The gambling business in New Zealand is constantly growing. Its GGR is predicted to reach $3.11 billion in 2025 and continue to develop at a CAGR of 3.21% till 2029 ($3.53 billion), according to Statista’s research.
With such a dynamic surge in the industry, the opening of a digital vertical seems a strategic move. Thus, the country’s government is preparing to launch an online licensing system in 2026, delivering promising prospects for international investors.
Casino Market experts review the peculiarities of the emerging sector and discuss the first forecasts for its growth. With our help, you can open an iGaming project in the world’s most business-friendly destinations.
Player Profiles and Preferences in the State
The number of gamblers is expected to reach 2.2 million by 2029. The citizen penetration rate in the industry is predicted to account for 39.2% by the end of 2025.
A common punter from New Zealand looks as follows:
- age group — from 18 to 35 years old;
- gender — male (men play twice as often as girls);
- income — (above) average (a median monthly salary of $3,020);
- motivation — desire to win or have fun, depending on the entertainment type.
According to the report from the country’s Gaming Machine Association, 7 out of 10 adults enjoy niche activities at least once a year. They prefer lotteries the most, but sports wagering, bets on racing, and pokies are also popular.
Let us review the key peculiarities and preferences of New Zealanders:
- Network access. Over 96% of the population has a stable Internet connection. The main mobile operators are Spark, Vodafone, and 2degrees. They provide 4G and 5G coverage.
- Payment methods. Citizens actively use electronic wallets, credit cards, and cryptocurrency to pay for services.
- Traffic sources. About 70% of players access websites from smartphones and tablets. Popular platforms include Google, YouTube, Facebook, Reddit, X (former Twitter), and Instagram.
- Popular games. Slot machines are the most common type of real-money content. Sportsbooks, lotteries, and poker are also in demand. Among the favourite betting disciplines are football, tennis, and horse racing.
Current Legal Framework and Segmentation
In 2003, the state’s authorities passed the Gambling Act, which divided all types of entertainment into categories based on scale and prize size.
The arrangement is as follows:
- Class 1. These are small unlicensed games with wins up to $500 per session. For instance, charity raffles belong here.
- Class 2. The group includes content with rewards or potential turnover that do not exceed $5,000 and $25,000, respectively. There is no need for a licence, subject to established conditions.
- Class 3. The category comprises large charity events that require an official certification. Prizes must be within $5,000.
- Class 4. These are slot machines that are located outside of casinos. The sector is the most strictly controlled.
At the time the law was passed, iGaming in the country was just beginning to develop, so the supervision of this segment was not included in the framework. As a result, internet gambling within the country remains prohibited. At the same time, there is no direct ban on offshore operators, which creates legal loopholes in the market.
This gap has contributed to the rapid growth of the grey segment and resulted in potential annual tax revenue losses of $140 million for the local treasury. In 2023, 40% of the industry’s total earnings were generated by web platforms.
Major Brands in the Entertainment Market
So far, only land-based establishments, state online lotteries, horse racing, and traditional bookmakers are officially allowed to offer services in New Zealand.
The sphere’s participants can be divided into 3 key groups:
Monopolies
Companies with exclusive rights generate the biggest part of the overall market revenue, about $600 million.
The 2 largest representatives:
- Tab NZ. It is a licensed sports and horse racing wagering operator, boasting a strategic technology and product alliance with Entain. As of summer 2025, the enterprise is the only legal bookmaker in the country, following the adoption of a law banning offshore betting brands.
- Lotto NZ. The state raffle corporation has been working since 1987 under the local Lotteries Commission’s management. The government strictly regulates the operator’s activities, and all profits are sent to the Lottery Grants Board. Its key products are Powerball, Strike!, and Lotto.
Local Studios
A leader in the land-based gambling industry is SkyCity Entertainment Group, which runs establishments in 3 New Zealand cities.
These are:
- Hamilton;
- Auckland;
- Queenstown.
The participant has also entered the local online casino sector. Its website displays a Malta gambling licence.
There are other niche facilities in the country, but of a smaller scope. The ground vertical brings in around 45% of the total industry revenue.
Offshore Platforms
There are 2 types of grey iGaming companies:
- Illegal platforms. They do not contribute any commissions to the state’s treasury and function outside of local regulation.
- Taxpayers. Such brands cover VAT and the gambling levy. Typically, these are web casinos that adhere to rules and have a solid licence, like Maltese or British.
From July 1st, 2024, the country’s authorities introduced an additional offshore charge of 12% on top of the 13% VAT tax. The total fiscal burden increased to 25%, varying from $24 million to $51 million per year for each company.
Launch of a Digital Licensing System
In response to the growth of the shadow sector, New Zealand’s authorities plan to implement a certification program in 2026 and issue 15 permits through a tender.
The new regulation is expected to strengthen control by introducing international standards:
- mandatory KYC checks;
- age restrictions on advertising;
- fines of up to $3 million for non-compliance.
The reform’s central goal is to direct players to legal platforms, strengthen consumer protection, and increase tax revenues. Additionally, in 2026, new regulatory bodies will be established for an even higher level of oversight.
The initiative promises to revive healthy competition, attract solid investment, and drag large operators into the market. These expectations are already beginning to be justified, as some international brands have expressed interest in joining the legalised online sector.
The following have announced their intention to obtain a local licence:
- SkyCity;
- 888 Casino;
- Super Group;
- Bet365, and others.
Current expenses on the grey segment are approaching $900 million. With a 25% fee on such operations after the system introduction, the state is projected to receive between $125 million and $225 million.
Further Changes and Expected Market Expansion
Once the program is implemented, the 2 monopolies in the country will retain exclusive rights on sports wagering, bets on horse racing, and lotteries. The government has already revealed that foreign operators will be prohibited from offering services in these niches.
Currently, offshore companies that pay taxes generate approximately $345 million in revenue. Players already spend around 89% of their money domestically. This advantage allows Tab NZ and Lotto NZ to maintain the status quo in their segments. Nevertheless, the entry of new licensees will likely lead to a redistribution of market share.
International operators can grow their footprint with the following:
- financial investments;
- worldwide-scale popularity of brands;
- experience of working in a highly regulated environment.
At the same time, local companies can maintain a competitive advantage due to recognition among citizens, earned audience trust, and understanding of residents’ preferences.
The Main Things About New Zealand’s iGaming Sector
The country follows the steps of gambling giants from Europe and North America, trying to open the world of certified digital entertainment to its population. With the decision to launch an online licensing program, the state comes closer to growing its regulated segment, which benefits businesses and the government, as well as protects players.
Let us review key takeaways from the article:
- The local gambling sphere’s GGR is predicted to reach $3.11 billion in 2025 and to continue developing at a CAGR of 3.21% till 2029, up to $3.53 billion.
- A common punter from New Zealand is a man between 18 and 35 years old with an above-average income and the desire to win or have fun (depending on amusement categories).
- In 2003, the state passed the Gambling Act, which divided all types of content into 4 classes. At that time, iGaming in the country was just beginning to develop, so this segment was not included in the framework.
- The sphere’s participants can be segmented into 3 key groups: monopolies, local establishments, and offshore operators.
- The new regulation is expected to strengthen control by introducing international standards, such as mandatory KYC checks, age restrictions on advertising, etc.
With the upcoming changes, New Zealand is well-poised to become another major entertainment hub, gathering prominent names around its premises.
Casino Market’s team keeps clients updated on the latest changes in large gambling jurisdictions and helps them run niche businesses in compliance while remaining highly profitable.
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