New Online Casino Gambling Act Directs Revenue Share to Local Communities

Brooke van Velden, internal affairs minister, has highlighted the passage of the third and final reading of the Online Casino Gambling Bill, which introduces a regulatory framework that offers up to 15 licences via a competitive process. 

In a news release, she explained that the new regulatory regime will require licensed operators to exclude problem gamblers and to comply with stringent requirements for preventing harm and protecting consumers. 

The government shared that the legislation seeks to ensure the return of a portion of online casino gambling revenue to New Zealand’s communities. 

van Velden noted that the submissions on the bill called for online casino gambling benefits to flow back to local sports clubs, community groups, and grassroots organisations. 

“This Bill delivers on that expectation,” she said in the government’s news release. 

According to van Velden, in support of the coalition agreement, the legislation intends to close the gambling tax loophole and require licensed online casino operators to pay tax, just like other New Zealand businesses. 

She said that the bill seeks to strengthen the enforcement tools – including take-down notices, formal warnings, enforceable undertakings, and maximum penalties of $5m for serious or persistent breaches – for the Department of Internal Affairs to regulate the sector. 

“These tools will ensure that New Zealand law applies to all online casino gambling available in New Zealand, regardless of where operators are located, closing off avenues for avoidance and strengthening the regulator's ability to monitor and enforce compliance by international operators,” she said. 

More on bill and regulations

According to information on Parliament’s website, the bill was introduced on 29 June 2025 and passed its first reading on 15 July 2025 and its second reading on 3 March 2026, with the Committee of the Whole House concluding on 25 March 2026. 

The legislation then passed its third reading on 22 April 2026 and received royal assent on 27 April 2026, with the governor-general formally signing the Online Casino Gambling Act 2026 into law. 

The government noted that supporting regulations will encompass advertising, harm minimisation and prevention, consumer protection, and cost recovery fees and levies. The government plans to establish these regulations this year to implement the licensing system.