand’s licensing process:

1. Financial Resources

Global gambling companies typically have substantial financial backing, making them well-positioned to outbid smaller local competitors in the auction process.

2. Technical Infrastructure

Established international operators already possess sophisticated platforms that comply with regulatory requirements in multiple jurisdictions, requiring minimal adaptation for the New Zealand market.

3. Market Experience

Companies like 888, Bet365, and Betway have extensive experience navigating the complex regulatory landscapes of newly regulated markets worldwide.

4. Existing Player Bases

Many New Zealand players already use offshore gambling sites. 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.

What This Means for New Zealand Players

For New Zealand gamblers, the entry of established international operators into a regulated market offers several potential benefits:

• Enhanced Player Protections: Licensed operators will be required to implement responsible gambling tools and age verification measures.
• Secure Payment Options: Regulated platforms will offer secure, New Zealand-friendly payment methods.
• Taxation Certainty: All gambling activities will occur within a framework where proper taxation is ensured.
• Legal Clarity: Players will have certainty about the legal status of their online gambling activities.

Timetable for Implementation

The path to a regulated online casino market in New Zealand follows this timeline:

• April 2025: Introduction of legislation establishing the regulatory framework
• End of 2025: Expected enactment of legislation
• February 2, 2026: Commencement of vetting and auction process for the 15 licenses
• April 2026: Licensed providers begin operations

After this point, it will become illegal for unlicensed operators to target New Zealand players, with penalties of up to NZ$5 million for non-compliance.

Conclusion

As New Zealand moves toward regulated online casino gambling, the market appears set to be dominated by established international operators with the resources and experience to navigate the competitive licensing process. While local companies like SkyCity and TAB will undoubtedly continue their efforts to secure licenses, Minister van Velden’s comments suggest that the government’s commitment to a fair market will not include special considerations for domestic operators.

For players, affiliates, and industry stakeholders, the entry of major international brands promises to create a more diverse, competitive, and well-regulated online gambling environment—one that balances player protection with the commercial realities of a global industry. As the February 2026 launch date approaches, all eyes will be on which companies ultimately secure the coveted licenses and how they shape New Zealand’s online gambling future.

Last Updated: March 13, 2025