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The gambling is already happening — just offshore
New Zealand’s push to introduce a regulated online casino market is not about opening the door to online gambling for the first time. Officials are clear on that point: the gambling is already taking place, just largely beyond the country’s control.
The proposed Online Casino Gambling Bill is designed to close a longstanding loophole in the Gambling Act 2003. While the law has always prohibited New Zealand-based companies from running online casinos, it has never stopped offshore operators from offering those same services to New Zealand players. The result has been a thriving grey market, with an estimated NZ$1.3 billion spent by New Zealanders on offshore casino platforms in 2025 alone — around 10% more than the previous year.
Why 15 licences?
One of the most discussed elements of the bill is the decision to cap the market at 15 licensed operators. The figure is not arbitrary. Data from the Department of Internal Affairs indicates that more than 95% of New Zealand online casino players currently use approximately 15 offshore sites. By issuing a comparable number of licences, regulators are betting that players will be more inclined to switch to legal alternatives rather than continuing to gamble on unlicensed platforms.
Too many operators would make the market harder to supervise. Too few could push players back to offshore sites. The 15-licence cap is intended to strike the right balance.
Tougher penalties for unlicensed operators
Enforcement is another central pillar of the legislation. Current penalties for offshore operators targeting New Zealand players are capped at around NZ$10,000 — a figure widely regarded as inadequate for large international gambling companies. Under the new framework, fines could reach NZ$5 million, with additional powers to remove or block non-compliant websites entirely.
Advertising allowed — within limits
Licensed operators will be permitted to advertise, subject to restrictions designed to prevent harm and protect minors. Regulators acknowledge that some level of marketing is essential if legal platforms are to compete with offshore brands that are already well-established among New Zealand players. Without visibility, the regulated market risks being ignored in favour of the sites people already know.
The road ahead
The Online Casino Gambling Bill has passed its second reading in parliament and is expected to complete the remaining legislative stages in the coming weeks. If approved, the rollout timeline is as follows: the legislation comes into force on May 1, 2026; expressions of interest open in July; a licence auction follows in September; and formal applications begin in October. From December 1, 2026, only licensed operators will be permitted to serve New Zealand players, with a final cutoff for transitional arrangements set at June 1, 2027.
Regulation over prohibition
New Zealand’s approach mirrors a growing trend among countries grappling with the realities of online gambling — choosing to regulate rather than attempting to eliminate offshore activity entirely. Whether the strategy succeeds will ultimately come down to a simple question: whether New Zealand players decide the regulated market is worth switching to.
