Times are changing
Gambling regulation in New Zealand is set for a big shake-up – in fact, the wheels are already in motion to change how things work in the country. New Zealanders are prolific gamblers and are particularly fond of the pokies (or slots as they are known elsewhere in the world).
The Department of Internal Affairs is responsible for regulating gambling in the country, with corporate societies licensed to operate physical machines in clubs and commercial venues. While most people play with the hope of winning, a proportion of the money the gamblers lose is distributed to community groups. Hundreds of millions of dollars are distributed by corporate societies to communities every year.
The beloved pokies
Gaming machines have been permitted since 1988, and there are now more than 20,000 terminals across the country. The societies that operate them do not make profits in the traditional sense, and the $300 million earned yearly goes to sporting, health, arts, education, and other good causes. A similar amount flows back into government coffers in the form of taxes and duties. This would seem to be a win/win situation for the government and the community alike; however, it failed to take into account the rising popularity and availability of online gambling opportunities.
The current legal situation
As things stand currently, it is illegal for any online casino operator to be based in New Zealand territory. However, it is not illegal for citizens to access and play at online casinos and sports betting websites. While this was just an anomaly, while internet usage was a minority outlet, increased access speeds and better technology have seen a significant shift to online for all kinds of entertainment and retail services.
The Gambling Act of 2003, which created the New Zealand Gambling Commission, has started to look a little out of date. The act oversees and regulates all forms of gambling, and the Commission’s role is to make sure that the licensed operators comply with the regulations and keep the public protected from potential gambling harms.
The Gambling Act is the cornerstone of the country’s gambling legislation, and it aims to:
- Prevent and minimise harm
- Ensure fairness and integrity
- Regulate online betting to ensure digital sports betting platforms operate to the same standard as land-based ones.
Sports betting and racing
Sports betting that involves horse and greyhound racing is covered by the 2003 Racing Act. The funding management of the New Zealand Racing Board, which oversees the racing industry, is regulated under this act, as is the administration of all racing-related gambling.
Under the Gambling Act, only licensed operators like TAB New Zealand are allowed to offer online sports betting from within the country. Licensed land-based casinos are legal, and there are six in the country, the first of which opened in Christchurch.
A new regulated online casino market
However, the government has recently revealed plans to launch a regulated online casino market. The proposed Online Gambling Bill will see the establishment of up to 15 licensed online casinos by April 2026. The new legislation is set to replace the current Gambling Act.
Announcing the changes, Internal Minister Brook van Velden explained that the legislation’s goal is not to increase the amount of gambling but to allow New Zealanders who wish to play casino games online to do so more safely. Fortunately, sites like casino.org/new-zealand/ already guide players to the best sites, and the law will catch up with the best practices of similar markets.
Player protection
The primary objective is to combat illegal sites and those that are not set up with the players’ best interests at heart. Some offshore operators are nothing more than scam sites, and the plan is to drive customers to reputable sites that promote responsible gambling, are genuine gaming locales, and are not fronts for cybercrime. There is also a desire by the government to prevent valuable revenue from flowing offshore and into private operators’ bank accounts without the authorities having the opportunity to earn a cut in the form of gambling levies.
The bill will introduce a mandatory levy on the operators’ profits, which can be used to help fund problem gambling support and education programs. The new bill will also be used to enforce stricter age verification processes. The aim is to prevent underage individuals from being able to play at online casino sites. To hold a license, the operators will need to be able to demonstrate that they have systems in place to verify customers’ ages and identities before they can make deposits and play online casino games.
Comply or leave
Operators who are granted licenses will find themselves subject to regular inspections and audits to ensure that they are compliant. As with other regulated online markets like those that operate in the UK, Canada and some of the US States, licensees violating regulations will face penalties, which could include fines and even license revocation.
This bill will be a major step towards regulating the online gambling market and protecting consumers from potential gambling harm. As with Australia, online casino gambling is not regulated, which means that the online casinos do not have to implement consumer protection measures. While the reputable ones do, there are significant gaps, which means that vulnerable people can get caught in possibly addictive cycles. While responsible operators understand that their sites are meant to be entertaining and that customers can only keep coming back if they are not exploited, some people are unable to regulate their own behaviour.
Booting out the bad guys
The legislation hopes to prevent unscrupulous operators from preying on iGamers. Some operators make it difficult or almost impossible for customers to withdraw their winnings and have unreliable customer service. By having a limited, licensed market, gamblers will have an authority to back them up should things go wrong. However, the overall aim of a regulated market is to prevent things from going wrong in the first place.
A regulated market should ensure that all permitted online casino operators work within a strict framework. Only those who comply and demonstrate the requisite abilities will be granted licenses in the first place. It will be imperative for operators to act ethically and comply with all the regulations so that a safer and more responsible online gambling environment can be established.
