The government of New Zealand will begin the licensing process for online casino operators in July 2026 as part of plans to regulate a market that has largely been served by offshore providers, according to a timeline set by the Department of Internal Affairs.

The framework will be introduced through the Online Casino Gambling Bill, which passed its first reading in July 2025 and is expected to become law in May following further parliamentary stages.

The legislation aims to bring the country’s online casino sector under domestic oversight, amid estimates that more than NZ$750 million ($442.54 million) annually is spent by New Zealand players on offshore online casinos.

Under the proposed system, licences will be capped at 15 operators and allocated through a three-stage approval process designed to ensure regulatory compliance and competitive fairness.

The first phase will invite operators to submit an expression of interest once the bill becomes law, with the window expected to remain open for one to two months. A licence auction will then be held within a month after the expression-of-interest period closes, with bidding expected to last up to two months.

Companies that secure licences through the auction will proceed to submit full applications that will be assessed on criteria including consumer protection standards, financial stability, and operational integrity. The evaluation stage is expected to take four to six months.

Licences will initially be granted for up to three years and may be renewed subject to ongoing compliance with regulatory requirements.

The Department of Internal Affairs said operators must apply for a licence by Dec. 1, 2026, or cease offering online casino services in the country.

Operators that fail to comply could face fines of up to NZ$5 million ($2.95 million) and removal from the market.

The government also plans to impose a 12% gaming duty on licensed operators and introduce a community funding guarantee equivalent to 4% of gross gaming revenue. Officials estimate the measure could generate between $10 million and $20 million in its first 12 months.

Earlier versions of the proposal faced opposition from sports organisations that warned the reform could reduce community funding by more than $150 million. The government has since incorporated funding guarantees to address those concerns.

Data from the New Zealand Gambling Survey 2023/24 showed offshore online gambling participation is more common among younger men and certain ethnic groups, particularly in areas experiencing social deprivation. The bill includes harm-prevention measures such as age verification requirements and restrictions on advertising targeting children.

Original article: https://www.yogonet.com/international/news/2026/03/06/117942-new-zealand-to-begin-igaming-licensing-process-in-july-2026