A Look at the Laws for iGaming and Gambling in New Zealand
Nov. 20 2024, Published 3:00 a.m. ET
In the last decade of the 20th century, the internet became a household phenomenon. Gone were the days when the internet was a mystery. Then, it became just another commodity. As the years past, the internet became much more available, to a point that, nowadays, anyone can afford an internet connection, and can access the world wide web using a smartphone, PC, tablet, or other electronic devices. The availability of the internet has led to an increase in online markets, one of which is iGaming.
What is iGaming?
iGaming is a sort of catch-all term, which most people use to describe the online gambling industry. Often, under the label of iGaming are included online pokies, blackjack, roulette, poker, bingo, and even online lotteries. Some have even claimed that sports betting should be considered after iGaming, though many argue that those are two distinct industries. Regardless, those most familiar when it comes to casino websites are the ones most likely to have heard the term iGaming
The growing popularity of online gambling has led many to ask questions regarding legality. Namely, are online casinos legal in the country where they live? In this article, we are going to look at the laws and regulations that relate to online gambling and casinos in New Zealand, and talk about what could change in the future. So, without further ado, let us explore how the New Zealand government has decided to deal with online and land-based gambling.
Casino Regulations
As of the writing of this article, gambling is prohibited in New Zealand, unless it is authorized by the Gambling Act 2003 bill. The Gambling Act 2003 was a legislature passed in 2003, the purpose of which was to control the growth of gambling, prevent or minimize harm, authorize some forms of gambling and prohibit others, facilitate a responsible industry, and more. The act has been, by and large, successful, however, it is worth noting that it is not fully comprehensive, and hardly reflects the gambling industry today. While New Zealand official have done their best to augment and update the law, many have called into question just how relevant the Act is by today’s standards.
For example, the Gambling Act of 2003 does not refer to offshore casinos or online gambling. However, as things stand, it doesn’t really need to, as the New Zealand government has made it clear that remote interactive gambling is prohibited under New Zealand law. Under this definition, anyone who participates in an online game where they must pay to be a part of, and there is a reward, monetary or otherwise, is breaking New Zealand law. Despite the strict rule, there are some exceptions. For example, lotteries conducted by the state of New Zealand are exempt from the rule.
Another exemption to the rule is sports betting, even if it is done online. The Gambling Act of 2003 does have authority over online sportsbooks, and states that anyone older than 18 can participate in lottery, as well as horse race betting and sports betting. It makes sense, considering New Zealand is a country full of passionate sports fans, who do enjoy wagering on their favorite cricket, rugby, or football team, and even occasionally place bets on reality TV shows like “Real Housewives” and more. However, despite the strict regulation, some New Zealanders are happy to learn that things might change soon.
What Could Change?
In the past few years, online casinos grew quite drastically in popularity. The simple truth of the matter here is that many governments simply can’t prevent their residents from gambling online. With tools like virtual private networks and other ways to hide your IP, it is all but impossible to determine who is gambling online and who isn’t. Instead, officials have decided that the best way to protect their citizens’ safety is not to take away their agency, but to give them a regulated market. In line with this thinking, the New Zealand government has announced that they are going to be focusing on a highly regulated online gambling industry, rather than on banning the practice outright.
The plans are still in development, and will likely be put into effect in 2026, if all goes according to script. With that in mind, we can’t exactly say what the New Zealand government is planning, but we can assume it will have a lot to do with reviews and licenses issued to online casinos headquartered in and out of New Zealand by the country’s government. As things stand now, it seems that only a limited number of licenses will be available, and advertising in any way will be “strictly limited” according to certain government employees.
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Good or Bad?
A lot of people wonder whether legalizing and regulating online casinos is a good idea, or not. The truth is that there can never be an objective answer to this question, as most people will have their opinions on the merits of regulation versus outright banning. However, we can look to other countries for examples, and notice how they’ve benefited from legalizing the online gambling industry.
When doing so, the first thing to note is that a legal gambling industry online has almost never meant an increase in problem gambling or risk of underage gambling. In fact, in some cases, experts have found that online casinos tend to be safer than land-based casinos, as they are constantly monitoring the behavior of their players, and can take active steps to prevent issues.
On the other hand, a legal industry in several countries has resulted in some relatively positive outcomes. For example, the Canadian province of Ontario has recently made regulated online casinos legal, and they’ve noticed an uptick in employment, and have noted several economic benefits, such as an increase in income tax and personal wealth. In other words, a safe and regulated industry is almost always a better option than banning a market for which there is demand.
