The regulated iGaming market in New Zealand has been in the making for some time, with mid-2026 expected as the launch date. Recent developments in the government’s efforts to implement the Online Casino Gambling Bill have pushed that date by a few months.
As things stand, the first iGaming licenses including those that would authorize online poker in New Zealand are set to be issued on December 1, 2026, while the first sites may launch their operations over the first quarter of 2027.
Recent Cabinet papers related to the new gambling bill have revealed the government’s intent to introduce a 4% community-funding provision, which would help a variety of sports organizations and other community initiatives stay afloat after potentially losing revenue generated from physical gaming machines, also known as pokies.
The community funding provision may have pushed the launch date by a few months, but it is likely to create a more sustainable iGaming market that benefits everyone involved.
What’s in the New Zealand iGaming Bill?
Known as the Online Casino Gambling Bill, New Zealand’s first official iGaming bill aims to create a comprehensive government-controlled iGaming market in the country.
As is usually the case with such laws, the Bill will aim at diminishing the threat of problem gambling, limiting player exposure to offshore gambling sites, and distributing the proceeds of iGaming to various programs beneficial to the community.
According to New Zealand’s Internal Affairs Minister Brooke van Valden, the government has listened carefully to a series of concerns raised around problem gambling, and is dedicated to “reducing gambling harm first and foremost.”
Once enacted, the Bill will bring online gambling under government control for the first time in New Zealand’s history, with a total of 15 iGaming licenses up for grabs.
The iGaming operators will pay the goods and services tax, along with a 12% international gambling duty, a 1.24% levy to fund initiatives against gambling harm, and the 4% community funding contribution.
These relatively significant taxes will help the government fund a series of community projects, while players will get exposure to more regulated and safer gaming sites.
The Bill also discusses gambling advertisements and sets clear guardrails and limitations, primarily aimed at protecting minors from gambling harm.
Further parliamentary deliberation will see the Bill fine-tuned before the final reading and voting stages, which are expected to come in the second half of 2026.
Sports Organizations Insisted on a Community Funding Provision
The new community funding provision that’s being added to the Online Casino Gambling Bill comes as a result of consultations with over 5,000 entities, the vast majority of which were concerned about the impact of online gambling on a variety of community initiatives.
In this particular case, the concerns were mostly about sports organizations and other similar venues potentially losing significant income, which is currently being generated from physical gaming machines in those venues, known as pokies.
To offset the loss of revenue from pokies, the organizations have asked the government to introduce a community funding provision into the Bill, and the government has responded in kind.
The new version of the bill will include a community funding provision, which will compel all licensed operators to pay 4% of their GGR toward community funding to be distributed to the organizations that may be affected by the Bill’s passing.
The government also has plans to launch a formal review of the online casino market after two years of it being operational, which would paint a clearer picture of online gambling’s impact on various other sectors.
