Legalization of Online Casinos and iGaming Advertising in New Zealand

In 2025, New Zealand made the decision to legalize online casinos and iGaming advertising, sparking widespread discussion in society. As part of this process, the government plans to hold an auction to issue 15 licenses for offshore operators. These measures aim to create a transparent and regulated market that will allow effective control of the gambling industry and collect taxes from its participants.

Advantages and Goals of Legalization

New Zealand’s Minister of Internal Affairs, Brook van Velden, noted that the launch of legalized online casinos and the permission for advertising would create a more transparent market. She emphasized that this decision would also help the government collect taxes efficiently, and licensing operators would reduce the risks associated with illegal gambling sites.

“Our goal is to make the market safe and also ensure the ability to collect taxes, which will reduce the harm from illegal operators,” said van Velden.

Risks and Concerns

At the same time, the decision to allow online casino advertising raised concerns among representatives of gambling addiction organizations. For example, Andrea Fraud, a representative of the Problem Gambling Fund, spoke out against the legalization of advertising, arguing that it would normalize gambling and increase risks for people with addiction issues.

One of the problems pointed out by experts is the use of marketing tactics by the industry, such as bonuses or free games, which may encourage higher gambling expenses and increase risky behavior among players.

How Will the New Market Work?

The new system will include strict rules for advertising online casinos. All licensed operators will be able to advertise their services legally, but within regulated standards to limit the impact on vulnerable groups, including children and young people.

Minister van Velden is confident that advertising campaigns will be restricted on the internet, where the main audience is concentrated, while ensuring protection from exposure to underage groups.

Number of Licenses and Opening the New Market

One of the most discussed aspects was the planned issuance of 15 licenses. Experts such as Fraud from the Problem Gambling Fund express concern about the large number of participants, which may lead to an increase in advertising and the expansion of the gambling market.

Special attention is also given to the size of the already existing illegal market, which, according to the government, could range from $304 million to $3 billion annually. These figures confirm the need for regulation and licensing control in the industry.

Position of Local Operators

Local operators, such as Sky City, have also expressed concern about the potential increase in market competition. Sky City stated that despite having a legal online casino, they are losing market share as many competitors operate illegally, advertising their services.

According to the head of Sky City, the number of licenses being issued is 15 times greater than the market’s needs and may lead to “advertising noise” that will affect public perception of gambling.

Prospects and Regulation

The Minister of Internal Affairs assures that the government will take steps to strictly regulate advertising. This includes measures to limit online advertising and protect minors and vulnerable groups from exposure to gambling.

Conclusion

The legalization of online casinos and iGaming advertising in New Zealand opens up new opportunities for a regulated gambling market. However, it is important to consider the risks associated with the increase in the number of operators and the expansion of advertising activity, which requires strict control and regulation. A regulated market should ensure transparency and safety, as well as reduce the impact of gambling on society.