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We use advanced SSL encryption, the same as major banks, to protect your data. But van Velden said the Crown would not get a lot of revenue from the new regime – perhaps only about $13 million extra a year in the first few years – and her main motivation was increasing the safety of online gambling. It said 5-7 licenses should be granted to New Zealand-based entities and was scathing about offshore operators not having to make community grants. RNZ has obtained hundreds of pages of documents about the new online casino market, using the Official Information Act. Internal Affairs minister Brooke van Velden, deputy leader of the Act Party, told RNZ she expected large, offshore gambling companies to win the majority of the 15 licenses auctioned off by the government.

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This article summarises the proposed online casino gambling tax and outlines the potential issues that the new Government may need to consider when implementing the proposal. The outcome of the recent general election and the formation of the new Government has placed renewed focus on the Government’s tax policy and how these changes could be implemented. The online casino licenses will be issued for three years under the new regime, due to start in February 2026, which will regulate online gambling in New Zealand for the first time. Documents obtained by RNZ show local operators fear the large offshore firms will eat up their market share – and siphon money away from the community grants they distribute from gambling profits. For those seeking additional privacy and extra layers of security, e-wallets are a great choice.

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Gambling expenditure in New Zealand has increased steadily over the last decade, and the games bridging the gap between sports and online casino games are a huge reason why. A November 2024 Cabinet paper on the new gambling market says forcing online casino operators to pay community grants might put them off bidding for a license. The new law will ban operators who don’t have a license from offering online casino gambling to New Zealanders, with fines up to $5 million. Foreign companies are set to dominate New Zealand’s internet gambling market as the government auctions online casino licences for the first time. Stay tuned as we take a deep dive into the world of online casinos with the best payouts, bringing you closer to that life-changing win. Today, while it is illegal for online gambling to be provided domestically, except by authorised providers (Lotto NZ and the TAB), it is legal for New Zealanders to gamble on offshore websites.

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The TAB told Peters there would be “severe implications for TAB NZ if this fast-growing online casinos market cannibalises our existing operations by being legitimised in NZ in an open market context”. Unlike Lotto, the TAB, casinos or the pokies, the successful bidders for the online casino licenses will not be required to pay any money to community groups. We need to update our laws for today’s digital world and future proof them as much as possible. Work is underway to develop a safe, regulated online gambling system for New Zealand that keeps people safe, allows only trusted providers to participate in the market, and contributes to the community.

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The TAB, which is a statutory entity, is barred from offering online casino gambling under current laws. “If a shift to online gambling on offshore operators results in a move away from other forms of gambling like TAB NZ or Lotto NZ, there could be a negative impact on current community funding streams.” The winners of the online casino license auction will have to pay GST, a 12 percent gambling duty and the problem gambling levy but not community grants.

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