New Zealand’s push to regulate the country’s online casino sector took a significant step forward as Parliament approved the Online Casino Gambling Bill’s first reading by 83 votes to 39. This outcome allows the bill for online casino gambling in New Zealand to proceed to the Governance and Administration Committee, where it will undergo further scrutiny and public consultation.
Introduced in April by Internal Affairs Minister Brooke van Velden, the bill proposes a licensing framework for iGaming that would permit up to 15 operators to enter the legal market under strict conditions. Each licence would last for three years, with the first licences expected to become operational by July 2026.
A Mixed Reaction Across the Political Spectrum
The first reading saw MPs largely voting along party lines. While the governing coalition backed the bill, Labour and Te Pāti Māori opposed it. In a notable shift, however, the Green Party broke with their opposition colleagues and voted in favour, arguing the bill opens an opportunity to implement harm reduction strategies.
Green Party spokesperson for internal affairs Benjamin Doyle explained that their support was based on the potential for improvements during the select committee process. “We always want to support movements towards harm reduction… it’s definitely not far enough,” Doyle told RNZ. They emphasized the importance of hearing from experts and affected communities to shape more effective safeguards.
Conversely, Labour MP Lemauga Lydia Sosene voiced concern over the bill’s limited commitment to harm minimization.
“It is important that the government is serious about supporting the reduction of online harm and, specifically, consumer protection, because the bill in its current form does not address those particular actions wholeheartedly. They are listed vaguely,” Sosene stated during Tuesday’s debate.
Jamie Arbuckle of the New Zealand First Party, part of the ruling coalition, defended the initiative, saying, “This bill is to stop the unregulated situation that we find ourselves in at the moment. [It] will create a robust framework to regulate online casino gambling and protect consumers and minimise harm.”
Strict Requirements for Licensees
Operators hoping to enter the regulated market will face a rigorous application and operational process. Licences will be awarded through an auction system set to begin in February 2026. Companies must demonstrate a commitment to consumer protection by implementing age verification systems to prevent access by underage users and by adhering to advertising restrictions—specifically, no promotions targeting children.
Applicants will also be required to pay a 12% offshore gambling duty, a standard goods and services tax, and contribute 1.24% of profits to a dedicated levy supporting gambling harm reduction services. Firms found to violate regulations could face penalties of up to NZD $5 million.
Among those reportedly interested in acquiring a licence are major players such as SkyCity, 888, Super Group (owner of Betway), and TAB NZ. However, TAB NZ, which holds a government-granted monopoly over sports betting, will not be eligible for online casino licensing. Van Velden confirmed this in a prior statement to RNZ.
Concerns from Advocates and Next Steps
Despite broad political support for regulation, public health experts have expressed reservations. Andree Froude from the Problem Gambling Foundation argued that the bill could potentially increase, rather than reduce, harm. She recommended further restrictions, including banning credit card use for online gambling and requiring users to pre-commit time and spending limits before playing.
She also questioned the effectiveness of existing harm reduction funding. A recent Gambling Commission report revealed the Ministry of Health was unable to verify whether the NZD $81 million allocated to gambling harm reduction had a measurable impact.
Doyle echoed calls for greater accountability, suggesting that “100 percent of the revenue goes towards community harm reduction… it shouldn’t be going towards the back pockets.” The Greens are also calling for a total ban on online gambling advertising and a reassessment of the number of licences being granted.
Moreover, Doyle emphasized the importance of early and meaningful engagement with Māori communities in the legislative process, stating, “The value mai i te kākano ‘from the very seed’ is the best approach when engaging with Māori.”
With its first parliamentary hurdle cleared, the bill will move on to the select committee stage. Van Velden has proposed the second reading take place by November 17, followed by the Committee of the Whole House and a final reading, potentially allowing the bill to be passed into law before the end of the year.
Source:
‘’New Zealand iGaming bill passes first reading in Parliament’’, igamingbusiness.com, July 15, 2025.
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