AUSTRALASIA
price paid for a licence. Currently the New Zealand Regulator estimates that there are over 3,000 offshore or grey market providers accepting deposits from New Zealanders. The existing providers who are estimated to have five percent or more share of the iGaming traffic include Jackpotcitycasino. com, Casumo.com, Spincasino.com, and Leovegas.com. According to cabinet papers filed in September, 2024, a number of operators already active in the market have expressed interest in applying for an online licence. These include SkyCity, TAB NZ, Grand Casino Dunedin, Christchurch Casino, Class 4 societies, 888, Bet365, SpinBet, Spin City and Super Group (including Betway). Notably, the filing suggested the Tab should “remain outside the online casino regulatory regime” as it is already regulated for betting. Minister will ultimately determine whether the TAB can apply for an online casino license. The Government has made it clear that international operators are welcome to apply for a licence. New Zealand-based providers have not been granted any preference, as such a preference is considered to be contrary to New Zealand’s free trade agreements. It will not be necessary for licensed providers to have a physical presence in New Zealand. Operators will only be required to provide a New Zealand-based address for service. For these reasons, it is expected that most of the licenses on offer will go to non-native operators. The auction process is, however, a two-stage process starting with an entry assessment. Only those providers who are deemed suitable in stage one will be eligible to bid at the auction. The entry assessment will include a review of past compliance with New Zealand’s advertising prohibition, compliance with New Zealand’s tax requirements, and the provider’s consumer protection reputation. The entry assessment may therefore prevent some of the existing providers from being eligible to bid at the auction. Conversely, the entry assessment will
provide an opportunity for providers who are new to the New Zealand market, who will have no issue with completing the required declaration regarding any prior breaches of New Zealand’s laws. The regulator, the New Zealand Gambling Commission, has held two public consultations so far: a consultation on the proposed advertising restrictions, and a consultation on the proposed harm minimisation requirements. Despite a wide and open invitation to attend these consultation meetings, they were poorly attended. This could suggest that the number of providers who have an interest in applying for a licence will be lower than had been expected. What revenue/profit is likely to be generated? Certainty around likely revenue and profit will play a major role in the ultimate price paid at the auction. There are no accurate data on New Zealand’s current online gambling spend. Although the New Zealand market is a mature one, there is expected to be some growth as the new licensed providers will be able to freely market and advertise their products. Currently, New Zealand operates as a grey market, where the offshore online gambling offering is legal to New Zealanders whilst advertising and promotion of the online gambling is prohibited. The new license regime will turn that on its head making it illegal to offer unlicensed online gambling but permiting licensed operators to promote their products. The Minister in charge of setting up the new licensing system has indicated that “New Zealanders are gambling with online casino sites now – spending anywhere between NZ$300 million and NZ$700 million in a 'grey market' where hard data is scarce.” The economic reports that have been prepared, and the analysis by New Zealand’s existing land-based providers, indicate that the iGaming spend is likely to be at the higher end of the NZ$300-NZ$700 million range given by the Minister.
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IMGL MAGAZINE | JUNE 2025
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