New Zealand will initiate its iGaming licensing process from July, according to a new timeline set out by the Department of Internal Affairs (DIA).
The proposed Online Casino Gambling Bill, which passed its first reading in July 2025, is expected to be passed into law in May, following a second reading in parliament. Once it passes this stage it will then go to committee to be read for a third time.
New Zealand is poised to overhaul its online casino sector with the introduction of a new iGaming licensing regime aimed at bringing a previously unregulated market under strict domestic control.
This move responds to concerns that more than NZ$750 million annually flows from New Zealand players to offshore online casinos.
The three-stage licensing approval pathway is likely to begin in July 2026. It will cap licences to a maximum of 15 operators. This staged approach is designed to ensure transparency, competitive fairness and rigorous compliance.
One step at a time
This initial phase will invite operators to formally declare their interest in entering New Zealand’s online casino market. The EOI window is set to open immediately after the bill becomes law. It will remain open for approximately one to two months.
Following EOI closure, a licence auction will be held within one month. The auction phase is anticipated to take up to another two months. This allows eligible operators to bid for the limited licences.
Successful bidders from the auction will progress to submit detailed iGaming licensing applications. This assessment will evaluate adherence to compliance requirements such as consumer protection measures, financial soundness and operational integrity. It is expected to last four to six months,
Licences will initially be granted for up to three years, with opportunities for renewal pending continued regulatory compliance.
The DIA has set a strict application deadline for 1 December 2026. It said “providers are required to cease conducting online casino gambling in New Zealand if they have not applied for a licence” from this date onwards.
Non-compliant operators face penalties including fines up to NZ$5 million and enforced market exit.
Mediation in the market
The limitation on licences to 15 introduces competition, with only a select few operators able to participate in New Zealand’s regulated market. The licence scarcity is expected to drive sector consolidation. It will prompt operators to carefully evaluate compliance costs and the 12% gaming duty imposed.
The bill originally received pushback from leading sports organisations. They argued that they would be stripped of more than $150 million from community funding. Since then, the government announced that it will include community funding guarantees for iGaming operators at 4% GGR, with a potential return of between $10 million and $20 million in its first 12 months.
This latest update from the DIA brings a welcome sign of progress, with experts previously telling iGB that the June 2026 market launch date was unrealistic.
According to the New Zealand Gambling Survey 2023/24, offshore play is concentrated among younger men and some ethnic groups, with higher participation in areas of social deprivation. That pattern informs the Bill’s harm-prevention measures, which include age verification requirements and limits on advertising aimed at children.
Original article: https://igamingbusiness.com/legal-compliance/licensing/new-zealand-igaming-licensing-process-to-begin-in-july/
