Parliamentary Panel Backs Plan to Legalize Online Casinos in New Zealand
LISTEN TO THIS ARTICLE:A parliamentary committee has endorsed a bill to legalize online casino gaming and fold licensed operators into New Zealand’s regulated gambling framework.
Committee Backing and Political Reaction
The Governance and Administration Committee has published a report supporting the Online Casino Gambling Bill, arguing that a regulated domestic iGaming market could reduce offshore play and retain funds for local causes. The bill, promoted by Internal Affairs Minister Brooke van Velden, seeks to create a licensing regime requiring online operators to meet the same community-return and harm-minimisation obligations as land-based venues operating under the Gambling Act 2003.
Minister van Velden described the measure as a way to modernise the sector while protecting communities. "Bringing online casinos into a regulated framework will help reduce offshore-related harms and keep revenue circulating in New Zealand communities," she said.
The committee’s endorsement comes after an extensive consultation process that drew more than 5,000 public submissions. Almost 4,000 of those submissions raised concerns about the potential impact of online casinos on revenue from poker machines – commonly called "pokies" - which currently fund clubs, sports teams, cultural groups and disability services across the country.
Safeguards, Community Contributions and Industry Concerns
To address those worries, the government has signalled that licensed online operators will be obliged to make local contributions comparable to those paid by brick-and-mortar operators. The bill also mandates a suite of responsible gambling measures: identity verification, predefined spending limits, mandatory self-exclusion tools and tighter advertising controls. Regulators will be empowered to enforce compliance and to revoke licences for breaches.
Advocates for regulation argue the current status quo – where many New Zealanders use offshore sites that fall outside local rules – leaves players without safeguards and diverts money overseas. "Offshore operators offer no meaningful consumer protections and siphon funds away from the communities that depend on them," a spokesperson for the bill's backers said.
Not all stakeholders are convinced. The Problem Gambling Foundation warned that increased convenience and accessibility could increase harm among young people and other vulnerable groups. "We remain concerned that easier access to online gaming will drive higher rates of problem gambling unless the regulatory settings are ironclad and actively enforced," said a representative of the foundation.
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The legislation proposes a formal review of online gaming’s impact after two years of operation. Officials have indicated that the review will examine changes in poker machine revenue, shifts in gambling participation, rates of problem gambling and whether community contribution levels are being maintained. Possible policy responses identified in preparatory documents include adjusting contribution rates, tightening advertising restrictions, or introducing additional product-specific controls.
International regulators such as the United Kingdom Gambling Commission and Australian state regulators have been cited in committee evidence as reference points for enforcement and measurement approaches. The two-year review is intended as a mechanism to recalibrate the regime once regulators and parliamentarians can assess real-world effects.
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