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New Zealand iGaming Market Overview

The online gambling industry in our country has been growing just as fast as in other parts of the globe. Kiwis that are into online gambling spend millions of NZ dollars in the online industry every year and it is not expected to slow down anytime soon. There’s just one slight difference with most other countries where people tend to wager a lot: the iGaming market is not regulated in NZ.

And hey, it might also take a while before that happens. The New Zealand gambling scene is therefore still very land based oriented and there are now 5 great land based casinos found on both our northern and southern island. Yet, online gambling is expected to gradually take over the market in the coming years. Here are some things that you need to know about online gambling in NZ as it might not be regulated, but it is allowed. Here’s what that means.

New Zealand iGaming Market Overview

All gambling related activities that take place in New Zealand are regulated by the DOIA which stands for the Department of Internal Affairs. Throughout history, different types of games of chance have had different legal statuses in our country. Sports betting was once declared illegal in 1920, and it wasn’t until 1961 when it became officially legal, which also came with the introduction of the Totalizator Agency Board (TAB NZ) which we’ll get back to later on. NZ’s first national lottery, known as “Art Union” was founded in 1933, and New Zealand’s first land based casino opened its doors in Christchurch in 1994. After the casino in Christchurch, 4 other casinos would follow giving Kiwis a total of five venues.

When it comes to the online gambling market, things get a little bit more complicated. A slightly different situation arises in the Gambling Act’s official prohibition of “remote interactive gambling”, which is referred to as “gambling by an individual at a distance by interaction through a communication device”, basically prohibiting online casinos, sportsbooks, and other gambling sites that are accessed through desktop computers and smartphones. However, the law only covers gambling activities offered within the borders of New Zealand, thus, rendering anyone gambling on offshore sites. Counterintuitively, joining foreign online casinos is thus not illegal. The DOIA states the following about this:

“Only the gambling that is conducted in New Zealand is subject to the provisions of the Gambling Act. If any element of the gambling is organised or conducted in, or from New Zealand, it will be caught by the Gambling Act 3”

This basically means it is only illegal for domestic online gambling companies to operate and target Kiwis. For this same reason, New Zealand gambling enthusiasts can place their bets with offshore casino sites. As offshore operators understand this as well, they have massively turned their attention to NZ in recent years. This, coupled with the fact that winnings are not taxed, makes it possible for both casinos and players to get the most out of the situation. This is why there are many promos and bonuses available in NZ.

NZ iGaming Market in Numbers

In 2013, Kiwis spent over NZ$ 2.2 billion on pokie machines, lotteries, sports betting, and at land based casinos. Over 520,000 (13%) New Zealand adults (aged 15 years and older) took part in online gambling in 2018. In that same year, 1 in 5 (20%) players had gambled online in the previous 12 months. Despite some underage players being able to make online wagers as well, gambling is only allowed for players that are 18 years of age or older. This also holds true for offshore sites that tend to apply this age internationally as a minimum requirement. At current, it is estimated that 80% of all New Zealanders gamble in some form or another, with many of these players participating in lottery games only.

During the global corona pandemic, New Zealanders reportedly started to spend more money on betting entertainment than ever before. Per figures from the country’s gambling regulator, the Department of Internal Affairs, on average, New Zealanders spent NZ$ 572 on gambling fun in 2020, which was a record high number. Similar to Australia, the land based gambling community in New Zealand is still a bigger industry than the online one.

According to figures released by the Department of Internal Affairs, spending on all forms of gambling in NZ$ hit a total of 2.62 billion in 2020, up almost 17 percent from the prior year. Spendings on pokie machines in pubs and clubs went up to $987 million, from $802 million a year earlier, jumping 23%. Money spent in brick and mortar casinos rose almost 11 percent, whilst the lotteries commission reported a revenue of $694 million, up from $631 million. The NZ Racing Board saw revenue go up to $385 million from $315 million.

Official Licensing Body

The legal body regulating gambling in New Zealand is the Department of Internal Affairs. This is also the regulatory body for all games of chance in the country, including land based gambling products. There is no regulating body for online licences and it is not expected that a gambling authority will be installed in the near future. Some gambling products are offered by Tab NZ. This is the only legal online operator in the country.

Tab NZ

TAB NZ is a statutory body that was established through the Racing Industry Act 2020 which is a separate law, specifically looking into gambling on sports events. Since its foundation in 2020, TAB NZ (often shortened to TAB) has provided a wide array of betting services and products for both brick and mortar venues to New Zealanders. The gambling products offered by TAB limit to sports betting including rugby, horse racing, and tennis.

Revenues made by Tab are used to support national sports events with more than 170m NZD invested in projects around the country every year. TAB NZ has land based betting stores in different cities across the country like Christchurch, Auckland, and Hamilton. The Racing Industry Act 2020 also confirmed that TAB will be allowed to create new betting products. Whether TAB will turn its attention to other online gambling products is unknown, but is a possible scenario. In the meantime, online betting in NZ will continue to grow.

References

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