New Zealand is about to come up with a comprehensive regulatory framework that will introduce local online casinos by 2026. What’s forced the government’s hand is the proliferation of offshore online gambling sites that the country feels it should be benefitting from.
Also, New Zealand’s authorities want to ensure that this move will result in a safer and more transparent environment for gamblers. Here’s a snapshot of how they plan to do this and the benefits that will likely come with a regulated online casino market.
Why Regulation is Necessary
New Zealand currently has no locally licenced operators in the country except for government-run lotteries and sports betting options. As a result, most players opt for offshore platforms if they want to enjoy casino games online.
Offshore casinos have provided New Zealanders with a lot of options to choose from. They encompass everything from crypto casinos to platforms aimed at gamblers on a budget through $5 deposit casinos. According to gambling expert Sam Barnard, these platforms offer them the latest games, generous welcome bonuses, and various payment options. For the budget options, low buy-ins and less expensive games make them more accessible to a wider range of players.
However, even though these platforms offer players convenience, they are regulated in other countries and don’t fall under the jurisdiction of New Zealand so can’t be regulated by it. This means all the capital from players spent on these sites flows out of the country with no option to tax them.
Key Features of the New Regulatory Framework
To ensure the country keeps some of the money that comes from online casinos, New Zealand is planning on introducing a limited licensing system as part of its upcoming regulatory framework. This means the government will only grant licences to reputable operators who can meet the strict compliance standards it plans to enact.
The reason behind this is that regulators want to ensure that the platforms provided are of a high quality, safe, and secure. To make sure this happens, their operators will have to stick to the guidelines or risk losing their share of the NZ market.
The intended regime will include offering tools like deposit limits, self-exclusion mechanisms, and reality checks, which allow players to manage their gambling activities responsibly. Additionally, licensed operators will need to comply with New Zealand’s data protection laws to ensure that all personal and financial information is stored securely.
Advertising and Sponsorship Rules
These new regulations will also come with strict guidelines on sponsorships and advertising, to limit when, where, and how online casino operators can advertise their services to the public. The content of the ads that licensed operators will be allowed to show will also be carefully controlled.
Additionally, online casinos may not be allowed to offer sponsorship deals to sports teams or other public events. What may influence this decision is that New Zealand wants to reduce the visibility of gambling in everyday life.
Learning from International Examples
New Zealand’s intended approach so far seems heavily influenced by frameworks that have been successful in other countries, especially the United Kingdom. That’s because globally, the UK Gambling Commission has been recognized as a leader in how to implement effective gambling regulations.
This international praise comes from its focus on promoting responsible gambling, which it does with features like self-exclusion programs, caps on spending, and time limits. While many players deem these kinds of paternalistic regulations too restrictive, local regulators appear set on replicating them for the most part. Either way, regulators will have to perform a balancing act while trying to stick to their own expectations of good regulatory practice.
Benefits of the New System
For players, there will be many advantages brought by the introduction of a regulated online gambling market. Firstly, the platforms they’ll have access to will be fully licensed and monitored by the New Zealand government, which will ensure that fair play and security will be overseen by an authority closer to home.
Since only a limited number of licences will be issued, operators will have to compete heavily to get them. This will translate to Kiwis being able to play on platforms run by the renowned operators with the most resources and that should provide a standard of gaming and integrity.
Furthermore, the revenue generated from licensed online casinos will play an important role in boosting the country’s economy. With other countries reporting huge tax revenue streams from licensed iGaming regimes, this should greatly benefit social programs by contributing hundreds of millions more to the public purse.
Conclusion
New Zealand’s decision to offer a regulated online casino market has marked the dawn of a new era for the country’s gambling industry. This is all set to play out in 2026 when players will be able to access locally-run online casinos whose operators will be held to the highest standards.