New Zealanders React Strongly as Parliament Advances iGaming Regulation Bill

A divisive new proposal to regulate online gambling in New Zealand has cleared its first legislative hurdle, sparking both vocal support and significant criticism.

On Tuesday, Parliament passed the first reading of the Online Casino Gambling Bill, a legislative measure designed to legalize and govern online casino-style gambling in the country. While some lawmakers see it as a step toward protecting consumers and reigning in an unregulated digital market, others warn that the bill lacks clear measures to prevent gambling-related harm.

According to the draft legislation, only casino-style games would be allowed under the new regulatory framework, and players must be at least 18 years of age to participate.

Companies that breach the proposed regulations could face fines as high as NZD 5 million (approximately US$3 million), with the enforcement responsibility falling under the jurisdiction of the Department of Internal Affairs.

The bill outlines the issuance of up to 15 licenses for online casino gambling, to be allocated through a competitive auction system. Each license would be valid for three years.

Applicants would be required to meet stringent eligibility criteria, including demonstrating a history of regulatory compliance and presenting a clear harm-prevention strategy. The operational costs of implementing and maintaining the regulatory system would be fully funded by fees collected from license holders.

The debate in Parliament on Tuesday revealed a deep divide on the issue. Lemauga Lydia Sosene, an MP with the Labour Party, voiced strong opposition to the bill. She argued that it fails to offer a solid framework for minimizing gambling-related harm and opens the door to international gambling operators without sufficient consumer protections.

“This bill exposes us to international gambling operators,” Sosene warned during the session, adding that the current version “fails to fully address these concerns and instead presents them in vague terms.” She emphasized the need for more concrete safeguards, calling on the government to “take online harm reduction and consumer protection seriously.”

In contrast, Jamie Arbuckle of the New Zealand First Party—part of the governing coalition—defended the bill as a much-needed reform. Arbuckle said the legislation is meant to provide a robust regulatory infrastructure that will not only safeguard users but also ensure market integrity.

“The legislation aims to establish a strong regulatory framework for online casino gambling,” Arbuckle said. “It’s about protecting consumers and minimizing harm,” he explained, stressing the importance of permitting only “trustworthy operators” to engage in the online gambling sector.

Speaking to the broader objectives of the bill, Minister of Internal Affairs Brooke van Velden released a statement on Tuesday underscoring the current risks faced by New Zealanders.

According to van Velden, the lack of domestic regulation leaves residents exposed to thousands of offshore gambling sites that do not adhere to any local safety standards or harm-reduction obligations.

“While New Zealanders currently have legal access to thousands of offshore gambling websites, the lack of regulation means there are no standards for player safety or mechanisms for harm minimisation,” van Velden said. She explained that the bill is designed to close these gaps by setting clear safeguards and requiring operators to contribute financially to harm prevention efforts.

“The purpose of the bill is to make online gambling safer for New Zealanders,” she said, adding that licensed operators will also be required to “contribute to tax revenue and help fund gambling harm treatment services within the country.”

As the bill progresses, it will now move to a parliamentary select committee for more detailed scrutiny. The public will have an opportunity to weigh in before the final reading.

Minister van Velden encouraged public participation, stating that she hopes New Zealanders will “share their views during the public submission period,” which will be announced in the coming weeks. 

By fLEXI tEAM