Government Expects $500m From Regulated iGaming Market
The government in New Zealand estimates the regulated online casino market will be worth $500 million once iGaming is legalised in 2026. The government has shared plans to regulate online gambling in New Zealand by 2026 and has revealed that it wants to issue a limited number of licences through an auction. This setup seems to exclude a formal application process which is common in many other countries.
In an interview with the iGaming news platform iGamingbusiness, local gambling lawyer Jarrod True informs that the government believes market size will reach at least $500million. Tab NZ and Lotto NZ’s believe the current grey market spend is closer to $900m and foresee an even more explosive growth. Brands like SkyCity and Skyline Entertainment urge for a limited number of licences.
Make Sure To Read: “New Zealand to Regulate Online Gambling By 2026”
Tab NZ and Lotto NZ: “Grey Market Estimated at $900 Million”
According to True, the $500 million dollar estimate falls below industry estimates presented by Tab NZ and Lotto NZ. New Zealand’s two monopolies believe the current grey market spend is estimated at $900 million. Not only has online gambling become more popular in recent years, the lockdown of brick and mortar casinos during the lockdown has also led to a massive explosion of online gaming platforms. Today Tab is the only legalised online betting operator in New Zealand. TB NZ’s website is available in our country thanks to a partnership with the European gambling operator Entain.
Make Sure To Read: Entain: “New Zealand and Brazil On The Rise”
iGaming Considered A Priority In Upcoming elections
True noted that the timing of the regulation of online casinos in 2026 indicates the government’s commitment to making regulated iGaming a priority as elections are planned for the same year. “By aiming for early 2026, it clearly shows the legislation of iGaming is considered as an important part of the government’s election agenda. However, he believes the bill still faces a lengthy parliamentary process. Although plans are to legalise iGaming by 2026, it will still need to go through different stages before the law is fully adopted.
The cabinet has already signed off on a draft, which is set to be released later this year. The legislation will then proceed to the New Zealand Parliament, with public consultations taking place in 2025. True added that the government is particularly looking for input from international stakeholders to gain insights into regulatory models in other countries.
Make Sure To Read: The Rise of No Verification Casinos in New Zealand
Further Details To Be Revealed
Currently it is not known how many online licences will be issued in New Zealand. No further details have been revealed either about the costs for a gambling licence. The main idea behind the legislation of iGaming is that the government aims to provide better oversight, player protection, and economic benefits. This strategic shift is expected to bring more control and structure to an industry that has largely operated without any regulations.
Minister of internal affairs Brooke van Velden advertising will be “strictly limited”. One of the very few details that have been revealed is a full ban on sponsorships by gambling operators.
Make Sure To Read: Overview: New Zealand Online Gambling Trends and Stats 2024
SkyCity and Skyline Entertainment Work With Offshore Licences
Local land-based operators like SkyCity Entertainment Group have advocated for restrictions on online casino licences. True believes that this is done to reserve larger market shares. Local operators such as SkyCity and Skyline Entertainment already work with licences that are issued by the Malta Gaming Authority (MGA).
True explained that the regulator initially considered a low barrier to entry with no cap on online licences as a way to minimise gambling-related harm. He sees the auction as a limited perspective that has a lot more potential. He added that the current licence policy could be reconsidered at a later stage.
Make Sure To Read: Sky Casino online casino review and our post about How SkyCity Operates in New Zealand With an Offshore Licence.
How International Online Casinos Operate in New Zealand
Online gambling operators can offer their products in New Zealand with an offshore licence, or more accurately, they are not prohibited from doing so due to the grey market conditions.
Although SkyCity and Skyline are Kiwi operators they have obtained their licence in Malta. This so-called loophole is permitted under the existing regulations. Kiwis of 18 years and older are not prohibited from gambling at offshore online casinos. Many casinos that offer their website in New Zealand hold one or multiple international licences. This holds true as well for the casino websites that are promoted on our website.
Make Sure To Read: NZ Online Casino Reviews.
