Inside New Zealand’s Online Casino Regulation

Online casinos generate hundreds of billions of dollars in revenue annually around the globe. Yet here in New Zealand, the revenues are relatively low, yet hundreds of thousands, if not millions, spin the virtual roulette wheels every year.

Why?

How?

What?

Read on to find out everything you need to know about New Zealand’s online casino regulation.

The Gambling Act 2003. Under New Zealand law, all gambling activities not authorised under the aforementioned act are illegal. Due to being written 21 years ago, the act didn’t have much in the way of provision for the online sector. 

As such, the only NZ companies legally allowed to offer their services to domestic players are Lotto NZ and the TAB.

But why...? But why have other sites like JackpotCity got such a glowing review on the Onlinecasino.co.nz site, a site aimed at readers and players from New Zealand? 

Caveats. The Gambling Act 2003 only applies to domestic companies and not overseas ones, so whilst it’s illegal for New Zealand-based companies not authorised by the act to provide online casino services, there’s nothing to stop overseas companies from doing the same.

Reviews

The current regulations are under review by the New Zealand government. It’s hoped that at the end of this review process, regulations will fall in line with those in other countries such as the United Kingdom. There, the online industry is completely legal, but it is heavily regulated by the Gambling Commission. This regulatory body ensures that all British gambling companies operate to a certain standard of conduct that safeguards customers.

(The current online gambling legislation is under review by the government.)

Reviews Part II

The government review is important for the future, but for the present reviews have a big part to play for individuals. With no regulatory body as such to enforce codes of conduct and standard practices amongst overseas providers, New Zealand gamers are left hoping that the provider they play with is a responsible one.

This makes customer reviews and review sites so important. Before depositing your hard-earned money with an overseas online casino company, spend a little time doing your research to see if they can be trusted with that money.

From Reviews to Revenues

The Gambling Commission in the United Kingdom is partly funded by the industry that it regulates through taxes. Because the online gambling industry is a financial behemoth, this makes the Gambling Commission an incredibly well-funded regulatory body.

We could have our own well-funded regulatory body here in New Zealand if we weren’t missing out on an estimated $500 million a year in online gambling revenues, which are currently being spent with overseas providers.

That’s not to mention the other public benefits, beyond establishing a Gambling Commission that could be reaped through the taxation of hundreds of millions of dollars that are already being spent by Kiwi gamers anyway.

The Future: Following the United States

Regulation and greater freedoms are coming. That’s almost guaranteed. New Zealand cannot continue to let hundreds of millions of dollars leave the country every year. Nor can it turn back the clock and totally ban online gambling, so it is looking increasingly likely that the government is going to follow the American model.

In the USA, the Supreme Court took the decision to strike down PASPA, an act which outlawed online gambling and sports betting. This started a drip process whereby individual states slowly legalised online gambling and sports betting.

(This could pave the way for sports betting legalisation, allowing Kiwis to bet on cricket, rugby and soccer.)

Obviously, here in New Zealand we aren’t going to see that done on a state by state basis, but what we are likely to see is a slow drip process that first sees online casinos licensed and regulated, followed by the same for sports betting.

Once again, the tide cannot be turned. Kiwis are too used to being able to spin the online roulette wheels and wager on the English Premier League from their mobile phones. The government knows this and will have to follow the path taken by the USA.

Final Thoughts

The world is constantly changing so it’s no criticism of the 2003 Gambling Act for not making provisions for online and mobile gambling. Back then lawmakers could not have envisioned that the world would look how it does today.

The next piece of legislation has to be suited to the modern world, but also have enough wiggle room in it that we’re not left in a similar situation in two decades time.