- Media
New Zealand iGaming market on track for 2027 launch
The launch of New Zealand’s iGaming market seems to now be on track for a 2027 launch following developments in the government’s legislative efforts to implement a bill, known as the ‘Online Casino Gambling Bill’, which would introduce licensed online casino gambling to the country.
Initially set for a mid-2026 launch, Cabinet papers related to the bill have confirmed the government’s intentions to implement a community-funding provision within the bill, with the provision set to take effect on 1 January 2027, a target date which goes beyond the government’s initial intention to establish the country’s iGaming market around mid-2026.
Community-funding
The community-funding provision would require future licensed iGaming operators to contribute 4% of their Gross Gaming Revenue (GGR) towards community initiatives. This requirement was added on to the bill following concerns being raised about whether online gambling could potentially reduce spending in venues with gaming machines, in turn resulting in local sports and cultural clubs possibly experiencing a decline in funding.
As part of the consultation process for the bill, over 5,000 submissions were received, from which nearly 4,000 had raised concerns about the possible decline in community funding for venues which generate funding through gaming machines, or what are colloquially known as ‘pokies’. Cabinet papers estimated that the 4% GGR requirement could generate substantial funds for community initiatives, with estimates ranging from US$5.8 million to US$11.6 million for the first year from implementation.
Over 50 sports organisations have expressed concern about the potential impact on their funding from gaming machines with the introduction of the bill. The government has expressed plans for a formal review after two years of the online casino sector being operational in order to monitor market outcomes, with the assessment being intended to examine the impact on traditional gaming revenue and to examine if community returns are adequate.
New Zealand’s approach
New Zealand officials have stated that the primary policy objective when overlooking the potential effects of the bill is that of harm reduction, with the government having maintained the position that a regulated iGaming market would establish and enforce clear safeguards which offer better clarity and protection for New Zealanders than offshore sites.
Internal Affairs Minister Brooke van Velden said that she has listened carefully to the concerns raised throughout the consultation process, and commented that the regulatory settings set to be put in place by the bill are “intended to reduce gambling harm first and foremost”. She described the bill as “an important piece of legislation that will bring online casino gambling under New Zealand law for the first time”.
If passed and implemented, the bill would allow for up to 15 iGaming licences to be offered to operate in New Zealand, with operators being subjected to the goods and services tax, a 12% offshore gambling duty, a 1.24% mandatory levy on profits in order to fund initiatives against gambling harm, as well as limitations on what can be advertised, including a ban on advertising targeting minors.
The aforementioned community-funding provision, along with the safeguards and limitations set in place by the government, would make New Zealand’s iGaming market an interesting case study for how online iGaming can be integrated into an existing community funding system revolving around physical gaming venues. There are already some existing examples of countries with iGaming community-funding models, but New Zealand’s approach is unique among them by introducing the 4% GGR requirement, and its first year of operating may prove whether it is a model that could be adopted or iterated upon by other markets.
As things stand, the bill is set to undergo further parliamentary scrutiny and deliberation before it is able to progress to the final reading stage and ultimately be voted on for official implementation.
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