New Zealand’s DIA ordered LeoVegas to stop illegally targeting local users

New Zealand’s Department of Internal Affairs (DIA) has intensified its crackdown on offshore gambling advertising, ordering LeoVegas to remove all New Zealand-targeted promotions. Investigators found that the operator had been running paid campaigns on major platforms aimed directly at local residents, even though such advertising has been illegal for overseas companies for more than 20 years.

This action follows a similar order recently issued against 20Bet, another offshore bookmaker targeting New Zealanders.

Under the Gambling Act 2003, offshore operators are prohibited from advertising to New Zealand audiences. The DIA determined that LeoVegas breached this rule and issued a formal notice demanding an immediate halt, warning of consequences if the operator continues. Regulators say these cases highlight the ongoing difficulty of enforcing national rules in a digital marketplace where offshore companies can reach users with ease while remaining outside New Zealand’s jurisdiction.

Experts note this enforcement step is part of a broader trend. Many offshore operators know oversight becomes harder once they operate internationally, and some continue pushing advertising limits in hopes of avoiding detection. Recent cases show how widespread the issue has become. In September, the DIA imposed NZ$125,000 in penalties related to illegal gambling promotions involving a foreign operator and four New Zealand influencers. One influencer was fined NZ$30,000 for repeated promotion of offshore casinos, while three others received fines between NZ$15,000 and NZ$20,000. The operator involved — Spinbet — was fined NZ$60,000 for multiple violations.

Complaints about influencer-driven gambling advertising have doubled in the past two years, reaching 75 cases in 2025, prompting regulators to rely heavily on public reporting.

Pressure on the system despite TAB NZ’s monopoly

The crackdown comes shortly after the government formally confirmed that all legal online betting on racing and sports now sits exclusively with TAB NZ. Although TAB has long operated as the primary provider, rules that took effect on 28 June officially cemented its monopoly. The move was driven by estimates showing that offshore bookmakers drain NZ$180–200 million from New Zealand annually. Centralizing legal betting under one regulated operator is expected to preserve more revenue for local racing, sports, and community initiatives.

Even so, offshore advertising remains a major vulnerability, drawing New Zealanders toward unregulated environments where authorities cannot intervene if harm occurs.

New casino licensing system coming in 2026

Online casinos remain one of the biggest gaps in the current regulatory framework. This will change in 2026, when a new licensing regime will allow up to 15 online casino operators to legally serve the market. Although 36 offshore casinos are currently registered for GST, tax data shows only about 15 generate over 90% of revenue. Regulators believe a small, focused group of licensed operators will simplify oversight and improve player safety. The government expects the new system to generate around NZ$200 million, while unlicensed operators may face fines of up to NZ$5 million.

New Zealand is rapidly strengthening its regulatory environment, yet the conflict between national rules and offshore operators continues — and the effectiveness of upcoming reforms will become clearer once the 2026 licensing system takes effect.