Gambling is a popular form of entertainment with widespread acceptability in New Zealand. According to official government figures from 2021. around 70% of the adults in the country participate in some form of gambling at least once per year.
In many countries around the globe, gambling is either prohibited or lies in a legal grey area, particularly when offshore online casinos are involved. New Zealand is an exception to this rule with clearly marked-out rules governing all forms of gambling and sports betting.
The New Zealand gambling industry is regulated by the Department of Internal Affairs (Te Tari Taiwhenua) under the laws and rules in the Gambling Act of 2003. The law is hopelessly outdated and is expected to be updated by 2026.
This article will give you a comprehensive overview of the legal status of gambling in New Zealand, with a special focus on online casinos. If you are concerned about the potential legal ramifications of gambling online in New Zealand, this article will help put your mind at rest.
The Gambling Laws of New Zealand
All forms of gambling in New Zealand fall under a comprehensive law called the Gambling Act (2003). The law primarily focuses on land-based casinos, lotteries, raffles, and sports betting. All of these forms of gambling are legal in New Zealand, provided the following basic rules are followed:
- Participants must be above the age of 18 (20 to enter casinos)
- All gambling activities must follow official regulations
- Certain forms of gambling require a license
- There are strict limitations on gambling advertisements
As long as you follow the relevant rules, apply for licenses, and pay the specified taxes, offline gambling is fully legalized in New Zealand. The Gambling Act divides offline gambling into four main classes:
Classes 1 and 2
Smaller raffles, games of chance, skill games, and other instant games hosted by individuals and social organisations usually fall under these two classes. The total prize money must be below $5,000 to come under these classes, and the total turnover cannot exceed $25,000.
The person or entity organising the event should not receive or claim any commission or remuneration, except in certain special circumstances. Under these circumstances, no licensing is required to host Class 1 and Class 2 gambling events.
Classes 3 and 4
These are larger, more commercial gambling contests and services offered by casinos, sportsbooks, and lottery agencies. Any such event with a turnover above $25,000 requires a valid license from the DIA and is subject to strict rules under Class 3.
Class 4 is a special category that regulates slot machines installed outside casinos. In New Zealand, these machines are quite common in pubs and clubs. A license is only provided in situations where the profits from the machines are used mainly for charitable purposes or invested in community projects.
Main Gambling Providers in New Zealand
The domestic gambling market in New Zealand is quite different from its counterparts in countries like the USA. In the US market, the government is only present largely as a regulator, with private companies offering the products to consumers.
In New Zealand, on the other hand, government-owned entities have a near-monopoly in various segments of the industry. Listed below are the main entities offering gambling products in New Zealand:
The Totalizator Agency Board (TAB New Zealand)
Sports betting, with the exception of on-course betting on horses, was banned in New Zealand for nearly 50 years under the Gambling Act in 1911. The TAB was formed in 1951 to legalise and promote horse betting outside of racecourses.
In the mid-90s, TAB was expanded to include betting on professional sports. As of 2024, TAB NZ is the only approved provider of sports betting services in New Zealand (both online and offline) under formally established laws.
TAB offers multiple betting channels, including tote betting at the tracks, betting shops, phone betting, online betting on its official site, and through mobile apps on iOS and Android. It covers 31 sports, including cricket, football, rugby, boxing, motorsport, tennis, and e-sports.
Lotto New Zealand
Like TAB, Lotto New Zealand is the official monopoly in the lotteries market. Originally established under an act of Parliament in 1986, it was officially called the New Zealand Lotteries Commission. Lotto NZ's longest-running and most popular game is the Lotto, which pays out $1 million every week.
Over the years, various other features and new games have been added to the market. Some of these include the Powerball ($50 million jackpot), Lotto Strike, Keno, Winning Wheel, Bullseye, and various other TV game shows.
Apart from store-bought tickets, Lotto NZ also offers online purchase options. You can buy tickets and participate in lucky draws online via the official MyLotto app or the main website.
Land-based Casinos
As of 2024, there are six land-based casinos in New Zealand. The first licensed offline casino was opened in 1994 in Christchurch. Other cities with brick-and-mortar gambling establishments include Auckland, Hamilton, Queensland, and Dunedin.
The leading operator in the country is SkyCity, with four casinos. SkyCity Auckland is easily the largest casino in New Zealand, with 150 gaming tables and 1,800 slot machines. Patrons have to be above the age of 20 to gain access to a casino in New Zealand.
Casinos are regulated by the independent New Zealand Gambling Commission. Established under the Gambling Act, the Commission is responsible for issuing new casino licenses and ensuring that existing establishments comply with the strict regulations.
Consumer Protection Obligations of Gambling Operators
The Gambling Act has a major focus on protecting players and minimising the harmful impact of gambling on individuals and the wider society. Responsible gaming policies are strictly enforced by the DIA, in close collaboration with the Ministry of Health and other regulatory commissions.
A wide range of measures and provisions are in place to promote safe and responsible gambling in the country, including the following:
- Strict age verification at offline premises and online services to prevent under-age gambling
- Providing players easy access to self-exclusion and other safety measures
- Using processes and technology to identify early signs of problem gambling in patrons
- Voluntarily excluding players who exhibit signs of gambling addiction
- Providing easy access to counselling and other helpful information about gambling addiction
Under the Gambling Act 2003, a percentage of revenues generated by the industry is set aside to fund the various responsible gaming initiatives and harm minimisation programs. Operators who violate their responsible gaming violations can receive stiff fines or even lose their gambling licenses.
Legal Status of Online Gambling in New Zealand
The current Gambling Act was codified at a time when online gambling was still in its infancy. Consequently, the gambling laws in New Zealand largely focus on the offline market. As of 2024, online betting is only allowed through government-owned agencies like TAB and NZ Lotto.
All other forms of online gambling are illegal in New Zealand, but with an important proviso: these rules only apply to New Zealand-based entities. Basically, privately owned businesses or other organisations in the country are prohibited from offering “remote interactive gambling.”
This includes any kind of long-distance bet placed through telephones, radio, or computers and mobile devices (via the internet). However, off-shore businesses based in foreign territories are not covered under the Gambling Act of 2003.
When is Online Gambling Legal in New Zealand?
If a website based overseas offers a betting market or casino game, the law does not prohibit New Zealand residents from participating. You can freely place your bets at overseas online casinos and sports betting sites from New Zealand.
In short, online gambling in New Zealand is largely unregulated and legal, as long as the providers follow these basic rules:
- The business must not be based in New Zealand
- The bets must be accepted in a foreign jurisdiction
- Online betting ads cannot be served to New Zealand residents
Overseas operators who advertise gambling services in New Zealand will face stiff fines of up to $10,000 for every illegal ad. Thanks to official crackdowns in recent years, the incidence of such ads has reduced drastically in New Zealand.
Domestic vs Offshore Online Gambling
Legal online gambling in New Zealand is only available to the Lotteries Commission and the Totalizator Agency Board. All other forms of remote gambling done by private entities are strictly prohibited in the country.
If you are looking for New Zealand-based online gambling services, you have the following options:
- Online and mobile lotteries from Lotto NZ
- Sports betting at TAB NZ
Domestic operators cannot legally offer online casino games and slots to New Zealand customers. This is the main difference between domestic and offshore online gambling in New Zealand. If you want to bet on slots (pokies) and other casino games online, you will have to visit an offshore casino website.
Risks of Online Gambling in New Zealand
One of the main benefits of a tightly regulated betting market is player protection. Many of the provisions in the Gambling Act focus on preventing gambling addiction and reducing the negative impacts of gambling on society.
Operators can face stiff fines and even temporary closures if they fail their responsible gambling obligations. In a major incident in 2024, the SkyCity Auckland Casino was forced to shut down for a week because it failed to protect a problem gambler.
When you play at an overseas casino online, you are no longer protected by New Zealand laws. If there are any disputes, you will have to rely on the laws of the jurisdiction where the online casino is based/licensed.
Legal Requirements for Playing Online in New Zealand
Whether you play at the official operators or overseas sites, there are only a few notable legal requirements for gambling online. The legal age limit for accessing any online gambling content in New Zealand is 18.
The only other major legal consideration is the payment of taxes. One-off winnings from gambling products are generally exempt from taxes in New Zealand. However, if you receive a regular income from gambling or are eligible for state benefits, your winnings may have tax implications.
Gambling winnings above $449 are subject to a mandatory tax of 29%. However, sports betting winnings are exempt from taxation, whether they are from TAB or an offshore sportsbook. Even if the winnings are non-taxable, you will still have to report them and pay taxes on any interest earned.
Future of Gambling Legislation in New Zealand
The New Zealand government has major plans to overhaul the state of online gambling in the country. Under the Gambling Act of 2003, online gambling is not adequately regulated. While domestic businesses are prohibited, no laws are preventing overseas websites from offering casino gambling services to New Zealand residents.
Upcoming regulations will target online casino gaming with the following important measures:
- Domestic operators will be awarded licenses to provide online casino services.
- Unlicensed overseas casinos will be prohibited from operating in New Zealand.
- The minimum age for online casino gambling will be set at 18.
- Online casino ads will be permitted, with strict limitations.
The primary objective of these measures is to prevent gambling revenues from going offshore, improve the protection for New Zealand players, and raise new avenues of tax income for the government.
If things proceed as planned, the new legislation could become active as early as 2006. Only a few online licenses will be provided initially, and operators will have to reapply every 3 years. Lotto and sports betting operations will remain firmly in the hands of the government monopolies.
Conclusion
The legal status of gambling in New Zealand is still evolving. Over the decades, policies and regulations have largely focused on improving player protection, reducing the social impact of gambling, and ensuring that taxes from the industry benefit the communities.
Unlike many other national regulators, New Zealand authorities have taken a largely liberal attitude towards off-shore online casinos and sportsbooks. While online gambling is prohibited in the domestic market, the same restrictions do not apply to overseas operators.
Players are also free to choose any online platform for casino gaming or sports betting. However, this was largely the result of outdated gambling regulations dating back to 2003. The online gambling industry has developed dramatically in the last two decades.
As a result, the New Zealand government has finally decided to stop the flow of revenues to offshore sites with some major changes to the gambling regulations. We could soon see New Zealand-based online casinos under a new licensing system.
The rise of highly regulated domestic online casinos is a step in the right direction as far as player safety and welfare are concerned. As far as the impact of the new rules on overseas casinos is concerned, we will have to wait and see. Regardless, there is no doubt that big changes are on the horizon for the gambling industry in New Zealand in the coming years.
Frequently Asked Questions
- What forms of gambling are legal in New Zealand? Under the Gambling Act of 2003, sports betting, betting on horses, lotteries, and casino gambling are legal in New Zealand. There are strict rules in place to regulate these legal forms of gambling with a licensing system and multiple regulatory agencies under the Department of Internal Affairs.
- Is online gambling legal in New Zealand? Government-controlled entities like TAB and Lotto NZ can offer certain online gambling services to New Zealand residents. Other private businesses based in the country are prohibited from offering any sports or casino betting services online.
- Is it illegal for New Zealand residents to play at offshore online casinos and sportsbooks? No, the provisions of the Gambling Act are only focused on domestic operators and businesses. Offshore casinos and websites based outside New Zealand are not prohibited from accepting New Zealand players. It is not illegal for New Zealanders to place bets on unlicensed offshore websites.
- Are there any legal New Zealand-based online casinos? No, as of 2024, there are no New Zealand-based online casinos. This could change in a few years, as the government has plans to introduce a new licensing system for domestic operators to start online casinos in New Zealand.
- What types of online gambling products are available from domestic operators in New Zealand? Online sports betting is available legally in New Zealand from TAB New Zealand. Likewise, you can also buy online lotteries from the official website and mobile apps of Lotto NZ. No other gambling products are available online from domestic operators.
- Is it legal to bet online on sportsbooks other than TAB NZ? There are currently no laws that prohibit betting online on off-shore sportsbooks. New Zealand players are free to choose a platform for online sports betting. TAB NZ just happens to be the only legal domestic operator. As long as you pick a safe and reputed overseas operator, you should be fine.