New Zealand government’s Minister of Internal Affairs, Hon Brooke van Velden, has released the Cabinet paper and associated materials relating to the Online Casino Gambling Bill. The Cabinet paper addressed the main concern that came up during the select committee process, in which nearly 4,000 submissions advocated for community returns to be included in the Bill.

Author: José Gajardo, Associate / Daniel Lovecek, Principal

There have been important developments in New Zealand in the last week in relation to the proposed online casino licensing regime. These developments are important to note for both prospective licence applicants and New Zealand community groups and sporting organisations.

By way of background, New Zealand’s Online Casino Gambling Bill (Bill) has been the subject of a Select Committee Process in New Zealand’s Parliament, where members of the public and interested stakeholders lodged submissions regarding the proposed framework. A key issue arising through the consultation process was significant advocacy for mandatory community returns to be built into the Bill, which was previously silent on this topic.

Cabinet has now determined:

(a) to increase the new Offshore Gambling Duty payable by licensees from 12 percent to 16 percent of Gross Gambling Revenue, from 1 January 2027; and

(b) to mandate that an amount equal to 4% of Gross Gambling Revenue raised from the Duty must be returned to the community with the objective of delivery grassroots community benefits.

The increased Duty will be payable in addition to GST and a Problem Gambling Levy and to contribute to cost recovery of the direct and indirect costs of the regulator.

Review process

A review of the online casino gambling regulatory system will be conducted within three years of operation to ensure it is supporting tax collection, minimising harm, and providing consumer protections.

The Cabinet paper is proposing that this review should also include an assessment of the impacts of online casino gambling on other forms of gambling and community returns. It states that once the system is operating, access to data will be available on a quarterly basis in terms of how much money is being directed towards community funding.

The Department of Internal Affairs will also work with the Ministry of Health to monitor behavioural trends in gambling, including whether online gambling substitutes or complements land-based gambling.

Revised expected licence start date

Cabinet papers released by New Zealand’s Minister of Internal Affairs, the Hon Brooke van Velden, also indicate a delayed expected start date of 1 December 2026 for the new online casino licences. Further information regarding draft regulations addressing harm prevention and minimisation, consumer protection and record-keeping, advertising and marketing and fees, levies or charges for cost recovery and licensing process timelines is expected shortly.

Access the Cabinet Paper

The full Cabinet paper and supporting documents can be viewed here.

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