The New Zealand government has set a formal timeline for issuing new online casino licences. Minister of Internal Affairs Brooke van Velden recently released a cabinet paper outlining the community returns of the Online Casino Gambling Bill. The document mentions that new casino licences will be issued from December 1, 2026. This marks the beginning of a new era for regulated online gambling in the country.
New Zealand Government to Issue New Casino Licences from December 1, 2026: Highlights of the Story
- The government has confirmed that detailed regulations for permit holders will be finalised by the first half of 2026, allowing operators sufficient time to transition to the new regulatory framework.
- The draft regulation proposes several reforms, including harm prevention and minimisation, record-keeping, consumer protection, marketing and advertising, and fees and taxes.
- The draft legislation increases the gambling duty from 12% to 16% and the additional funds will be directed toward community development. Preliminary estimates suggest an additional €4.9 to €9.9 million in state revenue.
Guidelines for the New Permits to be Finalised by Mid-2026
Plans to regulate online gambling in New Zealand are now in motion, with the government setting a timeline for December 1, 2026, to issue new licences. According to a Cabinet paper released by Minister of Internal Affairs Brooke van Velden on Friday, November 28, online gambling operators can apply for a permit from December 2026.
The draft legislation adds to the Online Casino Gambling Bill, which was introduced to Parliament in July. It rescinds an earlier decision that had no requirement to use gambling funds for community development. Additionally, it increases gambling taxes from 12% to 16%, with the excess revenue reserved for community returns from January 1, 2027.
The government plans to finalise the regulations for the new licensing framework by mid-2026, providing operators sufficient time to adapt to the reformed guidelines. Trina Lowry, the Programme Director of Online Gambling Implementation, stated:
It is our intention to give the sector time with these finalised regulations before running the licensing process.
Lawmakers have submitted several draft legislations to the Parliament recently on matters related to harm prevention and minimisation, advertising and marketing, consumer protection and record-keeping, as well as fees, duties and charges for cost recovery. Lowry revealed the government’s plans to provide a detailed update on regulator decisions before the end of the month.
Local Funding a Key Area of Contention Among Stakeholders
Local sports organisations across New Zealand have traditionally relied on gambling sponsorships to remain operational. As the government’s initial proposal did not reserve funding for domestic sports clubs, industry stakeholders strongly protested against the gambling bill.
The government soon amended its decision, announcing a 4% increase in gaming duty, to be reserved for local sports organisations. Experts estimate this could generate an additional €4.9 to €9.9 million in the first year, depending on the volume of Gross Gaming Revenue (GGR) the market generates.
While making the announcement, Minister Van Velden said:
The message from communities was loud and clear – if we’re regulating online gambling, they want to see benefits flow back to local sports clubs, community groups, and grassroots organisations. I have listened, and now as a Government, we are delivering on what matters most to communities across the country.
The government’s latest announcement refutes concerns regarding missing the 2026 launch deadline for the Online Casino Gambling Bill. It further clarified that the community return option “does not seek to replicate the not-for-profit Class 4 model”, and a relevant comparison would be with for-profit land-based casinos rather than Class 4 or Lotto, the funds from which are reserved for community development.