The New Zealand government is continuing its preparations to create an online gaming market, but is bucking a wider trend by announcing support for online gaming advertising.
RNZ reports that Home Affairs Minister Brooke van Velden, who is overseeing the regulatory changes, believes allowing licensees to advertise will be crucial to success. She stressed that operators need visibility to make their business models viable.
“If you’re an online gambling outfit and you can’t even advertise your product in a legal market, you’re probably going to sit there wondering why you’re even here,” she said.
Offshore gambling operators are currently banned from advertising in New Zealand. However, at a Department of Internal Affairs (DIA) briefing, the minister acknowledged that advertising would be necessary for the future market to function effectively. She also warned that lifting the ban could lead to increased gambling harm by legalising and promoting online gaming.
Despite this, officials argue that keeping the advertising ban in place would significantly reduce the cost of licences and make regulation more difficult.
New Zealand is set to auction 15 online casino licences and allow them to advertise.
However, anti-gambling campaigners such as Andre Froude of the Problem Gambling Foundation have criticised the decision to allow advertising, arguing that it normalises gambling.
“It also opens the door to incentives that we believe should be banned,” she said.
Martin Cheer, managing director of gaming operator Pub Charity Ltd, said New Zealanders should be prepared to be inundated with gambling-related advertising.
“People should be prepared to be bombarded with advertising,” he said, adding that with 15 new operators entering the market, the volume of advertising could be overwhelming.
International research has raised similar concerns. In the UK, gambling advertising disproportionately affects people with gambling problems. And in Australia, it has been recommended that all online gambling advertising be banned within three years because of its impact on gamblers’ behaviour.
Van Velden acknowledged the concerns, but assured that advertising rules would be strictly enforced.
RNZ quoted her as saying: “Most of the ads you’d assume would be online, because that’s where your target audience is going to be, right? So, we’re looking at a new area of how to get the balance right between freedom of the (internet) and restricting advertising to protect children and young people”.
Foreign internnational gambling companies are expected to take the lead in the New Zealand market as they are better equipped to compete.
Local operators including SkyCity and TAB have expressed strong opposition to the licensing process, arguing it will threaten the viability of their businesses and reduce funding for community initiatives.
Currently, land-based casino and slot machine gambling revenues contribute significantly to community funding, supporting sport, charities and other community projects. However, the new rules do not require licensed operators to make such a contribution, raising concerns that funds will be diverted to offshore shareholders.
SkyCity CEO Jason Walbridge has stressed that his company, which operates an online casino from Malta, is losing market share to offshore competitors who are illegally marketing to New Zealand customers. SkyCity is sticking to the current restrictions but fears that an influx of new competitors could further erode its market position.
According to a DIA briefing, New Zealand’s online gaming industry is worth at least NZ$304 million in revenue and could be worth up to NZ$3 billion a year, making it larger than the horse racing industry and twice as big as Lotto. The figures suggest online gaming is already a major industry despite the lack of regulation.
The new regulatory framework, due to come into force in February 2026, will introduce tough penalties, including fines of up to NZ$5 million for unlicensed operators.
Officials say the regulation will provide better oversight and help mitigate issues such as fraud and money laundering, which are currently unchecked due to a lack of governance in the sector.
However, concerns remain about the long-term social impact of the expansion of online gaming.
Local gambling stakeholders and problem gambling advocates argue that increasing accessibility through advertising and allowing more operators will lead to higher levels of gambling harm.
The increase from five to 15 licences has particularly alarmed harm reduction organisations, who believe the expansion will inevitably encourage more gambling.
Despite these concerns, van Velden defends the government’s approach, saying regulation will ensure greater transparency.
“Once we regulate the market, we can actually capture that data and figure out whether or not it does increase over time,” she said. “This will enable authorities to adjust harm minimisation and advertising standards to ensure responsible gambling practices”.
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