New Zealand iGaming Market Overview

The online gambling industry in our country has been growing just as fast as in other parts of the globe. Kiwis that are into online gambling spend millions of NZ dollars in the online industry every year and it is not expected to slow down anytime soon. There’s just one slight difference with most other countries where people tend to wager a lot: the iGaming market is not regulated in NZ.

And hey, it might also take a while before that happens. The New Zealand gambling scene is therefore still very land based oriented and there are now 5 great land based casinos found on both our northern and southern island. Yet, online gambling is expected to gradually take over the market in the coming years. Here’s what that means.

NZ iGaming Market Overview

Throughout history, different types of games of chance have had different legal statuses in our country. Here are a few major milestones in the country of gambling in New Zealand. 

• Sports betting was declared illegal in New Zealand in 1920, after which it became legal in 1961.
• NZ’s first national lottery, “Art Union”, was established in 1933, whilst the country’s first land based casino opened its doors in 1994. The city of Christchurch was the first in the country to welcome bettors in a legalised land-based setting. After the casino in Christchurch, 4 other casinos would follow giving Kiwis a total of five venues.
• The Totalizator Agency Board (TAB NZ) was established in 1961 at the same time sports betting was legalised and still operates today. 

When it comes to the online gambling market, things get a little bit more complicated. What is officially referred to as “remote interactive gambling” is prohibited in the country of New Zealand. With remote interactive gambling, individuals are not allowed to gamble at a distance using a communication device. This basically means that online casinos and other gambling websites that are visited via computers and cell phones are not allowed in the country. At the same time, the law only covers activities offered within the borders of NZ, whilst it renders anyone playing on offshore operated websites. This also means that it is not prohibited to join foreign online casinos as long as the player meets the minimum age requirement of 18 years.

No domestic online casinos allowed

This basically means it is only considered illegal for domesticly operating online gambling companies to target Kiwis. For this exact same reason, gambling enthusiasts from the country can place their bets with offshore casinos. As offshore operators understand this as well, they have massively turned their attention to NZ in recent years. This, coupled with the fact that winnings are not taxed, makes it possible for both casinos and players to get the most out of the situation. This is why there are many promos and bonuses available in NZ.

The Numbers

In 2013, Kiwis spent over NZ$ 2.2 billion on gambling which included wagers on regular pokie machines, but also lotteries and sports betting. A few years earlier, research showed that 1 in 5 (20%) players had gambled online in the last 12 months which are quite some impressive numbers. Despite some underage players being able to make online wagers as well, gambling is only allowed for players that are 18 years of age or older. This also holds true for offshore sites that tend to apply this age internationally as a minimum requirement.

According to the Department of Internal Affairs, spending on all forms of gambling (including both online and offline activities) in NZ$ rose to total of 2.62 billion in 2020, which is almost 17 percent up in comparison with the prior year. Spendings on pokie machines in pubs and clubs went up to $987 million, from $802 million a year earlier, jumping 23%. Money spent in brick and mortar casinos rose almost 11 percent, whilst the lotteries commission reported a revenue of $694 million, up from $631 million. The NZ Racing Board saw revenue go up to $385 million from $315 million.

Official Licensing Body

The Department of Internal Affairs (DAI) is the regulating gambling body in New Zealand although it hasn’t got the same importance as other international gambling regulators. This is also the regulatory body for all games of chance in the country, including land based gambling products. There is no regulating body for online licences and it is not expected that a gambling authority will be installed in the near future. Some gambling products are offered by Tab NZ. This is the only legal online operator in the country.

TAB NZ

Since its foundation in 2020, TAB NZ provides different betting services to New Zealanders. These services do not extend to online casino products, but are mostly limited to sports betting including rugby, football, and tennis. TAB NZ has betting stores in cities like Auckland, Hamilton, and Christchurch. TAB NZ uses its revenue to financially support national sports events in the country. The Racing Industry Act 2020 also confirmed that TAB will be allowed to create new betting products. Whether TAB will turn its attention to other online gambling products is unknown, but is a possible scenario. In the meantime, online betting in NZ will continue to grow. 

References

• https://www.tab.co.nz
• https://www.reuters.com/world/asia-pacific/nightclubs-cafes-casinos-reopen-auckland-marathon-lockdown-ends-2021-12-03/