Overview: New Zealand Online Gambling Trends and Stats 2024

Gambling in New Zealand remains a popular pastime, with a significant portion of the population engaging in various forms of betting — both in online and offline settings. Interestingly, there are not many reports about the trends and statistics of online gambling in New Zealand which is mainly due to a lack of iGaming regulation. This comprehensive analysis therefore delves into the current trends, expenditures, and demographic data that shape the gambling landscape in New Zealand. 

From the widespread appeal of online pokies to sports betting, this article provides a detailed look at the industry’s growth, regulatory environment, and the socio-economic impact of gambling activities. By examining both the benefits and challenges associated with regulating online gambling, we aim to offer a balanced perspective on this dynamic sector. Keep reading as we discuss our country’s latest gambling statistics and trends.

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70% New Zealand Adults Gamble Once Per Year

A total of 7 out of 10 adults gamble at least once a year in New Zealand. For most gamblers, lotto is the most sought after gambling activity, but other popular types of gambling include betting on pokies, sports betting, poker, and race betting.

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Unregulated Online Gambling Costs New Zealand $140 Million Annually

The Department of Internal Affairs (DIA) has yet to authorise legal online gambling in New Zealand. The NZ Gambling Act 2003, established during the early days of the online casino industry, has not been updated to address the current landscape. While this Act prohibits local provision of online gambling services, it does not prevent residents from accessing offshore casinos.

In contrast, Australia regulated online gambling back in 2001, providing a framework that could serve as a model for New Zealand. Whereas international gambling brands such as Unibet and Bet365 operate in Australia with a locally issued gambling licence, the international licences from the Malta Gaming Authority (MGA) and the United Kingdom (UKGC) are used to operate in New Zealand.

Consequently, this regulatory gap has led to an estimated annual loss of $140 million in potential gambling revenue. By the end of 2023, New Zealanders had spent $1.1 billion on online gambling, according to Statista.

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National Per Capita Gambling Expenditure to Record a 0.9% Rise in 2024

According to the DIA, players in New Zealand are expected to spend 0.9% more on gambling activities in 2024. This increase brings the National Per Capita Gambling Expenditure (PCGE) to $591.28, up from $572 per player between 2021 and 2022, marking a 3.37% increase. Of the $572 spent on gambling in 2021 and 2022:

• $204 was spent on pokies, which is 35.66% of the total expenditure.
• $160 went to lotteries, making up 27.97% of the total.
• $128 was allocated to casino games, representing 22.38% of the total.
• The remaining $80 was used for sports gambling and racing, accounting for 13.99% of the total expenditure.

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65% of New Zealanders Play At MyLotto

Since the Covid-19 lockdown, New Zealand’s official lottery website, MyLotto, has seen a surge in users, with a 2020 survey indicating that 65% of respondents had visited the site to play the lottery. In the 2018 fiscal year, New Zealanders spent $561 million on lottery products, which represented nearly 23% of the national gambling expenditure of $2.4 billion. With a projected annual growth rate of 4.93%, the lottery market volume in New Zealand is expected to reach a substantial US$397.20 million by 2029. Easier access through mobile devices is considered one of the most important reasons for the growth rate.

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Tab NZ: Monopoly in Racing and Sports Betting

TAB NZ (Totalisator Agency Board) is the sole regulated provider of sports betting and horse racing in the country. This state-owned entity enjoys a monopoly role. Here are some statistics and trends in this section of the gambling space.

10% Of New Zealanders Bet on Sports

According to Gaming Intelligence, TAB NZ’s betting turnover hit $780.4 million in the 2022/2023 financial year, highlighting the significant interest in sports betting within the country. Approximately 10% of New Zealanders participate in sports betting, and the market is projected to reach $290.40 million by the end of 2024, growing at an annual rate of 6.30% from 2024 to 2028. This projection does not include offshore betting activities, which remain unreported. The rise of online betting platforms has further fueled this growth, offering bettors easy access to a wide variety of markets and live betting options.

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12% Tax Duty Offshore Operators

Regulatory changes are set to shape the future of online gambling in New Zealand. Recently, the New Zealand Parliament passed amendments to the Gaming Duties Act, introducing an ‘offshore gambling duty’ which imposes a 12% duty on offshore online gambling operators, effective from July 2024. This regulation aims to strengthen the local gaming environment and ensure that offshore operators contribute to the local economy​​. The duty does not apply to offshore gambling operators offering wagering on sports and racing. For these services, the existing “point of consumption charges” of 10%, plus GST and product fees, will continue to apply​.

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Problem Gambling and Gambling Behaviour Trends in NZ

According to recent data from the New Zealand Ministry of Health, around 184,000 people aged 16 and older were at some degree of risk of gambling harm in 2020. Additionally, approximately 183,000 adults reported experiencing second-hand gambling harm within their families or households. Second-hand gambling harm can manifest in various ways such as emotional and psychological impact, financial strains, or social consequences.

Children in households affected by problem gambling can experience neglect, emotional distress, and disruptions in their education and social life. The stigma associated with gambling problems can lead to social isolation for both the gambler and their family.

The National Gambling Study (NGS), New Zealand’s first population-representative longitudinal study on lifestyle, gambling, health, and attitudes about gambling, was initially conducted among 6,251 residents aged 18 and above and has been ongoing with surveys conducted in 2013, 2014, and 2015. This study aims to provide a comprehensive understanding of gambling behaviours and the factors contributing to gambling harm.

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Low Income Gamblers Overrepresented

According to the New Zealand Ministry of Health and various studies on gambling behaviour in low-income communities, New Zealanders in the low-income bracket spend more of their money on online pokies than those in the middle class or higher social strata. With low income gamblers spending 3 times more on gambling than people from higher income brackets, this socio-economically vulnerable group is overrepresented when looking at the demographics of punters in New Zealand.

For 2023 and 2024, the low-income bracket is typically defined as those earning up to $48,000 per year. The high level of participation can be attributed to the fact that 50% of the pokie machines in the country are located in low-income communities, making them readily available to gamblers in those areas. For many, pokie machines are considered ways to escape their financial realities instantly if all goes well.

49% Prone To Problem Gambling

With easy access to various digital betting options and land-based gambling venues, our country has recorded a risky level of gambling amongst residents. Reports show that 49% of gamblers are likely to develop gambling problems. Possible consequences of gambling problems include financial stress, mental health issues and long lasting gambling debts. Online pokies are considered one of the most risky gambling products.

Dr. Mark Griffiths, Professor of Behavioural Addiction at Nottingham Trent University in Nottingham, England and a well-known researcher in the field of gambling studies, has highlighted that online pokie machines are amongst the most vulnerable gambling products. According to Griffiths their higher risk is explained due to their fast-paced and repetitive nature, which significantly increases their potential for addiction. These characteristics make them particularly appealing to problem gamblers who seek rapid, continuous gambling experiences to modify their mood, escape reality​, or pursue financial wins.

Over half of individuals identified as problem gamblers experience relapses. Factors contributing to transitions in and out of risky gambling behaviours include feelings of loneliness, stress, boredom, and a long-term history of mental health issues. To support this group, the government established the Problem Gambling Foundation, a national non-profit organisation dedicated to providing assistance and resources for those struggling with gambling addiction.

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Decline in Players Concerned About Gambling Risks

In April 2020, Statista surveyed gambling habits and risks amongst New Zealand adults. The findings suggested that 25% of residents between the ages of 18 to 24 were concerned about their gambling habits. The lockdowns and severe other restrictions that came with the pandemic pushed more people in our country to consider online gambling. This also meant that gambling entertainment was found on international gambling platforms as the current gambling law in our country does not allow local brands to offer their products.

However, a follow-up survey conducted in June of the same year, when the lockdown restrictions were eased to Level 1, recorded only 14% of residents in the same demographic expressing concerns about potential gambling harm. This sharp decrease suggests that the availability of more diverse activities and social options after the lockdown was eased significantly reduced worries about gambling.

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Future Outlook Online Gambling Industry in 2028

About 9.2% of people in the country gamble online and experts think this number will grow to 11.3% by 2027 accounting for a number of 590,900 users. The average amount of money each person spends on online gambling in New Zealand is currently $2,450. By 2028, the number of gamblers in New Zealand is projected to reach 590,900 per the expected annual growth rate of 6.03%. This data was provided by Expert Market Research (EMR), a reputable market research and consulting firm from the United States that is known for providing comprehensive insights and analyses across various industries.

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