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New Zealand will open its online casino licensing process in July 2026, the Department of Internal Affairs has confirmed, setting a hard compliance deadline of 1 December 2026 for any operator wishing to serve the market legally.
The Legislative Framework
The licensing regime flows from the Online Casino Gambling Bill, which passed its first reading in July 2025 and is expected to receive royal assent in May. The bill brings domestic regulatory oversight to a market currently dominated by offshore providers. New Zealand players currently spend more than NZ$750 million ($442.54 million) annually on offshore online casinos, most of it outside any domestic regulatory framework.
The market will be capped at 15 licences, allocated through a structured three-stage process designed to balance competitive access with compliance rigour. New Zealand previously declared prediction markets illegal while signalling its intent to bring the broader online casino sector under domestic control — a position this bill now formalises. For wider context on the country’s shifting regulatory posture, see New Zealand declares prediction markets illegal as 15 online casino licences move forward.
Three-Stage Approval Process
The licensing timeline runs as follows. Once the bill becomes law, operators will have one to two months to submit an expression of interest. A licence auction will then open within one month of the expression-of-interest window closing, with the bidding period running up to two months. Operators that secure a licence through the auction proceed to the full application stage, where submissions are assessed against consumer protection standards, financial stability, and operational integrity. That evaluation is expected to take four to six months.
Licences will initially be granted for periods of up to three years, subject to renewal dependent on ongoing compliance. Operators that have not secured a licence by 1 December 2026 must cease offering online casino services to New Zealand residents. Non-compliant operators face fines of up to NZ$5 million ($2.95 million).
Tax Structure and Community Funding
Licensed operators will pay a 12% gaming duty on gross gaming revenue. The government has also mandated a community funding guarantee equivalent to 4% of GGR, a provision added following opposition from sports organisations that warned earlier versions of the reform could reduce community funding by more than $150 million. Officials estimate the regulated market will generate between $10 million and $20 million in its first twelve months of operation.
International operators are already positioning for the opportunity. Entain has indicated it intends to pursue three of the available 15 licences, with CEO Stella David confirming the interest during the company’s FY25 results call. CFO Rob Wood said Entain expects to capture up to half of a market it estimates at £600 million, though the New Zealand opportunity has not been incorporated into guidance for 2026 or 2027. For more on Entain’s position, see Entain targets three New Zealand licences as FY25 NGR hits £5.3bn.
Player Protection Provisions
The bill includes harm-prevention measures covering age verification requirements and restrictions on advertising directed at children. Data from the New Zealand Gambling Survey 2023/24 found that offshore online gambling participation is more pronounced among younger men and certain ethnic groups, particularly in areas experiencing social deprivation. The regulatory framework is designed in part to bring those player cohorts within domestic player protection obligations that offshore providers are not currently required to meet.
With the bill on track for royal assent in May and the expression-of-interest window opening shortly after, operators have a narrow preparation window before the first formal stage of the process begins.
Source: Department of Internal Affairs, New Zealand
