New Zealand Parliament Passes Online Casino Bill at Final Reading

Final Approval Closes Long-Standing Legal Gap

The Online Casino Gambling Bill was passed by lawmakers during its final reading this week. The bill is now to be sent to Royal Assent - likely on 1 May. A loophole in the Gambling Act 2003 has over the years enabled offshore casinos to operate at will to serve local players. These operators were not required to pay taxes or have licences in New Zealand.

The new law is now to seal that gap - to unify all casinos into a single system. The bill is in favor of fair taxation rules, according to Internal Affairs Minister Brooke van Velden. She also said that licensed operators should be subject to the same standards as other businesses.

Up to 15 Licences Set For Competitive Process

Under the new system, up to 15 licences will be issued to operators. The Department of Internal Affairs will oversee the full process. The structure follows a three-stage approach:

• Expressions of interest

• A competitive step, such as an auction

• Final applications with compliance checks

Each licence will remain valid for three years under current plans. Operators must show ownership details and strong compliance systems.

Timeline Points to 2027 Market Launch

The government has set a clear timeline for the rollout process. Licensing is expected to begin in July 2026. Applications must be submitted by 1 December 2026 — a firm deadline. Operators who miss it may need to exit the market. Successful applicants are expected to launch services on 1 July 2027.

Strong Enforcement Extends Beyond Borders

A key feature of the law is its wide reach — covering offshore operators. Any casino serving New Zealand players will fall under the rules.

Authorities will gain stronger powers — including take-down notices and financial penalties. Fines may reach up to NZ$5 million for serious breaches. Operators must meet clear requirements:

• Verify all users are at least 18 years old

• Ban credit-based gambling

• Provide tools to exclude problem users

Community Funding and Industry Response Take Shape

The bill also includes plans to support local communities through gambling revenue. Officials have discussed setting aside around 4 percent of operator revenue. This could generate between NZ$10 million and NZ$20 million each year.

Meanwhile, companies are preparing for the licence race. Entain may target multiple licences, while SkyCity has raised concerns. Hence, the process could turn into a quiet contest — shaped by timing and regulation.