Latest Insights of Casino Licensing in New Zealand

Lily Hunter - Head Content Writer at CasinoCrawlers
by Lily Hunter
Latest Insights of Casino Licensing in New Zealand
Published: 05/04/2022
Reading: 3 minutes

Gambling, in various forms, has long been a popular hobby among New Zealand people. In the past, betting and gambling activities were denied access, but now anybody may participate in gambling activities regulated by the country's Department of Internal Affairs (DIA).

According to the NZ National Gambling Study, nearly 75 percent of people in New Zealand are engaged in gambling activities. The betting numbers for 2020 were equal to every adult New Zealander spending $572 on gambling. Detailed cost break-up notes $128 spent at casinos, $160 spent on Lotteries Commission (Lotto), $80 expended at the TAB, and a stunning $204 ended up squandering at the pokies. As a consequence, more new casinos in New Zealand are drafting to apply for licenses to accommodate the rising demand.

The Department of Internal Affairs (DIA) identifies four types of gambling under the Gambling Act of 2003, each of which may require a separate license based on the value of the winnings and the amount of money wagered. The Gambling Commission of New Zealand requires casinos to hold a Class 3 license. Six casinos have been granted such permits so far.

Even though all land-based casinos can seek licenses, internet operators domiciled in New Zealand are not controlled by the DIA and not licensed by the Gambling Commission, making online gambling at local operators illegal for New Zealanders. However, there is a legislative loophole, making it completely legal for local citizens to play at online casinos headquartered outside of New Zealand, allowing huge companies licensed in other countries to enter the New Zealand online gambling market.

Choices for Online Gambling in New Zealand

The lottery, sports, and horse racing through Totalizator Agency Board (TAB), New Zealand's regulatory monopoly for sports betting, are the only gambling activities authorized to be conducted online by New Zealand-based providers. TAB was driven to initiate a campaign against offshore operators due to the numerous options that offshore operators provide online, including lower minimum age requirements, but Kiwi gamblers' conduct has shown no sign of abandoning offshore operators' perks.

According to surveys, players in a world driven by technology will naturally seek handy methods to play the most favorable online slots on their iPhones and other devices, even if it means leaning on other nations to ensure their online safety.

Advantages of Offshore Operators Outweigh the Disadvantages

One trend shown by the four-year study is that Kiwi players are becoming younger, and offshore operators can serve this segment for at least 18 years old when New Zealand's minimum gambling age is 20. Local payment options are also encouraged by such online casinos to make banking easier. In terms of customer service, offshore companies set up toll-free numbers to make it very simple for their New Zealand clients to contact them.

They also include a large selection of casino games that would otherwise be unavailable online, such as slots, blackjack, roulette, and other casino favorites.

Although the New Zealand Gambling Commission does not provide licenses to overseas operators, they are authorized and controlled by federal regulators in their home countries, such as the UK Gambling Commission, Malta Gaming Authority, and others. It implies that New Zealanders will have to follow the licensing authority's rules, depending on which offshore online casino they pick.

New Zealand gamblers would have to abide by the laws of another nation or region. With the popularity of online gambling on the rise, it's evident that this isn't an impediment.

Every three years, the government updates its plan for combating problem gambling and reducing gambling harm focused on technology and assisting the most vulnerable populations. The Ministry of Health in New Zealand has said that non-casino gambling machines, typically found in clubs and bars, provide the highest risk of harmful gambling.

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Author Lily Hunter

Lily began her career in the iGaming industry more than 10 years ago as a content writer for various online casino sites, such as Unibet and William Hill. With her passion for gaming and an interest in the legal landscape in va... Read more about the author

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Last updated: November 24, 2022