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The four percentage point increase will be “ringfenced specifically for community returns,” according to the New Zealand government. This community funding initiative will undergo a two-year review to evaluate the impact of regulating online casinos in the market.
Transition from Grey Market to Regulated Framework
The duty increase forms part of New Zealand’s broader online casino reforms, which aim to transition the grey market into a regulated environment. The government will make up to 15 online casino licenses available through a competitive tender process.
Unlicensed operators will face penalties of up to NZ$5 million (£2.2 million) for operating without proper authorization. The regulations, first announced in November 2024, will also prohibit advertising that appeals to minors.
Online and retail sports betting will continue under the monopoly of TAB NZ.
Focus on Consumer Protection and Harm Minimization
Minister of Internal Affairs Brooke van Velden is leading the regulatory changes, emphasizing consumer protection as the primary objective.
“Protecting Kiwis from gambling harm is my number one objective,” van Velden said.
Van Velden highlighted community feedback that influenced the decision to direct tax revenue to local organizations.
“The message from communities was loud and clear – if we’re regulating online gambling, they want to see benefits flow back to local sports clubs, community groups and grassroots organisations,” van Velden said.
“Right now, Kiwis are gambling on thousands of overseas websites with no safety nets, no spending limits and no recourse when things go wrong. That’s unacceptable. This bill brings those operators under New Zealand law, with proper consumer protections, harm minimisation measures and now – community benefits.”
The reforms represent a shift toward a regulated online casino market that prioritizes player protection while generating revenue for community development.
Source: New Zealand Government
