Online Casino Gambling Bill

The Online Casino Gambling Bill has now passed its second reading in Parliament and is progressing through the remaining legislative stages. The bill introduces a licensing system for online casino gambling to support a safer, more regulated online gambling environment. 

The select committee endorsed the decision to grant up to 15 online casino gambling licences, to be allocated through a competitive auction process. The auction will form part of the bill’s 3-stage licensing process.  

It’s anticipated that the legislation will come into effect from 1 May 2026. From this date, all online casino gambling providers operating in the New Zealand market can continue to offer their products until 1 December 2026. After this period, only providers that have been successful in the auction process and submitted a licence application may continue operating. 

During the second reading, Parliament also supported the Government’s decision to require the online casino gambling market to deliver returns to communities. As part of this, the Offshore Gambling Duty (which will become the Online Gambling Duty when the bill passes) will increase from 12% to 16%, with 4% benefiting communities. This is anticipated to be between $10 million and $20 million annually. 

With the second reading complete, the bill now moves into the final stages of the parliamentary process. Follow the passage of the bill here: Online Casino Gambling Bill. 

What this means for sport and recreation 

This bill represents one of the most significant shifts in New Zealand's gambling landscape. The most relevant aspect for sport and recreation organisations is the 4% of gaming revenue benefiting communities, with distribution potentially managed by the Lottery Grants Board.  

Minister of Internal Affairs Hon Brooke van Velden has acknowledged both the potential benefits and the uncertainty involved in the proposed changes.  

“While I am confident the regulated online casino market will provide new community funding opportunities for New Zealand sports clubs and community organisations, I do acknowledge that predicting the exact impact on existing Class 4 [pokies] returns creates some uncertainty.”  

Sport and recreation organisations that rely on Class 4 gaming grants should monitor developments closely. The Government has committed to a formal review after 2 years – once the online market is operational – to assess the impact on traditional gaming revenues. How the new online levy will be distributed hasn’t been decided yet, so it will be important for the sector to get involved early and use the review period to have their say. 

Find out more on the Department of Internal Affairs website.