New Zealand iGaming bill advances with 2027 implementation track
New Zealand’s plan to introduce licensed online casino gambling is now tracking toward a 2027 start, with government papers indicating that the community-funding guarantee and consultation outcomes have pushed the regulatory timeline beyond the original July 2026 target.
The Online Casino Gambling Bill continues to move through New Zealand’s legislative process, with recent documents showing that the community-funding provision—set to take effect on January 1, 2027—aligns with a later-than-planned launch for regulated iGaming. The government initially aimed to establish the market in mid-2026, but consultation, legal reviews and the design of the funding mechanism have extended the timeline.
Under the proposal, up to 15 operators may receive licenses to offer online casino services. Licensees would be required to pay GST, a 12% offshore gambling duty and a 1.24% levy on profits to fund gambling harm-prevention and treatment programs. The bill also calls for strict advertising controls, including a ban on targeting minors and mandatory age-verification tools.
Community-funding requirement
A 4% GGR community return is central to the bill. The requirement was developed after widespread public concern that online gambling could reduce spending in venues with gaming machines, which currently support sports clubs, cultural groups, charities and Special Olympics participation.
During consultation, more than 5,000 submissions were received, and nearly 4,000 raised concerns about the potential decline of community funding tied to pokie revenue. The government response includes a dedicated allocation for community groups sourced from online casino operators.
Cabinet papers estimate that the 4% GGR requirement could generate between NZ$10 million (US$5.8 million) and NZ$20 million (US$11.6 million) during the first year of operation. The Lottery Grants Board is under consideration to manage distribution of these funds.
Brooke van Velden previously stated that public submissions directly informed the change. “I have listened… we are delivering what communities want,” she said.
Policy focus on harm reduction
While community funding received significant attention during consultation, officials continue to describe harm reduction as the primary policy objective. The government maintains that a regulated market would provide clearer safeguards than offshore sites currently accessed by New Zealanders.
Concerns documented in the consultation include normalisation of online gambling, increased exposure to advertising, easier access through digital platforms and risks for younger users. The bill’s proposed levy, tax obligations and advertising rules form part of the harm-minimisation package.
Community organisations have shown mixed responses to the proposal. Many have supported the idea of a defined online revenue stream for local groups. At the same time, more than 50 sports organisations remain concerned about the potential effect on their existing relationship with gaming-machine funding.
To monitor market outcomes, the government plans a formal review two years after the online casino sector becomes operational. The assessment would examine the effect on traditional gaming revenues and determine whether community returns meet expectations.
The bill is set for further parliamentary scrutiny before it can progress to its final reading.
https://www.yogonet.com/international/news/2025/12/12/116733-new-zealand-igaming-bill-advances-with-2027-implementation-track