SkyCity Entertainment Group is lobbying hard to restrict New Zealand's proposed online casino market, seeking to limit competition in what industry analysts describe as a textbook case of established players protecting their turf.
Local Operators Demand Licence Restrictions
Documents released under the Official Information Act reveal SkyCity, which operates three casinos across New Zealand and another in Australia, has formally opposed government plans to issue up to 15 online casino licences.
In correspondence with Internal Affairs Minister Brooke van Velde, the entertainment giant argued for no more than five licences, insisting they "should be restricted exclusively to New Zealand-based companies".
"The safest way to ensure online casino profits are subject to New Zealand income tax is to only allow incorporated New Zealand companies to hold licences and not permit a licence to be held by a foreign company or a New Zealand branch of a foreign company," SkyCity executives wrote.
The stance mirrors that of the TAB, which similarly advocated for a maximum of five to seven licences in its communications with Racing Minister Winston Peters.
Minister Fires Back at "Self-Interest"
Minister van Velde didn't mince words when responding to SkyCity's position, telling RNZ in a candid interview: "I'm not here to look out for SkyCity. I'm not here to look out for any established particular casino or their brands. I'm here to ensure that we have a fair marketplace and a fair, regulated market."
Industry observers note the minister's comments reflect growing frustration with established gambling operators attempting to influence the regulatory framework to their advantage.
Free Trade Concerns Loom Large
The minister further explained that favouring local operators could potentially breach New Zealand's international free trade agreements, complicating the legislative landscape.
"I have considered whether or not it should be domestic priority or offshore priority," she acknowledged. "I think it's fair just to allow anybody to bid for one of the licences, rather than try and say, just because you're here and you've been established for years in New Zealand, you're necessarily a better operator."
TAB Warns of "Multinational Domination"
The TAB's submission painted a dire picture of what might happen if foreign operators gain access to the market:
"Settings that create an open market would allow for multinational domination over NZ's existing operators, establishing an unsustainable model for traditional gambling products, and risking our ability to appropriately fund racing and sport – all while driving gambling profits offshore and delivering worse harm outcomes for Kiwi consumers."
The organisation warned of "severe implications" if the "fast-growing online casinos market cannibalises our existing operations by being legitimised in NZ in an open market context."
What's at Stake?
The Online Gambling Bill, first announced last year, aims to curb rampant illegal offshore gambling by creating a regulated alternative. The government plans to begin issuing licences in February 2026, with each licence valid for an initial three-year period.
Despite SkyCity's restrictive stance, the company has already confirmed its intention to bid for one of the licences, highlighting the perceived value of the emerging market.
For ordinary Kiwis, the outcome of this policy tussle could significantly impact how they gamble online, with broader competitive markets potentially offering better odds and promotions, while a restricted market might arguably provide stronger consumer protections.
As consultation continues, all eyes remain on Minister van Velde to see whether the government will stand firm against industry pressure or compromise on its vision for a competitive online gambling landscape.