New Zealand intends to reveal its iGaming licensing framework in July, as per a modified schedule of the Department of Internal Affairs.
The draft Online Casino Gambling Bill, which had its first reading passed in July 2025, is projected to be the law after the second reading in parliament in May. Following this, the draft will be submitted to a committee for the third reading.
New Zealand is set to change its regulation of the online casino sector through a new iGaming licensing framework that is expected to bring a local tighter control on the previously unregulated market.
This step is a reaction to the open concern for the New Zealand players who are said to be spending over NZ$750 million annually at foreign online casinos.
Licensing Process and Compliance Requirements
The three stage licensing process is expected to initiate in July 2026, with licenses being capped at 15 operators. The multi, phase method is meant to continue being a transparent, fair competition as well as strict compliance
During this earliest stage, the operators will be officially requested to submit their expressions of interest in the online casino market of New Zealand. The period during which EOI submissions will be accepted is expected to start right after the bill is made law and last for about one or two months.
After the EOI period has finished, within a month, there will be a license auction. It is envisaged that this auction/auction round phase will take up to two months, thus giving the qualified operators a chance to vie for the limited licenses.
The winners of the auction will be the ones filing full iGaming license applications. This will verify their compliance with requirements concerning consumer protection, financial stability, and operational reliability. The review/assessment should be around four to six months.
Initially, the licenses will be granted for a period of up to three years after which renewing a license will depend on operators continually complying fully with the regulations.
The Department of Internal Affairs, however, has determined a firm closing date for applications to be December 1, 2026. It stated, “After that date, operators who have not submitted a license application must cease online casino gambling services in New Zealand”.
If operators don’t comply with the requirement, they may get punished by means of fines of up to NZ$5 million and compulsory removal from the market.
Limiting the number of licenses to 15 will be just enough to stir competition as it would only permit a few operators to enter the regulated market in New Zealand. Such a limited supply is almost certainly going to lead to the concentration of the industry and operators will probably be factors in focusing on compliance costs and 12% gaming duty.
Community Funding and Player Protection Measures
The bill was initially opposed by major sports groups who claimed that it would lead to a loss of over $150 million in community funds. Later the government assured that iGaming operators would give 4% share of GGR to community funding, so the amount raised could be from $10 million to $20 million in the first year.
After experts advised that it was very unlikely for the market to open in June 2026, the latest announcement from the DIA is now seen as a step in the right direction.
The 2023/24 New Zealand Gambling Survey shows that offshore gambling is generally restricted to young men and certain ethnic groups, especially in areas of high social deprivation. Therefore, the bill has brought in these harm prevention measures, including strict age verification and forbidding the marketing of children, as part of its framework.
