In the early noughties, the United Kingdom and New Zealand faced the same issues when it came to online gambling. Both took laissez-faire approaches, albeit with different implementations.
In the UK, a regulatory framework was established to allow the industry to flourish economically, although little thought appeared to be given to the potential social impacts of 24/7 online gambling. It is only now, for example, that the state finally seems to be getting a grip on problem gambling and constant advertising.
In New Zealand, the government enforced a similar laissez-faire attitude but with a minimum regulatory framework. This resulted in a largely unregulated market in which overseas companies dominated, taking New Zealand tax dollars out of the country.
Huge swathes of the USD 297.6 million in online gambling revenues generated by New Zealanders were gobbled up by overseas operators. Thankfully, from next year, the majority of that money should be going into the hands of domestic companies.
Changing Legislation
In February 2026, a swathe of changes in the domestic online gambling industry is set to come into place. The most important of which will be a complete ban on operators who have not obtained a licence, with fines of up to $5 million used as a deterrent.
Not only will this dramatically reduce the number of overseas companies operating illegally in the country, but it will, for the first time, allow a huge range of domestic-based companies to muscle in on the action.
It is expected that, at the time the bill passes, up to 15 domestic online gambling companies will be officially licensed, with that number expected to rise in the coming years.
The Economic Uplift
The official online gambling revenues mentioned above are, at best, an estimate. That’s largely down to the fact that a huge amount of the money spent by New Zealanders online is not officially recorded as it is accounted and banked overseas.
Industry experts estimate that in the first year of legislation, incentivising domestic companies’ official revenues will rise to USD $584.5 million, but that figure could go much higher. Whilst exact figures are hard to come by, a large increase in domestic operators is also going to provide a large spike in jobs.
Making an Impact
The task on the hands of the 15 domestic operators will be to establish themselves not just against one another, but to prove to customers that they are better than the old overseas providers. In order to do that, they need to understand what Kiwi gamblers are looking for.
New Zealand casinos with no deposit have become increasingly popular over the past few years, showing that there was previously a gap in the market, which is now being catered to for these customers. Capturing even more customers by going above and beyond to secure their business is the next step.
Warding off Overseas Competition
$5 million fines will be a deterrent to large gambling companies that play by the rules. The big American and British companies currently taking wagers from New Zealanders are likely to apply for official licences and play by the rules.
The same cannot be said for every company, though, with many likely to continue operating illegally with no intention of paying fines. To ward off the threat of these companies, domestic ones from NZ will not only need to provide their players with economic incentives but with entertainment ones as well.
Staying ahead of the game when it comes to technology is a tried and tested recipe for success in the online gambling industry. NZ companies will need to ensure they do the same, not only by getting fully on board with current innovations like Live Casinos but also by investing heavily in future trends like AR and VR casinos.
In Summary
It’s of vital importance that New Zealand’s fully licensed and operational online casinos strike quickly in capturing customers and establishing their market presence. If they do, riches in revenues are theirs for the taking.
Fortunately, there are tried and tested roadmaps to online gambling success, not just from the United Kingdom, but all over the globe that they can learn from.
