Government Considers Legal Change for Remote Lotteries
The government has launched a public consultation to enable a legislative amendment for lotteries. In 2021, lotteries were temporarily placed under a Class 3 licence, allowing for the organisation of remote lotteries. This arrangement is set to expire on October 31, 2024, and the government plans to extend the licence, aiming to establish a permanent solution for remote lotteries.
SBC News reports that the government is proceeding with plans to permanently allow remote lotteries through legislative changes. During the COVID-19 pandemic, lotteries were temporarily placed under a Class 3 license, allowing them to be played remotely. This move ensured that fundraising efforts were unaffected by the crisis. However, this temporary measure is set to expire on October 31, 2024, which would bring lotteries back under the ban on remote gambling. The government had previously announced its intention to regulate gambling more broadly starting in 2026.
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New Zealand Gambling Act 2003 Outdated
Currently, the New Zealand Gambling Act 2003 prohibits interactive remote gambling, except under a Class 3 licence. The gambling act was adopted when online gambling products were nearly unheard of. This category includes gambling operators who conduct activities like lotteries without using gaming machines. The underlying objectives often include directing part of the funds to approved causes, such as charities. By being permanently exempt from the gambling ban, lotteries can continue to advertise freely and accept online payments.
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Benefit For Domestic Lotteries
Law for domestic operators At present, according to Section 4 of the Gambling Act, only the state-owned Lotteries Commission (Lotto NZ) and a few licensed foreign lotteries are allowed to offer remote gambling activities permanently. The new law would benefit domestic lotteries, allowing local operators with a Class 3 licence to organise remote lotteries as well. The New Zealand government expects to receive feedback from all stakeholders by September 19 at the latest. A report must be submitted to Parliament by October 10. If the legislative amendment is approved, it will take effect on November 1, 2024. Should royal assent be given before the planned date, the law will take effect immediately after that.
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iGaming Considered A Priority In Upcoming Elections
As New Zealand approaches the elections, iGaming regulation has emerged as a key issue. With the government already planning to regulate remote gambling by 2026, the next administration is expected to tackle the growing demand for an updated, more comprehensive iGaming framework in our country. Many industry experts expect increased attention on both player protection and new revenue streams, positioning iGaming as a priority in shaping the next phase of New Zealand’s gambling landscape. Despite New Zealand having some of the strictest gambling laws globally, this hasn’t discouraged many New Zealanders from placing bets. It’s estimated that more than 75% of the adult population engages in gambling on a semi-regular basis with the weekly lottery accounting to the biggest part.
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