New Zealand’s authorities plan to initiate the digital casino licensing procedure this July. The details were posted by the country's DIA, which also unveiled a schedule for the regulated market launch. The reform introduces a 3-stage certification program and limits the number of operators to 15.
iGaming Oversight: Key Details About the Law
The Online Casino Gambling Bill's 1st passage in Parliament was held over half a year ago. It is expected to be finally endorsed in May after a 2nd session. The project creates a fully-fledged economic system and redirects the digital segment under state control.
The need for changes is driven by the fact that part of the industry currently operates through foreign portals. Authorities estimate that over NZ$750 million a year leaves the local vertical and flows to offshore gaming websites.
Stages of the Introduced Certification System
The legalisation procedure will consist of 3 major milestones:
- Expression of Interest (EOI). If the initiative is passed into law, contestants will be able to formally announce their determination to enter the online gambling market in New Zealand. This period is predicted to last around 1−2 months.
- Licence tender. After the 1st stage reaches its final point, a selection process will take place in several weeks. During this window, companies will bid for a limited number of permits. The phase will go on for up to 2 months.
- Application submission. Winning studios will be required to send documents for further verification. The commission will assess compliance with rules, such as those related to player safety, financial standing, and business integrity. This step promises to be the longest, taking 4−6 months.
Certifications will be valid for up to 3 years. There will be possibilities for their renewal, subject to adherence to all supervisory conditions.
Strict Deadlines and Penalties
The DIA has set a final date for submitting applications of December 1st, 2026. After that, contestants who fail to send licence documents must cease providing internet casino offers in the state. Violations will result in fines of up to NZ$5 million and forced closure.
The 15-permit limit creates heated competition among bidders. Nevertheless, this model promises to ensure transparency and compliance. Studios will also be subject to tax burdens, including a gaming levy of 12%.
Contributions to Community Programs
At first, the bill drew criticism from sports-related organisations, who feared cuts to investment. They noted that the industry could lose over NZ$150 million in sponsorship for social initiatives.
In response, the government announced the shaping of a community-funding mechanism. Under the new rules, permitted platforms must allocate 4% of their gross revenues to public projects. The changes are expected to generate NZ$10 million to NZ$20 million in contributions to social programs in the 1st year.
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