New Zealand will soon have 15 new online casino operators after the government announced it would hold auctions for licenses. [Image: Shutterstock.com]
License auction
New Zealand is set to introduce 15 new licenses for online casino gambling operators in the country, in a major step toward a full, multi-license, regulated market.
The licenses will be put to tender via auction, with companies invited to bid for the right to run a regulated online casino, as a result of a new bill being passed through parliament.
The bids are expected to attract major interest from established online casino operators, although the process has attracted criticism from land-based casino owners over the number of licenses being issued.
Regulatory framework revealed
New Zealand has long had plans to launch a regulated online casino market, with the current government’s timeframe being set for an open market by 2026. The plans have been led by Brooke van Velden, minister at the Department of Internal Affairs.
The result of those efforts has been the Online Casino Gambling Bill, which has been put to parliament and sets out the requirements for the upcoming auction of licenses.
Unlicensed operators or those who fall foul of the regulator will face hefty fines
While neighboring Australia continues to mull over a ban on gambling advertising, New Zealand will allow ads “with restrictions.” In addition, unlicensed operators or those who fall foul of the regulator will face hefty fines established at NZ$5m (£2.2m).
“The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritise harm minimisation, consumer protection, and tax collection,” said van Velden. “The Bill will proceed to select committee later this year and New Zealanders will have the ability to have their say through the select committee process.”
While potential online casino operators will welcome the number of licenses being issued, other groups will likely be cold on the plans. SkyCity Entertainment Group, which owns several of New Zealand’s largest land-based casinos, had previously written to Van Velden requesting that fewer licenses be auctioned off.
Opposite paths
However, it’s not all a stampede toward open markets in New Zealand where gambling is concerned. At the same time the online casino market is opening up, the sports betting market is becoming more of a closed shop.
At the same time as the Online Casino Gambling Bill, the government has also amended the Racing Industry Act 2020, which will make TAB NZ the only legal sports betting operator in the country.
TAB NZ is operated by Entain, which has a 25-year contract to run sports betting in the country and is also active in Australia via other brands such as Ladbrokes.
“TAB NZ is the core funding source for New Zealand’s racing industry and contributes vital funding to a variety of sports codes,” said racing minister Winston Peters. “This legislation redirects New Zealand punters’ dollars for the benefit of the racing industry and sports here, rather than overseas commercial operators.”
