New Zealand’s push to regulate online casino gambling has taken a major step forward after Parliament’s Governance and Administration Committee recommended that the Online Casino Gambling Bill proceed.

According to the committee’s majority report, the legislation is now expected to advance to a second reading, where Members of Parliament will debate and vote on an amended version of the bill.

The proposal is designed to replace New Zealand’s largely unregulated online casino market—currently dominated by offshore operators—with a domestically regulated framework.

If enacted, the bill would introduce a capped licensing regime, tighten enforcement against unlicensed operators, and establish clearer rules around harm minimisation, advertising standards, and consumer protections in the online casino sector.

Licensing Cap and Market Controls

Under the current draft, New Zealand would issue a maximum of 15 online casino licenses.

Supporters of the bill argue that the cap is intended to control the size of the market rather than allow unlimited operator entry, ensuring that only a small number of approved companies are permitted to offer online casino games once licensing begins.

After a transition period, any platform operating without a license would face significantly stricter enforcement measures and penalties.

Community Funding Safeguards

The select committee also placed strong emphasis on protecting community funding streams.

Thousands of public submissions raised concerns that the growth of online gambling could divert revenue away from land-based gaming machines that currently support local sports clubs and community organisations.

In response, the committee backed a model that would ring-fence a portion of online casino revenue for community use. Reports frequently referenced a contribution of approximately 4% of gross gaming revenue, to be distributed through an established body such as the Lottery Grants Board.

Timeline for Implementation

While the exact implementation dates are still under discussion, the bill could be passed in early 2026. Licensing, application reviews, and enforcement measures would then be rolled out in stages.

The full launch of New Zealand’s regulated online casino market is expected to take place in late 2026 or later.