New Zealand’s Online Gambling Shake-up Raises Local Casino Concerns
New Zealand's gambling sector finds itself at a pivotal crossroads as domestic casino operators express mounting anxiety over the government's forthcoming online gambling reform. At the heart of their concerns lies an unprecedented auction system that will award 15 prized digital casino licenses to successful bidders, marking a transformative shift in how the country regulates its online gambling market.
This competitive bidding framework represents the government’s first major attempt to bring structure and oversight to New Zealand’s rapidly evolving digital gambling landscape, though established local venues worry this approach might inadvertently favor deep-pocketed international operators over domestic businesses that have long served their communities.
The government expects this regulatory overhaul to generate substantial revenue, projecting NZ$719 million (approximately $417 million) in gaming duties over a four-year period.
A key feature of the new framework includes a 12% gaming duty on gross betting revenue from offshore operators, designed to close existing regulatory gaps in the market currently served by roughly 30 online gambling operators.
SkyCity Entertainment Group’s Chief Executive, Jason Walbridge, has emerged as a prominent voice highlighting the challenges faced by domestic operators:
These offshore operators are enormous companies with large balance sheets and lots of money in their bank accounts
Jason Walbridge
He emphasized the crucial importance of maintaining New Zealand-based operational presence in the market.
Supporting this position, Christchurch Casino’s Chief Executive Brett Anderson has raised questions about the proposal’s alignment with national interests.
Notably, this comes at a sensitive time for Christchurch Casino, which is currently facing scrutiny from the Department of Internal Affairs over anti-money laundering and counter-terrorism financing compliance issues.
While industry leaders have praised the government’s decision to cap the number of licenses at 15 – a move they believe will help control advertising saturation and create a more manageable market – they are advocating for a more comprehensive evaluation process.
Their primary argument centers on the need for licensing criteria that extends beyond mere financial considerations to encompass social responsibility and economic impact on local communities.
The situation highlights a growing tension between the digitalization of gambling services and the preservation of local industry interests, as New Zealand works to modernize its gambling regulations while balancing economic and social responsibilities.
