A local lawyer has revealed that gambling in New Zealand generates nearly NZ$1bn in annual revenue, although the government projects the regulated online casino market to be worth $500m when it launches in 2026.

The New Zealand government intends to regulate online casinos by 2026, with a limited number of licences to be issued through an auction process.

New Zealand gambling lawyer Jarrod True of True Legal informed iGB that the government has budgeted for an annual taxable revenue of NZ$500m (US$300.8m) from regulated online gambling.

However, this figure is below industry estimates. The country’s existing monopolies – Tab NZ and Lotto NZ – believe that the current grey market expenditure is closer to $900m, True explained.

“Online gambling is very, very popular in New Zealand, and we saw a massive explosion during Covid-19 when our physical venues were locked down. That’s really continued [since].”

Currently, Tab is the sole online betting operator in New Zealand, operating through a partnership with Entain.

Regulated Online Casino in New Zealand a Government Priority?

True suggested that the planned 2026 launch – which coincides with a general election year – indicates that the government views regulated iGaming as a priority.

“By stating it will be in place by early 2026, that is effectively prioritising the legislation,” True commented.

However, it will face a lengthy parliamentary process. The cabinet has already approved a draft, he explained, which is expected to be released later this year. The legislation will then be presented to the New Zealand parliament, with a public consultation set for 2025.

The government is particularly seeking input from international stakeholders to gain further insight into other regulatory frameworks.

Did Retail Incumbents Lobby for Limited Online Licences?

True noted that it is still unclear how many online licences the regulator will permit, nor the associated licensing costs.

Details regarding the regulation of legal gambling in New Zealand remain scarce. According to the Minister of Internal Affairs, Brooke van Velden, advertising will be “strictly limited,” and iCasino products may not be offered alongside sports betting or lottery services.

True speculated that land-based incumbents, such as SkyCity Entertainment Group, lobbied for a limited number of online licences to secure a larger market share for themselves.

Both SkyCity and Skyline Entertainment have already launched Malta-licensed casinos. SkyCity operates a white label site through Gaming Innovation Group, while Skyline’s ChristchurchCasino.com is powered by White Hat Gaming.

He added that the regulator initially considered a low barrier to entry with no limit on online licences to reduce gambling-related harm. “Although the government will make a little bit of money out of an auction, I think it’s very shortsighted,” True remarked.

True suggested that the limited licence policy could potentially be scrapped later in the legislative process, as stakeholders are likely to raise objections during the public consultation period.

Ban on Sponsorships is “Very Left-Field”

A ban on gambling sponsorships is one of the few policies that have already been decided by the New Zealand government.

“That was very left-field,” True observed. “Clearly someone in cabinet had a bee in their bonnet about that and decided this was going to be their mark on the legislation.”