New Zealand’s iGaming bill clears final parliamentary reading

(AsiaGameHub) –   New Zealand’s Online Casino Gambling Bill has successfully completed its third and final parliamentary reading this week, as the iGaming sector prepares for a 2027 launch.

Sponsored by Internal Affairs Minister Brooke van Velden, this legislation aims to strengthen consumer safeguards and roll out licensing and taxation frameworks for operators. The bill now moves to Royal Assent and is forecast to be enacted into law in May.

Key provisions of New Zealand’s iGaming bill

The bill allows for the issuance of up to 15 licenses to eligible online casino operators via a competitive application process. The Department of Internal Affairs (DIA) will oversee the licensing regime in line with a revised timeline published in March 2026. 

Entain announced in March that it was pursuing three of the 15 available licenses. During the company’s FY25 earnings call, CEO Stella David noted that, with its exclusive New Zealand betting brand TAB, Entain is the sole online operator able to cross-sell sports betting and iGaming services.  

This timeline plans for the licensing process to launch in July, with an application deadline set for 1 December 2026. Licensed operators will face strict compliance requirements. 

“This bill upholds the coalition agreement by closing the gambling tax loophole and mandating that licensed online casino operators pay taxes, just like any other business operating in New Zealand,” van Velden stated during a government update on Thursday.

The legislation also bolsters the DIA’s regulatory enforcement capabilities. According to van Velden, these tools will include:

• Take-down notices
• Formal warnings
• Enforceable undertakings
• Penalties of up to NZ$5 million for serious or repeated breaches

The government had previously announced that it would allocate a portion of gross gaming revenue (GGR) from licensed online casinos to support local sports clubs, community groups and grassroots organisations. 

Cabinet papers from November revealed that the government was considering earmarking 4% of operator GGR to fund these community contributions. This funding could generate between NZ$10 million and NZ$20 million in its first year if the new regime launches on 1 January 2027, though stakeholders have hinted at further delays.

The launch was already pushed back from its initial 2026 target.

Offshore operators put on notice

A notable feature of the legislation is its extraterritorial reach. The enhanced enforcement powers of the online casino gambling bill will ensure that New Zealand’s gambling laws apply to all online casino services accessible within the country, regardless of the operator’s physical location. 

This legislation aims to close the loopholes currently exploited by some offshore providers. Operators that fail to submit license applications by the 1 December 2026 deadline will face legal obligations to cease providing their services in the country. They will also be subject to the same NZ$5 million penalty cap for non-compliance.

Industry flags tight timeline as race against the clock

The bill passed its first reading in parliament by 83 votes to 39 and advanced to the Governance and Administration committee in July 2025. 

Throughout the legislative process, industry stakeholders and legal experts raised concerns regarding the accelerated timeline and lack of regulatory detail. Legal advisers cautioned that the compressed schedule could limit thorough consultation on forthcoming regulations.