New Zealand is preparing major changes to its gambling framework, introducing a new online casino licensing regime to curb offshore activity. Regulators are also raising concerns about international wagering tied to local racing.
The Online Casino Gambling Bill, first read in July 2025, is expected to become law in May. After enactment, the Department of Internal Affairs (DIA) will open a three-stage licensing process in July 2026, capping approvals at 15 operators.
Licensing Pathway And Market Limits
The process starts with an expression of interest (EOI) window lasting one to two months, followed by a licence auction within a month, lasting up to two months. Successful bidders then submit full applications, reviewed over four to six months for consumer protection, financial stability, and operational compliance. Licences last up to three years, with renewals conditional on continued compliance.
The DIA noted, “providers are required to cease conducting online casino gambling in New Zealand if they have not applied for a licence” by 1 December 2026. Non-compliant operators face fines of up to NZ$5 million and market exit.
Limiting licences to 15 introduces competition and forces operators to weigh a 12% gaming duty. After sports organizations expressed concern over community funding losses, the government required licensed operators to contribute 4% of gross gaming revenue, estimated at NZ$10–20 million in the first year.
The reform addresses NZ$750 million estimated to flow annually to offshore casinos. The New Zealand Gambling Survey 2023/24 shows offshore play is concentrated among younger men and some ethnic groups, particularly in socially deprived areas. Harm-prevention measures include age verification and advertising limits for children.
Racing Regulator Flags Offshore Exposure
In a study for the International Federation of Horseracing Authorities Council on Anti-Illegal Betting and Related Crime, RIB Chief Executive Dr. Eliot Forbes highlighted the overlap between racing and online gaming: “the New Zealand Government”s intention to grant online gaming licenses reinforces the need for officials, regulators and policy-makers to be well informed about the crossover between these products and the integrity risks that can arise from both”.
Although TAB NZ maintains exclusive domestic betting rights, NZ-based wagering “accounts for only around one-third of the combined Australasian betting on New Zealand races”. Forbes warned, “The current landscape requires us to extend our integrity focus beyond domestic borders to an environment that is international, multi-jurisdictional and increasingly crypto-denominated.”
The RIB found over 50 crypto-enabled brands accepting NZ racing bets, mostly licensed under “grey market” regimes such as Curaçao, Anjouan, and Costa Rica. Forbes said, “they do not pay product fees, do not share integrity data, offer limited or no consumer protections and are unlikely to adhere to anti-money-laundering obligations”, calling the system “a fundamentally parasitic model” that extracts “value from NZ and other jurisdictions” racing product while contributing nothing to the integrity systems or financial framework that sustain the sport”.
Forbes concluded, “the task ahead requires more sophisticated automated online monitoring, sharper intelligence, deeper cooperation and fresh strategies”, noting the RIB “will continue working with policy-makers, sporting bodies, regulators and government agencies to ensure our collective capability keeps pace with the environment”.
Source:
“NZ Racing Integrity Board shifting into high gear ahead of new Online Casino Gambling Act”, agbrief.com, March 2, 2026
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