New Zealand Selects 11 Companies for Online Casino Licensing as Auction Reaches NZ$15 Million Per Licence

New Zealand has taken a major step toward establishing its regulated online casino market, identifying 11 entities that have secured the right to apply for 15 online gambling licences following a competitive auction that attracted 32 bidders.

The Department of Internal Affairs (DIA) announced the results on October 13, confirming that the auction concluded after 10 rounds, with the final price reaching NZ$15 million (US$8.4 million) per licence.

The outcome represents a significant milestone in New Zealand's efforts to introduce a regulated online casino industry, with the first licences expected to be issued in early 2027.

However, the authorities have emphasised that winning an application right does not automatically entitle a company to operate an online casino.

Successful bidders must undergo a comprehensive regulatory assessment before receiving final approval.

“The auction determined who has won the right to apply for an online casino gambling licence,” the DIA explained in its official announcement.

“Successful participation in the auction does not guarantee that a licence will be granted, and all successful entities must now proceed through a detailed application and assessment process before any licensing decisions are made.”

Eleven Entities Secure Rights to Apply for 15 Licences

The auction attracted interest from a range of domestic and international gambling businesses, including established casino operators and online gaming companies seeking to enter New Zealand's emerging regulated market.

Baytree Interactive Limited, associated with the Betway business, secured the largest allocation, winning three application rights, the maximum permitted under the licensing framework.

Playvia Gaming (NZ) Limited, associated with international gambling group Entain, and Rock Swift Group Limited each obtained two application rights.

The remaining eight rights were awarded individually to other successful entities.

The complete list of successful bidders is as follows:

Successful entity	Application rights
Baytree Interactive Limited	3
Playvia Gaming (NZ) Limited	2
Rock Swift Group Limited	2
Christchurch Online NZ Limited	1
One Casino Limited	1
Rush Entertainment Limited	1
Skill On Net Limited	1
SkyCity NZ Online NO1 Limited	1
SkyCity NZ Online NO2 Limited	1
Stake New Zealand Limited	1
TAB New Zealand	1
Total	15

The distribution means that all 15 available application rights have been allocated among the 11 successful entities.

Each licence will be linked to a single online casino brand, and no operator will be permitted to hold more than three licences.

Although the successful legal entities have been identified, the DIA has not yet disclosed the specific casino brands that will ultimately operate under the licences.

The regulator explained that proposed brands may change during the application and assessment process. Once licences have been formally granted, the approved brands will be published on a public register maintained by the department.

SkyCity Confirms Plans to Pursue Two Online Casino Licences

Among the most prominent successful participants is New Zealand-based casino operator SkyCity Entertainment Group, which has secured two application rights through separate subsidiaries.

SkyCity NZ Online NO1 Limited and SkyCity NZ Online NO2 Limited each obtained the right to submit an application, positioning the group to expand its presence in the country's online casino sector.

In a market announcement issued on October 13, SkyCity confirmed its intention to proceed with both applications ahead of the anticipated launch of the regulated market in 2027.

At NZ$15 million per licence, the company faces a combined licence cost of NZ$30 million (approximately US$16.7 million), excluding goods and services tax (GST).

SkyCity Chief Executive Jason Walbridge welcomed the auction outcome, describing it as an important development in the group's online expansion strategy.

“We are excited to have been successful in the auction to apply for two licences and to be taking the next step towards entering the online casino gambling market in New Zealand,” Walbridge said.

“We know New Zealanders trust the SkyCity brand, and we will combine that trust with our deep knowledge of the New Zealand market to build a successful online business here.”

The company's participation highlights the growing interest among established land-based gambling businesses in expanding into regulated digital casino operations.

For SkyCity, the proposed online business would provide an opportunity to capitalise on its existing brand recognition and understanding of New Zealand consumers, subject to securing regulatory approval.

The group's commitment to pursuing two licences also reflects the financial significance of the new regulatory framework, with substantial upfront costs required before operators can receive permission to enter the market.

Regulatory Assessments to Determine Final Licence Approvals

Following the auction, successful entities must complete the formal application process and demonstrate their suitability to operate under New Zealand's gambling legislation.

The DIA requires applicants to submit detailed business plans explaining their proposed operations, financial arrangements and commercial strategies.

Companies must also provide comprehensive information covering consumer protection, gambling harm prevention and minimisation, advertising practices and regulatory compliance.

Financial viability will be another important consideration, with applicants expected to demonstrate that they possess the resources and operational capabilities needed to maintain compliant online casino businesses.

The assessments will consider whether prospective licensees are suitable to operate and whether they are willing and able to comply with the legal obligations imposed under the new framework.

Consequently, the allocation of 15 application rights does not necessarily mean that all 15 licences will ultimately be issued.

The regulator retains the authority to reject applications that fail to satisfy its requirements.

The framework also restricts each licence to one brand, although a licensed brand may operate through multiple platforms.

These provisions are designed to establish clear accountability for operators and enable the regulator to oversee the businesses serving New Zealand consumers.

December 1 Deadline for Unlicensed Online Casino Providers

The transition to the regulated market will introduce significant changes for online casino businesses currently serving customers in New Zealand.

Beginning December 1, 2026, providers that have not submitted a licence application must cease offering online casino gambling services in the country.

Operators that have submitted applications and are awaiting regulatory decisions may continue operating temporarily under a transitional exemption.

However, those businesses will not be permitted to advertise their services while their applications remain under consideration.

The distinction is intended to provide continuity for eligible operators during the licensing process while restricting the activities of companies that have not progressed through the new regulatory system.

For businesses that failed to secure application rights in the auction, the December deadline represents a critical point in the transition to the licensed market.

The DIA expects to begin issuing licences in early 2027, with the regulated online casino framework anticipated to become fully operational during that year.

Under the government's licensing arrangements, licences may remain valid for up to three years, with the possibility of renewal for a further five years.

The transition is being implemented in stages to allow the authorities to complete regulatory assessments, establish oversight systems and ensure that consumer safeguards are in place before the licensed market becomes fully operational.

New Framework Targets Consumer Protection and Gambling Harm

New Zealand's decision to establish a regulated online casino market forms part of a broader effort to address gambling activity conducted through overseas websites.

The government aims to bring online casino services used by New Zealand residents within a domestic licensing and regulatory framework.

According to the DIA, the principal objectives include strengthening consumer protections, reducing gambling-related harm and preventing criminal activity associated with online gambling.

The licensing system is intended to give authorities greater oversight of participating operators, including their advertising practices, financial sustainability and measures to protect players.

By requiring operators to obtain formal approval and comply with national standards, the government is seeking to establish a more accountable environment for online casino gambling.

The limited number of licences is also a defining feature of the new system.

Rather than permitting an unrestricted number of businesses to enter the market, New Zealand has capped the initial allocation at 15 licences, with the auction determining which entities can advance to the final assessment stage.

The competitive process established a uniform NZ$15 million price for each application right, reflecting the level of interest in accessing the country's regulated online casino sector.

The auction used an ascending-clock format, under which participants decided whether to remain in successive rounds as the price increased. The process continued until demand aligned with the available allocation.

Industry Awaits Final Decisions Ahead of 2027 Market Opening

The conclusion of the auction provides greater clarity over which companies may participate in New Zealand's future regulated online casino market.

The successful group includes established international gambling businesses, domestic operators and companies seeking to expand their online gaming activities.

For businesses such as SkyCity, Stake, Betway and Entain-linked entities, the licensing process represents an opportunity to establish or strengthen their positions in a market moving toward formal regulation.

Nevertheless, significant regulatory hurdles remain.

Each successful applicant must demonstrate compliance with the DIA's requirements, while the authorities must determine which proposed operations and brands meet the standards for approval.

The identity of the final licensed brands, the number of licences ultimately granted and the timing of individual approvals will become clearer as the assessment process progresses.

With the December 1 operating restrictions approaching and the first licences expected in early 2027, New Zealand's online casino sector is entering a decisive transitional period.

The auction has established the initial field of prospective operators and the financial cost of market entry. The next stage will determine which of those businesses are ultimately authorised to serve New Zealand players under the country's new regulatory regime.

By fLEXI tEAM