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New Zealand has taken another step toward regulating online casino gambling, after a parliamentary committee recommended passing legislation that would bring offshore play into a licensed domestic market.
Parliament’s Governance and Administration Committee has reported back on the Online Casino Gambling Bill and, by majority, backed it to proceed. The recommendation clears the select committee stage and sends the bill to Parliament for its second reading, where MPs will debate and vote on the revised text.
If the bill becomes law, it would replace today’s reality, widespread use of offshore sites, with a capped licensing system, tougher enforcement against unlicensed operators, and clearer rules around harm minimisation, advertising, and consumer protection.
A regulated market, but with a hard cap
The bill, sponsored by Brooke van Velden, would allow up to 15 online casino licences to operate in the country. Lawmakers agreed that the choice was made as a way to control market size rather than open the door to unlimited operators.
Only a small group of operators would gain legal access once the licensing window opens, and any site operating without a licence would face stark restrictions once the transition period ends.
The bill has been moving through Parliament since it was introduced in late June 2025, passed its first reading in July 2025, and has now emerged from committee review. It remains awaiting its second reading, which is where MPs debate and vote on the bill with the committee’s recommended changes.
Committee changes focus on timing and community funding
One of the biggest changes deliberated is about the timing. The committee recommended pushing key dates back to allow a longer transition from offshore play to licensed operations. That includes more time for operators to apply and for regulators to set up licensing and enforcement systems.
Another pressure point was community funding. Thousands of submissions warned that shifting gambling online could reduce funding for community groups that rely on proceeds from land-based gambling.
In response, the committee backed a model that would ring-fence a share of online casino revenue for community purposes. Reporting around the bill has consistently referenced a contribution equivalent to around 4% of gross gaming revenue, though the final mechanism would be set in regulation.
The committee also supported moving administration of those funds into an existing structure, with the Lottery Grants Board widely cited as the likely administrator.
The bill is not expected to take effect immediately
According to industry and legal analysis, early 2026 is the most likely window for final passage, followed by a step-by-step implementation. Licensing, application review, and enforcement would come later, with full market launch likely in late 2026 or beyond.
Under the committee’s recommendations, offshore operators would get a defined window to apply for a licence. After that, unlicensed sites would face stronger restrictions than they do today.
The bill now heads to its second reading, where MPs will decide whether to accept the committee’s direction or push for further changes.
Source: Poker Industry Pro
