NZ Moves to Regulate Online Gambling with New Safety-Focused Licensing Bill

New Zealand has taken its first major step toward regulating the country’s fast-growing but currently unmonitored online gambling industry, with the Online Gambling Regulation Bill, sponsored by Minister of Internal Affairs Brooke van Velden, passing its first reading in Parliament.

The proposed legislation seeks to create a comprehensive licensing and oversight framework for online gambling operators, many of which currently operate offshore without accountability or harm prevention measures. The Bill aims to strike a balance between giving New Zealanders the freedom to gamble online, while introducing critical safety measures, consumer protections, and revenue mechanisms for public benefit.

An Unregulated Market with Real Risks

Under existing law, New Zealanders are legally permitted to access thousands of online gambling platforms based overseas. However, these operators are not subject to any New Zealand laws or regulations, meaning there are no mandated safety standards, no player protection protocols, and no mechanisms to mitigate gambling-related harm.

“Currently, New Zealanders can legally access thousands of offshore gambling websites. But the market is unregulated, so there are no player safety standards or oversight of harm minimisation,” said Minister van Velden.

Research and public health advocates have long warned that the lack of regulation in the digital gambling space leaves vulnerable individuals exposed to addiction, financial exploitation, and mental health risks. The Bill addresses this regulatory vacuum by establishing a legal framework that prioritizes consumer safety and responsible gaming.

A New Licensing System with Strict Criteria

The Bill proposes a cap of 15 licences for online gambling operators, which will be made available through a competitive auction process. Only companies that can demonstrate a robust harm prevention strategy, maintain transparent compliance records, and meet financial and operational integrity standards will be eligible to apply.

Key features of the licensing regime include:

• Mandatory harm minimisation policies

• Requirements for displaying responsible gambling information

• Player protection tools, including self-exclusion and spending limits

• Mandatory reporting of suspicious or harmful behavior

• Full compliance with data protection and privacy laws

“My intention with this Bill is to ensure that online gambling is safer for New Zealanders who wish to gamble online. In addition, that companies providing this service contribute to tax revenue and funding the services that treat gambling harm in New Zealand,” van Velden said.

Regulatory Oversight and Enforcement

The Department of Internal Affairs (DIA) will be the primary regulatory body tasked with enforcing the new framework. The Bill enables DIA to carry out:

• Audits and compliance checks

• Enforcement of player protection standards

• Investigation of rule breaches and illegal activity

• Imposition of penalties up to NZD $5 million for non-compliance

All administrative and enforcement costs will be fully recovered through licensing fees and levies on approved operators, ensuring the regulatory system is cost-neutral to taxpayers.

Additionally, licensed operators will be required to contribute to a public fund dedicated to preventing and treating gambling-related harm, a move aimed at increasing public health investment and support services for affected individuals and families.

Public Participation and Select Committee Stage

The Bill now moves to the select committee stage, where it will be subject to public submissions and detailed review. Minister van Velden has encouraged individuals, advocacy groups, and stakeholders to engage actively during this process.

“The most important part of this Bill is protecting New Zealanders who enjoy gambling online by introducing robust safety measures for licensed operators. I encourage interested New Zealanders to have their say when public submissions open,” she said.

The select committee will also consider possible amendments, such as adjusting the licence cap, clarifying consumer protections, and strengthening penalty regimes, based on input from experts and community voices.

Aligning With Global Best Practices

If passed into law, the Bill will bring New Zealand in line with many other jurisdictions—including the United Kingdom, Australia, and several EU countries—that have already implemented online gambling regulation. These frameworks have shown that well-regulated gambling markets can deliver economic returns, reduce public health costs, and protect vulnerable consumers more effectively than prohibition or inaction.

Industry stakeholders have welcomed the clarity that licensing would provide, while social service groups have praised the Bill for addressing one of the most under-regulated areas of digital commerce in New Zealand.

A Step Toward Safer Digital Entertainment

As online gambling continues to grow, particularly among young and tech-savvy populations, the push for oversight and consumer protections has become more urgent. With this Bill, New Zealand is poised to build a modern, accountable, and harm-aware gambling environment that benefits both players and the public sector.

The Bill’s successful passage through Parliament will depend on continued cross-party support, stakeholder engagement, and community input—all of which will shape the future of online gambling in the country.