New Zealand: Regulatory Overview of the Growing Online Gambling Market

Online gambling is gaining popularity worldwide, and New Zealand is no exception. With the current legislative and technological changes, a pertinent question arises: is online gambling regulated in New Zealand, and what responsibilities do affiliates hold in this sector? This article explores the presence or absence of licensing systems, the nuances of regulation, and the key laws pertaining to online gambling in the country.

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Regulatory Features

A key feature of online gambling regulation in New Zealand is strict control and restriction of access to gambling within the country. Simultaneously, offshore sites remain accessible to New Zealanders, posing challenges to ensuring player safety. The main principles of regulation include harm minimization, attracting reliable operators, and returning funds to local communities.


New Zealand is considering various tools to limit access to unregulated sites, such as self-exclusion, restricting credit card use, banning the use of free public Wi-Fi for accessing gambling sites, and geo-blocking. These measures aim to reduce harm and protect vulnerable population groups. For example, using geo-blocking can prevent New Zealanders from accessing sites that do not comply with local laws and standards, thus reducing the risk of fraud and addiction.

Key Laws and Regulatory Bodies

1. Gambling Act 2003. This is the primary legal document regulating gambling in New Zealand. It sets out the rules and standards for gambling operators and measures for harm minimization.

2. Department of Internal Affairs. The main regulatory body responsible for overseeing and enforcing gambling legislation.

3. Ministry of Health. Assists in developing and implementing harm minimization measures related to gambling.

4. New Zealand Gambling Commission. A specialized body established in 2003 to ensure compliance with the Gambling Act. Chaired by Graeme Reeves, the Commission works closely with the Ministry of Health and the Department of Internal Affairs to monitor gambling addiction and develop harm minimization strategies.

Presence or Absence of Licensing Systems

As it was previously mentioned, in New Zealand, the existing legislation governing gambling is the Gambling Act 2003. However, considering the rapid development of internet technologies, this law requires updates. Currently, online gambling provided within the country is legal only for authorized operators such as Lotto NZ and TAB. New Zealanders can legally use foreign gambling websites, provided they are not advertised in New Zealand. 


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Despite the absence of a comprehensive licensing system for online gambling, the New Zealand government is actively considering options to regulate this sector. This involves creating a safe and regulated online gambling system that will protect players, allow only trusted operators into the market, and benefit local communities. 

Public Hearings and Population Surveys

In July 2019, the Minister of Internal Affairs, Tracey Martin, announced a review of online gambling in New Zealand. As part of this review, the Department of Internal Affairs, with assistance from the Ministry of Health, released a discussion document aimed at gathering New Zealanders' opinions on the future of online gambling. Between August and September 2019, public consultations were held, during which the Department received 2,997 written submissions. Consultation meetings were also held in various cities, including Wellington, Porirua, Auckland, and Christchurch.


These hearings and consultations allowed for the collection of a wide range of opinions and proposals, an important step towards creating an effective and fair regulatory system. Public hearings help understand public sentiments and consider the interests of different population groups when developing new legislation.


The feedback from these consultations highlighted several key themes, including the need for consistent regulation between online and land-based gambling, the importance of operators contributing to harm reduction efforts, and the desire for operators to return benefits to local communities. This comprehensive approach aims to address the complexities of online gambling regulation and ensure that the interests of all stakeholders are considered.

Prospects and Future Steps

The future of online gambling regulation in New Zealand includes several key aspects:

  • Updating the Gambling Act 2003 to reflect modern realities and technologies.

  • Establishing a system that will allow both local and international operators to be licensed, ensuring stricter market control and regulation.

  • Developing and implementing additional measures to protect players, including self-exclusion, restrictions on credit card use, and geo-blocking of unregulated sites.

  • Continuing public hearings and surveys to consider the opinions of various population groups and stakeholders.


The prospects for licensing include creating a safe and regulated online gambling system that will protect players, allow only trusted operators into the market, and benefit local communities. The licensing system can include both local and international operators, enabling better market control and regulation while minimizing harm associated with gambling. This approach will also attract additional funds to the country’s economy and increase revenue from taxes and fees.

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A new licensing system will include stringent requirements for operators to meet safety and harm minimization standards. This might involve mandatory provision of information about the risks of gambling, implementation of technologies for monitoring and controlling player behavior, and the creation of mechanisms for self-regulation, such as self-exclusion and deposit limits.

Conclusion

The regulation of online gambling in New Zealand is at a critical juncture. Current laws need updating to keep pace with technological advancements and market changes. Establishing a robust licensing system that includes both local and international operators will enhance market control and minimize harm for players. It is crucial to continue refining legislation and implementing comprehensive harm minimization measures to ensure the safety and protection of all market participants.


By learning from international examples and leveraging advanced technologies, New Zealand can develop a regulatory framework that promotes responsible gambling, protects players, and benefits local communities. Ongoing public participation and stakeholder engagement will be vital in shaping a fair and effective regulatory environment for the future.

2024-10-02

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