New Zealand Targeting Unlicensed Online Gaming to Boost Regulated Market
New Zealand is intensifying its efforts to regulate the online gambling industry with a focus on limiting the operations of unlicensed online casinos. In a new regulatory framework introduced by the government, online casino operators who set up unlicensed websites targeting New Zealanders could face fines of up to NZD5 million (US$2.9 million).
Three New Zealand flags flying outside a government building. (Source: AFP)
LISTEN TO THIS ARTICLE:The move, apart from arriving during talks of online gaming legalization, comes as a response to the unregulated status of online casino gambling in the country. Officials believe this leaves consumers unprotected and exposed to risks associated with offshore and unlicensed gambling platforms.
As part of the new regulatory plan, the New Zealand government aims to issue only 15 licenses for online casino operators at any given time. By setting a limit on the number of licenses available, the government intends to maintain tighter control over the online gambling market, ensuring that approved operators comply with a strict set of standards designed to enhance player safety and accountability.
To keep the public informed, a publicly accessible register of licensed brands will be maintained, allowing players to easily verify whether a particular online casino holds a valid New Zealand license. This transparent system is expected to aid in building public trust in licensed operators and in discouraging New Zealanders from using unregulated sites.
Operators found to be in violation of these new rules will face severe consequences. Beyond the hefty financial penalties of up to $5 million, rule-breaking operators will also be issued take-down notices, requiring them to cease their operations in the New Zealand market.
The regulatory framework includes provisions for referring unlicensed operators to authorities in other countries, potentially jeopardizing their ability to operate legally in other jurisdictions. By collaborating with international regulatory bodies, New Zealand aims to amplify the repercussions for operators who disregard its gambling laws, which could lead to the loss of license in multiple countries for these operators.
Licensed operators will need to implement various protective measures as part of their obligations. They will be required to have harm prevention strategies in place, targeting gambling addiction and other potential harms associated with online gambling.
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In addition, a robust age verification system will be mandatory, ensuring that underage individuals cannot access online gambling services. These operators will also be explicitly prohibited from advertising to children, a rule intended to prevent exposure to gambling among vulnerable age groups. By mandating these practices, the government seeks to create a safer and more controlled online gambling environment for New Zealanders.
At present, New Zealand's online gambling market operates without formal regulation, a situation that, according to Internal Affairs Minister Brooke van Velden, has left players without adequate protections. With the new regulatory framework, the government aims to address these gaps, providing New Zealanders with a safer option for online casino gambling.
The decision to limit the number of licenses is also intended to channel customers toward licensed operators, reducing the demand for offshore gambling sites that are not subject to New Zealand's consumer protection regulations. As it stands, thousands of offshore gambling websites are accessible to New Zealanders, but without a regulatory framework in place, the government has limited control over how these sites operate or the safeguards they provide to users.
Legislation for this new regulatory approach is expected to advance in the upcoming year, with the government aiming to implement the new system by early 2026. This timeline provides sufficient time for both the government and potential licensees to prepare for the changes, which will introduce a significant shift in how online gambling is governed in New Zealand. For the first time, online casinos wishing to serve the New Zealand market will need to adhere to specific legal requirements and meet standards intended to protect consumers and reduce gambling-related harm.
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