New Zealand's Online Gambling legislation advances its initial parliamentary milestone.
New Zealand is making a significant stride towards regulating its online gambling sector with the recently proposed Online Casino Bill, which passed its initial reading in Parliament on July 15, 2025, garnering 83 votes in favour and 39 against [1][3][4].
### Key Details of the Legislation
The bill proposes a competitive auction for **up to 15 online gambling licenses**, each valid for three years [1][2]. These licenses will allow operators to offer only casino-style games legally. Applicants must demonstrate a strong harm prevention strategy, maintain a history of compliance, and implement robust age verification systems to prevent access by under-18s [1][2][4].
Licensed operators must pay a goods and services tax, a 12% offshore gambling duty, and contribute 1.24% of their profits to a Problem Gambling Levy, which funds services addressing gambling harm [1][3][4]. Companies must also adhere to stringent advertising rules, notably avoiding any content that targets minors [1][3][4]. Violations of the regulation could lead to fines up to NZD 5 million (approx. US$3 million) [1][2][4].
### Implementation Timeline
The vetting and auction process for licenses is expected to start in February 2026, after which licensed operators can begin legal operations [3]. The bill will continue its parliamentary progression, moving to the Governance and Administration Committee for further review followed by a second reading and a Committee of the Whole House stage before final enactment [3].
### Impact
The legislation aims to protect New Zealanders who gamble online by ensuring safer conditions and harm minimisation measures are in place [1][2][4]. It also seeks to curb the dominance of unregulated offshore operators by creating a domestic regulated market with accountability measures [1][3]. The bill has received support across parties, including the Greens, highlighting broad political commitment to reform [4].
However, there remains some public opposition regarding the bill’s scope and restrictions, and a public submission period will be held to gather views before the final reading [2].
In summary, New Zealand's Online Casino Bill represents a comprehensive regulatory framework introducing licensing, harm safeguards, age controls, and financial levies for online gambling. If passed fully, it will establish a safer, more accountable online gambling environment with an implementation phase beginning early 2026 [1][2][3][4]. The bill recognizes the importance of enforcement for effective regulation.
Online gambling operators, under the proposed Online Casino Bill, will be able to offer casino-style games legally, once they have obtained one of the up to 15 competitive licenses set to go on auction, and have demonstrated a strong harm prevention strategy, maintained a history of compliance, and implemented robust age verification systems to prevent access by under-18s. Additionally, licensed operators will also need to adhere to rules surrounding sports betting, considering that the bill allows operators to offer casino-style games only.
