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Online gambling has become very deeply rooted in the entertainment business in New Zealand with over half of the population expected to participate in gambling by the end of 2025. Most of the gambling population has shown a preference for games that are more convenient and easier to play - fueled by smartphone accessibility and the continued rise of digital gambling platforms.
The rapid growth of online gambling platforms has significantly outpaced the existing legal frameworks originally designed for land-based gambling, and the lawmakers haven’t been able to keep up with offshore operators and new digital platforms. With billions wagered annually, the government currently faces immense pressure to balance consumer freedom with consumer protection in terms of addiction and fraud.
This page will trace the legislative journey of online gambling in New Zealand, from the tight restrictions of the early 2000s to the upcoming Online Gambling Bill expected to be enacted by 2026.
Although we can generally agree that gambling in New Zealand was popularized by the internet, it has a very long history that even predates the internet era. The Gambling Act of 1908 initially restricted betting to racetracks - reflecting the conservative attitudes of the majority of New Zealanders towards gambling at the time. Over the following decades, reforms implemented in the 1970s and 1980s gradually relaxed laws to accommodate lotteries and betting.
The Totalisator Agency Board (TAB) legalized off-course betting on horse racing in 1961, making it a cultural staple. However, gambling remained frowned upon by the general public and TAB had to run its operations discreetly with very minimal signage and limited information for bettors.
Gambling started gaining widespread support when Golden Kiwi, New Zealand’s first regular state-run lottery, was introduced in 1961. The major reason that the Golden Kiwi wasn’t frowned upon by Kiwis was because it directed profits to community causes. Building on the success of lotteries, the government began televising lotto draws in 1987. Lotto became very popular quickly, with 400,000 people watching the weekly draw on TV every Saturday. By the start of the 2000s, 67% of the population were playing 1 .
Casinos arrived later, with Christchurch Casino opening in 1994. This sparked debates over economic benefits versus social risks such as addiction. The Department of Internal Affairs was established to solve this issue and serves as the central regulatory body overseeing licensing, compliance and enforcement to make sure gambling activities are conducted fairly with the most minimal consequences possible.
These regulated yet contentious gambling systems have laid the groundwork for New Zealand’s gradual transition into the digital gambling age, where regulators have faced many new challenges.
The digital disruption of gambling started becoming more pronounced in the 1990s. The easy access to the web and offshore platforms offering poker, pokies and sports betting had a compounding effect and even the limitations of early internet technology was no issue to players. By the early 2000s, millions of players worldwide were gambling on sites hosted in jurisdictions like Malta and Gibraltar, where regulations are less restrictive.
However, New Zealand needs to face weaknesses in the existing regulations. Even though domestic gambling is tightly controlled, the existing regulations do not account for offshore gambling platforms. These platforms started drawing Kiwis attention with their user-friendly interfaces and aggressive marketing.
The Gambling Act 2003 tried to address this problem by consolidating regulations for lotteries, casinos and betting. It explicitly banned “remote interactive gambling”, which is defined as gambling via the internet, phone or other communication devices, unless conducted by authorized entities like the TAB or Lotto NZ 2.
The loophole left by the 2003 legal framework completely curbed local online gambling but left offshore platforms unchecked, which set the stage for many ongoing regulatory debates. The introduction of mobile apps and cryptocurrencies have blurred jurisdictional lines even further.
The introduction of the Gambling Act 2003 was a pivotal moment in New Zealand aimed to control remote interactive gambling. It completely restricted remote interactive gambling to Lotto NZ and TAB, which only offered online lottery and sports betting options. Gambling was restricted to these authorized providers to ensure that profits supported community initiatives and minimized social harm through strict regulatory oversight.
The Act made sure it was illegal to run an unlicensed gambling platform within New Zealand. However, it was met with jurisdictional limits, as New Zealand authorities lacked the power to regulate foreign operators. The Department of Internal Affairs had major issues in monitoring these offshore platforms, which made use of sophisticated marketing to target Kiwis.
Blocking access to these offshore sites is practically impossible as VPNs and mirror websites bypass restrictions. These offshore sites fully exploit all available gaps and even offer bonuses and games unavailable through authorized providers. By 2010, an estimated 10% of New Zealand’s gambling revenue flowed to offshore sites.
The Department of Internal Affairs (DIA) has intensified its efforts to modernize New Zealand’s gambling laws. Consultation began in 2019 and has continued into 2025. The 2019 review exposed the large number of these unregulated offshore gambling sites revealing that Kiwis spent over $180m annually on these gambling sites to avoid local regulatory oversight 3.
Public sentiment regarding this regulatory issue remains divided. Advocacy groups like the Problem Gambling foundation are pushing for robust protections to prevent gambling addiction, while some gamblers are defending their choice and the incentives offered by these offshore casinos. On the other hand, TAB and Lotto NZ are backing reforms to eliminate unfair competition from unregulated gambling sites.
There have been calls for tight restrictions that are similar to Australia's gambling advertising regulations. Many are of the opinion that the current promotions by these offshore sites glamorize gambling and affect vulnerable groups, including minors. However, enforcing ad bans remains tricky as offshore operators often host their campaigns outside of New Zealand’s jurisdiction 4.
New Zealand has a lot to learn from countries like Australia, the UK and Canada in terms of their respective approaches to online gambling regulations. The following are the primary regulations that apply in these regions:
New Zealand can take this opportunity to learn from these jurisdictions by adopting a robust licensing system for offshore operators. They could adopt the UK's licensing model to regulate offshore sites while ensuring that Kiwis are safe from gambling harm while enjoying tax benefits. On the other hand, they could work with Ontario’s framework to allow healthy competition while maintaining complete control. Australia’s regulations can also serve as a guide to limit offshore promotions targeting Kiwis.
Pitfalls of these foreign laws
Successes of these foreign laws
New Zealand’s online gambling market is set for massive growth and is projected to reach $3.1bn NZD by 2029 with a compound annual growth rate of 5.2%. The future surge in mobile gaming dominance is inevitable, while further technological innovations like AI-driven personalization and cryptocurrency payments will enhance user experiences but will further complicate regulations.
These technological advancements will undeniably accelerate the growth of the gambling industry, but blockchain-based betting and the likes remain grey areas in terms of data privacy and underage access. Regulators will need to adapt to new challenges to balance the benefits of new technology with the social responsibility they owe to Kiwis.
We have traced the legislative journey of online gambling all the way from its first inception when betting was still frowned upon during the era of racetracks and lotteries up to the current era of digital gambling, which is receiving widespread acceptance. The Gambling Act 2003 could not account for internet gambling and every reform since then has failed to address the legality of offshore gambling sites.
The 2026 gambling bill is expected to curb offshore gambling completely and prevent gambling revenue from flowing out of the country. Legislators will need to balance innovation with harm prevention when implementing new rules, making sure to avoid overly restrictive policies that will do more harm than good by driving players to unregulated sites.