NZ Online Casino Bill Passes First Reading, Heads to Committee

New Zealand has taken a significant step toward regulating its online gambling industry, with Parliament voting 83-39 in favour of the Online Casino Gambling Bill at its first reading. The bill now proceeds to the Governance and Administration Committee, with plans to establish a fully licensed iGaming framework by July 2026.

Introduced in April by Minister of Internal Affairs Brooke van Velden, the bill proposes a licensing system that would allow up to 15 vetted operators to offer online casino games in New Zealand legally. Licenses would be issued for a three-year term and awarded through an auction process starting in February 2026. The legislation aims to bring oversight and accountability to a currently unregulated space.

Revenue and Consumer Protections at the Forefront

Under the proposed framework, licensed operators would be required to pay goods and services tax, a 12% offshore gambling duty, and a 1.24% levy on profits to fund support services for individuals affected by gambling harm. Age verification technology and restrictions on advertising, especially to minors, are also part of the package.

The bill outlines penalties of up to $5 million for non-compliance. It grants the Department of Internal Affairs enforcement powers, including the ability to investigate breaches and cancel licenses where necessary. Operating without a permit would remain illegal.

Industry Interest and Exclusions

Several major gambling companies, including SkyCity, 888, Bet365, and Super Group (the owner of Betway), have expressed interest in obtaining a license. However, the bill excludes TAB NZ, the state-sanctioned monopoly for online sports betting, from entering the online casino market.

Debate Reflects Divided Views

The bill passed its first reading with strong support from the ruling coalition and ACT, who argue that regulation is necessary to prevent consumer exploitation and reduce harm in the thriving offshore online gambling market. Proponents view the legislation as a means to formalize and tax an activity already prevalent among New Zealanders.

However, opposition voices were vocal. Members of the Labour Party, Te Pāti Māori, and the Greens criticised the bill for lacking strong safeguards against gambling harm and for opening the door to international operators without sufficient community consultation. Critics also questioned the high number of licenses being proposed and the potential for increased advertising exposure, especially among vulnerable groups such as rangatahi (youth), Māori, and Pasifika communities.

Some MPs said they supported regulation in principle but were concerned that the current draft prioritised tax revenue over public health. Others called for stronger primary legislation focused explicitly on harm prevention and a reduction in the number of licences offered.

What Happens Next?

The Governance and Administration Committee will now review the bill, with a report to be presented back to Parliament scheduled for 17 November. If the current legislative timeline holds, the bill could complete its remaining readings and be signed into law before the end of the year. Should the bill pass in its current form, licensed online casinos in New Zealand would be able to begin operations in New Zealand from July 2026.

As the process moves forward, all eyes will be on the select committee stage, where stakeholders will have the chance to submit feedback and possibly shape the final form of New Zealand’s first regulated online casino framework.