AUSTRALASIA
While the total revenue is difficult to predict, there is some certainty around the Government-related operating costs. The two major taxes, a 12 percent Online Casino Duty and a 15 percent Goods and Services Tax, are already in place. The ongoing licensing fees will be set at a rate that recovers the Gambling Commission’s costs in regulating the new online providers, and no more. This is expected to be a “general licensing levy” that will be a small percentage of the licensed providers’ gross gambling revenue. A problem gambling levy, of approximately one percent of the licensed providers’ gross gambling revenue, has also been signalled. The successful bidders for the online casino licenses will not be required to contribute any money to community groups. This is in contrast to Lotto, the TAB, land-based casinos and the pokies which either return a portion of profits to the community or are operated as charitable foundations as is the case with pokies.
discussed above. New Zealand has a reputation as one of the least corrupt countries in the world. Holding a New Zealand- issued online gambling licence may increase the providers’ reputation internationally. Having a positive operating history in New Zealand may also assist the provider to expand into Australia and other parts of the Pacific in the future. The licences will be for a reasonable period, but considerably less than what would be expected for a land-based licence. The licences will be awarded for an initial three-year period, with one right of renewal of up to five years. Operators will only be able to offer online casino games, not sports betting or lottery products. This will include live table games, slot machines, poker where the players play against one another, instant games and daily games like Keno. Licence holders will, however, be able to offer virtual sports and racing betting. While the online casino market will be regulated, the Government’s intention is to make the offering as attractive as possible to maximise tax revenue and minimise the number of players who seek to use unlicensed providers. Licensed gambling operators will be allowed to advertise within certain limits. The advertising restrictions that have been signalled are what could be expected, including a prohibition on advertising that appeals to children. It is clear however, that sponsorship by online casinos will be prohibited. The age restrictions are also as expected. The minimum age for online gambling will be 18. Online gambling operators will have to have an acceptable age verification system. The licence will, however, only permit the licence holder to operate one platform/brand/website. If a provider wishes to operate multiple platforms or brands, an additional licence will be required. Operators will be permitted to hold a maximum of three licences.
How valuable will the licence be?
Being able to operate freely and openly within New Zealand is clearly valuable. There are
also other potential benefits beyond the profit potential
Once the licensing system is in place, the regulator will take
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IMGL MAGAZINE | JUNE 2025
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