The New Zealand Parliament passed a bill to legalize and regulate online casino gambling this week. Passage comes on the heels of the government ruling prediction markets illegal in February.
Online gaming already takes place in New Zealand, as the country doesn’t block offshore platforms. However, the Online Casino Gambling Bill now regulates the industry and brings in tax revenue, according to The Post newspaper.
“The bill supports the coalition agreement by closing the gambling tax loophole and requiring licensed online casino operators to pay tax, just like any other business operating in New Zealand,” said New Zealand Internal Affairs Minister Brooke van Velden.
Regulators Look To Curb Offshore Gaming
Van Velden filed the bill last July at the urging of Prime Minister Christopher Luxon. As part of the legislation, the Department of Internal Affairs will now draft regulations for the industry, including the bidding process for licenses and the tax rate.
That could include up to 15 available licenses and an eventual crackdown on offshore gambling sites that currently allow Kiwis to wager. Fines for violating the online gaming law could reach as high as $5 million.
“The Department of Internal Affairs will regulate the sector using strengthened enforcement tools, including take-down notices, formal warnings, enforceable undertakings, and penalties,” van Velden said.
“These tools will ensure that New Zealand law applies to all online casino gambling available in New Zealand, regardless of where operators are located, closing off avenues for avoidance and strengthening the regulator’s ability to monitor and enforce compliance.”
Limited Poker Market
The government won’t award licenses until early 2027. With a population north of 5 million, it’s unlikely the country can sustain a robust, ringed-in online poker industry. As a result, a thriving ecosystem comes from sharing a player pool with other countries.
The Department of Internal Affairs hasn’t released any information on a possible online poker landscape. Pooling players with Australia won’t be part of the plan, however, as that country made online poker illegal in 2020.
In related news, the Canadian province of Alberta is moving forward with online gaming legalization. Operators are expected to launch on July 13. A total of 32 operators have expressed interest in obtaining a gaming license.
The move in Alberta comes as Ontario is seeking to expand the province’s ringed-in poker market by sharing liquidity with other provinces and potentially players outside the country.
That was given the go-ahead by the Ontario Court of Appeal, but that ruling has now been appealed to the country’s Supreme Court by several provincial lottery groups.
