New Zealand to Launch Regulated iGaming Licences from July, Capping Operators at 15

New Zealand will begin its iGaming licensing process from July, according to a new timeline issued by the Department of Internal Affairs (DIA). The proposed Online Casino Gambling Bill, which passed its first reading in July 2025, is expected to be passed into law in May following a second reading in parliament. Once it clears this stage, the bill will move to committee for a third reading before becoming enforceable.

The introduction of the licensing regime represents a significant overhaul of New Zealand’s online casino sector, bringing a previously unregulated market under domestic control. The government’s move responds to concerns that more than NZ$750 million flows annually from New Zealand players to offshore online casinos. Under the new framework, licences will be capped at a maximum of 15 operators, with a three-stage approval process designed to ensure transparency, competitive fairness, and rigorous compliance.

The initial phase will invite operators to formally declare their interest in entering New Zealand’s online casino market. “The EOI window is set to open immediately after the bill becomes law,” the DIA said, noting that this period will remain open for approximately one to two months. Following the closure of the expression-of-interest phase, a licence auction will be held within one month, expected to take up to two months, allowing eligible operators to bid for the limited licences.

Successful bidders will then submit detailed iGaming licensing applications. These applications will be assessed for adherence to compliance requirements, including consumer protection measures, financial soundness, and operational integrity. This stage is anticipated to last between four and six months. Licences will initially be granted for up to three years, with opportunities for renewal contingent on continued regulatory compliance.

The DIA has set a strict application deadline of 1 December 2026. It stated, “Providers are required to cease conducting online casino gambling in New Zealand if they have not applied for a licence” by that date. Operators who fail to comply face penalties including fines of up to NZ$5 million and enforced market exit.

Limiting licences to 15 operators is expected to introduce competition and drive sector consolidation, prompting operators to carefully evaluate compliance costs alongside the 12% gaming duty imposed. The legislation initially faced pushback from leading sports organisations, which argued they would lose more than $150 million in community funding. In response, the government announced community funding guarantees for iGaming operators at 4% of gross gaming revenue, with a potential return of $10 million to $20 million in the first 12 months.

The DIA’s latest update signals progress on a market launch that experts had previously considered unrealistic for June 2026. Data from the New Zealand Gambling Survey 2023/24 indicates that offshore gambling is concentrated among younger men and certain ethnic groups, with higher participation in areas of social deprivation. These patterns have informed the Bill’s harm-prevention measures, which include age verification requirements and restrictions on advertising aimed at children.

With this phased approach, New Zealand aims to regulate its online casino market carefully, balancing the need for consumer protection, market fairness, and community funding while curbing the outflow of funds to offshore operators.

By fLEXI tEAM